Luxoft Holding Inc.

04/22/2024 | News release | Distributed by Public on 04/22/2024 10:22

How to hire remote developers: Your complete guide for successful hires

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In brief

  • Remote work has become increasingly popular among developers and is seen as a competitive advantage for attracting and retaining talent, with a significant portion of workers expressing a desire to work remotely
  • Employers can benefit from remote work by gaining access to a larger talent pool, saving on operational expenses and improving employee satisfaction and retention
  • However, hiring remote developers can come with challenges and requires careful consideration and management of the process. This article explains how it works and what to watch out for

The global pandemic and subsequent lockdowns proved one thing: Remote work is not only possible, but it also doesn't hinder productivity or lead to losses in output quality if done right and under the right circumstances.

Additionally, the option to work remotely has become a competitive advantage in the never-ending hunt for fresh talent. According to Forbes, 57% of workerswould consider switching jobs if their current employer didn't allow remote work, and 65% of workers say they want to go fully remote in their jobs.

However, developers aren't the only ones to gain something out of remote work. Hiring remote developersis of interest to employers as well. From cost savings to better access to top talent, remote work is a win-win arrangement for both companies and developers.

That said, hiring remote workers, developers or others, comes with its own set of challenges. If you plan on leveraging the advantages of this approach to work, here's how to hire remote developerswhile minimizing risks and ensuring the best fit possible.

Why hire dedicated remote developers?

First, let's break down what exactly makes remote work so alluring to both developers and companies that hire them.

4 advantages of remote work for employers

Remote work allows employers to:

  • Gain access to a larger talent pool. Recruiting developers with the right skills remains the number one business challenge, according tothe Reveal Survey 2023.At the same time, Gartner reports that 86% of CIOsface more competition for qualified specialists, and 73% of them have concerns regarding IT talent attrition.
  • Hire talent at a lower cost. Hiring offshore developersenables employers to leverage lower labor costs in overseas regions. For example, hiring a remote development teamof 10 can result in up to 39% lower costsif you scout for them in Eastern Europe, compared to North American rates.
  • Save on operational expenses. Remote workers usually don't need expensive downtown office space. While companies typically choose to cover equipment costs (64% of State of Remote Work 2023respondents said their hardware expenses were covered), remote work comes with fewer operational costs (e.g., internet access). However, companies in highly regulated industries (e.g., financial services) still need to invest in security and compliance measures for remote workers.
  • Improve employee satisfaction and retention. A McKinsey studyput flexible working arrangements into the top three motivators for finding a new job. And 71% of those already working remotely want to keep doing it full-time, due to a variety of benefits described below.

4 advantages of remote work for employees

Here are the four main reasons why employees love remote work, according to Buffer's State of Remote Work 2023report:

  • Flexibility. Remote workerslike deciding how they structure their work and how they spend their time in general. That's the number one benefit for remote workers, with 67% pointing it out
  • No commuting necessary. 63% of remote workers say that not having to commute to and from the office every day allows them to have more time for themselves
  • Freedom to move. 60% of remote employees consider the freedom to choose where they live a benefit of remote work. At the same time, 59% of them also appreciate the flexibility to choose where they work
  • Savings. Remote work tends to be better financially for 56% of respondents as they don't have to factor in commute and other office-related costs

5 main challenges of hiring remote developers

Of course, hiring remote employees isn't without its challenges, especially compared to the traditional in-office recruitment pipeline. Here are the five key ones, along with Luxoft's solutions.

Lengthy recruitment process

Recruitment in general is a lengthy process - the average time to fill tech positions is 68 days worldwide(56 days in the US and Canada). However, if you don't have a pipeline for hiring remote developers in particular, setting up one can delay the hire even further.

Solution. If you need to find remote developers for hireas soon as possible, turning to a team augmentation or dedicated development company can help you speed up the process. Such companies have their own pool of vetted developers they scan for the best matches to your stated needs. So, you can quickly set up technical interviews and select the most suitable candidate.

Talent recognition

How do you know the person you hire will be the right fit for your team without ever sitting face to face with them? Recognizing the ideal candidate in a sea of applications can be challenging, especially considering how large your talent pool can be if you choose to look for developers around the world.

Solution. Your recruitment pipeline should include checking the candidates' technical skills, as well as soft skills and readiness for remote work. This can be done via a combination of interviews, tests, pair programming sessions and trial projects. You can also rely on an external partner to vet developers before you interview them.

Potential bait and switch

In remote hiring, bait and switch is a real risk, as one company found outafter the person who showed up for a remote work call wasn't the candidate who passed the interviews "with flying colors." Besides looking different, the person also didn't have the level of skills the position required.

Solution. To avoid such surprises, ask the candidate to keep the camera on during virtual interviews and show their photo ID or another document to verify their identity. You can also search for the candidate's name online and see if photos from social media or other sources match the candidate's appearance during the interview. Make sure you verify references to avoid a discrepancy in the candidate's reported and actual skills.

Language barrier

If you choose to hire a remote development team in another country with a native language different from yours, you may be resigning yourself to communication mishaps due to the language barrier. Those can slow down certain processes, cause inefficiencies in others or even lead to a significant mismatch between your expectations and the worker's output.

Solution. Pay close attention to the candidates' ability to discuss work in your preferred language of communication. If they seem to misunderstand certain terms frequently, it may be better to look elsewhere. You can also ask potential candidates for proof of language proficiency and check out the EF English Proficiency Indexwhen selecting your search area.

Potential cost overruns

The cheapest rarely means the best - or even optimal - output quality. In the case of hiring freelance remote developers, you may end up with code that will need refactoring or reworking soon after you receive it. These additional costs will bloat the budget, causing cost overruns for the development process.

Solution. Look for the sweet spot between cost and quality. Remember to factor in all costs, from job postings to interviewing and onboarding, in your budget, too. On top of that, take your time screening applicants and selecting the developers for your project. Partnering with a talent provider or dedicated development company can also be a good idea, but you'll have to consider the costs, as well.

4 questions to ask before hiring remote developers

Before we dive into how to hire a remote developer, let's break down the four things you should take into account before you kick off your recruitment process.

What are your development needs?

Before you can write a comprehensive and accurate job posting to find remote developers for your project, you need to know what you expect every given developer to accomplish. And to zero in on your expectations, you need to understand what you want from the project itself.

So, analyze the project's requirements and deliverables as well as the target platform and desired or current tech stack. Based on those, identify the team members you'll want working remotely. Ideally, you should start with a core non-remote team and augment it with remote hires. Otherwise, it will be much more difficult to secure the project's success.

Then, you're ready to pinpoint:

  • Developer type (e.g., mobile app developer, data architect, back-end developer)
  • Tech stack expertise you require (e.g., frameworks, programming languages)
  • Tool expertise (e.g., Dataiku for analytics)
  • The developer's seniority level (junior/middle/senior)
  • Payment model (hourly/monthly/fixed)

What is your budget?

A simple way to estimate your budget is to answer the following question: How much are you willing to pay your remote developers per hour? Keep in mind that the cheapest option often means subpar quality; however, you also need to avoid overpaying for the expertise.

Hourly rates vary widely across regions. You can gauge those differences by browsing Glassdoor, Payscale or Indeed; however, the final cost will depend on the specific company, engagement model, developer seniority and skill set, etc.

The cost structure that will determine your budget depends on the model you choose for hiring remote developers:

  • Full-time/part-time employees. In this case, you'll have to take charge of all employment benefits and costs on top of the compensation for labor itself. You may also need to comply with local regulations in the developer's jurisdiction. On the flip side, you can demand an in-house level of commitment from the new hire. It's most suitable for long-term, continuous needs, not for one-off projects.
  • Independent contractors/freelance developers. A more cost-efficient option, this involves finding developers on freelanceplatforms like Upwork and contracting out a specific scope of work to them. However, if you need a remote development team, the burden of project management falls completely on your shoulders. You may also be concerned about the quality of work and deadlines, and rightly so.
  • Outsourcing. In this case, you turn to an outsourcing company and hire them to take on the scope of work. The cost structure here is straightforward, but it can vary based on the pricing model (time and materials/fixed price). This is the most flexible arrangement, as you can choose between team augmentation, a dedicated team of outsourcing employees, project-based outsourcing and more.

Then, there's the question of how you choose to pay your remote developer:

  • Monthly salary (most suitable for long-termengagements)
  • Fixed amount for the scope of work (most suitable for short-termengagements)
  • An hourly rate for time spent on the project (most suitable for long-termneeds with highly variable workload)

How will you communicate with remote developers?

As a remote developer will spend most of their time away from your offices, you must ensure they'll stay on top of the latest advancements or changes in the project. To that end, you should establish clear communication channels and knowledge transfer practices.

While you're at it, make sure to balance synchronous (e.g., videoconferencing) vs asynchronous (e.g., email) communication. As for the tools, you may want to consider:

  • Messaging tools: Slack, Microsoft Teams
  • Project management tools: Jira, Asana, ClickUp
  • Document sharing: Dropbox, Google Drive, OneDrive
  • Repository hosting tools: GitHub, BitBucket, GitLab

Defining the tools and practice in advance will help onboard your new hires smoothly as well as set clear expectations for their communication skillsduring the hiring process.

How will you manage your remote developers?

Whether you plan to hire a couple of freelance remote developersor a full-fledged development team, you need to know who will take on day-to-day project management. Depending on the chosen approach to hiring remote developers, you may need a project managerin-house.

If you opt for outsourcing, project management typically falls under the vendor's responsibility. However, you'll need a dedicated product manager on your end to keep track of the collaboration.

In case you have or plan to have multiple development teams, keep in mind that every team should have a team lead. This person is a senior engineer who serves as the point of contact and team manager, all in one package.

How to hire remote developers: A step-by-step guide

Once you know who you're looking for, what your budget is and how you will manage and communicate with your remote developers, it's time to dive into the nitty-gritty of hiring remote developers.

Identify your target search area

Where will you be looking for your new team member? While remote work means you can hire a person anywhere across the globe, time zone differences, talent availability and labor costs should narrow your options down.

Prepare a job description

A job description gives potential candidatesan idea of who you're looking for and whether they could be a good match for you. So, it should be clear and straightforward, with as little business speak and marketing as possible. At the same time, it should be compelling enough to motivate the right talent to apply for the position.

Here's what a job description should include:

  • Job title. Avoid vague descriptors like "coding ninja" or "code rockstar" - they'll harm the discoverability of the job description. Stick to the following formula: Seniority Level + Developer Type + Tech Stack + (Remote). You can also add the company's name or description (e.g., EdTech startup)
  • Opening. This is your chance to grab the reader's attention and give them an idea of your company and its culture. Describe your industry, what you're building and the company's mission, at the very least
  • Role and responsibilities. Describe what the developer will be working on, what their impact will be and how they will fit in with the rest of the company. List their responsibilities clearly and straightforwardly. You can also mention the team description, the tool stack you use and your approach to collaboration
  • Ideal candidate's skills and experience. This is where you list the minimum and preferred requirements for the developer. Those should include the experience level, qualifications, hard skills and tech stack expertise. You should also mention the expected soft skills and language proficiency, if applicable
  • Detailed arrangements. Describe the nature of remote work (full-time remote/hybrid), schedule flexibility (fully asynchronous, flexible working hours, fixed hours) and time zone overlap requirements
  • Compensation and benefits. Mention the salary fork and break it down into base pay and bonuses, if necessary. List additional benefits if you plan to provide any (e.g., equipment compensation, company retreats, health insurance)

Before you deem your job description ready to see the light, have someone with technical expertise read it and give you feedback. Make sure to proofread it and add relevant keywords pertaining to the developer type, tech stack and remote work.

Attract potential candidates

Now, it's time to let the world - and more importantly, your ideal candidates - know you're in the market for a remote developer. Here are the four channels you can use to find remote developers:

  • Social media. If your company already has a considerable reputation, use its social media profiles to publish information about the job opening. Startups and SMEs, on the other hand, should focus on spreading information where potential hires already hang out
  • Job portals. From global job boards like FlexJobs and Remote to country-specific portals, there's no shortage of platforms where you can publish your job description. Keep in mind that they typically charge a fee per posting or hire
  • Recruitment/Developer agencies. These agencies already have access to a talent pool in your target location. They will comb through it to find developers matching your ideal candidate's profile
  • Development companies. You can turn to them for the dedicated team or team augmentation services

Screen the applicants

Once applications start to pour in, it's time to filter them and pre-select the candidates that meet the basic criteria outlined in the job description. This stage can be done manually or using an application tracking system (ATS).

However, resumes and cover letters rarely tell the full story. To have a grasp of what kind of person is behind this or that resume, you'll need to sit with them on a video call for the first screening. It typically lasts around 30 minutes.

During this part of the hiring process, your goal is to pinpoint the soft skills of the potential employee and understand how well they will fit in with your in-house teams. Here's what you should pay attention to during the first screening:

  • Communication and interpersonal skills. Does the candidate ask questions when something is unclear? Do they communicate their ideas and thoughts clearly? If you plan to hire remote software engineersin a country with a different native language, pay attention to the candidate's English language proficiency and fluency
  • Collaboration skills. How well will the candidate work as part of the team? To gauge that, discuss how they stay in touch with team members if they've worked remotelybefore. If that's not the case, ask them how they plan to handle the switch to remote collaboration
  • Self-discipline and self-organization. When you hire remote programmers, you can't have someone look over the developers' shoulders and micromanage their working time. It's up to the remote worker to organize their working day, manage their productivity and meet deadlines

Test the shortlisted specialists' technical skills

After the initial screening, you can pick out the candidates who will make a good addition to your team and have the necessary soft skills to be productive remote workers. Next, you'll need to conduct technical screenings to see whether they have what it takes to write clean code.

Technical screening is all about assessing the candidate's hard skills - i.e., their technical expertise. This stage can combine several assessment forms:

  • Technical interview. The interview processtypically includes hands-on questions that focus on the developer's experience and portfolio, as well as how they approach challenges and solve problems. This interview should be conducted by someone with technical expertise, such as the team lead or tech subject matter expert (SME)
  • Exam or test. This will help you assess the candidate's background and knowledge and gain quantitative data to compare candidates in your pool. However, exams or tests are better when short as trial projects are more effective at demonstrating whether the person can write high-qualitycode
  • Trial project. In this case, you ask the developer to solve a problem and write a piece of code. The task should be similar to the real-world assignments the person will be working on. A trial project is better done before the interview since it will also give you an opportunity to understand the reasoning behind the code
  • Pair programming session. During the technical interview or outside of it, you can organize this kind of session. A pair programming session involves the candidate writing code while one of your developers is reviewing it in real time

Conduct final interviews and choose the best-fit developer

The final interview is reserved for the best of the best among your candidates: Those who have proven they're a good fit for you both in terms of technical expertise and soft skills. During this interview, you should discuss:

  • Salary expectations
  • Working schedule and arrangements
  • Employee benefits
  • Key performance indicators

It's also your last chance to gauge whether the candidate is a capable remote worker, a good team player and a suitable match for your company.

But how do you recognize a best-fit candidate? While the specifics depend on your needs, here are seven tell-tale signs that set the best-fit candidate apart from the rest:

  • Suitable experience level and portfolio
  • High performance in task completion
  • Strong communication and collaboration skills
  • Strong problem-solving and analytical skills
  • Proactive approach to avoiding potential misunderstandings
  • Proactive reporting on task progress
  • Matching values

Make a job offer

Once you find "the one", it's time to seal the deal and hope your candidate will say "yes". But before you send the job offer, discuss the contract's details with stakeholders, executives and your legal department. Pay extra attention to any legal obstacles that may arise when hiring a remote developer abroad.

If the candidate accepts your job offer, you should also ask them to sign a non-disclosure agreement (NDA). This is a standard practice to protect your intellectual property. You may also consider adding a non-compete agreement or clause to the contract.

Onboard your new hires

Once you hire your remote developer, your job isn't done yet. You need to onboard them to ensure they integrate well into your team and know exactly what's expected of them. The onboarding processestypically include:

  • Informing the developer about the project, its goals and milestones
  • Establishing communication channels
  • Communicating meeting schedules and deadlines
  • Introducing the developer to the team
  • Presenting the communication hierarchy
  • Providing access permissions
  • Organizing a technical onboarding for the codebase and team workflows
  • Assigning an in-house developer as a point of contact or onboarding buddy
  • Providing access to in-house resources (e.g., wiki or internal knowledge base)
  • Providing online training (if necessary)

Navigate the probationary period

Setting up a probationary period for your new hire will allow you to see their skills in action and ensure they are a good fit for your company in the long run. This period can last anywhere between 30 days and six months; however, the allowed duration may differ based on applicable state and national regulations.

If you plan to set up a probationary period, be upfront about it with your candidates before making a job offer. And to make it productive, make sure to:

  • Set clear goals and performance assessment criteria for the probationary period and communicate them to your new hire to establish your expectations
  • Have regular meetings with your new hire to track their progress and share feedback on their work
  • Collect the developer's feedback as well, be it during regular review meetings or outside of them using pulse surveys
  • Ensure the developer gets adequate training and support, if necessary
  • Conduct a comprehensive performance evaluation at the end of the probationary period based on the goals and criteria set at its beginning

As probationary periods are typically regulated, consult your legal team on your obligations and rights in this area as well as those of your new hire. If you have an internal probationary period policy, ensure you comply with it, too.

4 channels to power your search for remote developers

Here are the four common channels you should consider leveraging to find remote developersto close your talent gap.

Outsourcing or dedicated development companies

Such companies already have developers on standby, ready to tackle the new client's projects. While turning to an outsourcing company can mean opting for project-based outsourcing, that's not the only engagement model on the table.

For instance, under team augmentation services, a talent provider supplements your in-house team with one or several specialists from its talent tech pool. While the partner vets their skills independently, you're free to interview and screen candidates to make your choice.

Alternatively, if you require a remote development team, a company like Luxoft can provide you with one under the autonomous squad engagement model.

To find reliable sourcing partners, you can check out their reviews and ratings on independent platforms like Clutch.co and GoodFirms. Asking for referrals is also an effective search method.

Job boards

Overall, job boards come in three forms:

  • General. They're the biggest platforms out there, and they accept job listings across industries, remote or not. Examples: Indeed, Glassdoor, Monster
  • Tech-specific. These platforms specialize in remote and in-office job listings for the tech industry specifically. Examples: Dice, Wellfound, TechFetch
  • Remote-only. Such job boards aggregate remote job opportunities across a variety of sectors. Examples: We Work Remotely, FlexJobs, Just Remote

Publishing your job opportunity on a general job board like Indeed means reaching the largest audience possible. However, if you want to make the most out of your investment, a tech-specific or remote-only job board gives you access to an audience that corresponds more to your target profile (i.e., a developer looking for a remote job).

Keep in mind that you should focus on the most popular job boards in your target location. For example, while Indeed is present in Poland, it's not the most popular one in the country. That title goes to Pracuj.pl with its 10.1 million monthly visits.

Freelancing platforms

If you're ready to hire remote software engineersamong freelancers, here are the three freelancing platforms that can help you connect with a relevant tech talent pool:

  • Upwork. Upwork is a leader among freelancing platforms, with a reported 814 thousand active clientsin 2022 (latest data available). Browsing the talent pool and publishing listings is free as the platform makes money from progressive commission fees that vary based on the project costs
  • Toptal. Unlike Upwork, Toptal vets candidates before adding specialists to its tech talent pool. However, that makes its services more expensive; you are required to make a deposit of $500
  • Freelancer.com. Another global freelancer platform, Freelancer.com allows you to post a project to get connected with freelancers who'll bid on it. Posting projects is free, while commission fees reach 3%on the client's side

Social media

If you don't feel like paying a third party for access to the tech talent pool, you can always connect with job-seeking developers directly on social media. However, it's also arguably the most resource-intensive way to find potential candidates.

Leveraging social media can include:

  • Publishing a job opportunity on your own social media pages (if you have a substantial following)
  • Reaching out to job-seeking remote developers on LinkedIn
  • Posting your job opportunity in Facebook groups dedicated to remote job offers or job opportunities in tech
  • Tweeting out that you're hiring with the relevant hashtags added to the post

Freelance vs dedicated remote developers: When to choose which?

When you plan to hire a remotedeveloper, you have two distinct talent pools you can choose from:

  • Freelancersare self-employed professionals who typically offer their services under a project-based model. They usually juggle multiple clients' projects at the same time
  • Dedicated developerswork on your tasks exclusively. They can supplement your in-house team in the long run or, if you hire a whole remote development team, take on a separate scope of work

When to hire freelance developers

Freelancers are a better fit for your needs if:

  • You require their expertise for small tasks or short-term projects with a detailed scope of work
  • You need someone to carry out the task urgently
  • The workload for the developer will vary significantly
  • The scope of work doesn't involve sensitive data or intellectual property

When to hire dedicated developers

Dedicated developers are more suitable for you if:

  • You need to scale up your development capabilities in the long run
  • You expect an in-house level of involvement in your daily processes from developers
  • The project involves sensitive data and intellectual property, and you want to minimize risks
  • You would like a higher level of management control and transparency

Why choose Luxoft as your dedicated remote development partner?

Accessing the global tech talent - and hiring the best-fit, highly qualified developers - is no cakewalk. Choosing the right person for the job is a tough feat, considering the sheer size of the talent pool as well as remote hiring challenges.

Luxoft helps organizations across the globe ramp up their development capabilities. Armed with decades of experience in development, we leverage our global presence (57 cities in 28 countries) and tremendous talent pool (17,000+ employees) to meet our clients' needs. Most of our developers (over 60%) have master's, doctorate or PhD degrees.

We can close your talent gap under the following engagement models:

  • Team augmentation
  • Autonomous squad
  • Managed delivery application/application portfolio ownership

Not sure which engagement model suits your needs best? Get in touchwith our experts to discuss how Luxoft can help you close a talent gap promptly and cost-efficiently without compromising talent quality.

In conclusion

Hiring remote developerscan be overwhelming, especially if this is your first time recruiting remote workers and you plan to look for specialists overseas. If that's the case - or you simply want to streamline the process - turning to a dedicated development company can help you save costs, speed up time to fill and gain access to vetted specialists.

Whether you turn to a third party for help or not, hiring a remote developer is only the beginning. To ensure your new hires are as efficient and productive as possible, make sure to:

  • Enable continuous performance monitoring (but choose productivity metrics well)
  • Facilitate teamwork and promote a collaborative mindset in your team
  • Conduct review sessions with new team members
  • Keep your remote and in-house developers on the same page regarding the project's goals and progress as well as the company's direction and strategy

FAQ

When employing remote developers, what should I pay attention to?

When you hire specialistsfor remote development work, we advise you to consider the candidates':

  • Tech stack expertise
  • Language proficiency (if the working language is not their native one)
  • Self-organization and self-discipline
  • Communication skills
  • Collaboration skills
  • Remote work readiness

To ensure the ideal candidate's profile matches your needs perfectly, we advise you to identify the following before kicking off the search:

  • Required tech stack expertise
  • Required seniority level and experience range
  • Preferred payment model
  • Budget range
  • Communication channels
  • Ideal location

We also recommend you outline your hiring and onboarding processes, including whether you'll be looking for freelancers or hiring an outsourcing agency, before the search begins.

How long does it take to find remote developers?

The time to fill depends on a variety of factors, from your target location to the developer type, seniority level and expertise. For example, the average timeto fill for tech positionsaround the world is 68 days. The same indicator reaches 56 days in the US and Canada, 85 days in Europe and 92 days in Asia.

Besides that, whether you hire a dedicated development company or look for remote developers or freelancers on your own also impacts the time to fill. Partnering with a vendor accelerates the process as you don't have to manage job listings and sift through hundreds of resumes. The vendor supplies you with a shortlisted pool of candidates that match your stated needs.

Make contact

If you'd like to discover more about the safest and most profitable ways to hire remote developers, get in touch with us here.

Alexey Zagorodniy

Director, Banking and Capital Markets

Alex leads complex pre-sales initiatives and client engagements for tier-one financial firms, applying his depth of industry experience and hands-on knowledge of IT market specifics in different countries. Now based in London, Alex has an international background, having lived, worked and studied across Europe.