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In-house Vs Remote Teams: Debunk Hiring Myths

There was once a time when you couldn’t imagine working seamlessly as a unit, with people spread all over the globe.

Nowadays, not only is this possible, but it’s happening every day. Without remote teamwork, many companies would not have been able to thrive and grow. And rightly so too!

Trends in remote work growth

Source

The decision you need to make is whether you should hire in-house or build a remote team.

Many companies have faced the same dilemma and have resolved it to everyone’s satisfaction.

  • According to one study, 41% of global businesses say they already offer some degree of remote working.
  • Another study shows that by 2028, 73 percent of all teams will have remote workers.
  • 85% of businesses confirm that productivity has increased in their company because of greater remote working flexibility.

Let’s take a look at the main parameters of in-house versus working with remote teams.

1. Costs

The average hourly rate of a remote front-end developer varies between USD 41-160. Whereas, a Front-end Developer’s average salary is USD 119,224.

Now, you could think that this is a balanced comparison.

However, you have to factor in various other expenses when hiring in-house. Very often, these are ignored when comparing costs of hiring in-house or depending on remote teams.

These additional expenses are:

  • Annual bonus and incentives
  • Training and upskilling
  • Office space rentals
  • Technology, such as software packages and computers

In addition, don’t forget the cost of hiring agencies.

  • Standard recruitment costs tend to range between 15% and 20% of a candidate’s first annual salary.
  • This can go as high as 30% for hard to fill positions.

It’s only when you have compared all this, as well as the opportunity cost, that you get the full picture.

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