How Much Does It Cost to Train a New Employee [When You Hire a Software Developer]

Hiring and training new employees can be costly for companies in all industries. That begs the question, how much does it cost to train a new employee when you just hired a software developer?

While there’s no specific cost to train a new software developer, a 2020 Industry Training Report shows that the average cost to train a new employee stands at $1,111 per person. According to the industry benchmark, U.S Organizations spent $82.5 billion on training each year, a slight drop from the previous year’s cost for employee training at $83 billion.

These costs will vary by the employee’s specific role in the company, its location, size, goals, and needs. Read on to the end of this blog post as we break down the total costs of training your technical staff on software development as a core part of your business.

5 Factors Affecting the Cost of Training a New Software Developer

The cost of training a new employee can vary widely depending on the company’s needs and the employee’s experience.

Below is a breakdown of the main factors that will affect the cost of employee training when you just hired a new software developer:

Business Size

The cost of staff training and development can vary significantly depending on the size of the business. For small businesses, the cost is often relatively high, as they lack the economy of scale to train the entire workforce at once. So, what is the average training cost per employee? On average, small businesses spent $581, while mid-sized businesses reported spending $1,678.

There are some instances where large businesses may incur a higher cost of staff training and development. For instance, when they need to invest in a recurring training program for a complex project. Here, the employee training program cost will recur and add up over time.

Additionally, large businesses may have more complex systems and require a longer training period, while small businesses can often provide more immediate opportunities for hands-on learning.

Industry

The cost of training a new software developer can also vary by industry. For example, developers who work in the financial industry may need to undergo extensive training in order to comply with industry regulations. In contrast, developers who work in front-end web development may only need basic on-the-job training to accomplish simple web design tasks.

Skillset

When it comes to training a new software developer, the skillset of the individual plays a significant role in determining the total cost. New employees with little to no experience will require more comprehensive and extensive preparation before they are ready to join the team. Of course, this translates to higher costs.

On the other hand, a new employee with prior experience with coding or software development will need less time and, as a result, will be less expensive to onboard.

Experience on the Job

The cost also depends on the level of experience of the developer. Developers who are just starting out will usually need more training than developers who have years of experience. It is worth noting that the developer’s skillset is directly tied to their experience.

Project Complexity

Complicated software projects demand more time to ensure that the employee understands the project needs and delivers high-quality, bug-free code. While a simple project might only take a few weeks to train a developer, a complex project could take months.

More time spent in training means that the total employee training cost will be higher. If you’re looking to steer clear of the cost incurred to train employees and hire an established team instead, book a call with Newxel today!

How Much Does Staff Training Cost?

Training your IT staff can be a costly endeavor, but it is essential to bring them up to speed on your industry practices. Depending on the size of your team and the complexity of your needs, you may need to invest in one of the following approaches:

• On-site
• Off-site
• Remote training, or
• Hiring external consultants

There are also many cost-effective ways to train your team, such as using free online resources or hosting in-house sessions. By carefully considering your needs and training budgets, you can develop a strategy that meets your team’s needs without breaking the bank.

That said, how much does staff training cost? Here’s a brief breakdown of the IT staff training costs:

The cost of training a new employee can be broken down into two main categories:

• Direct costs
• Indirect costs.

Direct costs are the tangible, out-of-pocket expenses associated with training, such as the cost of technical equipment and the trainer’s annual salary. Indirect costs are slightly more difficult to quantify consistently, but they’re just as important to consider. Indirect costs are often associated with training, such as the time spent away from working on other projects, travel, and so on.

In order to calculate the average cost to train a new employee, we need to consider both direct and indirect costs.

Of course, this yields an estimate – your actual numbers may differ depending on your company’s specific needs.

Recruitment Expenses

There are a number of other expenses that you may incur during the hiring process. For example, you may need to pay for job advertising, background checks, motivation training, and travel expenses for the recruitment team. While these costs can seem a lot up front, they are generally outweighed by the benefits of having a talented and knowledgeable software developer on your team.

Administrative Hours on New Hires

Once potential employees have been identified, the next step is to screen them to determine if they are a good fit for the position. This usually involves conducting interviews on call, administering aptitude tests, scheduling appointments, and processing tons of recruitment paperwork.

After a candidate has been selected, there are still more costs that must be considered, such as training expenses and onboarding costs. All told, the administrative hours required to hire a new software developer can easily reach hundreds or even thousands of dollars, depending on the length of the recruitment process.

At Newxel, we understand how frustrating it can be to spend so much on hiring but still not find the right talent for your project. For us, it only takes 3-5 weeks to set up a full-equipped workforce.

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Contact us today to learn how we can find the right hire for you!

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Hidden Costs to Train New Employees such as Software Developers

It’s no secret that the average staff training costs can skyrocket due to unmentioned recruitment activities.

But what are some of the hidden costs of training, particularly when it comes to highly skilled positions like software development?

Productivity Loss

First, there’s the cost of lost productivity. It can take weeks or even months for a new employee to reach the same level of productivity as an experienced one. In the meantime, your business is losing out on the valuable contributions that your new hire could be making.

Cost of a Mentor’s Time

Second, there’s an instructor fee incurred in the program. Even if your new hire is a quick learner, they still need to be trained on your company’s systems, processes, and code base. This can be a time-consuming and expensive process.

Cost of Low Quality

The cost of low-quality software can be difficult to quantify. A half-baked software developer may not have the skills to create bug-free code. What follows is buggy software that can cause dissatisfaction from the company’s clients. In other cases, it can lead to wasted time and money as more experienced developers and QA testers are needed to spend more time working around glitches.

Costs of Training a New Software Developer: Should They Be Considered Costs or Investments?

When evaluating the costs of training a new software developer, it is important to consider both the immediate and long-term effects. The average staff training costs may include the trainer’s fees, employee retention programs, travel, and lodging. In addition, there may be opportunity costs, such as the loss of productivity while the employee is out of the office.

In addition, there are also opportunity costs to consider. The definition of opportunity cost can be given by an example. For instance, the new software developer will need time to complete the training, which means they will not be available to work on other projects during that time. As a result, the company will need to either assign the work to someone else or delay the project until the new employee is up to speed. Given all of these factors, it’s understandable that some companies view these costs a new software developer as a cost rather than an investment.

However, these costs should be considered investments in the future of the company.

It’s important to remember that trained employees are often more productive and efficient, which can lead to increased profits over time. In addition, trained employees tend to stay with a company longer, which can save money on turnover costs. As a result, the long-term benefits of training new software developers often outweigh the short-term costs.

Tips to Control and Optimize The Costs of Training New Tech Staff

Training new staff can be costly, but there are ways to control and optimize those costs.

• One way to do this is by using existing staff to train new recruits. This has the added benefit of ensuring that new staff is properly trained in company procedures and culture.
• Another way to reduce costs is to use online resources. There are many online courses and tutorials available that can provide employees with the basics of various software and hardware platforms.
• Finally, it is important to create a comprehensive strategy. By mapping out what needs to be learned and when businesses can avoid spending money on unnecessary or duplicative training.

TIP: Create your developer onboarding checklist highlighting the tasks, information, and technology that a new developer needs to complete and be familiar with in order to start work on a project. This helps to keep everyone on the same page!

This way, you can keep the costs under control while still providing new staff with the skills they need to be efficient.

How Newxel Helps You Save Time and Money When Hiring and Training Software Developers

If you’re looking to build a top-notch remote work culture with a dedicated remote development team, look no further than Newxel.

We know that finding the right talent for your business is essential. That’s why we offer an extensive recruitment process to make sure you find the best possible fit for your team. With our help, you can have a top developer on your team in as little as 3-5 weeks!

At Newxel, we provide IT staffing to companies looking for talented remote developers in Eastern, and Central Europe. Whether you need long-term or mid-term development teams for your business, we’ve got you covered! Our company also provides all the necessary tools your team needs to complete your project, including branded and fully-equipped office spaces, office management, and, best of all, dedicated support for your team.

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So why waste more time?

Book a call with Newxel today and get started on your project!

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Summary

Since there is no fixed cost, what is the average training cost per employee? Well, the average is $1,111 per person. However, this may vary depending on the region and specific industry sector.

It’s important to note that training an employee is more of an investment for either long-term or short-term collaboration. Training increases the employee’s value to the company as they can learn new material that’s essential for your project’s success. On the other hand, there are some losses to be had if the training is not effective, such as low-quality costs, productivity costs, etc.

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To mitigate any potential losses, you can try another option

Hire Newxel and get a dedicated team of expert software developers for your project.

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