Over the past few months, we’ve all been hearing about how companies are continuing to freeze hiring, eliminate expensive roles and shift their focus to talent and capital that drive the bottom line. So we wanted to share with you our best cost-savings tips to help you make the most of your budget when building a top-tier tech team.
While job growth may be slowing for some companies, others are cautiously making critical hires needed to continue innovating and executing on key projects integral to driving revenue, and staying competitive.
🎉 As we kick off a brand new year, take this moment to reassess your strategy and explore new ways to stretch your hiring budgets while compensating new hires fairly.
1. Work with a recruitment partner that understands your budget and business needs
The hiring process can take up a lot of your internal team’s time, effort and resources.
Glassdoor has reported that the average employer spends around $4000 to hire a new team member.
But when looking at additional factors that may impact these recruitment costs: size, location of the business, position type, expertise and seniority, this could easily bring you upwards to a whopping $41,049 when hiring a full time software developer according to CodeSubmit.
And that’s not even factoring in when you’ve finally filled the role — making a bad hire can cost employers at least 30% of the employer’s first-year earnings.
Since 2015, we’ve worked with 600+ employers to find the right talent and hire cost-effectively without sacrificing on quality.
In 2022, VanHack supported 429 placements, and helped employers save a combined total of $14.4M in salary expenses.
On average, VanHack has helped reduce payroll costs by 30%.
🏗️ Get one step closer to building your dream tech team: For employers with plans to scale in 2023, payroll savings here can be reallocated towards hiring additional key roles.
🕰️ Thinking long term, talent retention? The average VanHacker’s tenure at a company is 3.3 yrs.
When crunching the annual payroll savings for hiring a senior full stack developer ($32K), multiplied by average tenure (3.3yrs) — employers could potentially be seeing $105K in payroll and talent retention savings.
2. Leverage Remote-First Global Hiring
Debating whether to hire remote talent vs. on-site talent?
The global crisis has proven that a remote work model, and managing globally distributed teams can be a viable option for many organizations.
From the employer’s perspective, there’s enormous potential in expanding your talent pool beyond your local market, increasing efficiencies and time zone coverage amongst a slew of other benefits.
And it gives employees control over their time, location, lifestyle without loss of opportunities.
And of course, there’s the cost-savings component.
A typical employer can save about $11,000 per employee if they allow their employees to work 50% of the time according to Global Workplace Analytics.
When extrapolated and calculated for full-time, that’s savings of $22,000 a year per employee working 100% remotely.
💡 VanHack Tip: Use market rate intelligence to make hires, tap into talent pools where you can hire full-time remote talent cost effectively.
Take a look at the base salary of a Senior Full Stack Developer: Remote vs. On-site (Relocated) – $6K in Payroll Savings:
3. Consider Technology Savings
Another area where you can trim the fat? Your technology stack.
Use this time to simplify your tech stack, assess tools and see what makes the most sense for scaled-back teams and changing business needs.
- Review existing tools, functionality and business impact
- Consolidate platforms and remove redundant tools
- Find alternative, low-cost solutions
- Reduce the amount of seats
- Negotiate discounts
Free or low cost tools can reduce expenses, especially when managing cash flow during this time.
At VanHack, we offer a FREE to use Applicant Tracking System (ATS) for startups looking to track and manage their applicants, without the hefty price tag. Get Started with VanHack’s ATS ->
In Closing
In the next few posts, we’ll be looking closely at average base salary comparisons, as well as additional areas where employers can save.
Hiring in 2023?
VanHack’s hiring experts, recruitment and talent managers work closely with you to identify qualified candidates actively looking for new opportunities with salary expectations that line up with your budget for the position, reducing time to hire and ancillary hiring costs. Connect with our hiring experts ->
