High employee turnover is a phenomenon governing today’s candidate-driven job market. In 2018, the job quit rate among American employees reached a historical high, with over 3.5 million people leaving their workplace each month.
It’s worth mentioning that talent turnover is expensive — on average, preparing an employee exit costs teams 33% of a said professional’s annual salary. Replacing talent with new hires calls for extra expenses that add up to 200% of an employee’s salary.
Even being in physical proximity to the team and monitoring the team from up close does not protect leaders from high turnover rates. Understandably, team retention concerns soar for business owners who hire dedicated teams — full-time developers and designers who work from a different country and are managed by the local company.
In this post, we will take you on the tour of the challenges of retaining dedicated employees and the way to work around them that our team has implemented successfully over years.
Before delving deeper into formulas and techniques the Newxel team uses to retain talent, let’s discuss the unique engagement challenges that come with employing talent from a different country.
Since dedicated teams are usually thousands of miles away from the headquarters, there’s a risk that talent will not feel part of the team. When supporting dedicated teams, HR managers need to find out how much involvement in the workplace each candidate wants to have.
While some are fine with staying in the loop on all professional tasks and processes, others want more — a personal connection with colleagues, joining team-building activities, and get-togethers.
Talent managers should discover the needs of the dedicated specialists and think of ways to implement them — hosting all-team virtual meet-ups, gathering for in-person retreats on a monthly, quarterly, or yearly basis, and so on.
Recently, a growing number of managers have become aware of the fact that working harder and performing better are not necessarily correlated. In fact, the opposite is true — when organization leaders do not prioritize the wellness of their employees, the company ends up losing money and not seizing growth opportunities. Statistically, American business owners lose up to $300 billion a year in stress-related productivity downfalls. In 2021, the need to pay attention to work-life balance and teammates’ well-being is clearer than ever, with the abundance of social media, never-ceasing connectivity, and pandemic-related tension.
How should business owners go about building a work-life balance? At Newxel, we use the following practice to motivate offshore teams working on our clients’ projects:
Trust issues are common when it comes to managing employees whom you cannot see or talk to face-to-face. When team leaders work with remote talent, they often struggle to measure deliverables and make sure that offshore developers put in as much effort as the main team does.
Also, it’s common for business owners to lose focus on the offshore team and leave overseas employees without a sense of direction.
That’s why, to help business owners hire talent abroad, our team establishes a trustworthy reporting and performance-tracking system.
Here are the practices we implement:
When in-house teams are divided into “main office” and “dedicated” fractions, sharing insights and information is not as effortless, as is the case for one-location teams.
To avoid the risk of a part of the team staying out of the loop on operational decisions, our talent managers create an accessible knowledge base and constantly look for ways to keep new ideas open for everyone involved in the process.
Here’s how we help business managers keep local and dedicated teams connected and engaged:
It’s hard for business owners to make sure offshore teams do their best if they have no specific goals and expectations for the team. Defining benchmarks and KPIs, is the key strategy for building a transparent and high-functioning offshore workplace.
Other than that, business owners should integrate offshore teammates into workflows and business processes. To that end, our team at Newxel provides full assistance in discovering and replacing redundant processes.
In our opinion, team leaders can avoid redundancies by:
In our opinion, staff retention needs to be team leaders’ top priority when hiring and managing talent. Hiring campaigns, team-building activities, and internal processes should aim at keeping the workforce engaged and excited.
Our team is highly skilled at keeping tech teams engaged in the project and boasts a 92.4% talent retention rate. Although business owners have full control over the R&D overseas, our account managers are there to help.
The Newxel team uses an established set of strategies to keep dedicated talent passionate about projects and eager to stay on board. Our account managers are a reliable link between the offshore team and the main office.
As they screen tech professionals, our HR managers assess their turbulence — the tendency to job-hop and change fields. We prefer mature and reliable candidates over professionals who change workplaces every few months.
Other than that, the team prepares a set of interview questions that test commitment to the project and the brand — to name a few:
Statistically, if an employee plans on quitting the company, they are most likely to do so in the first 45 days of work. This data reveals, that the reason comes out of neglect from team leaders. They have to onboard new hires and help them get as comfortable as possible in the workplace.
That’s why our team works hard to help talent feel at ease, bond with the team, and get attached to the project. Here are the tips we use and help business owners implement:
It’s common for employees to leave because they assume managers are not ready to listen to their concerns, tweak the list of responsibilities, or review salaries. To that end, it is helpful to set regular one-on-one review sessions where employees and team leaders sit down to discuss each other’s ambitions and concerns.
Since hiring and onboarding new employees is expensive, don’t be afraid to offer a pay raise to professionals who are valuable to the team. On the flipside, team leaders need to be confident that regular pay raises don’t strain the budget and undermine the company’s sustainability.
Since the team is working in different locations, it’s not easy for team leaders to know which conferences and learning opportunities dedicated tech professionals have at their disposal. That’s where the assistance of an outstaffing partner is crucial — at Newxel, we are always on the lookout for learning opportunities, conferences, and events that help employees stay motivated and well-versed in their field of work.
To make sure the dedicated development team is balanced and socialized, we create meaningful social interactions for tech talent: game nights, get-togethers, and other memorable events where employees bond and have fun.
Last but not least, successful collaboration with dedicated teams is, above all, transparent. To avoid trust issues and miscommunications, we, together with our clients, create a list of guidelines and practices a team should follow to seamlessly blend with the main office. It’s a good idea to develop a well-documented collaboration and teams retention policy that covers:
Apart from everything said, the key employee retention strategy our talent managers use is around-the-clock communication with the client and the tech team working on the project. If software developers have project-related questions they can reach out to an account manager who, in turn, will discuss these concerns with the client.
Also, we encourage main team leaders to schedule 1-on-1 review sessions with offshore teams to get to know each other, voice concerns, and share project-related suggestions. If business owners are at loss for ways to motivate offshore teams, our consultants will provide the main team with a list of methods to engage, motivate, or incentivize the team of overseas developers. Other than that, we help streamline processes by running regular workflow assessments, spotting, and removing team management barriers.
Employee retention is among the key priorities of Newxel professionals. We have a team of talent managers working on developing and implementing retention strategies.
Here’s how we build stable, long-lasting teams:
Managing a dedicated team is a unique challenge for business owners — there are communication and operational bottlenecks team leaders should stay accountable for. The good news is, once you find a way around these technicalities, the workplace will become more open, diverse, and productive thanks to the presence and contribution of dedicated talent.
Choosing a reliable vendor for building and maintaining the team is a crucial step to success in collaboration — Newxel is an established outstaffing service provider! The company helps business managers build all-size teams for game, application, website, AI development, and so on. To find out more about our services, how we retain tech talent, and create a growth-oriented environment, get in touch with the team!
The salary of developers depends on both their specialization and the country in which they work. This difference can be significant. Below you will find comprehensive statistics on this issue to have the whole picture.
You can use this information to make smart decisions when recruiting workers around the world. Hiring here means not only outsourcing but also building your dedicated development team or even an R&D center in a country with a good selection of high-class but not expensive IT talents. By hiring a dedicated team, you can be sure that this will be an integral part of your team, not temporary outsiders.
When hiring coding talents, it is essential to understand that they may rise or fall in demand. Accordingly, competition in the labor market can change. Below you will find data on how the demand for specialists has been changing from 2019 to 2021, depending on the programming language.
As you can see, the demand for Java, JS, C# programmers has dropped, while Python, C++, PHP, Kotlin, and Swift coders, on the contrary, have slightly grown in demand. But in general, the most popular programming languages are Python and PHP.
The salaries of software developers vary significantly depending on the country in which they work. You can see this in the graph below.
The USA is the undoubted leader here. American programmers earn more than $100,000 a year on average. At the same time, you can see strikingly low wages in Ukraine, where developers make three times less.
That’s interesting considering the fact that the qualifications of Ukrainian specialists are recognized as quite high throughout the world. Modest salaries here can be explained by the relatively low standard of living in this country.
Let us go into details since, as already mentioned, salaries depend on the programming language, as well as whether we are talking about mobile or web development. Let’s take a look at the numbers in each country in 2021. First, we will compare the average salaries of mobile and web developers and then those of the coders, depending on the programming language.
The average salary for mobile developers – $117000, for web developers – $76000.
As we can see, in the USA the most demanded and highly paid specialists are those who use Kotlin and Swift.
The average salary for mobile developers – $66000, for web developers – $63000.
The average salary for mobile developers – $66000, for web developers – $55000.
The average salary for mobile developers – $59000, for web developers – $55000.
The average salary for mobile developers – $57000, for web developers – $47000.
The average salary for mobile developers – $69000, for web developers – $62000.
The average salary for mobile developers – $46000, for web developers – $47000.
The salaries of engineers in Ukraine are much lower than in other countries. It is also the only country on the list where web developers earn more than mobile developers, on average.
You may also be interested to know what the salaries of other important members of the development teams are in different countries. These data you will find below.
All these specialists receive significantly more than in other countries. It’s worth noting that the DevOps role is becoming more and more important.
In terms of the salaries of these specialists, Germany ranks second in the world.
Interestingly, the DevOps role here still seems to be underrated.
This is another country where the DevOps position is less valued than, say, a Project Manager. However, the gap is not that great.
In the UK, by contrast, DevOps is valued the most. The salary exceeds that of the Project Manager by almost $ 26,000
Although Israel has the second-highest salary in software development overall, the salaries of these professionals are relatively low.
This is a country with great potential and low salaries. It is not surprising that these specialists also receive the least from the mentioned countries.
As this study shows and as is predicted, developers in the United States earn the most. On the other hand, specialists from Ukraine are strikingly underestimated and undervalued. Salaries in this country are significantly lower than those in the United States and Europe.
At the same time, Ukrainian IT specialists are considered some of the most highly qualified in the world. It makes this country one of the most attractive locations for building your own offshore development team or even an R&D center, which is a more promising and reliable option than, say, outsourcing, at least in terms of cybersecurity.
Your offshore software development team will become a full-fledged part of your company, committed to the goals of your organization.
To assemble such a team, we encourage you to contact Newxel in Ukraine. While you will have full control over your software offshore team, the company will care about recruitment, HR, team retention, office infrastructure, and all legal, finance, and administrative issues.
Security concerns are a reason why company managers grow wary of hiring remote teams. There are numerous claims that vendor collaborations are not reliable and might be the end of your data protection.
In this post, we’ll find out whether there’s a case to back up the fear and discuss a secure way to hire offshore talent.
Even if it seems you are reading too much into the tenacity of hackers and the unreliability of some outsourcing vendors, unfortunately, being cautious about a third-party contractor becoming the cause of a security scandal, is reasonable.
There are plenty of cases that show how irresponsible outsourcing decisions, can unleash a full-on security crisis. In March this year, it was revealed that LINE, a Japanese messenger app, outsourced AI implementation to Chinese vendors. However, instead of using the principle of least privilege, the in-house team accidentally gave overseas vendors open access to the full user database. Over time, the offshore outsourcing development team accessed the database over 32 times! (without reporting this to the leading company) while app users had no idea that their data was accessible overseas. The miscommunication culminated in a scandal and was a topic of public outrage on social media.
If you don’t want your company to be dragged into scandals, it’s better to look for a safer collaboration strategy.
To make sure your team has full control over innovation, confidential data, and best practices, it’s better to keep all core operations in-house. However, if you are based in a country with high hiring costs, tech talent shortage, or both, expanding your team might be expensive and challenging.
That’s why a growing number of founders consider hiring in-house talent abroad via a model known as Outstaffing or Dedicated Development Team. While your teammates work from a different workplace, they are fully dedicated to the company, just as full-time employees in HQ are.
Key benefits of outstaffing:
Hiring abroad is not easy — there are a lot of intricacies business owners have to understand deeply. That’s why working with outstaffing vendors — firms that connect employers with top-notch talent and support the collaboration — is a popular move.
However, before you start shortlisting offshore partners do your best to avoid the following mistakes:
Although security concerns are a dealbreaker for a fair share of business owners who are considering offshoring, it’s true that the R&D cost reduction and higher speed-to-market turn around times are undeniable benefits of hiring vendors.
How to make sure you can connect with affordable talent for your project, without putting data protection on the line? To build long-lasting, secure relationships with vendors, follow these tips:
Cybersecurity should be on the list of vendor selection criteria. When screening contractors for reliability, take the time to assess the security and performance of their tech infrastructure (e.g., website) and read the testimonials other clients left about the vendor.
Here are the key steps of a background check:
After you shortlisted reputable outstaffing talent managers, it’s time to build a reliable data protection infrastructure for the remote team:
When all is settled, and you have found the top-notch talent abroad you need, it’s time to work on the legal backbone that keeps offshore development teams accountable and gives team leaders peace of mind.
Here are the documents managers should prepare beforehand along with the service agreement:
In the case of partnering with Newxel, we take care of all the document-related headaches for our clients. Our legal department knows about every pitfall that may come up and this gives us the privilege to prepare all documents with special grace and agility.
In a way, a business owner should keep vendors “on their toes” when it comes to enforcing security. Otherwise, under a heavy workload, contractors may lose grip on data protection.
Here’s how to keep the security strong for the project that’s developing offshore:
As you build teams abroad, security concerns are not unfounded. Since poor hiring decisions often have devastating consequences, even for large-scale companies — it doesn’t hurt to be cautious.
To ensure a secure collaboration with international talent, it’s better to create a fully managed R&D office. At Newxel, we help managers assemble high-performing teams, keep full ownership over projects, and control over data processing. Find out what steps our team takes to ensure the security compliance of your project. To discuss building a secure Dedicated Development Team or the whole R&D center, book a call with our team!