Building an in-house tech team requires significant investment of time, money, and resources. It can take 50-120 days on average to hire each new employee, and salaries for full-stack developers in the US are around $115,960 annually. Factoring in hiring costs, benefits, retention costs, and the risk of poor hires, the true cost of building an in-house tech team can be substantial for startup founders. Outsourcing hiring to agencies can expedite the process but costs 15-30% of the new employee's annual salary. Overall, building a strong in-house tech team requires patience, skills, and a willingness to invest heavily in recruiting and retaining qualified software engineers.

1. How to build
your own
tech team?
JALAN TECHNOLOGY CONSULTING
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2. As a founder of a technology business, each day you
make tough decisions on where to invest your
resources to yield a better return on investments.
One of the most important investment decisions you
have to make is to invest in building your technology
team, which needs patience, time, and skills to filter
out people and hire them.
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Invest In Your Tech Team

3. True Cost
of Building
In-House
Team
If you have enough
capital and access to a
network that you can
reach out to hire
engineers, you still have to
go and convince them of
your vision so that they
can risk their secure job
and join you on a new
adventure to bring a new
value to the planet earth.

4. Cost factors
to Consider
As You Build
Your Team

5. Time
The average time to hire a professional
varies and according to some research it
takes as long as 95 days and in the case of
high-level executives, it goes up to 120
days.
According to Glassdoor, the average time
of hiring full-stack developers is around 50
days in the US. Again the location and
experience influence the average time of
hiring.
Sourcing Cost
You may choose to build the funnel of
candidates to hire with the help of a
hiring agency or you can also do it by
yourself.
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6. Taking help from outside such as an external hiring
agency can be a good option but it comes with a huge
cost.
Most of the external hiring agencies work in a fixed
price model where they charge a fixed amount - % of
annual salary for each new hire.
The price of these services varies anywhere between
15% to 25% of their annual salary and in the case of
high-level executives, it goes up to 30%.
External Hiring For Your
Team
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7. One of the studies showed that startup founders
spend around 40% of their working hours on
non-income generating tasks such as hiring.
Besides the time, there are various other costs to
consider such as - job portals fees (cost up to a
few hundred dollars), shortlisting and interview
time cost, event costs, etc.
Internal Hiring
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8. Whenever you hire a new employee,
you have to pay a good salary each
year. There is no straight answer to the
question.
There are multiple factors such as
state, country, industry, working
experience, and skillsets that decide
the final salary for any position.
Roughly, if you are a US-based startup,
get ready to spend anywhere upwards
of ~$115,960 per year for a full stack
developer.
Salary Cost
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9. Retention cost
Even after hiring, as an employer you have to ensure that your
employees stay with you and in return you have to care about their paid
leaves, salary increments, bounces, extra amenities like gym
subscription, insurance policies and seminars and many other facilities.
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10. With the market of skilled software engineers
as tight as it has been for the last few years,
the assumption that new startups can hire
qualified developers quickly or even hire them
at all - needs to be reconsidered.
The market reputation of founders, the vision,
and the product of startups highly influence
the whole hiring process which costs higher
due to delayed hiring.
Risk Factor to Consider When
Building In-House Team
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11. Limited Technology
Knowledge
Poor Hiring
With limited knowledge in technology, the
management of in-house teams get even trickier
and end up paying higher costs due to gaps in
communication and delayed production.
Bad hiring (due to desperation or through lack of technical
knowledge) can have huge costs. Some estimates suggest that the
cost of making poor hiring decisions can be as much as $240,000
per person.
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12. In the end, as Steve Jobs said - 'You
gotta be a great talent scout', it doesn't
matter which route you go. Hope you
see success as you build your venture.
You got this!
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WITH? FEEL FREE TO REACH OUT TO US AT INFO@JALANTECHNOLOGIES.COM. WE HOPE OUR ASSISTANCE WILL HELP!