Businesses are always looking for an edge, and when it comes to finding the talent needed to drive success and growth, emerging markets like Armenia have become a focal point for global tech companies. With lower employment costs and a deep talent pool, Armenia provides a valuable opportunity for tech companies that want to hire talented developers at a lower salary than here in the United States.
U.S.-based tech companies have found that Armenia possesses a wealth of software development talent, lower labor costs, impressive employee retention rates, and a track record for high performance. Those factors combined have made Armenia an emerging market for tech companies that want to find the talent they need, and an employer of record can help global tech companies achieve long-term success.
Armenia has become the solution for many tech companies searching for talent — but that doesn’t necessarily answer the question of how to find and hire talent. With an employer of record in Armenia — like Truss — you gain limitless access to a deep talent pool with legal protection and peace of mind for your company. If you want to know more about why U.S. tech companies are hiring developers in Armenia, Truss has the answers and can help you find the talent you need.
Contact Truss today to learn more about our end-to-end global hiring solution!
READ MORE: How To Hire Without a Legal Entity in Armenia
4 Reasons U.S. Companies Hire in Armenia
Nicknamed the Silicon Valley of the South Caucasus or Silicon Mountain, Armenia has fast become a popular option for U.S.-based tech companies hiring global talent for remote teams. The benefits and advantages of hiring in Armenia are almost limitless — but are highlighted by a deep talent pool of young professionals that have prioritized practical science in school, lower employee salaries and employer costs, continued investment in the Armenian tech industry, and much more.
Here are a few primary reasons why many U.S.-based tech companies are hiring tech talent in Armenia:
1. High-Level Math and Computer Science Education
Armenia has established a reputation for academic excellence in core STEM fields — which lend themselves to the tech industry and tech-based careers. The emphasis on math, science, physics, and computer science education have helped establish a tech industry that draws comparisons to Silicon Valley in the United States. This level of education has helped create a deep pool of talent in the tech industry that benefits many global companies.
2. Lower Employment Costs and Tax Incentives
Lower salaries and lower employment costs are a key element that has driven interest in the Armenian tech industry. Experienced software developers in the United States will earn an estimated $130,000 – $145,000 each year — but entry-level developers in Armenia have an estimated salary range of $11,000 – $28,000 with senior-level developers earning an estimated $32,000 – $85,000 annually. Lower salaries are just the start and are backed by lower tax incentives in Armenia that include a 1% Turnover Tax, lower personal income tax for tech professionals, a 0% VAT tax for tech exports, and a 200% research and development deduction that lower employment costs.
3. Increased Reliability and Employee Retention Rates
When tech companies hire in saturated markets where competition is higher, it can have an impact on employee reliability and retention rates. Armenian tech professionals continue to have a reputation for better-than average client satisfaction scores, higher retention rates, and strong referrals. With higher retention rates, remote tech professionals in Armenia can help you build long-term success for your company.
4. Simplified Legal Compliance
When you hire in Armenia, you must ensure that you remain compliant with the local labor laws, and Armenia provides streamlined legal compliance when you partner with an employer of record. Labor compliance in Armenia involves mandatory digital SRC contracts, a standard 40-hour workweek, and a 3-month probationary period. With an employer of record on your side, you have legal protection for your company and your intellectual property is protected, without having to establish a legal entity.
READ MORE: Why U.S. Startups Are Looking Beyond India and Europe
Choose Truss as Your EOR in Armenia
Are you ready to add global talent to your team? Armenia may prove to be the answer to your questions and if you want to know why U.S. companies are hiring developers in Armenia, we have got you covered.
With an employer of record on your side, you have legal protection when you hire talented tech professionals in Armenia. Truss will ensure that you remain compliant with the local labor laws, have ironclad employment contracts that protect your best interests and your intellectual property. With Truss on your side as an employer of record, we will put years of experience in the region to work to help you find, recruit, hire, onboard, and manage elite talent in Armenia.
Contact Truss today for more information on our employer of record services in Armenia!
