When you need to hire developers, it could be pretty confusing what kind of contract you would offer them, predominantly because of the costs and the challenges down the road. Do you choose the already too familiar option of full-time employed, office-working employees? Or should you take a leap of faith and trust other experts to handle the whole hiring process for you, cutting the time of numerous expenses and interviews?
Let’s see and review the pros, cons, and central aspects of the two hiring types and compare in-house and staff augmentation hiring methods below. Through our visuals and comparisons, you will get a better understanding and gain insight into how both hiring methods work.
In-house vs. Proxify hiring: Comparison
In-house hiring means the managers or business owners do not rely on outside factors for finding new software talent and potential employees. All existing employees belong in this category.
All operations and tasks are executed within the company and without external candidates. In other words, in-house is the traditional employment of full-time or in-house employees.
Pros of hiring in-house
- A set schedule for all employees: Everyone is available at the same hours.
- Shared values and better productivity: The team members and everyone included are on the same page when sharing the company's values and proactivity.
- Good rapport: Working under the same roof for a long time helps create and respect a good team culture.
- Efficiently conducted supervision: Everyone is in the same time zone and place.
- Realistic salaries: There is no mismatching between salary expectations and company resources (the same national standard of living costs and salary applies to everyone here).
Cons of hiring in-house
- An enormous fee: When someone completes the tasks and work, that employee would still get the same salary, despite the reduced workload.
- Limited skill set for that particular job market: These employees have not entirely established experts for most tasks. The employer would need to set aside resources to train the team additionally.
- Additional costs for hiring recruitment teams: The people who do the hiring also need to be employed by the company, which adds to the overall expenses.
- Limited pool of developers: There are a limited number of experts for a given technology or framework within a country. This typically means that it requires a strong employer brand to attract developers.
- Long interviewing process: It takes a lot of time to do many pre-screens and interviews.
- Extra advertising costs: Resources and money spent on job ads.
- Higher turnover costs: When long-term house employees leave, the turnover cost is even greater.
In-house hiring saves the day when managers don’t feel like giving their trust unconditionally to external factors and agencies because already established teams work better. There is a sense of familiarity and security, and not taking unknown risks is favored, so everyone is on the same page, time zone, and schedule.
Managers can easily control and supervise the workflow and productivity.
On the other hand, with in-house hiring, the costs for most factors are much higher than with outsourcing. The hiring and working conditions lack the personal touch and attitude; hence, all assessments are not in-depth and detailed. But, in this case, the major setback is a lack of expert talents in their fields. Usually, a new hire would need to do more things at once instead of fully dedicating themselves to their precise expertise.
Hiring through Proxify
Hiring through Proxify, on the other hand, means the company expands its tech team by getting matched with experts or pre-vetted freelance software developers. Such contractors are not bound to a physical premise or geographical location to do their work.
One transparent and excellent example of hiring vetted developers and staff augmenting is how Proxify operates.
Pros of hiring through Proxify
- Cutting on costs: Proxify has competitive pricing and no hiring fees
- Flexibility: We give you the ability to quickly scale up and down your team based on your needs. By hiring through Proxify, you can spin up a team of several engineers within days, not months.
- Ease of use through a unified dashboard: All the best talent is available and within reach. You can reach the best experts in their fields more accessibly and faster. And you know you will have the job done perfectly too.
- Quick results: Work turnover is rapid because you have precise experts for the job.
- Vetted quality candidates only: Our devoted team does the vetting, including code tests and technical interviews conducted under the supervision of senior engineers. Only 2-3% of the applicants get accepted, so you know you’ll only be working with the best.
- Aces all around in English: Every member has excellent English language proficiency,
- Excellent customer service: Devoted client managers that help you find and manage developers,
- Not a ‘one size fits all’: if nothing works out for you from the pre-existing plans, we have the opportunity to create a customized and flexible hiring plan.
Cons of hiring through Proxify
Possible remote managing challenges: There are fewer opportunities for informal communication or face-to-face meetings.
How to overcome possible remote managing challenges
You can easily handle this because there are various remote management platforms available that focus on communication, management, and availability, all helping in task organizing.
Everything comes down to trust and professionalism, whether it is a physical premise or a virtual connection, so the possible remote managing challenge is not an insurmountable thing at all—especially not in this age of digital functioning in almost every life sphere, professional or otherwise.
It is also important for the remote manager to adopt certain traits and habits that eliminate or quickly resolve potential challenges. The manager should not only be empathetic and trusting but also rely on the remote management platforms/apps, regular documentation, and frequent calls as well.
Whether you are a business owner or an established small business, or perhaps you plan to find software developers to stay long-term, always do extensive research or comparisons. Think of this as a core business strategy or a formula for success. We at Proxify believe that the critical element for fruitful work is not just finding but retaining developers too.
In other words, with Proxify or hiring independent contractors, you know that someone can take care of the whole developer hiring on your behalf. At the same time, there is wise usage of resources, and the costs of it all are significantly more affordable than, let’s say, delegating all tasks to a house team. The hourly rate is lower with Proxify and majorly higher with traditional agencies.
Also, the cost of recruitment with Proxify is zero, whereas, with formal employment, the sum cost would be a large sum in general, as shown above.
Not to mention the time management in the resources. You can have a developer already active and working within days of contacting Proxify.
But if you choose traditional hiring, the process will most likely last months, not days. We always have a personal touch, in-depth assessments, flexibility, and carefully selected top-tier talents.
There is zero termination cost in that case, whereas, with traditional agencies and hiring, the sums are enormous for terminating agreements.
Our clients always know they can rely on our expertise and the expertise of independent contractors and developers. Those same hired developers are treated no differently than any other employee in their company.
On the other hand, with independent contractors, it could be challenging to build a culture and get together in person with the independent contractors.
Verdict comparison of the pros and cons between hiring in-house vs. Proxify
Who wins: If you want to closely manage and monitor the work dynamics, and tempo, and synch the hours for everyone, the in-house method is probably applicable here. On the other hand, there is a lot of time allocated for hiring. The flexibility is scaling up and down, and it can be challenging to evaluate the quality of the assessed candidates.
But, if you prefer to avoid micromanaging and find the best of the best talent for hire, you will probably rely on services like Proxify. This hiring method wins regarding saving money in the long run and providing a detailed and personalized approach for getting valid assessments and the best-vetted talent.
How does Proxify stand out when compared to in-house hiring?
How could you be sure that all business functions go organized and smoothly within the project scope? The truth is that with great experts, you can expect great results, but only if you know how to assess the suitable candidates and stand by the right choice. Assessing and interviewing are complex tasks unless you are an expert in evaluating profiles.
If you leave this up to in-house agencies, you probably know and expect that the process will likely be impersonal, not in-depth. It will resemble sifting through many candidates with no 100% attention and guarantee.
But, with Proxify, things are different because just the best of the best make it through, meaning just the best 2% of applicants go to the following stages, ensuring the utmost quality. Our vetting process is detailed and starts with a self-assessment quiz about the applicant's past work experience, given the fact that we receive thousands of applications monthly.
As a second step, we assign a technical quiz and screening interview, where we check for precise expertise, soft skills, and English proficiency. We give a challenging and specific code test for developers for the third vetting step. And the fourth step is a technical interview with our engineering managers that extensively evaluate the candidates' technical skills and problem-solving skills, all within 1-hour discussion. The last fifth step is finalizing and reviewing all stages that a candidate went through—saving on hiring and job ads.
Suppose you hire in-house or traditional agencies and mediators to find a great developer for your business. In that case, you should know that a significant amount of resources is a must, and a large part of these resources will be dedicated to the job ads, among other things.
Still, with Proxify, you will save a lot of money and time in the long run for this same service and process, and in just three steps, you can get the perfect developer almost immediately. Once you know what you need, the next is finding a match for you, and work starts right away.
When you start working with the developer Proxify found for you, there is the perk of complete control over productivity and work through our excellent dashboard showcasing your team members in their time zone.
You can onboard all your developers quickly in the dashboard, assign tasks, and follow their completion status; you manage invoices and vacation days. Lastly, there is onboarding for the chosen candidate.
You save time and resources this way.
There is no room for vague expertise and superficial, quick assessment in software engineering, especially when you need to hire a new in-house or outsourced developer, as with Proxify.
Every talent acquisition specialist at Proxify aims to narrow down a broad choice of applicants that would continue to the next phase. The talent acquisition specialists do the technical checks and inquire about the candidate about specific skills. They also pay attention to soft skills and communicativeness too.
As an even more in-depth assessment for technical skills, our developers at Proxify continue the assessment by asking more specific questions. Who can better describe the next ideal developer for the job than already established developers?
Excellent English proficiency
Good knowledge of the English language, and overall proficiency, are not something seemingly trivial nor taken for granted. Proxify needs to ensure that each hired profile has a good English proficiency and communicates it well. We provide that the candidate will have no linguistic barriers or communication obstacles with the client.
No matter how great someone is at their expertise field, if they do not possess good English language skills, the whole communication would be faulty, and with this, the work results too.
Devoted client managers
The project management should be near perfect and impeccable for the work to go smoothly and well. Managing projects throughout all phases is another thing that Proxify is excelling at. Our client managers always ensure that our clients are happy with their service and pleased with the talent matched for them.
A high standard of service and client satisfaction is the primary notion for our client managers. They address any concerns, feedback, and communications with internal teams, follow the latest updates and relevant trends, and ensure all sides are satisfied.
Outstanding customer service
It is clear that Proxify values satisfaction in clients by implementing exceptional, genuine care for all tasks at hand.
With responsive, caring, and reassuring customer service, we at Proxify establish and secure business relationships of lasting quality.
Hiring, in general, varies from one business to another. Still, we see that in-house and hiring independent contractors have pros and cons. Depending on your resources, work goals, and long-term plans, you can easily weigh the type of new hire to consider and who will find and hire for you.
Hiring independent contractors through Proxify is a more viable option than traditional in-house hiring because we have a genuine and personal approach to the clients, responsive and expert workers, fewer costs, and excellent time management in the long run.
Anyone who values quality foremost, not just quantity, would benefit from hiring freelance developers or independent contractors and continue to grow the business for the time to come.