Let's talk +31 20 715 53 84 Contact Us Career

A Quick Guide to Hiring Models

Figuring out the whole hiring scene can be a bit overwhelming, right? Don't worry, we've got your back. 
AS_RZ_BIG_154 (1) AS_KRK_164 (1)
f8b44c5a-7de7-4058-8c1f-b5f7a17fc8f2 (1) (1)

What kinds of hiring models are there?

Here's a snapshot of the most popular hiring models to help you find the perfect fit for your business needs:

We'll compare Body Leasing, Freelancing, InHouse teams and subjectively the best - nearshore team extension or augmentation.

 

Quick jump to:

When to use Body leasing?
When to use Freelancing?
When to use Team Extension?
When to use Inhouse Hiring?
How to navigate hiring models?
Cultural fit vs Team Extension
Team Extension for scaling up & down
Frequently Asked Questions

 

as-body-leasing

 

Body leasing:

Is a quick and simple way to get a whole team of experts added to your team. They are usually near or offshore and work best for short term tasks or when there are problems with workload fluctuations. Hiring costs are moderate and due to the short commitment are often excluded from team integrations.

 

as-freelancing

 

Freelancing:

This is an easy way to get a specialized expert to compliment your team. Freelancers are those that have a gig style method of working, jumping from job to job. Usually they arn't interested in long term commitments, just to finish the job at hand. Usually Freelancers are hard to control and define their working hours and availability.

as-scaling-system

 

Team Extension (or our Sustainable Scaling System):

If you are looking to grow your business, expand your teams with long term partners that are a cultural fit, them team augmentation is the best route. You don't need an HR team, we can deliver teams to your project, integrate with your existing teams and build meaningful partnerships. It is proven to be one of the most effective forms of software developer hiring.

as-inhouse-teams

 

The Classic - Inhouse teams:

If you need full control over your team, have them all working under one roof, truly integrated and working together than nothing beats a good local hire. Usually expert talent is hard to source locally. Recruitment agencies charge a large sum for finding talent and after that much time you could end up with a mishire.

Navigating hiring models

With so many choices, how do you pick the best fit for your business? If the table above left you scratching your head, let's dive deeper into the details below.

1. Team Augmentation: This model adds extra firepower to your existing team. Allows businesses to acquire specialized skills without being tied down in the long run. It's particularly beneficial for startups, growing businesses, or those venturing into new technological areas. However, one must be cautious as there can be challenges in communication and integrating these new experts seamlessly with the existing team.

2. Body Leasing (Staff Augmentation): Body Leasing, often referred to as Staff Augmentation, can be visualized as a short-term rental of professional expertise. This approach offers a swift solution for those in need of temporary staffing or for short-term projects. The standout feature is the rapidity with which talent can be onboarded. But on the flip side, businesses might have to compromise on some control over these professionals, and ensuring they gel well with the existing team can pose its own set of challenges


3. Freelancers: The gig economy has given rise to a vast pool of freelancers possessing a wide range of skills. Hiring freelancers is cost-effective and offers immense flexibility. They are perfect for businesses with specific short-term tasks or those looking to complement their team's skills without long-term commitments. The downside? There might be issues with availability, potential quality variance, and a lack of long-term commitment.

4. In-House Hiring: The traditional model of in-house hiring continues to be a top choice for businesses that value stability. This approach provides businesses with maximum control, unwavering loyalty, and a team that resonates with the company's values and culture. However, it tends to be more expensive, can be time-consuming to find the perfect fit, and adjusting the team size, whether scaling up or down, can be a lengthy and challenging process.

frame_316 (1)
It's worth considering the cost of hires. Inhouse Teams usually cost a lot to get started, and also could mean severance pay. Offshoring to countries in Asia is usually very cheap. But the time and culture difference makes integration very hard.

Team Augmentation vs. Body Leasing

If you're still confused about the difference between Team Augmentation and Body Leasing, you're not alone. While both strategies are designed to address skill gaps without the commitment of permanent hires, they differ in their approach and depth of integration.

 

Team Augmentation focuses on seamlessly integrating external experts into your existing team, ensuring they become integral to daily operations.

 

On the other hand, Body Leasing is akin to temporarily "renting" professionals to handle particular tasks or projects. The choice between the two often hinges on the desired level of integration and the nature of the project at hand.

frame_315 (1)
If having a good cultural fit in your teams is a must then you can consider Inhouse Hiring or Team Extension via Amsterdam Standard.

Choosing the right hiring model for success

Every hiring model has pros and cons, making the decision-making process tricky. But remember, the right partner can help mitigate, or even eliminate, some of these cons.

 

For instance, if you're a SaaS company founder located in Western Europe finding it tough to scale, the right Team Augmentation partner can be a game-changer. From our extensive experience, we've observed:

Vector (2)

Clear Communication and Coordination

A robust system emphasising clear communication channels and effective project management can make all the difference. It's about understanding the intricacies of augmented teams and ensuring seamless interactions.
Rows

Time Zone Synchronization

Having developers based in strategic locations, like Poland, can offer real-time synchronisation, which significantly reduces communication barriers and ensures efficient project execution.
Plant

Integration with the Existing Team

Years of partnership experience help craft a framework for seamless integration. By defining roles, responsibilities, and communication channels, augmented professionals can seamlessly blend with existing teams. Tailored growth plans also ensure alignment with business objectives.
Vector

Potential Cultural Differences

Developers from regions like Poland can bridge any cultural gaps that might arise with European clients. With world-class universities known for producing top-ranking coders, such regions bring both technical expertise and cultural synergy to the table.
frame_317 (1)
If you have short tasks or side projects, hiring a freelancer or a team via body leasing could be your best option. If you need long term support and a partnership you are better off with Inhouse Hires or Nearshore Team Augmentation.

While this summary offers a snapshot, diving deep into the nuances of each model will guide you to an informed decision.

 

When you choose the right partner, you're not just hiring external professionals; you're partnering with a team that understands the intricacies of the model and has the expertise to turn potential challenges into advantages.

 

With Amsterdam Standard’s team augmentation, you essentially get an all-in-one package.

Ready to take the next step?

Tell us your needs, and let us be the missing piece in your growth puzzle, propelling your business to success.
 

Hi! I’m Leo.
I’ll gladly help you figure out how to further expand your business with our team.

Get in touch & lets get to know each other.

 

image

Leopold van Oosten
Founder

This is usually a nearshore hiring model, where you can easily find software developers or other experts to extend your current team(s). A single developer or a team of devs joins your company all at once and starts work. You cut hiring and HR costs and usually these teams are ready to onboard from day 1.
No. At least not at Amsterdam Standard. We always head towards long-term commitments with our clients. We value partnerships and nearshore highly skilled, Polish developers to your team. They will feel like inhouse hires but without the pains of inhouse hiring.

Offshore usually means developers from Asia. They are cheaper and abundant. But there is a significant cultural and time difference which needs to be factored in during development.

Nearshore usually means developers from Eastern Europe, which according to Hackerrank are of best quality. The cultural difference is minimal and countries like Poland, Romania and Greece are in the same timezone as for example the Netherlands.

Ultimately, the choice between nearshore and offshore development depends on your specific project requirements, budget constraints, and preferences. It's essential to evaluate the pros and cons of each option carefully and consider factors such as communication, collaboration, cost, and talent availability before making a decision.

For businesses with a specific and short term task, yes! A freelance model would be a best fit. There is a wide talent pool of gig developers that commit to a short-term project and move on.

But projects tend to grow, get more complicated and require a solid team to be future-proof. This is when you switch from an Agency or Freelance model to Team Extension (Augmentation). Team Extension is similar to freelance, you don't worry about HR and buying equipment, but you get a set of skilled experts that want to build a long term partnership with your company.

This depends on many factors. If we take only cost per effective hour then nearshoring, or team augmentation, or team extension is more cost effective.

Use this cost calculator to see if inhouse hiring is best for you

But there are some situations where hiring inhouse is cheaper. You can also look into offshore hiring, which is usually the cheapest, but you have to factor in time zone differences and cultural fit.

The best moment for team extension is when the startup phase is shifting towards scale-up phase. When you need a boost of quality developers that will clean up startup mistakes and lay the foundations for sustainable scaling.

Or if you have a side project, and don't want to extract your current developers, hire an entire team and test your new ideas.

Pros: You have greater control over the team. They are all in one place, committed to the project. You can invest in your team to develop their skills.

Cons: Hiring costs, equipment costs. Long hiring processes, HR internally or using an HR agency. Scaling takes a lot longer, due to missing talent.

Pros: You can get qualified developers from day 1. They are cost effective and you have freedom to scale up or down. Hiring is much faster than for inhouse and you don't pay hiring fees.

Cons: Usually nearshore which can mean small cultural or time differences. Communication and integration is a must to keep teams aligned and happy.

Team extension is when you need long term partners to continue growing your startup or scale up. You don't worry about HR or equipment and office space. You get a team of developers ready to work on your project.

Body leasing is for temporary staffing needs. Usually for short term side projects or when facing work overloads. If you don't need commitment this is the best option. Once the task is done you discontinue leasing.
Written by: Natalia, on October 4, 2023
Tags:
Teams
Learning