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How To Hire Developers For Startups [Step-by-Step Guide]

Apr 27, 2022

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The current global tech talent shortage amounts to 40 million skilled software engineers. By 2030, it will reach 85.2 million, making companies lose $8.4 trillion in revenue.

Such tendencies make hiring a qualified software engineer a real challenge. When you are a startup, everything becomes even more complicated. Fortunately, outsourcing can ease things for small companies assembling teams.

Learn more about how to hire developers for startups step by step and why you’d better outsource it in our article.

What Matters for Startups When Hiring Developers

When hiring developers, startups mind slightly different factors than large companies. The lack of established processes, fast growth, and limited budget shapes the recruitment process, among other factors, including:

Technical expertise

If the founder of a startup has no or little technical background, they won’t understand what tech stack is better for the project. Hence, they will need consulting services before hiring software developers to know who to look for.

Need for skilled developers

When the project is fresh, you cannot hire junior software developers to work on it. People with minimal experience will require mentoring and can make mistakes that are too costly for startups. Besides, inexperienced engineers cannot complete complex tasks that are common at the initial software development stages. That’s why startups should search for skilled developers who have already created complex software from scratch.

Scalability of the project and team

If everything goes well, startups grow fast. Hence, when hiring developers, startup owners need to be ready that their team will increase and change all the time. It puts additional pressure since startups have to quickly find new team members in the scarce market.

Challenges Startups Face When They Hire Developers

The harsh reality of the competitive market and picky candidates result in many hiring challenges for startups. Here are the main ones:

No established recruitment process

Startups have no established recruitment process and usually don’t have in-house recruiters at the start on their way. It additionally slows down the hiring and onboarding procedures. Startup owners either have to search for specialists by themselves through Upwork, TopTal, and other resources or outsource this task to professionals.

Lack of software engineers in the local market

As we have already mentioned, the global shortage of tech talents reaches dozens of millions and will only grow. It takes 50% more time to hire someone for a tech role than other positions. The deficit is even more evident in Western European and US markets.

Hence, if you run a startup and look for skilled software engineers, you are sure to spend lots of time on search because of the excess demand.

leobit software development team

Startups cannot offer the same bonuses and perks as large tech companies. Even if they manage to hire promising tech specialists, they may be unable to retain the employees. Tech giants keep hunting for professionals day and night, offering salaries and working conditions startups cannot afford. The innovativeness of your project and the employee’s loyalty may be the only leverage to make the person stay.

Financial limitations

Most startups have limited budgets and cannot afford high salaries, certifications, educational programs, and perks. They need to carefully plan and redistribute their expenses to be ready for unexpected costs and prevent bankruptcy.

Financial constraints narrow down the choice in the tech talent market and make outsourcing a more viable option for startups.

Learn How Much Mobile App Development Costs

Why Hire Remote Software Developers for a Startup

Startups can mitigate the listed challenges by delegating the entire SDLC or separate tasks to a remote team. When even the world giants like Apple, Google, or Skype outsource, small companies definitely should consider this business model for the following reasons:

  • Remote destinations open global talent pools.
  • Rates in areas like Eastern Europe or Asia are more affordable than in the West.
  • Tech expertise meets international standards since remote developers complete the same certifications as Western specialists.
  • Remote cooperation gives more flexibility as you can hire people in less time.
  • Many administrative and managerial tasks also become outsourced, increasing the productivity of startups.

Summing up, hiring remote software engineers ensures the best price-quality ratio. You can find experienced developers fast while meeting your budget.

5 Steps to Hire Software Developers Remotely

Remote recruitment is not more complicated than in-house. In fact, due to broader opportunities in remote markets, it may be more convenient. Below are step-by-step instructions startups need to follow to hire developers.

Step 1. Understand your business needs

It might seem obvious, but you must know why you need a software developer before hiring them. What tasks will this engineer (or engineers) have to complete? What technology stack must they be proficient in? How much can your startup spend on this hire? If you cannot answer these questions yourself, request consulting from a software development agency.

Hire a remote team of tech specialists to fully delegate development or outsource specific tasks to bring your startup idea to life.

Step 2. Pick the employment model

You may want to hire a freelancer or cooperate with a professional software development outsourcing agency. For startups, the latter option is preferable. Outsourcing agencies have internal tech specialists proficient in all core technologies ready to take on new projects. They also hire other tech specialists you will need on your way to the project launch, including business analysts, QA specialists, designers, and project managers.

Step 3. Decide on the outsourcing destination

Eastern Europe, Asia, and Latin America are the most popular outsourcing locations. Although each region has its strengths and weaknesses, Eastern European countries are the most balanced choice. In outsourcing destinations like Ukraine, you hire among 200,000+ software developers with international certifications, proficient English, and excellent tech skills. The local average hourly rates vary from 30 to 60 USD/hour, depending on the experience.

Learn Why to Choose Ukraine for Outsourcing Compared to Other Regions

Step 4. Find an outsourcing company

Browse the web to pick several companies in the chosen location. Shortlist the options and start in-depth research. You will need to view the completed projects, available cooperation models, working approaches, and rates before making the final choice.

Step 5. Validate the skills and start the cooperation

After studying your tech needs, the outsourcing company will do recruitment for you. They will either hire the necessary specialists for your project or delegate someone from an existing internal pool.

Even if the chosen agency has a flawless portfolio, you will need to interview the software engineers before inviting them to your team. This step is essential to check the hard and soft skills of the candidates.

Once you do it, start the job.

How Leobit Can Help Startups With Software Engineers

Leobit is an outsourcing company that provides services to startups, SMEs, and large enterprises. We find a custom approach to companies of any size depending on their financial capabilities and tech needs. Since Leobit has completed multiple projects for startups, we know what limitations beginners face and how to overcome them.

Leobit offers three cooperation models suitable for startups:

  • Dedicated team: Full-time involvement for long-term projects
  • Time and material: Part-time involvement for additional expertise
  • Fixed price: Scope-related involvement to complete specific tasks

Choose the collaboration model that meets your business requirements best and contact us to hire software developers.

Final Thoughts

Even though the recruitment process for startups is complicated, hiring qualified professionals is doable. The most effective way to assemble a professional team is outsourcing. Startup owners can find a remote team of tech specialists to fully delegate development or outsource specific tasks.

This way, you won’t need to go through lengthy recruitment and onboarding to engage engineers. Instead, you get qualified software engineers with the necessary tech expertise within the shortest time.

Tetiana Paratsii
Tetiana Paratsii
Marketing Analyst at Leobit