Hire a remote developer from Ukraine. What do you need to know to hire a Ukrainian developer?
Eastern Europe and Ukraine especially are attractive destinations for startups from abroad. There are many reasons for that: low cost of living, talented developers with academic education in English and experience working with Western clients. So, let's see what to look for when you hire a remote developer in Ukraine.
Why exactly Ukraine?
Historically the IT sphere in Ukraine was formed as a service so you can hire the experts who were working with the biggest international companies such as Google and IBM for a price 3-4 times lower than in your country.
This article will help you to get the full concept of hiring a remote developer in Ukraine: how many developers are there, where to find them, the approximate desired salaries and the legal aspects of employment.
Why are Ukrainian developers more attractive to employers?
- The high level of technical competence
- European mindset in thinking and communicating
- They have reasonable salaries
- They can work in your timezone
- A lot of them can speak English fluently
- The technological stack is quite different
- There is a high number of top professionals
Ukrainian developers are attractive to employers for a number of reasons. First, they have a reputation for being highly skilled and competent in a variety of technical areas. This is due in part to the strong emphasis on education and professional development in Ukraine, as well as the country's thriving technology industry. As a result, Ukrainian developers are often able to quickly adapt to new technologies and methods, making them valuable assets for employers.
Additionally, Ukrainian developers are known for their European mindset in thinking and communicating. This means that they are able to easily collaborate with teams from other countries and work effectively with clients from around the world. They are also fluent in English, which is the lingua franca of the technology industry, making it easy for them to communicate with clients and colleagues.
Another factor that makes Ukrainian developers attractive to employers is their reasonable salaries. In comparison to developers in other countries with similar levels of skill and experience, Ukrainian developers are often less expensive to hire, which can help companies save money on labor costs.
Another advantage of hiring Ukrainian developers is that they are located in the same time zone as many European countries, which makes it easy for them to work with teams and clients in real-time. This can be particularly beneficial for companies that need to work on tight deadlines or need to quickly respond to changes in project requirements.
Furthermore, the technological stack in Ukraine is quite different from that of many other countries, which means that Ukrainian developers are able to bring fresh perspectives and new ideas to projects. This can be particularly valuable for companies that are looking for developers with expertise in emerging technologies or specialized skills.
Finally, there is a high number of top professionals in Ukraine, which means that employers have access to a pool of talented developers with a wide range of skills and experience. This makes it easier for companies to find the right developers for their needs and allows them to build highly effective teams.
How many developers are there in UA?
According to djinni as of December 2022, there are 62208 candidates that are looking for a job. Most of them are actively applying. As for the job offers, there are 12386 vacancies. So we can say that there are 5 times more candidates than vacancies and you have a high chance to find the best fit here in Ukraine.
While the number of candidates who are using djinni is increasing, the number of proposals is declining.
Let’s take a look at the list of candidates by categories.
Salaries in Ukraine
It is true that Ukraine has a relatively low cost of living compared to many other countries. This means that the same amount of money can go further in Ukraine than it would in countries with higher living costs. For example, a salary of $1,000 per month in Ukraine would be equivalent to a salary of $3,500 per month in New York City, based on the cost of living in each city.
However, it is also important to note that the average salary in Ukraine is lower than in many other countries, including the United States, Canada, and Western European countries. According to data from the Ukrainian State Statistics Service, the average monthly salary in Ukraine was approximately $400 in 2021. This is significantly lower than the average salary in the United States, which was around $3,500 per month in 2021.
Despite the lower average salary in Ukraine, the relatively low cost of living means that Ukrainian workers are able to enjoy a similar standard of living to workers in other countries with higher salaries. For example, a worker in Ukraine with a salary of $400 per month would be able to afford a similar standard of living to a worker in the United States with a salary of $1,400 per month, based on the cost of living in each country.
Overall, the lower cost of living in Ukraine is an attractive feature for employers and workers alike, as it allows companies to save on labor costs and allows workers to enjoy a good standard of living.
Recruiting agencies VS outstaffing companies
If you're looking for new talent, it's likely that you've considered hiring from an agency or outstaffing company. While these are both valid ways to find and hire great employees, there are important differences between the two types of companies.
There are different ways to cooperate with recruiting agencies and outstaffing companies
There are many ways to cooperate with recruiting agencies and outstaffing companies. Recruiting agencies and outstaffing companies provide different services, but they may also offer some of the same benefits.
- Outstaffing companies are more expensive than recruiting agencies.
- Outstaffing companies are more flexible than recruiting agencies.
Recruiting agencies work with you to find the best candidates for your job. They charge a fee for their services, which can be based on the number of full-time equivalent employees or by monthly retainer fees. Recruiters are a great way to find the right people for your team when you need employees quickly and don't have time to recruit them yourself
Outstaffing companies can help you find the right talent, manage your existing team, handle HR processes and technology stack, or even assist with business processes.
If you are looking to build a strong team but don't have time to do it yourself, an outstaffing company may be able to assist with recruiting efforts. You can also use them to manage your existing employees by providing training and professional development opportunities for them. In addition to these services, a third party agency could also provide you with access to new technology or business practices that would be difficult for your current staff members (or impossible) due to their lack of experience in those areas..
Staff augmentation is a cost-effective solution for companies that need to scale their team quickly. It's an ideal approach for organizations that have limited internal resources or capacity, but still require a dedicated team in order to accomplish their goals.
For example, if you're looking for candidates with specific skills who aren't readily available internally, staff augmentation lets you work with an outstaffing company or recruiting agency in order to find those ideal candidates quickly and efficiently. The outstaffing company will then assign these professionals directly onto your project team so that they become part of your extended organization (but not permanently).
Cooperation with recruiting agencies is usually billed in hourly rates, while outstaffing companies provide a fixed monthly cost.
- Recruiting agencies: They bill in hourly rates, and the amount of time they spend on your project is determined by you. For example, if you need a specialist for one day per week for three months and your monthly budget is $5,000 USD, then your total cost will be $5,000 x 3 mo./12 weeks/4 wks./2 days = $10,000 USD (10k).
- Outstaffing companies: These companies provide their services for a fixed monthly cost. This means that even if your project does not require any staff or resources during some periods of time (for example because you're waiting to receive new data), they still charge you the full monthly fee amount anyway.*
Staff augmentation is a great way to scale your team with talented individuals.
Staff augmentation is a great way to scale your team with talented individuals. Here are some benefits of this kind of collaboration:
- It’s flexible. You can use staff augmentation when you need someone for a specific role, project or assignment.
- You hire people for their skills, not their availability (you don’t have to worry about when they are available).
Staff augmentation can also be used to fill gaps in your team as an alternative to hiring full-time employees.
Fees (typical costs in recruitment agencies and outstaff companies in Ukraine)
If you want to outsource your recruitment, but don't know how much it will cost, then you should consider the following factors:
- The percentage of the employee's salary that the agency takes
This fee is typically calculated as a percentage of an employee's monthly salary. If you pay an employee $2000 per month, and their recruiter takes 10%, then they will receive $1800 and their recruiter receives $200 per month.
- The complexity of the task
If your job requires specific skills or qualifications (i.e., someone needs to be fluent in English with at least 5 years’ experience in marketing), then it is more likely that there are fewer suitable candidates and therefore this type of work will take longer for recruiters to complete successfully. However, if your company is looking for general office workers who have basic knowledge about computers and have previously worked as receptionists or secretaries (for example), then finding these types of employees could be done much faster because there is generally more supply than demand for this type of role.
Recruitment Agency Fees
If you go through a recruitment agency, you can save a lot of time. The average cost of recruiting agencies in Ukraine is about $5-10/hr. A good hiring manager (who will be able to find talent) can easily make up to $20/hour on their own, so they will not have to pay anything for the services provided by recruiters.
However, if your hiring manager does not know how to hire people then they will probably spend more than $20/hour on recruiting companies and consultants who are charging them for this service.
How much do IT recruiting agencies charge?
The cost of recruiting depends on the type of company and the type of job. The price can range from $1000 to $50,000 or more. It also depends on the location of the company, industry and number of employees in a company.
How much does it cost for a Ukrainian outsourcing firm to place an engineer?
A typical hourly rate for a technical specialist at an outsourcing firm is about $30-35/hour. For example, if you have an employee who earns $1 per hour (the minimum wage), then you would pay about 8 hours worth of salary per month ($80). If you pay your employee 10% more than minimum wage (e.g., $1.10), then you will spend only 7 hours worth of salary per month ($70). That's 15% less!
How do IT outsourcing companies charge?
When you hire an outstaffing company, you'll usually have to pay a fixed fee for each project. It's usually less than it would cost to hire a full-time employee directly, but it will be different depending on the scope of your business and the type of work being done by your outsourced employees. Some outstaffing companies will charge monthly fees instead of per-project fees, but this doesn't happen very often—you can negotiate with them if you want to go that route.
Hire Ukraine Developer with Hiretop
All in all, we hope this article has helped you understand the typical recruitment agency fees in Ukraine.
If you have any questions concerning the hiring process in UA, please download the presentation below which includes all prices and rates and contact us to schedule an intro-call. We will be happy to help you!
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