How to Hire Software Developers for a Startup?

​10% — within the first year (Embroker). One of the key reasons for failure is team problems. It includes facing problems when going to hire software developers. The employment process can result in becoming a unicorn or a part of that 90%.​

How to hire a developer?

In this article, we will cover all crucial points for the employment process:

• Key reasons for hiring developers
  
• The 2 most crucial challenges of hiring a programmer
  
• Steps to hiring a developer

Key reasons for hiring developers

• Professional experience 
  
  It's a common situation when startup founders actually don't have enough tech experience in software development. Founders, especially in the early stages, have to do lots of work, from marketing to hiring and replacing several team members. Instead of learning how to program, founders usually hire software developers.
  
  Though hiring startups can hide many challenges, when developers are hired, the flow of the mobile development process, for example, becomes easy and comfortable for the founder. Check our article about the mobile app development process from the devs' and clients' sides. 

• Fast Growth​
  
  According to statistics, 305 million companies are produced annually (Netshop). The competition is great. The market is competitive. Founders do their best to create an MVP and test an idea before anyone else creates it. Everything needs to be completed ASAP.
  
  If you're an early-stage startup looking to advance quickly, you'll need a staff of developers. Even if you're a skilled coder, you should not let managing business development take your focus away from other aspects of your company.

• Saving money​
  
  When the first investments in startups come from FFF – friends, family, and fools money is crucial. Whether starting from scratch or having funding from investors, you must be extremely careful with your spending.
  
  When the founder lacks money, it's crucial to make the best hire without spending money on unqualified specialists.

• Creating a team
  
  Even a skilled multitasker can't handle all startup work. When building a team, the founder has to consider significant criteria – sharing the goals and ideals of your firm.

The 2 most crucial challenges of hiring a programmer

• Hiring issues
  
  The statistics prove one of the most common problems when hiring a developer – lack of talent. 86% of IT leaders state they face issues when finding tech talent. 80% of tech HRs consider there's a talent shortage.
  
  
• Financial Concerns
  
  Startups usually have smaller budgets than really needed. It's fragile to the costs required to hire developers. The founders are responsible for covering the dev's wage as well as benefits like social security. Additional payments include upskilling and certifications because your employees will also need to stay current with technologies.
  
  Even after the software has been deployed and only limited support is required, the founder is still liable to pay the salaries of all the developers on your team.

Steps to hiring a software developer

• Think of the employer's brand image
  
  The employees need only 2-3 letters to recognize companies like Google or Facebook as they develop their brand image.
  
  The hiring process becomes even more challenging when the company doesn't have a proper reputation. The candidates won't know anything about it and won't be as motivated to work for you.

• Indicate your requirements
  
  Your list of needs will become a roadmap to hiring a startup developer. You'll have a better notion of where to look and how much you'll have to pay for their services.

• Choose hiring model
  
  Let's firstly specify the options:
  
  1. In-house
  The main benefit of this technique is that hiring programmers inside for a startup has a significant impact on a company's culture, workflow, and ethics.
  
  2. Freelance
  A simpler and more affordable solution of how to hire a programmer. This system is still much more challenging and requires the full focus of the CTO.
  
  3. Outsourcing
  With this option for recruiting, business owners may easily hire programmers and teams shaped especially for their tasks for new startups.

• Choose a country
  
  It's critical for startups to choose the country for hiring a developer. Even though some countries are more economical than others, factors like time zones and linguistic limitations should be considered. 

• Hold interviews
  
  It's interview time. Holding meetups is the best strategy. Ask the candidates to discuss their prior experience working on projects. You can check if someone is enthusiastic enough about what they do. Create a list of essential evaluation criteria and compare the answers of different candidates.

• Provide concurrent salary
  
  Depending on the region, the averages vary, so before you start this topic, check what base compensation is relevant for this location.

• Estimate soft & hard skills
  
  Though many recruiters value only hard skills, it's crucial to pay attention to the soft ones. Ensure that an applicant acquires the teamwork, problem-solving, and time management abilities necessary for the development process.

• Verify The Expertise
  
  When picking up freelancers or an outsourcing development team, you must properly examine their backgrounds. Confirm that they are capable of handling your job and that they possess the claimed skills.
  
  If it's an outsourcing model, a great way to explore the team is to check Upwork and Clutch reviews.

• Professional growth opportunities
  
  Qualified specialists want to widen their experience and strengthen their backgrounds.

And some statistics for dessert

• The expected value of the global market for IT outsourcing in 2020 is $342.9 billion. By 2027, the value is anticipated to reach $410.2 billion. (Business Wire)
  
• Remote working has enhanced productivity for 59% of software teams. (Business Wire).
• The hiring process's most irritating step is the interview. Additionally mentioned as unpleasant by the developers are creating and updating CVs (15.11%) and creating cover letters (14.46%). (Stack Overflow).

To conclude

​Hiring developers can be challenging way due to several factors like employment issues, lack of talents, etc. Facing such problems and paying for them can become a failing point for startups. In the article, you've got a manual on how to hire developers for a startup.​