Outstaffing is still plagued by a lot of misconceptions that keep people from taking advantage of this excellent source for project specialists. Kesmaty partner network director Vitaliy Alekseyenko debunks some common myths about outstaffing.
Myth 1: A full-time employee is cheaper
Making a simple cost calculation is sufficient to dispel this myth:
Let’s assume that a mid-level developer makes $2,500 a month on average.
You must also add 20% in indirect expenditures, such as HR, management, back office costs, benefits, etc., and an additional 40% in taxes if the employee works full-time. There’s more when this came from: throw in another 12% for vacation and sick pay.
You will end up spending a total of $6,800 on your mid-level developer. This amounts to about $40 ($6,800/168) per hour for this employee. Meanwhile, a mid-level developer typically costs around $30 (give or take $5) on the outstaffing market.
On top of that, every recruiter is aware that a developer’s cost is significantly influenced by their salary expectations. A mid-level developer will frequently be paid significantly more than his more experienced coworker, a senior, in the same company.
Myth 2: A full-time employee is easier to control
The distinction between full-time employees and outstaffing has become more hazy since the majority of employees began telecommuting. Nowadays, almost all developers work remotely and are controlled by a project manager. Whether the specialists work full-time for you won’t matter as long as the project manager fulfils their primary responsibility, which is managing the team.
Outstaffing actually offers benefits in this regard, since the developer is overseen by two project managers at once, one from the employer’s side and one from the client’s side.
Myth 3: It’s easier to recruit a full-time employee
Just two compelling arguments dispel this fallacy:
Firstly, it is obvious that the pool of potential candidates gets significantly smaller if the company is determined to find a full-time specialist. When you consider both job seekers and outstaffing possibilities, however, you will find a lot more developers who are qualified to the level you require.
Secondly, hiring a developer full-time necessitates using a skilled recruiter who is also hard to come by and expensive. Let’s say you have one. Gathering CVs is the first step in a lengthy hiring process that also includes selection, screening, technical interviews, test assignments, team interviews, and offer approval. Some candidates will be eliminated at each stage. How many of the developers who make it till the end will take you up on your offer?
Meanwhile, developers available for outstaffing have already been all the way down this path. 95% the time, they will be willing to accept the offer after one or two more interviews with your technical expert.
Myth 4: I may be provided a weak developer
The most important thing to understand in this situation is that the customer is ultimately in charge of selecting a specialist and of all the selection criteria. Interviews are intended precisely to let you ask the specialist any questions you may have and to verify their knowledge. Outstaffing companies offer a trial period so that customers can avoid making the wrong decision. This means a developer is provided to the customer for a period of two to three weeks at a discounted rate, or even for free, albeit for a shorter stint.
If, after three to four months, the customer decides the developer is no longer required, they only needs to inform the contractor, and the developer will be withdrawn after 14 days. It can be difficult to deal with a full-time employee in this situation because you will need to ask them to resign or lay them off and pay a significant lump sum in compensation.
Naturally, there are benefits in using full-time employees as well, but the goal of this article was to debunk common misconceptions regarding outstaffing. If you want to begin development as soon as possible, make sure to utilize all available resources and channels to find experts.
Outstaffing is still plagued by a lot of misconceptions that keep people from taking advantage of this excellent source for project specialists. Kesmaty partner network director Vitaliy Alekseyenko debunks some common myths about outstaffing.
Myth 1: A full-time employee is cheaper
Making a simple cost calculation is sufficient to dispel this myth:
Let’s assume that a mid-level developer makes $2,500 a month on average.
You must also add 20% in indirect expenditures, such as HR, management, back office costs, benefits, etc., and an additional 40% in taxes if the employee works full-time. There’s more when this came from: throw in another 12% for vacation and sick pay.
You will end up spending a total of $6,800 on your mid-level developer. This amounts to about $40 ($6,800/168) per hour for this employee. Meanwhile, a mid-level developer typically costs around $30 (give or take $5) on the outstaffing market.
On top of that, every recruiter is aware that a developer’s cost is significantly influenced by their salary expectations. A mid-level developer will frequently be paid significantly more than his more experienced coworker, a senior, in the same company.
Myth 2: A full-time employee is easier to control
The distinction between full-time employees and outstaffing has become more hazy since the majority of employees began telecommuting. Nowadays, almost all developers work remotely and are controlled by a project manager. Whether the specialists work full-time for you won’t matter as long as the project manager fulfils their primary responsibility, which is managing the team.
Outstaffing actually offers benefits in this regard, since the developer is overseen by two project managers at once, one from the employer’s side and one from the client’s side.
Myth 3: It’s easier to recruit a full-time employee
Just two compelling arguments dispel this fallacy:
Firstly, it is obvious that the pool of potential candidates gets significantly smaller if the company is determined to find a full-time specialist. When you consider both job seekers and outstaffing possibilities, however, you will find a lot more developers who are qualified to the level you require.
Secondly, hiring a developer full-time necessitates using a skilled recruiter who is also hard to come by and expensive. Let’s say you have one. Gathering CVs is the first step in a lengthy hiring process that also includes selection, screening, technical interviews, test assignments, team interviews, and offer approval. Some candidates will be eliminated at each stage. How many of the developers who make it till the end will take you up on your offer?
Meanwhile, developers available for outstaffing have already been all the way down this path. 95% the time, they will be willing to accept the offer after one or two more interviews with your technical expert.
Myth 4: I may be provided a weak developer
The most important thing to understand in this situation is that the customer is ultimately in charge of selecting a specialist and of all the selection criteria. Interviews are intended precisely to let you ask the specialist any questions you may have and to verify their knowledge. Outstaffing companies offer a trial period so that customers can avoid making the wrong decision. This means a developer is provided to the customer for a period of two to three weeks at a discounted rate, or even for free, albeit for a shorter stint.
If, after three to four months, the customer decides the developer is no longer required, they only needs to inform the contractor, and the developer will be withdrawn after 14 days. It can be difficult to deal with a full-time employee in this situation because you will need to ask them to resign or lay them off and pay a significant lump sum in compensation.
Naturally, there are benefits in using full-time employees as well, but the goal of this article was to debunk common misconceptions regarding outstaffing. If you want to begin development as soon as possible, make sure to utilize all available resources and channels to find experts.