Want To Know The Cost Of Hiring Software Developer?

[pankajsaxena]

Great information, thanks for sharing. Software Development Company

[Akshay_M]

It varies depending on the role, competence of the developer (unfortunately often measured solely on experience) and the employment status of the developer.

Let’s look at a few of these:

Costs that apply to all of these so I don’t have to repeat myself: generally a company will have a period where they train the employee in company policy and the company ethos, personally I find a lot of this to be complete bull shit but whatever it is a necessary evil, so onboarding costs is the general term of this, this can range drastically depending on your companies policy (i had one company who set me up in a very nice hotel for two weeks and all I really did was look around their head office and listen to someone rattle on, all expenses paid of course whereas another had me working the next day).

Of course, there are the interview costs to think about, generally, you will have 2 or more employees interviewing and they will have to spend around a half-day each preparing and conducting the interview, that is time they are not contributing towards the products they are working on, this is known as an opportunity cost.

Ok so this applies to any developer you hire, let’s look at the other costs depending on the status of the developer.

Graduates generally need a lot of technical training and will often make mistakes causing more opportunity costs to arise, the hope is that you have a clean slate to work with and this means a company can mold them to be their idea of the perfect developer (in practice a graduate will generally move on if the company is actively not trying to retain or is not a highly regarded employer).

Experienced developers will just expect a much higher salary and there comes a point where a company car and other benefits including a stake in the company might be additional costs although many of these are often offset by good bookkeeping.

Pensions need to be taken into account with both of the above but this is all subject to your countries and/or state laws.

Next, we have the contractor, they will expect a hefty day rate, in my country anywhere from £350 - £800 is not out of the ordinary though the higher bracket is extremely hard to get outside of London.

The benefit to these type of developers is that you can pretty much hire and fire them as and when you need, you don’t have to provide benefits or pensions and they have their own insurances against fuck ups, etc, this can mean you get a very lean workforce at the expense of your companies expertise being very volatile (read: don’t overly rely on anyone contractor because that is when the crazy day rates will creep in.

Finally, another cost is the cost of retention, for many of these you have put a significant amount of time and resources into acquiring your developers but that is not the end of your costs, as a developer works for you they should become better, they will be more experienced and particularly for your company they will know things about your product others will not so you will want to retain them.

The costs to retain can be anything from more money to a better title, to a stake in the company or a change in their working week, my point being is some costs to hire, in general, are not always going to be financial.

Regards,
Akshay
Technical Consultant - Apps4Rent | CloudDesktopOnline | O365CloudExperts