Let’s Delve in Contract Web Developer Rates
If your bank account is terrified with just an idea of hiring in-house developers, because it’s terribly expensive, there are alternative methods of getting the best talent pool to satisfy your project needs. Consider involving WordPress developers for hire or any other programmer you are interested in on contract for your team. More and more experts all over the world tend to shift to contract work, so the talent pool you’ll face will be enormous.
Self-employment has become an aim for over 50% of the workforce. According to the study, 65% of workers would shift to contract work if given the opportunity. What is more, the contract work trends have touched executives as well. 79% of them think that contract workers provide a competitive advantage. It is predicted that up to 50% of the workforce will be involved in freelancer and contract work within the next 5 years.
All software startups or projects are unique, so the contracts governing them are also quite flexible to include all the details vital for both parties. There are some core clauses that should be in every agreement for contracted employment. They include:
- Expectations and Responsibilities
- Payment Terms
- Confidentiality and IPR
- Independent Contractor Clause
- Work Report
Pros and Cons of Hiring a Developer on Contract
Every hiring model has its pros and cons, so we assume, the choice will depend solely on the specific requirements of the company or startup where you’re looking for a application developer for contract. One of the most significant advantage of hiring a contractor over local hiring is software developer consultant rates. Surely, you cannot hire a web developer for contract work and expect this work model to be perfect.
|Software developer contract rates are lower than in-house dev rates.
Even if the salary is the same, you don’t pay some usual benefit packages when you hire contract developer. You are freed from the medical, pension, employment insurance, and other contributions
|No conversion in fact.
For the employee, it is extremely difficult to get converted from the contract staff to the regular one. But if you feel like you will need this engineer in your company, you can always change the conditions and employ this person full-time
|Flexibility: contracts are negotiable.
You may contract out the peculiar projects under specific conditions. It is also more comfortable, if you need programmers for a short time – avoid the troubles with official hiring
|Less control over your employees.
Especially, if the contractor is working remotely. There are some difficulties in communication, which make the coordination more complicated. However, modern technologies and management methods help to solve this problem
|No tax deduction for employer.
Working with contractors, companies usually pay reduced taxes. In some cases, the employees bear these expenses themselves. As a bonus, you have less paperwork to do
|No fixed rates.
The contractors have more flexibility in payment rates – they ask for the different amounts of money. If the payment is too low, it may tell about the lack of the needed skills or relevant experience
When you hire contract engineers, they may work remotely. It releases you from the related expenses: you don’t have to provide them with the work space, hardware or software, equipment. The remote developers usually have their own stack. Among the overhead factors, there are also payments for the internet, office rent, insurance for the employees, recruitment and training costs and others
When you need a specialist for completing the specific tasks, contractors may help. They provide expertise, which is missing in your team. It is comfortable, when hiring the full-time worker will mot make sense. For example, if you need a particular specialist for a short time
Contract Web Developer Rates: How Much a Company May Save
As you see in the section above, there is a significant difference between hiring contract developers vs hiring those as staff programmers. First of all, it’s all about the developer contractor rates, as there is a significant difference between payments for in-house employees and payments for contracted workers. Let’s assume you need a team of skilled Java developers for your new project. You will save money, as Java or IOS developer contract rates are lower than the rates of common developer working in your office. Or if you’re looking for WordPress devs to make a new website or to join your existing team, you will save money. Although you might pay your WordPress developer on contract more than a regular employee for the same work, you will still benefit, because in-house employees are more expensive than contracted ones. For example, you’re hiring a PHP dev for full time in office. Keep in mind that besides paying a salary to your office PHP dev, you have a number of other expenses that you omit when hiring a PHP developer on contract like office space, employer-provided benefits, equipment, and your share of Social Security and Medicare taxes (7.65% of the compensation total), compensation insurance, and state unemployment compensation insurance. All together, your payroll costs will be easily increased by 20 – 30% or even more.
If you are looking for a contract programmer to hire, one of the first things to do is a comparison of the salary rates. It will help you to benefit from one more advantage – the competitive salary. There is no problem in the remote work with the software developers, so you have no boundaries in choosing the country to cooperate with. Choose in accordance with the comfortable time zones, language and culturale similarities, and the price. It is a possibility to find the programmers with the required skills, but for a lower price. For example, we’ve compared these 5 countries:
- The US. In the United States, the average contract coders to hire cost $57.00 per hour.
- Canada. In Canada, the average hourly rate for the software engineer is C$30.08, which is about $22.69.
- Switzerland. In Switzerland, the average software engineer’s salary is CHF 75.00 in an hour, which is about $56.58.
- Germany. In Germany, the average software developer engineer on contract gets €19.62 per hour, which is about $21.61.
- Ukraine. In Ukraine, the average software engineer’s salary hourly rate is $16.00.
Of course, these numbers are approximate. If you hire contractors for IT projects, you pay for the particular skills and relevant experience. For example, specialists with rare skills or the professionals, working with complicated technologies, will cost much more expensive, than the developers, working with simple and popular things.
If you want to have precise numbers, you should realize, what do you need. If you already have a clear image of the future product, and you are sure about the technologies, developers are going to use, you can get more clear information about the price. And if not – hire contract IT consultants. They will analyze your project, develop a plan, distinguish the needed skills and technologies, set goals, and coordinate the work with the programmers.
3 Success Stories of Large Brands Hiring a Contract Developer
Your in-house dedicated developer team definitely has advantages over contracted one, yet there is a number of disadvantages to consider. Yet, some tech companies known worldwide tend to use contract work. Here are a few success stories of the companies and/or their projects that opted for either ios developer on contract , app developer on contract or frontend developer on contract.
Founded in 2003, SKYPE hired a developer team from Estonia to build out their business. Lacking workforce to execute an idea is typical for most of the startups, especially in the early days of the business. In 2011, SKYPE was sold to Microsoft for $8.5 billion.
Being a tool for remote workers, Basecamp was actually developed by the remote workers. It was founded in 2004, and had only four people working there. Eventually, Basecamp founders have outsourced a lot of their work. Nowadays, estimated value of $100 billion, Basecamp has more than 15 million users and continues to hire contract developers.
Originally founded in 1999, GitHub has outsourced not only tech tasks. They’ve hired a tech consultant Scott Chacon who in the end appeared to have written the back-end of the GitHub’s sharing feature Gist. Having attracted over 11 million users, GitHub is valued at $2 billion today. As the head office is located in Oslo, the company currently outsources devs in nearly 25 countries worldwide.
How Hiring a Contract Developer Can Be Beneficial
Hiring contract developers is time-consuming. If hiring locally, you should consider the following issues: hiring process including HR work, interviewing, testing and onboarding. If you hire an IOS or Java developer on contract, the process is simplified and much less time is spent for these procedures. You can skip the hiring process by providing candidate requirements as the hiring agency will handle it for you.
Second, your work process will become more flexible, as you will have a larger leeway in terms of hiring and saying goodbye developers, if it is written in the contract of course. You will experience no inconveniences that refer to firing a worker, since the terms of cooperation with the contractor will be listed in the agreement.
The work on your project will be more efficient, as web developers on contract have expertise in their job, they are highly productive which shortens the cost and time of staff trainings.
Employees work on demand. You can engage contractors according to the changing demand of your company or project by adding or reducing workload.
Conclusion on Hiring Contract Developers
Although hiring contract developers might seem unusual (if you haven’t done it before) and risky, it has significant advantages over direct hiring. You can omit significant expenditures, and you don’t have to look for additional furniture, equipment to set up your new team in the office. In most cases you don’t pay insurance, medical and dental benefits for contract workers. Moreover, contract employment will help you to achieve better results in shorter terms with less time and financial expenditures.