Remgu

Remgu

Mar 26, 2024

Hiring a Sr. Software Engineer in the US: FTE vs Freelancer

Why hire remote software engineers? Because of quality, cost, efficiency, and flexibility.

Below are the median salaries for the US, along with the states of New York and California according to levels.fyi.

US FTE Cost.jpeg

Let's take a look at how a senior engineer from Europe would compare with the median US engineer:

Quality

Hiring through a vetted platform like Remgu ensures that you are going to be working with a high-quality engineer who will be able to hit the ground running. You would be getting a tested developer with many projects under their belt and who will be able to provide the necessary timezone overlap. This expert should be able to contribute more than the median developer in the US.

Cost

A senior engineer with 10 years of experience is typically between $65 and $80/hr on Remgu and is only paid for the hours that they work. If we use $75/hr and take out roughly the 6 weeks that the FTE gets due to holidays, vacation, and sick days, we get:

Actual Work Hours (2,080 - 240): 1,840 hours

Annual Cost for Freelancer: 1,840 hours * $75/hour = $138,000

US FTE vs Freelancer.jpeg

This is a 33% cost savings toward the median salary in the US. The savings would be much higher if we looked at the salaries of the best engineers especially in places like SF and NYC.

Efficiency

Hiring the right person can be a time-consuming endeavor. This is why Remgu is a matching service and not a marketplace. We don't expect you to browse through hundreds of resumes. Instead, we do the heavy lifting for you based on the requirements provided and only send one or two profiles to interview. If it is a fit, you enter a month-long trial. If something is missing in the profiles, we use that feedback to update our search and send you a couple more candidates.

Flexibility

Hiring an FTE in the US is a commitment that involves PIPs, notice periods, and severance in a scenario where the developer is underperforming or where a company's financial situation has changed. Working with freelancers gives you the flexibility to scale your team up and down as needed. Remgu focuses on long-term engagements but without any contractual obligations. Any engagement that has passed the one-month trial period can be terminated at any point with one month's notice. There is also an option to work directly with the freelancer after six months.

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