Are you planning on outsourcing software development to South Asia’s tech-savvy talent pool? Whether you are hiring developers remotely or planning to set up local operations, you can make the hiring process more efficient. This article will explore common mistakes to avoid and propose some best practices for hiring software developers in emerging markets.
How to properly navigate the recruitment process for hiring software developers
Don’t rely on free job portals for hiring software developers in Emerging markets
One of the most common mistakes that foreign employers make when outsourcing remote positions into a new market is relying solely on free job portals for seeking out prospective candidates. While these can still be useful for posting job openings, they are generally not as prominent in emerging markets as local hiring platforms.
Due to the high demand for software developers in Southeast Asia, the more experienced candidates will be more likely to seek out companies that use paid locally relevant recruitment platforms. These bigger local job portals will therefore get you better candidates, but usually require you to have a local legal entity including a local address and a phone number.
Alternatively, partnering with RecruitGo’s international recruitment service, allows you to not only access our existing network in key emerging markets and leverage our local expertise but also offers you the opportunity to start hiring without having a legal entity set up in the specific market in which you plan on hiring software developers.
Be sure to pre-screen candidates before conducting interviews to reduce your costs
When partnering with an experienced recruiter, you could easily find 20 or even 30 profiles matching your requirements. However, interviewing all of these candidates would take up a lot of time as well as be a costly endeavor. It is therefore strongly recommended to set up a pre-screening process so that you can reduce costs associated with the interview process.
During pre-screening, RecruitGo’s recruiters will have an initial interview and validate the basic claims made by the candidates. They will also assess how interested they are in the job. It’s also common to ask for the candidate’s salary expectations at this stage. Our team can also provide you with advice on competitive software development salaries based on the specific market.
Once this preliminary stage is complete, the recruiter will send pre-screening notes for your review. This will allow you to prioritize and interview only the most promising candidates. This also allows you to adjust the process early on in case you need to add additional criteria to ensure that you find software developers with the exact skills you require.
Don’t hire solely based on a candidate’s resume
Some people may have great resumes and ace all your interview questions. But later on, you find out that they just packaged themselves well. Or the opposite – a skilled candidate may be terrible at presenting their skills. When hiring a software developer or any IT role, a test assignment will usually tell you much more about the candidate than the interview itself.
Below you will find the most common practical assignments used for hiring software developers:
- Presenting a coding problem
- Full-stack development assignment
- Debugging and troubleshooting exercise
- Programming language interview questions
- Coding sessions (either in person or through an assignment)
It is important to note that in most Southeast Asian countries, the use of a recruiter also gives candidates the impression that your company is serious about hiring a software developer. They are therefore more likely to invest their time in your test assignment if they can see how serious you are. As such, you will see more completed test assignments.
Navigating local labor regulations and expectations
Ensure that your offer is tailored to competitive local salary standards
When hiring a software developer, you need to know local salary standards and pay competitive market rates. Be cautious if candidates ask less than the market standard because good developers know their value. If they ask for less than the market rate, they likely don’t have the required qualifications or they have other clients who will take up their time and attention.
Below you will find competitive monthly salary ranges for the most sought-after software developer roles for key markets like Indonesia and the Philippines:
| Job title | Junior level (USD) | Senior level (USD) |
| Back End developer | 350 – 650 | 1250 – 2500 |
| Front End developer | 350 – 650 | 1250 – 2500 |
| Android Developer | 350 – 650 | 1250 – 2500 |
| Website Engineer | 400 – 650 | 1450 – 3800 |
| Full Stack Engineer | 450 – 850 | 1600 – 4500 |
Asking for a rate higher than the market standard is more than a negotiation tactic. Some candidates will try to ask for a salary that is much higher from inexperienced foreign employers. Often, these candidates use a foreign company as a stepping stone to ask for more salary from a local scaling startup. RecruitGo’s local experts can help you avoid potentially costly mistakes through our keen understanding of local salary standards.
Be careful to comply with payroll and benefit regulations relevant to your hiring market
Being a foreign company does not exempt you from following local laws and regulations. While hiring software developers in emerging markets allows you to significantly reduce your hiring costs, you must ensure compliance with local labor laws and regulations in terms of mandatory benefits and tax compliance.
For example, some countries like Vietnam require employers to pay out a 13th month every year, whereas the Philippines has strict regulations on paying night shift differentials. RecruitGo can help you manage these responsibilities through our managed payroll service. We have local experts in all the key markets who understand what is required for hiring locally.
This service also allows you to outsource your payroll operations instead of delegating the operations to an in-house provider, thus reducing your costs. To learn more about navigating payroll for remote teams, take a look at this related post on how to pay international employees.
Preparing the onboarding process for hiring software developers in Southeast Asia
Establish a thorough and legal employment contract
Foreign employers commonly make mistakes when it comes to establishing employment contracts in new markets. This is usually because standard contracts vary from country to country, meaning that what may be considered a thorough agreement in the West, may not be as widely accepted in emerging markets. Below are the most common mistakes:
- Signing a permanent contract right away: You generally do not need to enter a long-term contract immediately. Employees should first sign a probationary contract. This gives you time to assess the employee on the job and is much more flexible than a permanent contract.
- Not having the contract in the local language. In most Southeast Asian countries, documents submitted to authorities have to be in the local official language. As such, you will need an officially translated contract in case you run into any legal issues with your employee.
- Adding clauses to the employment contract. Put non-compete, confidentiality, and non-solicitation clauses in a separate, internal document. Such clauses make employment contracts difficult to uphold in court.
If all of that seems overwhelming then remember that RecruitGo will be your local HR support. We will ensure that the contract is fair for you and the employee and complies with local laws. Our experts can also help you tailor contracts to your specific business objectives and will support you in the event of employee termination or wrongful dismissal complaints.
Partnering with an Employer of Record instead of setting up a local company
Many employers think you need to set up a legal entity in a market before being allowed to hire employees, but that is not necessarily the case. With an Employer of Record, you don’t need a local company when hiring software developers in emerging markets.
An Employer of Record acts as the legal employer on behalf of another company. Simply put, as your EOR, RecruitGo can hire employees in most emerging markets on your behalf. We will source and hire software developers based on your requirements and with your approval. We will also take care of payroll management and tax compliance.
If you have specific requirements for your developer’s equipment, we will make arrangements for that. We can also help you set up remote hubs for your local teams if you prefer having a more secure and easily accessible logistical setup.
Are you interested in hiring software developers in emerging markets? Contact RecruitGo via the form below to get in touch with one of our local recruitment specialists!
