Clients often approach us with urgent IT development needs and staffing shortages. Common requests include: “We needed it yesterday; deadlines are tight, and we don’t have enough people to complete the tasks. The client is already waiting for the launch,” or “The result has to be like this, but we don’t know how to make it happen.”
Tight deadlines and resource shortages are not new to us. Many cases share similarities, and we are always eager to leverage our expertise to assist. We’ve previously shared our experiences with developing ready-made solutions and technical details in our blog, such as our experience with BBG through Employer of Record services.
When it comes to hiring, we support our clients’ desire to break down geographical, cultural, or social barriers. In this material, we will explore a case where we helped our clients build a remote team using the PEO (Professional Employer Organization) model and how this situation led them to recognize the need for internal reforms.
Good Ideas Strike at Once – No Time to Lose
Let’s delve into the context. Imagine a large tech enterprise with over 2,000 employees developing products for internal use, as well as mobile and web applications and e-commerce platforms for clients. The company regularly hires new employees exclusively through its internal HR department.
Problem Description
Our client was in the process of developing an innovative solution that was not yet available on the market. The processes were running smoothly, with the usual challenges. However, as often happens in high-tech projects, they encountered issues with a shortage of qualified specialists, specifically in micro services, big data, and cloud technologies. Senior candidates turned out not to be as senior as expected, and finding people with niche experience proved difficult. Additionally, integrating new hires into existing teams under tight deadlines slowed down development processes and overall team productivity.
Eventually, while the company was preparing the product for launch and simultaneously searching for specialists, one morning, the product was already on the market – but launched by competitors.
Solutions Implemented and Their Results
This was a shock for everyone involved in the project. Having invested a significant amount of money, the company decided to revamp its recruiting scheme. By studying competitors’ experiences and global practices, they considered different solutions. Our client decided to explore the international hiring market to access a broader talent pool, including professionals from both other states and other countries.
At the outset, to expedite the hiring process, the decision was made to engage freelance recruiters for less critical projects. This approach appeared to be the fastest and most suitable option, and it is familiar to many. Freelance recruiters were instrumental in urgently filling necessary positions. Initially, this strategy proved effective, as it allowed for the acquisition of qualified professionals with competitive offers who were able to fully address the required tasks. However, in the long term, a challenge emerged: this approach turned out to be significantly costly for larger projects.
Our client was seeking a team of 12 specialists exclusively for a new 18-month project. Freelance recruiters identified candidates from neighboring states and provided the following estimates: $6,500 (average monthly salary per person) x 12 employees x 18 months = $1,404,000. Additionally, since each freelance recruiter charges an extra 100% of the salary of each hired specialist, this amounts to an additional $78,000 in commissions. This does not include severance pay at the end of the project, which totals approximately $30,000 for all 12 employees. After calculating the projected expenses for this project, our client decided to explore alternative solutions instead of using freelance recruiters, considering options that would be more suitable for long-term projects.
How and Why Our Client Turned to GEOR
The Director of Talent Management in the company, besides transforming the hiring strategy, given the context and the highly competitive market, sought more efficient solutions for attracting and retaining talent. Hence, he decided to test the waters with an international agency specializing in IT recruitment. The main tasks for the agency were:
- Finding and hiring top specialists regardless of their location, increasing the acceptance rate.
- Relieving the internal HR department by delegating all necessary documentation for working with foreign employees.
- Providing support for integrating new hires into international teams.
The goal was to speed up product launches while maintaining competitiveness despite increasing project volumes and tight deadlines.
24 hours to receive the first ideal candidate resume → 1 week to onboard them → high-quality selection with an acceptance rate of ≈ 95%
Our offer aligned perfectly with Company X’s needs, and we began developing the steps for our future collaboration.
Steps Taken with GEOR
Step #1 Analyzing Technical Requirements and Company X’s Staffing Needs
We began by closely examining the technical requirements and staffing needs essential for timely project launches at Company X. This involved identifying key skills and qualifications required for the roles and uncovering potential issues in their existing hiring process. We pinpointed bottlenecks and anticipated challenges to better prepare for them.
Step #2 Developing and Aligning a New Recruitment Strategy
Following our analysis, we leveraged our extensive database of over 40,000 vetted IT specialists to meet Company X’s needs. Our proprietary online interviewing software automated the screening process, saving hundreds of hours of routine work and streamlining approvals.
Should any hired specialist prove unsuitable during the probation period, we committed to replacing them within 10–20 days to ensure minimal disruption.
We also worked closely with the compliance team to integrate necessary requirements into the hiring process, aiming to avoid delays like those previously experienced by the client.
Step #3 Implementing Tools to Unburden the Internal HR Department
To alleviate the burden on Company X’s internal HR department, we introduced several tools designed for process optimization:
- A time and productivity tracking tool to ensure tasks are completed on schedule.
- Software for developing, implementing, and tracking benefits and compensation, ensuring adherence to company policies.
- Our ERP platform, which organizes employee data and provides easy admin access.
GEOR uses its own ERP platform, where clients get easy admin access to all their employees and contractors, and GEOR experts oversee adaptation, invoicing, payroll, and tax calculations on a universal talent management platform.
Step #4 Providing Support to Company X
We provided ongoing support for the remote management of employees, vendors, and contractors. Our team was available 24/7 to address any personnel-related questions or issues, a crucial element during the initial phase of our partnership.
Additionally, we kept Company X informed about the status of their international employees and any relevant local legislative updates. Regular reports and analytics helped optimize the staffing strategy and facilitate data-driven decisions.
Specific Results and Improvements Achieved After Using a PEO
- Reduced operational load on the internal team by 5x
This was possible because our team took over the entire employment process: drafting contracts, onboarding employees, payroll accounting in the target country, and ensuring compliance with regulatory requirements. The risk of third parties was also reduced, as there was no longer a need for additional legal consultants and other intermediaries.
- Increased hiring speed by 40%
By delegating the search and hiring process to us, we conducted pre-screenings and technical interviews ourselves. Using our database of pre-qualified IT specialists allowed us not to spend time on pre-screening, and our long-standing international recruitment expertise enabled us to quickly solve tasks and increase hiring speed.
- Raised the acceptance rate by 20% within a year
We used a comprehensive approach that included employee support and needs analysis, creating competitive offers, and establishing quick and transparent hiring processes. Coupled with thorough background checks, this allowed us to improve hiring efficiency and reduce the costs of replacement hiring.
GEOR’s individualized approach and deep understanding of our challenges have not only solved our immediate staffing issues but have also laid the foundation for a long-term, mutually beneficial partnership. Thanks to their expertise, we are now more competitive in our market and better equipped to handle future projects with confidence.