Software development is the lifeblood of technology-driven companies. However, the cost of hiring skilled developers is making organizations grasp at straws. Today, software development is one of the most competitive jobs in the global market. 

According to The State of Developer Nation Report, 2021, there were 26.8 million software developers across the globe. However, there are only 1,365,500 developer jobs as of 2022. Regardless of the overabundance of tech talent in the market, the average hiring cycle continues to be two to six weeks.  

This hiring lag is detrimental to your company’s growth. Yet, it continues to increase instead of decrease for various reasons. Understanding the tech-hiring landscape and associated costs can set you on the right path to hiring better and faster. 

Ever wondered if there’s an easier way to hire developers?

Well, now there is! 

Before digging into greater depths, try and understand why developer hiring is a huge problem for companies. This blog deals with the nuances of developer hiring, the costs, and other problems associated and discusses Workfall’s model of hiring automation in detail. 

Cost of Hiring Tech-Talent

Cost-of-hiring remains to be a top hurdle for companies seeking qualified talent. There are a lot of reasons behind this phenomenon. However, the major cause of the high cost of hiring tech talent stems from the lack of skilled talent. The below statistics represent the poor state of developer availability worldwide: 

1. According to Glassdoor, the average US business spends $4,000 to hire a new employee.
2. The cost for hiring a full-time developer ranges anywhere between $28,548 – $35,685
3. According to the National Association of Colleges and Employers, hiring a single employee costs over $7,000. 
4. The Society for Human Resource Management shows that filling a single position takes as long as 40 days. 

• Cost of Hiring an In-house Developer

Most companies prefer to hire in-house developers rather than freelancers or outsource their development projects. Payscale, a popular American compensation data company, shows that companies typically pay at least $44/hour to recruit a developer. The cost increases with the expanding hiring cycle. The cost of hosting a vacant position on job boards, conducting interviews, and prospecting are just a few contributing elements to the cost of hiring. Other activities like assessment tests, employee vetting, and onboarding training add up to increase the hiring cost exponentially. 

• Cost of Hiring a Freelance Developer

Companies tend to hire freelance developers on an ad-hoc basis based on project load. However, the cost of hiring as well as the cost to companies for freelance developers is shockingly high and equal to that of full-time developers. 

According to Glassdoor, hiring a freelance developer can cost a company as high as $82,978. The figure is expected to go up based on the project complexity, work timings, and organization size. Hiring freelancers is not viable for large-scale companies, given the costs incurred. 

• Cost of Outsourcing Software Development 

Small-scale organizations or startups consider outsourcing their software development needs from time to time. The cost associated with outsourcing software development fluctuates because of various factors. You can outsource your tech needs to software development companies or individuals based on your requirements. Geniusee says outsourcing development or hiring an outsourced developer can cost anywhere between $18 – $50/hour. It can also go beyond this price range based on the developer’s location and other additional factors, which makes it a less viable route for companies. 

The Solution

The demand for developers and cost-per-hire are proportional. Studies show that the production of and demand for skilled developers increases exponentially with time. Similarly, the cost-per-hire is also expected to skyrocket shortly. In addition, the time-to-hire metric is projected to escalate. 

Talent clouds, like Workfall, have started revolutionizing how companies hire developers to optimize vital hiring metrics like time-to-hire and cost-per-hire. Workfall has recently launched a new technical feature called “Automated Work Contracts,” helping companies simplify the terms of hiring to accelerate the onboarding process.

What else?

It also significantly reduces the time-to-hire and cost-per-hire, improving your hiring process tenfold. 

So, what exactly are Automated Work Contracts?  

What is Contract Automation or Automated Work Contracts?

Remote staffing startup, Workfall, has recently launched its newest product, Automated Work Contracts. This program is created to optimize the developer hiring process while ensuring guaranteed work delivery. The program is seamlessly integrated into Workfall’s platform. So you don’t require additional plug-ins, add-ons, or installations. 

Contract automation or Automated Work Contracts leverage technology to automatically generate, manage, update, and store contracts in a reliable way. 

Companies usually hire or consult legal professionals to draft employment contracts. The drafting and signing process of work contracts typically takes anywhere between 3 to 7 working days. Enter smart contracts; it takes not more than a day to draft and process the employment contract. And the best part is that these contracts are completely personalized.  

Workfall’s automated work contracts are seamlessly integrated into its platform to make your contract workflow lifecycle more efficient and reliable. A lot of stakeholders are sometimes involved in the manual contract drafting process, including the HR department, potential candidates, and the company’s top hierarchy. 

Smart contracts or contract automation eliminates the need for middlemen and human interference. It creates work contracts on the fly whenever a company specifies its requirements without compromising on things like terms of employment, negotiation, and collaboration. 

What are the Advantages of Contract Automation?

• Reduce Hiring Cycle Length

Manual employee contract preparation requires coordination between the legal professionals, the HR department, and the candidates. It also involves a lot of back and forth between these stakeholders for negotiations and discussing the terms of employment. However, with automated work contracts, you can reduce the hiring cycle length significantly by automating the entire process. It considers the company’s requirements to document work terms automatically and instantly. 

• Swift Onboarding Process

The employee contract negotiation typically takes anywhere between three to seven working days. But, contract automation enables real-time contract documentation, facilitating real-time or swift onboarding of recruits. In addition, it reduces the friction in the onboarding process, making it a smooth experience for the HR department and the candidates. 

• Efficient and Reliable

Despite being an automated process, it doesn’t compromise on the efficiency and details of contract preparation. Hence, you get the same amount of work done within much lesser time, saving you a ton of hassle and time.  

• Easier and Faster

You don’t have to go back and forth between teams and candidates to generate, negotiate, and revise contracts. Because automated work contracts do it all automatically. Thus, compared to manual contract preparation, automating work contracts is a lot easier and faster. 

As it requires a lot less human interference, you don’t require legal help in most cases. So, consider the legal expenses out of your hiring expenses. That’s saving a good amount of money in the long term. 

• Powerful Automation

In addition to generating and storing work contracts, contract automation manages the entire workflow lifecycle. From generating contracts and storing them to setting renewal reminders and follow-up reminders for signing contracts, contract automation does it all. 

Conclusion 

As the software development market looks saturated, it becomes increasingly challenging for companies and aspiring candidates to find their right fit. The limited availability of skilled tech talent only adds to the existing problems. Talent clouds, like Workfall, continue to attract the attention of top talent to bridge the gap between companies and candidates, facilitating seamless recruitment experiences. 

It is difficult to find the right fit for your company from many applications. Workfall comes to the rescue. Workfall has the best community of skilled developers across domains and budget ranges. 

In addition, it improves the speed and efficiency of your hiring process with meticulous pre-vetting and contract automation. Hence, all your hiring-related concerns are addressed with a single tool that offers you a unified solution for your hiring needs.