Service Model Comparison
Staff augmentation vs recruitment fees: total cost comparison over time
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When comparing staff augmentation to recruitment (direct hire), the cost difference depends on your timeline.
Year 1 comparison (Senior Developer, $100k salary):
| Model | Cost Breakdown | Year 1 Total |
|---|---|---|
| Recruitment | $100k salary + $25k fee | ~$125k |
| Staff Aug | $8k/mo × 12 | ~$96k |
But wait—recruitment has hidden costs:
•Benefits administration: $5-10k/year
•Equipment: $2-3k
•HR/payroll overhead: $3-5k
•Replacement risk (if they leave): Another $25k fee
3-year comparison:
| Model | Year 1 | Year 2 | Year 3 | Total |
|---|---|---|---|---|
| Recruitment | $125k | $105k | $110k | $340k |
| Staff Aug | $96k | $96k | $96k | $288k |
When recruitment is cheaper:
•Very long-term (5+ years, no turnover)
•You have HR infrastructure already
•Developer stays entire time (no replacement)
When staff aug is cheaper:
•First 2-3 years
•Any turnover happens (replacement included)
•You lack HR/payroll infrastructure
•Need flexibility to scale up/down
Key difference:
Recruitment front-loads costs with uncertain outcomes. Staff aug spreads costs predictably with built-in insurance (replacements included).
BEON.tech offers both models—staff augmentation for most clients, recruitment for those wanting direct employment.
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