Employment costs are a key factor for any business and where you choose to hire may matter more than you think. To know and understand the wage disparities between local and global talent can provide you with a great advantage when you choose to grow your team with global hires.
There are many ways to grow your tech company and many companies have started to look outside of the United States to find the right talent — and Truss is here to help. Truss provides global hiring and employer of record (EOR) services for tech companies to help you find, recruit, hire, onboard, and manage tech employees in Central Asia and Eastern Europe. We want to provide you with the level of support you need to accomplish your business goals and it is important that you understand the financial ins and outs of hiring overseas.
Contact Truss today to learn more about our global hiring services!
READ MORE: How To Recruit a Global Remote Team
How Are Local and Global Tech Salaries Different?
How are local and global salaries different in the tech industry? It is an important question for tech companies to ask and it is important to know how these differences will affect your business and your employment costs. Technology continues to become a more prominent part of our day-to-day lives and that means an increased need for the men and women who create and manage the programs and apps that we use everyday — which has led to a technological revolution around the world.
The tech industry continues to grow and thrive on every continent and has grown by an estimated 6% each year since 1980. An estimated 80% of jobs were in information or professional services in 2020 and computer-based jobs are expected to grow by an estimated 14.2% from 2022 to 2032. This continued growth of the tech industry means that more countries across the globe are investing in tech programs, education, and tech company startups — increasing the amount of tech talent available to companies willing to hire remote workers.
With this influx of talent in the tech industry, many companies have discovered an excellent opportunity to add talented individuals to their teams and save money on employment costs. The average software engineer salary in the United States is $147,524 per year according to ZipRecruiter. When compared to emerging tech markets in Central Asia and places like Uzbekistan where the annual salary for a remote software engineer is $45,895 for a similar position, companies can pay a lower salary and still achieve their goals.
Average Annual Software Engineer Salaries
- United States – $147,524
- Uzbekistan – $45,895
- Kazakhstan – $46,250
- Georgia – $46,800
- Poland – $64,846
- Azerbaijan – $20,024
- Armenia – $55,000
- Kyrgyzstan – $16,800
Wages in the global market will vary based on where companies hire and the experience level and skills of the individual — but in most cases, tech companies will be able to find skilled remote workers with lower salaries than United States counterparts. This shift in the industry has created benefits for employers and employees alike.
READ MORE: Differences Between an EoR and an AoR
Pros and Cons of Wage Differences for Tech Companies
Remote employees in emerging markets like Central Asia and Eastern Europe provide an untapped pool of talent for tech companies in the United States that continues to grow. Tech companies now have many more hiring options when it comes to building a skilled workforce with these emerging markets; and with the wage gap between local, U.S.-based employees and remote global employees, employers can save on employment costs without sacrificing talent, skill, or productivity.
The globalization of the tech industry does not come without some drawbacks. Tech companies must pay attention to where they hire remote global employees to ensure that potential employees have good command of English, have reliable access to the internet and power, have relevant skills, and live in a stable country. In addition to those factors, U.S.-based tech companies need to be aware that the wage gap is expected to stabilize and that competition for skilled talent will increase. These are all factors that need to be considered when you employ global employees and are key elements when the Truss Team searches for, finds, and recruits job candidates.
Pros and Cons of Wage Differences for Global Employees
The global employees on the other side of the coin will benefit from increased job opportunities in the tech field that include better salaries than local companies. U.S.-based tech companies are willing to pay high salaries for the right talent and for job candidates in emerging markets where the cost of living is lower, it provides an incredible financial advantage that cannot be discounted.
A higher salary comes with higher expectations and that can have a negative impact on global employees who may not have the same level of experience as U.S. counterparts. The tech industry continues to grow at an incredible rate and more and more tech companies are hiring remote employees around the world for a premium and there is always the question of new hires meeting expectations. This makes it even more important for remote tech employees to stay up to date on industry standards and presents a challenge for employers. This challenge can be mitigated with the right global hiring platform on your side.
READ MORE: Top 10 Tips for Successful Global Remote Hiring
How To Find the Right Global Talent with Truss
We hope that this breakdown of the wage disparities between local and global talent has helped shed some light on the benefits of hiring remote employees in emerging markets like Central Asia and Eastern Europe.
There is no doubt that there are challenges that go hand in hand with hiring remote global employees — but the right partner and hiring platform can solve many of those challenges. Truss is the right partner for tech companies that hope to hire talent in Central Asia and Eastern Europe. We have years of experience finding, recruiting, and hiring tech talent in the region and a comprehensive platform that makes hiring, onboarding, managing, and paying remote employees across the globe a simple process. We will work hand in hand with you to establish your parameters and find you qualified candidates that are ready to hit the ground running with your company.
