What is the True Cost of Hiring a Developer?

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Hiring a dedicated software developer is a significant investment for any business. The cost of bringing an expert software developer onto the staff full-time doesn't depend only on the salary you pay but involves many other costs as well. Before hiring a software developer for your company, it's essential to analyze the true cost, to help you determine whether outsourcing your dedicated software development team or hiring a developer is the more cost-effective option.

Productivity Loss

The average time to fill an expert nearshore engineer position is 43 days. Depending on the value that a software developer offers your company, the productivity loss for this time of vacancy can reach $33,251. While you're waiting to fill this position, you might also have to hire temps, while other members of your company invest their time and energy into looking for a new developer. The loss of productivity can be a substantial cost when you're hiring an expert software engineer.

Recruitment Cost

Employee turnover is a big problem for many companies looking to hire expert software developers. Long-term employment for software developers it's almost nonexistent. Hiring a new programmer increases in costs as time goes on because the better a programmer is, the more expensive hiring gets. Whether you pay an agency to hire a new developer for you or divert time and energy from your own option corrections to look for a new developer it could cost you between $11,000 and $20,000 to bring a new software developer on board.

Related Content: How Do I Shorten My Recruiting Process When Hiring Software Engineers?

Training Time

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Every expert nearshore engineer you hire requires training and management time to bring them up to the standard that you require. One of the most significant issues is that new software developers are less productive and make more errors when they are first getting oriented to a new job. Research has shown that it takes about 29 weeks to reach optimum productivity after a new hire is brought on. Because there is a deficit in productivity for the dedicated software developer and the staff members training that developer, productivity loss can reach up to $34,000.

Employee Extras

Along with recruitment and training, there are even more costs to consider when you're hiring a full-time or part-time developer as a part of your staff. Other costs you may need to consider in this case are offering employee benefits, health benefits, retirement benefits, commuting benefits, parking benefits and transit benefits. It may be necessary to provide these benefits to meet employee expectations and attract the best developers.

Business Overheads

The costs of hiring an in-house software developer don't stop there. You need to include the cost of business overheads and workplace integration as well. If your dedicated software developer works in the office with you rather than remotely or from home, you need to take into account the cost of the office space, desk, chair, computer, software, and other facilities they will need to do their job.

When it comes to hiring an in-house developer, it’s clear that it will cost you more than the salary to support and facilitate their best work. That’s why outsourcing your nearshore software development can be one of the most cost-effective ways to boost productivity and results. Talk to Bydrec today to learn how outsourcing your software development requirements can save your business money and produce a more timely and efficient outcome for your business.

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Topics: Tips on Hiring and Outsourcing Your Team