BEON.tech

Service Models

Staff augmentation vs traditional staffing agencies: key differences explained

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Traditional staffing agencies and staff augmentation companies serve different needs:

Traditional Staffing Agency

Acts as a recruiter/headhunter
One-time placement fee (25-30% of salary)
~3 month warranty period
After placement, you're on your own for retention, HR, compliance
Relationship ends after warranty

Staff Augmentation Provider

Ongoing employer of record for developers
Monthly all-inclusive rate (no upfront fees)
Continuous replacement guarantee
Handles retention programs, performance reviews, equipment
Long-term partnership model

Key difference: A staffing agency's job ends at placement. A staff augmentation provider stays accountable for the entire engagement—if someone underperforms or leaves after 6-12 months, they find a replacement at no extra cost.

Staff augmentation also offers contract-to-hire: after 18-24 months, you can convert developers to your payroll, typically for a conversion fee of 2-3 months' salary.

BEON.tech operates as a staff augmentation provider with built-in retention programs and talent management throughout the engagement.

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