What Is Resource Augmentation?

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Resource augmentation is an excellent solution to manpower needs
Resource augmentation is an excellent solution to manpower needs (Image: office desk image by Photosani from Fotolia.com)

To remain financially competitive, many companies choose to augment their resources rather than maintain a constant headcount. Hiring employees for finite amounts of time gives employers flexibility in their project scopes. They can hire an employee through resource augmentation without making a long-term commitment. For employees, this flexibility is often an ideal situation, giving them opportunity to gain experience without an extended obligation.

Resource Augmentation

Resource augmentation is also known as contracting. Companies hire employees on a contract basis, based on the length of the project on which help is needed. This is ideal when a company does not wish to make a permanent commitment to hiring additional personnel, but needs additional help or expertise.. .

Employment Agencies

Employment agencies specializing in contract workers take the burden off the company looking for additional resources. The time needed to screen candidates, organize interviews and conduct the entire interview process is eliminated. Companies looking to augment their resources simply pick up the phone and request additional support from the employment agency. The employment agency conducts all interviews, background checks, reference checks and any testing required to ascertain the candidate's suitability for the position in question.

Benefit to Companies

Augmenting resources rather than hiring permanently also saves companies costs. In general, contract workers do not receive any benefits from the company to which they are providing their services. Companies do not have to pay medical benefits, retirement savings contributions, pension costs or vacation pay. Although salary usually constitutes the biggest employee payout, the cost of providing benefits to employees is often substantial.

Benefit to Employees

Despite the lack of benefits or permanency, many people find that resource augmentation positions are ideal. Because the employment venue is constantly changing, the opportunity for gaining valuable, varied experience is great. People who are new to the job market often gain needed experience through contract work. Others are simply not interested in committing to one employer, so resource augmentation work is ideal. People can choose when they want to work, and for what time period.

Staffing Solution

If a company is looking to supplement its manpower, resource augmentation is an ideal solution. Both employer and employee reap the benefits of a common solution to staffing needs.

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