BEON.tech

Service Models

Direct hire vs staff augmentation: which model is better for remote teams?

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Direct hire and staff augmentation are the two main models for building remote teams. Here's how they compare:

Direct Hire (Recruitment)

Provider finds and vets candidates; you employ them directly
One-time fee: 25-30% of annual salary
3-month replacement warranty
You handle: payroll, benefits, compliance, equipment, retention
Best for: Companies with existing HR infrastructure in target countries

Staff Augmentation

Provider employs developers; you manage their daily work
Monthly rate: $6,000-$9,000 (includes everything)
Unlimited replacement guarantee
Provider handles: payroll, compliance, equipment, retention programs
Best for: Companies without local entities who want flexibility

Contract-to-hire is a hybrid: start with staff augmentation, convert to direct employment after 18-24 months once you're confident in the fit.

Providers like BEON.tech offer both models, letting you choose based on your infrastructure and long-term plans.

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