In countries like Spain, the hiring of personnel is regulated by a series of labor laws that establish the rights and obligations of employers and employees. In the event that a company’s turnover decreases unexpectedly, the company may choose to reduce its workforce through layoffs. However, dismissal in Spain is an expensive process and is regulated by labor laws that protect employees. Therefore, it is important for companies to be aware of the risks and take preventive measures to minimize these risks. One of the preventive measures that companies can adopt is the hiring of personnel through the modality of “staff augmentation”. This modality implies the hiring of external personnel to cover specific needs of the company, instead of hiring personnel permanently. In this way, the company can reduce its staff in the event of a decrease in billing without incurring dismissal costs. However, it is important that the company take into account the occupational risks associated with the hiring of external personnel and adopt measures to minimize these risks.

What are the factors that must be taken into account to determine the optimal percentage of Staff Augmentation in an IT department?

Determining the optimal staff augmentation percentage for an IT department requires careful consideration of several factors. Here are some of the factors to consider:

  1. Business Needs: The percentage of staff increase needed will depend on the specific needs of the business. For example, if the company experiences fluctuations in the demand for its services, it may need to hire more staff through Staff Augmentation to meet the demand.
  2. Cost: Adding staff can be more expensive than hiring permanent employees if not done with the right companies, so it’s important to consider the cost implications of this approach. The company must weigh the cost of increasing staff against the cost of hiring permanent employees and determine which approach is more cost effective. At Your Team we focus on working with companies that want to save at least 30% compared to other solutions.
  3. Skills and experience: Staff augmentation can be a good way to bring in specialized skills and experience that the company may not have in-house. The company should assess the skills and experience of current staff and determine what areas may need to be supplemented through increased staffing.
  4. Flexibility: Increasing staff can provide greater flexibility than hiring permanent employees. The company can hire staff for specific projects or time periods and then release them when the work is complete. This can be especially helpful if the business experiences fluctuations in demand.
  5. Risk management: Increased staffing can help mitigate the risks associated with a sudden decrease in demand for the company’s services. By hiring staff through staff augmentation, the company can reduce its permanent workforce without incurring the costs associated with layoffs.
  6. Legal Considerations: The company should be aware of the legal considerations associated with increasing staff, such as compliance with employment laws and regulations. The company must ensure that it follows all relevant laws and regulations when hiring staff through staff augmentation.

In conclusion, determining the optimal percentage increase in headcount for an IT company requires careful consideration of several factors, including business needs, cost, skills and experience, flexibility, risk management, and legal considerations.

The percentage of necessary personnel increase will depend on the specific needs of the company and should be evaluated on a case-by-case basis; however, we consider that the percentage should be equal to the highest risk that can be assumed, if there is a risk of not collecting or losing 30% of your invoicing, contract in such a way that in the event of an unfavorable situation, dismissing quickly does not cost you money in proportion to your maximum assumable risk.

In addition to losing turnover, if you lose cash in layoffs, you can lead your company to a situation of insolvency that forces you to declare bankruptcy.

Talk to us to keep your risks at bay.