Assembling the right team with all of the skills your software will need is paramount. Software development is expensive, so you have important decisions to make in choosing to hire employees, outsourcing to developers through an IT staffing agency, or outsourcing to a software development agency to handle everything.
The best option is the one that fits best with your startup across many variables. Are you planning to return to an office format if/when things return to normal? Perhaps, you want a certain social, cultural, and ideological alignment? Or maybe, you more concerned with things like cost vs. developer productivity, code quality, and dependability? There are a lot of other angles to consider, but you need to consider what’s important – not just to your founding principles, but to your prospective investors.
But, in addition to hiring, you also have to think about retention and turnover. Turnover among developers averages about 12.3% but can easily exceed 25% for tech startups. There are a few reasons for this, like:
- Not having a Human Resources Manager, Team, or Program.
- An inexperienced hiring manager/authority and not vetting candidates.
- A lack of structure, clearly defined processes, and general chaos.
- Poor alignment of personal and company values.
- Better job offers and/or lack of skill development opportunities.
As many startups don’t have a dedicated HR manager, it’s likely going to be a shared duty – and for that reason, you need a consistent standard for “employee issues.” Anything will work better than nothing, so just customizing this free employee handbook for your startup will help buy some time. Even that’s more than what most startups have.
Two things can be said for IT staffing agencies in general. They specialize in recruiting, vetting, team-wide skill matching, and providing essential HR support to the developers they recommend to you. They are also responsible for managing turnover among their developers. In every other respect, augmented teams are extensions of – part of – your team.
Hiring developers is always a 1-to-1 proposition. Actually, with the entire onboarding process, it’s a many-to-1 proposition. Finding an IT staffing agency you can trust is a 1-to-many proposition. You’ll still be able to screen and interview each prospective candidate, but you’ll save 80% or more of the time associated with hiring each developer directly.