Service Model Comparison
Why companies prefer staff augmentation over recruitment for remote hiring
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Most companies choose staff augmentation over pure recruitment for remote hires. Here's why:
Risk reduction:
| Risk | Recruitment | Staff Aug |
|---|---|---|
| Bad hire | You're stuck (90-day warranty) | Replace anytime |
| Developer quits | Pay another fee | Replacement included |
| Performance issues | Your problem | Provider helps |
Reduced workload:
•No international payroll setup
•No benefits administration
•No equipment procurement
•No compliance management
•No retention programs to build
Financial predictability:
| Model | Year 1 | If Developer Leaves |
|---|---|---|
| Recruitment | Salary + 25% fee | Another 25% fee |
| Staff Aug | Monthly rate | Same rate (replacement) |
Why retention matters:
Remote workers often leave in first 12-24 months due to:
•Onboarding issues
•Expectation mismatches
•Career growth concerns
•Better offers
Staff aug providers actively manage these risks. Recruiters don't.
When recruitment makes sense:
•Very long-term core team (5+ years)
•Need to offer equity immediately
•Have strong HR infrastructure
•Low-risk, senior hires
The numbers:
~70-80% of companies hiring remote LATAM talent choose staff augmentation over recruitment for these reasons.
BEON.tech offers both models but recommends staff augmentation for most clients due to lower risk and ongoing support.
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