Hey there, colleagues in business and tech!

The question of whether to #recruit or #outsource can be as tricky as deciding what to watch next on Netflix. Let's face it, this is not a one-size-fits-all situation. The content below combines knowledge from research, numbers, and experience that might help understand tech talent recruiting opportunities.

So, each tech project starts with searching for the right people for it. To break it down, here are the three main routes one can embark on:

You will be surprised, but we will not promote the second option. And even not going to encourage the third one (even if we feel it a lot). The truth is that #KOIA is not interested in projects where we can't succeed together. And let's be honest, not every company wins from outsourcing or 360 degrees digital services.

Sometimes, building an #inhouse team will hit the sweet spot - we're cool with that, and we won't be the pushy salespeople saying otherwise.

In essence, if your project screams for continuity, secrecy, critical functioning, or absolute control, going in-house can be like coming home. It's comfy, secure, and familiar.

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When keeping competencies inside the team really makes sense?

⚫ Long-term project requirements: In-house teams shine when it comes to long-haul software development projects that demand regular maintenance and user support. They offer the continuity you need, which can significantly reduce costs linked to knowledge transfer.

⚫ Core business operations: If you're looking for individuals who will run the critical machinery of your software product development, in-house is the way to go. When it comes to pivotal roles, having an in-house team brings a layer of commitment that's hard to match.

⚫ Top-Secret Stuff: Got a project that requires the secrecy level of a superhero's identity? Managing access and maintaining privacy with an in-house team is far more straightforward. There's no need to worry about your secret sauce recipe leaking.

⚫ Strategic control: If your business's operation necessitates complete control over all its aspects, in-house recruits are your best bet. Visibility and oversight can become as blurred as a foggy winter morning when you work with an outsourced workforce.

If you're navigating this intersection, let's break down some crucial factors you need to consider ⬇️

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🚧 First stop: How much time does it take?

Recruiting a new #developer or another technical player can be as long-winded as a Sunday afternoon bike ride.

Various studies suggest that the average time to fill a tech position ranges from 42 to 59 days, and that's without considering the notice period, which could add up to three months more.

Why does it take so long to find a suitable employee? There are numerous reasons:

🚧 Second stop: Costs of recruiting a new employee

According to different resources, an average company spends from EUR 3700 to EUR 5100 to hire a new employee. This cost can be attributed to external/internal #HR team expenses, job board fees, training, and onboarding costs. No wonder hiring talented individuals is considered one of the biggest challenges in the tech industry.

Here's some food for thought: #recruitment is not just about investing time but also about unforeseen #costs. However, the efforts can pay off if you're looking for a developer for a long-term core project.

According to the statistics, if your demand for developers is only short-term or fluctuating, the costs related to recruitment might outweigh the benefits:

⚫ Average productivity rates for new employees hover around 25% during the first 30 days of employment.

⚫ Data suggests that new hires have a 25% productivity rate in their first month on the job after completing new employee training. That number then increases to 50% in their second month of work and 75% in their third month on the job.

⚫ It takes three to eight months for an employee to become fully productive.

⚫ Across almost all professional industries, hiring experts estimate that it can take nearly a year for a new hire to reach full productivity at work.

⚫ A bad hire could cost a company up to 300% of the employee's salary.

⚫ According to the Harvard Business Review data, employee turnover costs range between 100% and 300% of the replaced employee's salary. With about 23% of new hires turning over before their first year, hiring the wrong person can quickly become costly.

⚫Companies can lose $15,000 or more on hiring an employee who leaves after one year or less.

⚫ According to a report by Employee Benefits News, organizations that hire a full-time employee earning $45,000 annually lose about $15,000 when that employee leaves the company after one year or less. The cost is even higher for employees making more money, equalling at least 33% of their annual salary.

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🚧 Third stop: The talent pool

Well aware of the value and rarity of top-tier talent, #business leaders would have their talent acquisition strategies down pat. But let's pop that bubble right away. Statistics show that 82 percent of companies need more confidence in attracting high-quality talent.

And of those who manage to bring in the best, only 7 percent feel they can retain it.

What's even more concerning? Only 23 percent of #managers and senior execs deeply involved in talent-related matters believe their current hiring and retention strategies are effective.

Well, one can ask: "Is it worth fighting for?" Definitely! Just look at those numbers from McKinsey.