In 2023, the difference between the demand for and the proposition of skilled talent in the industry has created 40 million tech positions that go unfilled around the globe. Then, companies were spending around $4.500 and about 36–42 days to fill a position. During January 2024, tech companies from the US opened twice more vacancies than was expected before. When we need to fill so many skill gaps in tech at the same time, the average cost-per-hire by industry also grows.

Third-party outstaffing is one of the most efficient ways to scale the tech team fast and without having to pay extra. But, it is also crucial to check whether your outstaffing partner of choice is making all the right steps to minimize the cost of hiring an employee and optimize the recruitment process as much as possible.

They create a global tech talent pool

What is a talent pool?

Creating a talent pool is a practice of assembling and accumulating additional talent to optimize the hiring process, improve its efficiency, and reduce recruitment costs. It helps recruiters and outstaffing professionals fill open positions quickly and without preliminary interviews.

60% of tech companies found filling their positions hard in 2023. For them, a professional outstaffing company with a large tech candidate pool and the opportunity to hire international tech teams can become a real savior.

To create a pool of candidates within the 7 best countries for developers and many other countries, and minimize the cost of hiring a new employee, we at Outstaff Your Team take the following steps:

  • Save the relevant candidates’ data in one database. This way, we can reach the needed candidate with ease and without having to search for their contacts.

  • Categorize all the candidates and open positions. This helps us find the right person with the right skills almost instantly.

  • Dive deep into every position’s requirements. This makes sure we understand our client’s needs to a T and can offer them the best and most skilled candidates.

Creating a tech talent pool and decreasing recruitment expenses in tech takes time, determination, and a deep understanding of the market and its requirements. So, we analyze the tech talent market constantly and maintain active global talent base saving the resources of our clients.

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They use social media, messengers, and IT communities

Social Media is one of the best ways to seek tech talent

Job boards like Glassdoor are a reliable resource for qualified candidates. But what about extending the tech HR toolkit?

According to the latest tech outstaffing trends, 79% of jobseekers use social media when looking for a job. Altogether, candidates respond to messages 9x more often than to emails, which is worth taking into account wherever you have found a candidate’s profile and thinking of starting the communication.

The formula for creating a perfect social media recruitment ad is simple. Make it:

  • Short, concise, and informative

  • Eye-catching and attractive

  • Targeted to its perfect audience

  • Personalized for every country you are interested in

Facebook is one of the most popular social media platforms for both communication and seeking tech professionals. The cost of vacancy promotion there may vary, impacting the final cost to hire an employee.

Along with utilizing Facebook, outstaffing professionals pay attention to other places where IT specialists chat about their daily challenges at work. It’s a great chance to spot matching developers and QA engineers and to witness their approach to performing tasks. Such “hot” places include:

  • Discord communities, where narrow professionals gain insights into the latest trends, technologies, and discussions relevant to their projects.

  • Stack Overflow, where hiring managers can evaluate a candidate's technical skills by reviewing their answers, code samples, and the recognition they've received from the community in the form of badges and reputation points.

One more crucial thing from the Outstaff Your Team practice — audit the results of using each platform you use once in 3 months or more often. The conditions, like price/quality ratio, change, and what was a game-changer yesterday may become a loss-making strategy tomorrow.

They screen to pay less than average cost-per-hire by industry

The cost of hiring an employee increases with each additional interview round.

So, our Talent Acquisition team says that it’s necessary to review 200 CVs to spot 18 candidates for initial interviews, and not more than 6 candidates should be invited to the tech interview with their potential manager. Screening reduces the number of interviews threefold.

What is screening?

Screening is a process of conducting a preliminary interview to determine which candidates do not suit the position at all and will not be going into the next interview stage. This helps outstaffing professionals limit the number of candidates and reduce recruiting cost per hire as a result.

Screening allows on saving resources, time, and effort in interviewing tech candidates who do not possess the required skills, are uninterested, or unmotivated. To screen efficiently, the recruitment or outstaffing professionals need to have a deep and acute understanding of their clients’ needs and every position’s requirements.

They do background checks

The price for a specialist’s replacement is like 2 additional compensations, and a company gets the most out of collaboration with a pro when that pro becomes a company long-liver. Seasoned tech recruiters, like Outstaff Your Team, pick candidates who will be successful in commercial software development projects in the long run.

Hiring cost of a new employee should be a worthy investment

A reduced average recruiting cost per hire does not necessarily indicate that a hiring process is the most optimal. Let’s evaluate the cost of hiring a new employee along with the benefits this team member brings to the team.

IT outstaffing delivers flexible specialists. Although we strive to hire faster and spend fewer resources to close each position, it’s also crucial to pay attention to a candidate’s abilities to optimize the workflows and upskill independently.

Such an approach has helped us:

  • Spot developers who have celebrated their 2+ anniversaries within our client’s projects in E-commerce and other domains;

  • Find professionals who can come up with innovative solutions, like ways to reduce hosting costs by 50%;

  • Engage specialists who have gone beyond the must-have skills and mastered related frameworks, which is especially important when you’re hiring a developer for a startup and a project’s scope changes significantly at the initial stages.


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In the future of tech recruitment, Blockchain technologies, most likely, will ensure the authenticity of a candidate’s employment history. Sounds great, as it will definitely accelerate the time to hire. Yet, we are sure that checking references from humans who have collaborated with a candidate will always be a valuable step in data-driven hiring. The list of companies where one worked matters, but dry facts cannot describe a specialist’s real contribution to the projects as precisely as people can.

They rely on data

One should track data patterns to explore how to reduce hiring costs. Outstaffing companies keep all the information about interactions with candidates in the ATS (applicant tracking system) and gather feedback about all the hiring procedures from the first contact with a potential hire to onboarding.

Knowing what was lacking and what could be improved, we make the candidate experience smooth and get positive word-of-mouth. As a result, we attract new specialists faster, as more and more of them apply to our job openings before a Talent Acquisition specialist finds them.

Here is one of the Outstaff Your Team records. We received the application in 8 seconds after publishing our job opening on the web.

They automate

The Future of Jobs report says that 80% of businesses were using different automation tools in 2020. The intensity of automation continues to grow within all the domains, and HR is not an exception.

Utilizing an HR virtual assistant reduces the hiring cost of a new employee and improves the above-mentioned outstaffing tech teams’ screening process. It can conduct preliminary tests, CV- and resume-processing, and even information-gathering processes.

To make automation perfect, we:

  • Don’t delegate making a final decision and creative tasks to AI-powered assistants.

  • Utilize tools that comply with data privacy regulations, as we give our best to the privacy of our clients and hired specialists.

They implement video interviews

Video interviews are a staple of the tech hiring process

The job market has gone global and video interviews have become a staple of an efficient recruitment process.

Knowing how to conduct video interviews and correctly assess the quality of candidates’ knowledge, skills, and readiness to work in a team is a must when looking to cut the cost to hire a new employee in tech.

They conduct structured onboarding

We’d consider the cost to hire and train a new employee as 2 indivisible investments. The first days with a company contribute to a specialist’s success pretty much. It’s better to cover a bunch of onboarding tasks before assigning project tasks to specialists. Thus, you witness less frustration, less rework, and less distraction from the core workflow in the future. At the same time, long onboarding “steals” precious working hours.

With a new employee onboarding program prepared in advance, you can cope with the initial training productively for just 1–3 days, depending on the team role. Our Account Managers say that such an onboarding program works better if you accompany it with a personalized approach to each specialist in terms of time spent on each training stage.

The costs of hiring an employee may add up if a hiring party doesn’t comply with the legal requirements. We at Outstaff Your Team put a solid effort into tracking all the legislative updates within all the countries where we hire and stay immune to misunderstandings with authorities.


cutting and optimizing the cost of recruiting new employees in tech is not a simple task. It requires attention to detail and a deep understanding of the tech world. But, with the help of a professional outstaffing team, anything is possible.

Looking to decrease the cost per hire? Write to us at [email protected], and we’ll help you scale your tech team fast and efficiently.


What is the cost of hiring?

The cost of hiring measures the costs associated with the process of hiring new employees. This is the recruiting metric that helps HR specialists track expenses for such activities as candidate sourcing, vacancy advertising, conducting interviews, and adaptation of new team members.

How do you calculate HR cost per employee?

You need to know:

  • X, the total expense incurred by the Human Resources (HR) Department, let’s say;

  • Y, the total number of employees working for the organization over the same period of time.

Then, the HR cost per employee is X/Y.

How many HR specialists do you need per employee?

Per 100 team members, there are statistically 2.57 HR specialists for all organizations. Small companies typically have three times more HR specialists per employee than medium and large ones. An HR team’s workload may significantly increase, depending on business goals. Then, outstaffing becomes a great option to empower that team and fill skill gaps ASAP.

Ann Kuss is the CEO at Outstaff Your Team. After 11 years of expertise in building remote tech teams for startup unicorns and global tech brands, Ann decided to lead a new venture aiming to reinvent the way international tech teams scale. Throughout her career, Ann hired specialists for countless tech positions from more than 17 countries on all major continents. Ann graduated from Kyiv-Mohyla business school, is an MIM Kyiv alumna, and regularly takes part in mentorship programs for junior tech talents. Ann actively promotes knowledge sharing and curates Outstaff Your Team blog strategy, preferring topics that solve practical needs of IT leaders. She believes that structuring business flows (including hiring) is a well-planned journey with predictable and successful outcome.

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