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The Cost of Hiring the Wrong Developer

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The Cost of Hiring the Wrong Developer

A recurring mistake made by many managers of areas in charge of developing software in a company is not using the amount of time and resources necessary for an optimal selection process when hiring a developer.
This flaw may be because few are fully aware of how expensive it can be to hire the wrong developer.
My expectation in writing this article is to make recruiters aware of the importance of putting in the effort to find a really worthwhile developer.
The cost of hiring the wrong developer
According to the results  Costa Rica Phone Number List of various studies conducted mostly in the United States, making a mistake when choosing a developer represents an expense of tens of thousands of dollars, some reaching a figure of 50,000, while others oscillating between 200,000 USD.
Of course, there are differences between the reality in the United States and that of Latin America, but it is a fact that hiring the wrong developer is not economical at all.
Let’s take a look at the costs:
hire the wrong developer
Developer , courtesy of ShutterStock
Let’s start with an estimated salary, at company cost, of about $ 2,500 per month.

Before we even start paying the new developer, we have the selection fees; that perhaps they were not very high, considering that the amount of time necessary to achieve optimal results was not dedicated to it; but they still count.
If the recruitment is carried out with the help of a head-hunter , the regular rate will correspond to the monthly salary of the hired profile. Although they usually guarantee that they will not charge a penny if the person stays with the company for less than 3 months, you usually realize that the person is not the right one long after the third month.

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To the fee paid to the head-hunter we add additional time used in conducting interviews, evaluations and hiring. Let’s assume that the expense was not very high, considering that the amount of time necessary to obtain optimal gulf email list  results was not dedicated to it; therefore, we leave the total cost, which includes the head-hunter fee plus internal assessment expenses, at $ 3,000.
Once our new developer has entered we can start the on-boarding process and train him. We must enter it into the system, give it the guidelines to access the systems, enable a workplace among other things.
Again, according to studies carried out in other countries, the total figure corresponds to the equivalent of the salary of an average monthly employee at least. And so, to the 3,000 USD we now have to add 2,500 USD more. We’re going $ 5,500, and this is just the beginning.

hire the wrong developer 2
Developer , courtesy of ShutterStock
The new developer will reach his maximum level of productivity between the first 5 and 10 months, this is the reason that it is so difficult for us to realize our mistake during the first 3 months, unless his incompetence is so exaggerated that it is evident to simple sight.
In this way, it is safe to think that the first months of work of the developer we just hired will not be of great value, but for now let’s be optimistic and assume that half the time he was able to do something productive for the company. This would mean that of the cost of the 3 months we will have lost only half, that is, 3,750 USD, which, added to the previous amount, would give us a total of 9,250 USD.
Already reaching the fourth or fifth month we begin to notice the problems.
Bugs in the code, irresponsibility in meeting deadlines, and a great deal of time wasted on reviews and unsuccessful attempts to get our new developer to do things the way they should.After 3 more months, we bear the costs of poor performance, reviews, and probably the time other team members have invested in helping. Again, let’s be optimistic assuming that the cost will be only 50% of the developer’s salary, considering that, in the end, in many cases there is no other option but to do everything from scratch or use poor code for years.SO THE TOTAL GIVES US AN AMOUNT OF 13,000 USD.

This is how we reach the eighth month, and we are already completely sure that the developer does not work.Errors are sometimes impossible to detect, and customers could be affected. The other team members get frustrated having to deal with the new developer’s problems; and so we finally made the decision to end the contract. So to the 3 additional months of low productivity we must add the dismissal expenses, settlements among other details that come with the dismissal. This will vary a bit depending on the country, since in each country the legislation is different, but surely it will not be less than the salary.
So, 3 more months of deficiency plus a salary gives us a total of 19,250 USD. It is difficult to calculate the price of the impact of the developer’s incompetencies, the delays that it brought and the discomfort that this situation caused in the team; Clearly, adding these figures together, the costs would be over $ 2,000 for hiring the wrong developer.hire the wrong developer 3Developer , courtesy of ShutterStock
So we hope that the next time you have to recruit a new developer to the team, you will take into account the price that might represent a poor choice and put the necessary time and resources into the selection process to hire an efficient developer.
As we can see, it is likely that, even using the most expensive selection process on the market, conducting a large number of technical interviews, applying automated programming tests, psychotechnical tests and interviews conducted by the manager, it will always be worth the time and investment. the necessary resources for an optimal selection process, before making the huge and costly mistake of choosing the wrong developer.

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