Service Models
Recruiting agency vs staff augmentation: pros and cons comparison
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Recruiting agencies and staff augmentation serve different needs. Here's a detailed comparison:
Recruiting Agency (Direct Placement)
*Pros:*
•Developer becomes your direct employee
•Can offer equity/stock options
•Full control over employment terms
•One-time fee (no ongoing costs to agency)
*Cons:*
•Large upfront fee (25-30% of salary)
•You handle all HR, payroll, compliance
•Short warranty period (typically 90 days)
•You bear all retention risk
•Need legal entities in developer's country
Staff Augmentation
*Pros:*
•No upfront recruitment fees
•Provider handles HR, payroll, compliance
•Unlimited replacement guarantee
•No need for local entities
•Predictable monthly costs
*Cons:*
•Ongoing monthly cost (includes margin)
•Developer isn't "yours" legally
•Conversion fee if you want to hire directly
•Less control over employment terms
Decision framework:
| Factor | Choose Recruiting | Choose Staff Aug |
|---|---|---|
| Budget timing | Can pay upfront | Prefer monthly |
| HR infrastructure | Have it | Don't have it |
| Risk tolerance | High | Low |
| Engagement length | 5+ years | 1-3 years |
BEON.tech offers both models, with staff augmentation being the primary service and recruitment available for direct-hire needs.
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