Why a $100/hr Contractor is Cheaper Than a $150k Employee? (Cost Breakdown)

Staff Augmentation vs. Permanent Hire: The REAL Cost Breakdown (2025)

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In this video, we reveal the true cost of staff augmentation. What if paying a contractor $100/hour was cheaper than a $150k full-time employee? We break down the hidden financial layers beyond the salary-to-hourly-rate comparison. This is the definitive guide to understanding the difference between a permanent job vs contract role, exploring how the staff augmentation model can offer surprising benefits, whether you need to hire someone part time or scale an entire team. We cover the core staff augmentation meaning, its services, and how it stacks up against permanent employment vs temporary roles.

What should you be aware of while signing a contract? Read below.
https://cyntexa.com/blog/it-staff-aug...

Video Chapters:
0:00 - Staff Augmentation vs Full-Time Hire: Cost Breakdown
0:37 - The Hourly Rate Iceberg: Understanding Agency Fees
1:11 - Cost Analysis: Contract Flexibility vs. Full-Time Salary
2:16 - 4 Staff Augmentation Pricing Models Explained
4:47 - Hidden Staffing Costs: Scaling Surcharges & Fees
5:51 - When to Choose Staff Augmentation for Your Business?
6:36 - Reviewing Your Staff Augmentation Contract: Key Clauses

In‑depth Resources / References:
The Ultimate Guide to Staff Augmentation Costs: https://smartitstaff.com/blog/it-staf...
Permanent Employment vs. Fixed Term Contract: https://cyntexa.com/blog/it-staff-aug...
Hiring Costs Study:   / cost-of-hiring-employee-2024  

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About Cyntexa
Cyntexa is a Summit Consulting Partner and a leading cloud services firm with 400+ experts. We deliver tailored solutions on Salesforce, Google Cloud, AWS, ServiceNow, and Azure—turning technology into business value.

About Smart IT Staff
Smart IT Staff delivers on-demand, AI‑matched tech talent, managed services, and consulting—all under one roof. Scale faster, optimize costs, and accelerate innovation with our hybrid workforce solutions.