Monthly articles with valuable info to strengthen your team force
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.
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:
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.
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:
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:
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.
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:
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:
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.