|In-house hiring in the US||Staff augmentation via YouTeam||Freelance contractor on Upwork|
|Extra costs for the company||Taxes, bonuses, non-financial benefits, office rent, and support||No commission||Upwork commission|
|Hiring costs||HR costs, job promotional ads||YouTeam does candidates’ sourcing and assists with interviews for free||Managers’ time for candidate sourcing, screening, and interviewing|
Source: GlassDoor, YouTeam, Upwork
This question can be divided into two parts: why it’s good to know an average salary, and why you should know salary rates worldwide.
So if you decide to hire this average developer in-house, your development costs will include their salary, taxes, office costs, vacations, and other benefits.
If we answered the second question twenty years ago, the answer would be that knowing the average salaries worldwide can’t benefit you.
However, due to the technology development and growth of remote work popularity, companies aren’t limited to local talents anymore and can hire a developer from across the world easily and effectively. As mentioned above, various hiring models have altered the marketplace.
Today geography is one of the most important parameters that affect an average salary of a JS developer. To be more precise, the average salary of software engineers is highly influenced by the country the engineer is located in. Let’s analyze those wage differences.
Developers in North and Latin America
Obviously, the same situation applies between Western and Eastern European countries. To be more precise, countries with high living costs like Germany or the UK have more significant base wages than countries like Ukraine and Bulgaria.
Developers From Africa and Asia
It becomes evident that engineers located in Africa, Asia, Eastern Europe, and South America have lower salaries compared to their colleagues from countries with higher living costs. Sometimes hiring from these regions can be the only way for startups to enforce their team with top-notch developers.
When it comes to geography, you have three different hiring solutions: you can hire a local engineer, a nearshore developer, or trust your development project to an offshore one. Let’s explore the differences between them.
This is the traditional hiring familiar to most companies. The talent pool here is limited to candidates that live in the same location where the hiring company operates.
This approach has multiple pros, such as the ability to meet in person any time, or even work together in the same office, speaking the same language and having the same or very similar cultural background, having the same residency i.e. working under the same laws, having familiar tax system, and so on. All this should help to make work and communication very smooth.
But the main con in this type of hiring is that you’re limited to a small number of candidates. Even if you live in a metropolitan city, when you want to hire an expert for a position with high requirements to the expertise, you will be in a tough competition for employees.
In terms of organization of candidates sourcing, there are a vast number of places to find a local engineer. From online job boards like Angel List and Glassdoor to hiring through the services of recruiters. You might also check local tech conferences and hackathons. This curated list of regional and local JS meetups and conferences can be handy in this regard.
The difference between nearshore or offshore hiring is first of all in distance from the hiring company (client) to the development center (engineer/s). In the first case, it’s focused on nearest neighboring countries, and in the last one—on countries from far away. For example, for US companies developers from Mexico would be nearshore partners, and from Poland—offshore.
The pros and cons here are similar with some differences driven by geographical aspects. Pros of both nearshore and offshore software development are in the ability to choose from a wider talent pool the exact specialist that you need. Most of the time their salaries would be lower than their colleagues from Northern America, Western Europe, or Australia have simply because of the lower living costs as we already mentioned before. And that is how nearshore and offshore hiring become a cost-effective solution for businesses.
Among cons, the most important is working with a contractor that operates in another legal field which requires more studies at the beginning. Remote work and time to overlap between working hours also can be a pitfall for some companies. In the post-COVID-19 world, it’s getting less important but still exists. Therefore many companies prefer to work with nearshore developers with whom it’s easier to be in touch during the same working hours or organize business trips to meet in person.
Cultural differences and language barriers in cosmopolitical times might be or might be not a problem. Many developers from India or Egypt can be fluent in English and easy to work with. In any case, this is something companies should pay attention to during the hiring process.
When you’re looking for a dev partner in a foreign country, you should always ask for third-party recommendations. There are numerous B2B platforms online like Clutch and G2 that can help you to find trusted companies with the expertise that you require.
Thus, many huge companies and startups choose this solution since hiring nearshore or offshore developers is now easier, cheaper, and more effective than local hiring.
- In-house software development
- Staff Augmentation
Let’s explore each employment type’s pros and cons separately. Ultimately, by the end of this chapter, you will know which solution is the best for your company’s app development needs.
Hiring an in-house developer is the most traditional way of finding and adding talent to your team. Most often companies hire in-house local candidates. Therefore, all the tips that we mentioned above in a part about hiring local developers can be used here.
In this type of working relationship commitment between the developer and employer is the strongest.
If you are looking for temporary help with short-term tasks, freelancers are one of the best ways to go. By hiring a freelancer, all you have to do is wait for them to finish the task and pay afterward.
So, what should you do if you need temporary cooperation to support your core team working on a big project? Well, in that case, staff augmentation is simply the best solution.
Staff augmentation became a concept in software outsourcing which means that an engineer employed with a dev shop temporarily becomes a team member of a client’s development team. In this way, a client company can involve a real expert on terms slightly softer compared to in-house hiring. Just like freelancing, staff augmentation is a temporary employment model. Nevertheless, staff augmentation is a safer choice than freelancing. To be more precise, this hiring model is safer than freelancing and much more affordable than in-house hiring.
In this type of working relationship, a developer is 100% dedicated to the project, but commitment from an employer is lower than with in-house staff and the contract can be terminated anytime.
Just as always you should check the third-party reviews about the companies you’re going to work with before signing a contract. One more option we can proudly suggest for staff augmentation is hiring via the YouTeam platform. In YouTeam’s talent pool you will find only engineers from trusted dev shops that were vetted by us. This can shorten your hiring time a few times.
|Minimal Hourly Rate||Maximal Hourly Rate||Average Hourly Rate|
|Junior JS Developer||$17||$50||$29|
|Middle JS Developer||$20||$96||$37|
|Senior JS Developer||$35||$105||$46|
Outsourcing is a very similar employment type to staff augmentation. In both scenarios, your contractor is a development company. But when you choose the classic outsourcing model, you hire a whole team of specialists that will work on your problem. It’s a good solution for long-term, complex projects, or when you don’t want to be involved in each and every small part of the working process.
If your company is located in the US or another expensive country, you can outsource your development team to more affordable regions.
Online B2B platforms include many outsourced software developers and dev teams for you to choose from. With outsourced developers, all your company has to do is host an interview with a full-stack developer suggested by an outsourcing partner and find the best candidate for your needs.
Still, are developers of countries like Ukraine or India trustworthy? Do they have the same experience and skillset as engineers from the US? Let’s answer these reasonable questions with some recent facts and studies.
To answer those questions, we will utilize recent research by HackerRank. According to this research, developers from countries like Ukraine are not only experienced enough but, in many cases, achieve a better IT score than developers from the US.
To be more precise, Ukrainian developers had a fantastic score of 88.7% across HackerRank’s tasks, which gave Ukraine 11th place on the scoreboard. On the other side, US developers ranked in 28th place and Indian engineers at 31st place.
Thus, according to this research, many countries like Ukraine, Bulgaria, or Mexico provide top-tier developers. We have also created a table to compare developers from the US, Ukraine, and India regarding other crucial parameters such as time convenience and English proficiency.
|Time Convenience||Perfect for the US and Europe.||Perfect for Western European countries and the US. |
Big time differences with Australia.
|Big time differences between European countries and the US. Suitable for Australia.|
|English Proficiency||Native||Intermediate to High level of English||Basic to High level of English|
|Skills||Ranked at 28 place||Ranked at 11 place||Ranked at 31 place|
One more interesting fact that differs developers from typically outsourcing countries such as Ukraine and client-side countries like the US is specialization. The US developers usually have a wider experience. They are familiar with many programming languages and frameworks, but they don’t have deep experience in any of them. This is very handy when you hire an engineer in-house and you want to be sure that any task can be done by them.
- Soft skills. After examining an interviewee’s skills, you can ask questions and make sure they have the cultural fit and background you need. In fact, it is vital to ensure that a web apps developer is a good team player who has the soft skills you need and will fit perfectly into your company. We recommend our remote developer interview tool that helps to be ready for the soft skills interview in five minutes: 150 questions divided into 15 categories to assess the main qualities.
For all temporary types of cooperation, we recommend conducting interviews in this order: hard skills evaluation and then soft skills interview. The reason behind this is that expertise is what is the most important in a short-term perspective.
But when you hire a team member in-house, we suggest making everything the other way around. First, you need to be sure that a person is a good fit for your team. Only after a successful interpersonal interview, it makes sense to go further with technical evaluation.
YouTeam is definitely not a place to look for in-house developers. Even though we have regular requests for developer buyouts because clients don’t want to lose great talent. But it’s an exception rather than the rule.
And we can’t help those companies looking for freelancers simply because we don’t have them in our talent pool at all. All our engineers are employed by top dev shops of their countries.
- Fast matching with clients’ needs: With YouTeam, you can find the best dev individuals or teams in no time. Our platform has selected the most reliable and top-performing development agencies from Latin America and Eastern Europe. Access to engineers of these agencies makes it possible to find exactly what our clients need in less than 48 hours.
- Top-tier developers: Unlike freelancers or individual developers, engineers in our talent pool went through a few-step selection process. Most of them are senior specialists. Thanks to this our candidate-to-hire ratio is 1.75.
- Flexibility: YouTeam authorizes you to interview as many developers as you need. And if you decide to scale your team at any point in your project, we will help you to make this easy and effective.
- Numerous good reviews from previous clients: In our platform, you can check all the good reasons why YouTeam is the best choice for you. Most of our clients fully trust our vetting process and choose to stay with YouTeam after trying our white-glove service.