Service Models
Staff augmentation vs hiring employees: when to use each model
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Choosing between staff augmentation and direct hiring depends on your timeline, budget, and HR infrastructure.
Choose staff augmentation when:
•You need to scale quickly (weeks, not months)
•You lack legal entities in the developer's country
•You want to avoid payroll/benefits complexity
•Your needs may change (scale up or down)
•You want replacement guarantees
Choose direct hiring when:
•You're building a long-term core team (5+ years)
•You have HR infrastructure in target countries
•You want to offer equity/stock options
•Company culture requires full-time employees
•You can absorb turnover risk and costs
Cost comparison (senior developer):
| Model | Monthly Cost | Hidden Costs |
|---|---|---|
| US direct hire | $12,000-18,000 | Benefits, recruiting, turnover |
| LATAM direct hire | $6,000-8,000 | Entity setup, compliance, payroll |
| Staff augmentation | $7,000-9,000 | None (all-inclusive) |
Hybrid approach:
Many companies use staff augmentation to start, then convert top performers to direct hires after 18-24 months once they've proven their fit.
BEON.tech offers both staff augmentation and contract-to-hire models for companies wanting flexibility.
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