True cost of hiring an engineer

It takes money to make money. All companies make investments in one way or another to increase their revenue and reach goals. Yet one of the most important investments is investing into people. This is why great companies strive to hire the best people. Yet, hiring costs are more than a person's salary. When you decide to hire there are several hidden costs that might cost you a lot more than you realize at first.

In search for top engineer

Every company's goal is to hire best engineer for their role. And this makes sense. Afterall, hiring a great engineer proves to be a good investment.

Great engineers can 5x their impact compared to an average engineer with their domain expertise and problem-solving ability. Such individuals take a different approach on working on your product and write a software which can scale and solve complex problems simple and faster.

And this is the reason why companies spend hundreds of hours on interviews to find a perfect candidate. There are several thousands of dollars spent on job boards, technical recruiters and ads in hope to get good applicants onboard.


Engineering time is precious

In small to mid-sized teams, head of engineering or CTO is the one who takes care of hiring.

On average these people spend 100+ hours on interviews and designing tests. When they don't have HR support in house they  even need to take care of writing job descriptions and posting job posts on various boards which consume time.

Yet this is one of the biggest hidden costs since time assessing candidates is a time sink and opportunity loss.

Especially early stage, engineering team should be focusing on a product to deliver their product to market as soon as possible.

Regardless of the team size, CTO has a big impact on the technical side of product.

Let's assume CTO company cost is 200$/hr (it might be even more due to the importance of a position). Same person spends 100 hours for preparing tests and interviews for candidates. If we make a quick calculation we can see it takes $20,000 per hire in order to hire a candidate.

And at this stage we haven't even accounted costs for the job posting ads and potential leads from technical recruiters.

Recruitment process is important

In small to mid sized teams there is a minimal recruitment infrastructure which proves to be valuable and important when you want to hire.

Having an internal HR team doesn't work for smaller to mid-size teams and even if they do, they can cost up to $100,000 including salaries. Yet, still somebody needs to do the technical interviews.

Company who hires remotely on average gets around 100 applicants and screening process can be time consuming.

Having an established and repeatable hiring process is a good practice and in order to do establish one takes a lot of time.

Interruptions are also big in the process.

Running several interview per day and do daily scanning of applicants takes a big toll on productivity. This leads to overworked persons and leads to inconsistent interviews experience for candidates.

Let's assume CTO company cost is 200$/hr (it might be even more due to the importance of a position). Same person spends 100 hours for preparing tests and interviews for candidates. If we make a quick calculation we can see it takes $20,000 per hire in order to hire a candidate.

And at this stage we haven't even accounted costs for the job posting ads and potential leads from technical recruiters.

Recruitment process is important

In small to mid sized teams there is a minimal recruitment infrastructure which proves to be valuable and important when you want to hire.

Having an internal HR team doesn't work for smaller to mid-size teams and even if they do, they can cost up to $100,000 including salaries. Yet, still somebody needs to do the technical interviews.

Company who hires remotely on average gets around 100 applicants and screening process can be time consuming.

Having an established and repeatable hiring process is a good practice and in order to do establish one takes a lot of time.

Interruptions are also big in the process.

Running several interview per day and do daily scanning of applicants takes a big toll on productivity. This leads to overworked persons and leads to inconsistent interviews experience for candidates.

Hiring takes (too much) time

Time to market is an important thing companies have on their mind all the time. Average internal hiring process takes 60-90 days to get somebody onboard.

This means 2-3months missed time of developing new feature which can't be done due to lack of resources. Cutting that time for just as 30% enables teams to hire faster and start shipping features sooner. This is one of the biggest hidden costs in companies.

How can you decrease your hiring costs

We realize that this problem and have been in similar situations before working on our mission. Hiring is an important aspect of building companies and this is why we want to help companies build teams with top engineers.
This is why we do all the hard work and bring you candidates to the last interview where you interview for culture fit. With this Remotesome helps you solve 80% of your hiring work by having an extensive screening process which results in top 1% engineering being available for hire.

As you get 100+ candidates which you need to go through to find the best candidates for your role, with Remotesome you already skip this part. We will help you optimize your hiring process and get you hire a top candidate with saving money and time as well in the process.



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