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Calculating the total cost of hiring web developers in 2018

March 9, 2018

Hiring Web Developers in 2018: How Much Does It Cost?

According to the U.S. Bureau of Labour Statistics, in the year 2016 web developers had an average annual salary of $66,130.00, i.e. $5,5510 a month. 70% of this figure is employee salary, with the remaining 30% corresponding to Social Security and Health Insurance benefits. This amount does not take into account additional costs related to working with in-house employees, such as recruitment, training, office space, licenses, and equipment.


Table of the annual average cost per in-house employee divided into different aspects

Annual average cost per in-house employee divided into different aspects


The previously specified points represent a considerable investment for business owners, turning growth opportunity into a recurring problem since this process starts over every time the business grows and needs to seek new personnel.


It’s no wonder then that according to the State of Small Business Report, for more than half of all small business owners in the United States the principal problem they face as CEOs is, without a doubt, hiring new employees.


The course to hiring new employees involves three processes, each with its own challenges:


  • Searching
  • Selection of suitable talent
  • Adjustment Period


The search process costs time and money. In money, approximately $4,129; in time, around a month and a half, due to the fact that in many cases no suitable candidates are found for the posting, making it necessary to publish several rounds of listings.


Selection of suitable talent doesn’t end when a match is made between necessities and skills. There can be many reasons to replace a candidate, e.g. the candidate withdraws because he’s not a good fit for the post or because the business’ budget doesn’t permit taking on a full-time shift at the applicant’s level, forcing the business to go back to square one in the search.


In the trial period, when the search and selection processes have finished, many things must be done to keep the person with the company, for it is well known that the annual percentage of employee turnover is 19%, have of which constitutes voluntary turnover — a big risk considering time, costs, and know-how transfer.


Table of the annual turnover percentage rate for in-house employees divided by percentile

Annual turnover percentage rate for in-house employees divided by percentile


Thus we come to the conclusion that inasmuch as a business is growing, it will need more personnel with great talent and ability, able to meet the high expectations of the business’ clients and projects. Yet, talent with these characteristics is beyond your wage budget. What alternatives do you have for achieving high output without getting buried in debt along the way?


A Possible Solution



If a local professional’s wage is high, the logical solution would be to turn to freelancers in countries with a lower cost of living and lower wages. There are a lot of websites where you can hire a freelancer for a specific job, a limited time, no strings attached, miles away — and that doesn’t have to mean you don’t get to interview the candidate to confirm the desired skills. You just have to match up your budget with the experience of candidates who respond to the listing.


These jobs can be brief and over in an hour, or they can be extensive projects that last up to a year, the latter being an exceptional situation as statistics show that the work relationships between employers and freelancers aren’t relationships that last.


Working with freelancers can be a quick fix short term, but we’ve listed the main problems that can arise with this alternative:


  • In order to reach a certain monthly salary, freelancers tend to take on more than one project at a time, meaning their performance and concentration aren’t focused on a single client.


  • Although it is possible to have some control over distant freelancers through platforms which take screenshots of the user every so often, it’s a system that by its nature wastes time by having to examine all the screenshots.


  • It is necessary to keep watch over the job listing in the chosen platform, correctly filtering and interviewing applicants. This part of the process takes time and specialized human resources knowledge.


  • It’s possible to have a team of remote freelancers dispersed in different parts of the world, and the control and coordination of such a team is complicated to manage, taking into account the different time zones and hours in which they live and work.


  • To improve the operations of remote development, it will be necessary to hire a manager who can monitor the freelancers.


  • Trust. It’s hard to imagine you could leave your important operations or projects to someone who could disappear from one moment to the next.


These problems could bring difficulties for the future of the business, affecting the quality of its services and damaging its reputation, a risk you just can’t take in the era of social media.


What Is the Ideal Solution?



The ideal solution should be one that permits us to reduce our costs without diminishing quality, and should be based on remote personnel since local personnel can’t offer the low costs you want due to the elevated cost of living. Still, the ideal solution should be able to avoid adding complication to operations and permit your total dedication to the business core, which means delegating certain responsibilities.


These responsibilities should be the following:


  • Taking charge of the recruitment and selection process of new personnel.
  • Providing office personnel with necessary software and equipment.
  • Managing the administrative support remote personnel needs.
  • Having an anticipatory system for rapid adjustment and know-how transfer.
  • Making reports that allow the business to keep up-to-date on personnel performance


Furthermore, it would be essential that personnel work in the same time zone as you to avoid complications in communication.


This solution is the business model that we have been offering for years to North American and Canadian clients who have trusted in us to bolster their business.


Map of US and Canada states where FullTimeForce currently provide services to companies

US and Canada states where FullTimeForce currently provides services to companies


Our years of experience have shown us that it’s not enough to do what’s expected, and that’s why in addition to finding the right talent, setting them up in our facilities, and arranging the overall back office needs, we offer complimentary benefits as part of our offer:  


  • Tech recruitment as you need it (whatever you need, we will find it)
  • Instant assignment of the ideal personnel for the specific needs of the company, and the possibility to interview them in the final stage
  • A smooth and easy transfer of know-how, should the remote team grow or need substitution.
  • Continuous recommendations: improvements in remote development.
  • Complete control over remote personal and direct communication
  • Affordable rates


In Conclusion

Finally, we want to emphasize the principal point of this article: What it costs to hire a web developer compared to what it means to contract our services as a nearshoring staffing company. These are the figures to consider:


Cost comparison table between a local in-house developer and FulltimeForce remote developer

Cost comparison between a local in-house developer and FulltimeForce remote developer


By this quick calculation, you could save almost  50% of the annual cost of a developer or have two developers at once, multiplying resources in benefit of the business.


It’s important to mention that this quick calculation does not take into account the cost of administrative staff and human resources, who take care of programmer retention and satisfaction. These are concepts which will ensure emotional commitment to the company, yielding tangible results in work performance.


So, we have more than one benefit, multiple strengths that will encourage the growth of your company, cutting cost and effort. Get in touch with us or leave your information in our contact section and let’s give your team force a boost.

Esther Palomino - Director of Value & Marketing

Esther loves to have a good cup of tea while she’s writing her thoughts and plans. Addicted to sugar and stationary items. Her hobbies include playing with her daughter and dog.