How to Hire a Software Developer (2025): 12 Steps & Hiring Strategies

Apr 25, 2024 | Insights, Tech & Business News, Tips

Did you know the demand for software developers could surge by 25% from 2022 to 2032, according to the US Bureau of Labor Statistics?

This means hiring a talented developer is about to get trickier as competition among employers to attract top talent grows. One misstep in your hiring process could lead to wasted resources, poor software quality, and plummeting team morale. 

Let’s explore how to hire a software developer and the mistakes to avoid to ensure a smooth hiring process. 

We’ll also tell you why outsourcing software development services is a compelling alternative to in-house hiring and why teaming up with a reliable outsourcing partner like Distillery, is a smart strategy for success.

Further Reading:

This Article Contains:

How to Hire a Software Developer: 12-Step Guide To Finding the Perfect Candidate

These 12 steps are all you need to follow to find the right candidate who fits your project requirements and company culture perfectly:

Step 1: Define Your Technical Requirements and Project Scope

To kick off your search for the ideal software programmer or engineer, clearly outline your project’s technical requirements and scope. 

Here’s how:

  • Document your business and technical needs: What problem are you trying to solve, and what features do you need to achieve your goals?
  • Identify the required tech stack: What programming languages, frameworks, databases, and tools will the developer need to use?
  • Set a realistic timeline based on scope and expertise: Define a clear project timeline based on the scope of work and the level of expertise needed. Factor in the complexity of tasks and dependencies, and estimate the timeline.

This will also help you create an effective job description that attracts the right skilled developer for the project requirement.

Step 2: Choose the Right Type of Developer

The next step is to decide what type of software developer to hire. You may need:

  • Web and Mobile App Development Experts: Front-end, Back-end software programmer, or Full stack developers (front-end + back-end), PHP developer, mobile developer (specialized in iOS/Android platforms)
  • Specialized Software Development Engineers: DevOps Engineer (optimizes software deployment), Cloud Software Engineer (manages cloud resources), CRM Developer, ERP Developer
  • Infrastructure and Security Experts: Security Engineer (threat protection expert), Systems Developer (network and system infrastructure specialist)
  • Niche or Specific Domain Development Experts: Game Developer, Embedded Systems Developer

Suppose you’re building a web app with a tight deadline. You’ll likely need a full stack developer or a back end developer with expertise in React.js and Node.js. 

If your backend requires complex data processing or machine learning integration, a Java developer with Spring or Hibernate experience would be a great fit.

Now:

Handpicking top-notch developers fit for your project can be cumbersome. 

But not when you work with a trusted nearshore software development company like Distillery. We can help you assemble expert teams tailored to the needs of your project. (More on that later).

Step 3: Determine the Level of Commitment and Flexibility You Need

When hiring a software engineer or developer, you need to take a call on these aspects:

  • Project Duration (Short-term vs. Long-term): Short-term projects will need a skilled developer who can quickly adapt and deliver. Meanwhile, long-term projects might require a full-time dedicated developer for a deeper engagement.
  • Work Setup (Onsite vs. Remote Developer): Onsite developers can offer immediate, in-person collaboration. Meanwhile, hiring remote developers gives you geographical flexibility and access to a broader, global tech talent pool.
  • Employment Type (Part-time vs. Full-time): A part-time or freelance developer can efficiently tackle specific tasks or phases of the project and may save costs in some cases. Conversely, a full-time dedicated developer offers continuous support and can integrate more deeply into your company culture and long-term vision.
  • Team Size: A small team of dedicated developers might suffice for simple, short-term projects with clear goals. On the other hand, you may need to hire a bigger team with a project manager, QA engineer, and more to tackle complex, long-term projects with broader scopes.

Step 4: Calculate a Realistic Budget

Here’s how to do it:

  • First, analyze the project requirements, skills required, training needs, and duration. This helps you decide whether you need a junior developer, a seasoned professional (front end developer), or an entire team offshore, nearshore, or onshore. All these factors impact costs and quality.
  • Research current market rates, considering variables like geographic location, which can influence salary scales.
  • Establish the base salary and other unexpected costs (for example, benefits, office equipment, training expenses, and post-launch costs). 
  • Cross-check with overall financial planning so that your hiring budget does not compromise other project or departmental budgets.

If you follow these steps, you’ll be able to calculate a realistic budget that is grounded in the actual demands of hiring rather than setting a budget first without a clear understanding of the investments you really need.

Step 5: Choose Your Hiring Model

Here are five hiring models to find the most qualified candidate when hiring software developers:

  • Build an in-house team: Hire permanent employees to work on your project. This approach provides control and flexibility but can be time-consuming and costly.
  • Freelance/Contract: Work with an independent contractor or freelance developer who can bring a fresh perspective to your project. This option offers flexibility and cost savings but can lack consistency and security.
  • Staff Augmentation: Supplement your existing team with additional developers, including remote developers who can work from anywhere. This approach helps fill skills gaps and meet project demands but can be challenging to manage.
  • Dedicated Teams: Outsource your project to an agile team of developers who work exclusively on your project. This option provides a high level of control and accountability.

Step 6: Create an Attractive Job Description

A well-defined job description helps a hiring manager filter out unqualified applicants.

A compelling job description posted on any job board should ideally include:

  • Job title
  • Company overview highlighting culture and values
  • Responsibilities
  • Technical skill set
  • Soft skill set
  • Essential vs preferred qualifications
  • Education and experience requirements
  • Benefits and perks
  • Application process

Step 7: Source Candidates Through Various Channels

Now that you’ve defined your hiring model, it’s time to find the right candidates. Here are some channels to help you source top tech talent:

  • Recruitment agencies: Partner with agencies specializing in software development to find qualified candidates.
  • Online platforms: Hire a freelance developer from platforms like Upwork, Fiverr, or Freelancer. Advertise on specialized job boards like We Work Remotely or Remote.co.
  • Referrals: Leverage your network by asking colleagues, friends, and industry connections for referrals to find a skilled developer.
  • LinkedIn Recruiter: Use LinkedIn Recruiter to target qualified candidates.
  • LinkedIn Jobs: Post on LinkedIn Jobs to attract full stack developers and software engineers.
  • Industry events: Network with developers at industry meetups, conferences, and hackathons.
  • GitHub and other developer communities: Utilize platforms like GitHub, Stack Overflow, and Reddit’s r/webdev, where freelance software developers showcase their portfolios.

Remember to set up an applicant tracking system to streamline the hiring process and find the best software developer for your project.

Step 8: Evaluate Candidates Through a Structured Interview Process

A structured interview process lets you spot the best software developers that align with your project demands and company culture.

Structure your interview process in this way:

  • Conduct a screening call to discuss the candidate’s background, motivation, and fit for the role.
  • Conduct a detailed interview to assess technical competencies, problem-solving abilities, and cultural fit. Ask behavioral questions to understand past work experiences and outcomes.
  • Administer technical assessments or coding tests to evaluate skills objectively. 
  • Have your team interview the potential candidate to gauge team compatibility. 

What skills and qualities should you prioritize when looking for the right software developer?

You may need some or all of the following skills depending on your project:

  • Proficiency in a specific programming language (Python, JavaScript, Java, and so on.)
  • Experience with frameworks and libraries (React, Angular, Node.js, etc.)
  • Understanding of cloud services (AWS, Azure, Google Cloud, etc.)
  • Familiarity with DevOps practices and tools
  • Knowledge of containerization and orchestration (Docker, Kubernetes, etc.)
  • Database management skills (SQL, NoSQL)
  • Understanding of software development methodologies (e.g., Agile, Scrum)
  • Experience with test-driven development and automated testing
  • Knowledge of cybersecurity best practices
  • Problem-solving skills
  • Critical thinking ability
  • Communication skills
  • Time management skills

Step 9: Conduct Background Checks, Legal and Compliance Checks

Background checks confirm the trustworthiness and qualifications of candidates when you hire software developers.

Validate their professional history by contacting references and confirming their history and certifications.

Verify that no existing non-compete clauses or previous employment agreements would restrict the candidate’s ability to join your company.

Step 10: Offer a Competitive Package and Close the Offer

Once you’ve found a talented developer, offer them a competitive salary package that matches industry standards and the candidate’s software engineering expertise.

Include aspects like bonuses, paid leaves, equity, and health benefits in your package.

Be prepared to negotiate and be flexible in areas critical to the candidate. This could include remote work options, flexible hours, or customized benefits.

Step 11: Set Up a Smooth Onboarding Process

A well-structured onboarding process actively integrates a new developer into your team and helps them quickly grasp your company culture and expectations.

Follow these steps for an effective onboarding process:

  • Begin with an orientation session highlighting company values, work culture, and overall expectations.
  • Offer detailed technical onboarding with access to codebases, documentation, and tools supported by mentorship.
  • Review new developers’ work thoroughly to identify any discrepancies early on.
  • Schedule regular check-ins, like monthly feedback sessions, especially for remote developers, to address issues and gauge progress. 

Step 12: Initiate a Probation/Trial Period

The probation period, typically spanning from a few weeks to months, allows you to evaluate the developer’s technical abilities, cultural alignment, and team contributions.

To make this effective, set specific objectives, deliver consistent feedback, and give them access to the necessary resources and mentorship.

At the end of the trial, conduct a comprehensive review to decide whether to hire them permanently, based on predefined performance criteria and overall fit with the team.

Next, we’ll look into the mistakes that hiring managers usually make in the software developer hiring process.

9 Pitfalls to Avoid When Hiring Software Developers

Avoid these common mistakes so that your hiring process is smooth and effective:

  • Hiring in-house without exploring better options: For instance, if you don’t consider nearshore outsourcing, you may miss opportunities to hire developer staff from a broader talent pool, including remote developers. You may also potentially overlook a more cost-effective and skilled developer available globally.
  • Ignoring remote work capabilities: This limits your access to a global talent pool and top-tier developers who value flexibility. In today’s market, accommodating remote work is essential to attract and retain any skilled software developer.
  • Poor onboarding practices: If you don’t offer sufficient training, resources, support, or mentorship, you may leave even the best software developer confused, reducing their productivity and increasing attrition. This adds to your costs for further hiring and training.
  • Hiring only through references:  A hiring manager relying solely on references may limit the talent pool, considering only a narrow range of candidates. There’s also a potential for bias while evaluating them since they were referred to by people in your personal network.
  • Unclear job expectations and descriptions: An unclear job description attracts the wrong candidates, prolonging the hiring process. Without clear guidelines, even highly qualified candidates may struggle to perform.
  • Not running background checks: Not doing so overlooks essential information, like previous employment verification, about a candidate’s past and trustworthiness. This might lead to integrity issues later and affect project security.
  • Failing to consider soft skills and cultural fit: This could lead to poor teamwork, communication breakdowns, and decreased productivity, even if the developer is technically proficient.
  • Focusing only on years of experience: Doing this makes you overlook a candidate’s adaptability, problem-solving skills, creativity, and growth potential.
  • Not checking their knowledge of security and compliance protocols: Hiring a software developer without this expertise can expose your project to data breaches and regulatory penalties. This could be due to insecure code, mishandled data, or failure to comply with industry standards like GDPR or PCI-DSS. 

Now, even if you manage to avoid these mistakes, hiring software developers in-house comes with its own set of pain points.

What Are the Drawbacks of Hiring Software Developers In-House?

Hiring an internal development team can become challenging due to these reasons:

  • Increased competition for a skilled software developer globally means you’ll have to spend months on recruitment and onboarding processes, eating into your internal bandwidth.
  • Staffing needs may fluctuate faster than you can respond, potentially leading to overstaffing or understaffing, which can be costly and inefficient. 
  • When you hire in-house, managing technical debt can be a significant challenge. You’re responsible for keeping your technology stack current, maintaining legacy systems, and ensuring your team has the skills to handle complex custom software development projects.
  • Hiring in-house restricts your access to global talent pools, as you’re limited to candidates in your local area. Additionally, if you’re working on international projects, time zone differences can create communication and collaboration challenges.

So, no wonder the traditional model of in-house hiring is being challenged by the cost-efficiency and scalability of outsourcing software development.

The Best Alternative to Hiring In-House: Outsourcing Software Development to Distillery

Outsourcing software development services involves hiring external companies or developers to handle your processes.

You can either outsource the entire software development process or specific aspects like quality testing.

For instance, a US-based startup can outsource the UI/UX design phase of a mobile app to a reputable firm in Mexico. This lets them hire remote software developers with specialized skills, scale faster, and leverage advanced tech — at a significantly lower cost.

Here’s why outsourcing is the superior alternative to in-house hiring:

  • Access to global talent: Outsourcing provides access to expert talent that may be scarce locally. For example, partnering with a trusted software development company like Distillery lets you recruit remote software developers from Mexico and Argentina. (Developers in Mexico were ranked #4 globally for their skills in the Coursera Global Skill Report (2023)
  • Faster time to market: Outsourced teams’ specialized expertise and streamlined workflows accelerate development, helping you launch products faster.
  • Flexibility and scalability: Outsourcing allows easy team size adjustments based on project needs without lengthy hiring processes.
  • Focus on core business: Outsourcing enables you to focus on your company’s core competencies while the outsourced team handles the technical work.
  • Continuous support: Outsourcing firms provide ongoing support and maintenance, ensuring your software stays up-to-date and competitive.

Your best bet is to work with a reliable outsourcing partner like Distillery.

Distillery is a leading nearshore software development company that will help you build a team of talented developers from Latin America.

Here’s why you should work with us:

  • We expand your team with expert tech talent (for example, QA engineer, front-end developer, web developer, or a diverse team), bypassing the traditional costs and complexities of in-house hiring, recruitment, and onboarding.
  • Our specialists, proficient in all areas of software engineering and development — from mobile app creation to project management — can integrate into your team in just a few weeks.
  • Our custom Service Delivery Approach (SDA) ensures smooth onboarding, minimized risks, and effective communication.
  • We offer you full visibility and day-to-day control over what tech and software development processes are used.

You can choose from these two software development outsourcing models:

  • Staff augmentation: Supplement your team with one or more team members. This is ideal for adding specific skills to your team on a flexible basis.
  • Agile Development teams: Hire a team dedicated to working on your project that operates as an extension of your internal team. Suitable for developing a long-term software solution requiring full-time attention.

Contact Distillery now to supercharge your software development projects with superior expertise and advanced tech. Our streamlined process makes it easier than ever to hire software developer staff who can bring your vision to life.

Still have questions about the software development hiring process? 

FAQs Related to Hiring Software Developers

Here are answers to some of the most common questions founders and managers have about hiring software developers.

1. What’s the Minimum Viable Team Structure for a Software Project?

The minimum viable team structure depends on your project’s scope and complexity. For a simple project, you may only need a:

  • Full stack developer
  • UI/UX designer
  • QA tester
  • project manager

For larger, more complex projects, you may need additional roles such as software architects, back-end and front end developers, and business analysts.

2. What Is the Average Cost of Hiring a Software Developer For a Startup? 

The cost of hiring a software developer varies based on factors like location, experience, and project complexity. 

According to PayScale, the average annual base salary for a software developer in the United States is $79,653. However, in cities with high demand for tech talent, such as San Francisco or New York, salaries can exceed $150,000 per year.

But, when outsourcing to countries like Mexico or Argentina, rates can be significantly lower.

To get an accurate estimate for your specific project, it’s best to consult with an outsourcing firm or use online cost calculators.

3. How Can You Protect Intellectual Property When Hiring an Outsourced Software Developer?

To protect your intellectual property (IP) when outsourcing, take these precautions:

  • Sign a non-disclosure agreement (NDA) before sharing any sensitive information.
  • Include IP protection clauses in your contract, specifying who owns the code and other deliverables.
  • Work with reputable outsourcing firms that have strict IP protection policies and procedures.
  • Avoid sharing your entire codebase or sensitive algorithms with the outsourced team.
  • Register copyrights and trademarks for your software and brand assets.

4. How Can You Ensure Successful Communication With an Outsourcing Partner?

For smooth communication:

  • Choose a partner with fluent English skills and a compatible time zone.
  • Establish clear communication channels and protocols, such as daily stand-ups and weekly progress reports.
  • Use project management tools like Jira or Trello to track tasks and deliverables.
  • Schedule regular video calls to discuss progress, provide feedback, and address any issues.
  • Foster a culture of openness, trust, and collaboration with your outsourced development team.

In short, choosing the right software engineer or agile expert saves time and costs and can transform the trajectory of your entire project. Discuss your project requirement with Distillery today.