Hiring a Team vs. Hiring an Agency
At SPARK6, we work with an even blend of Fortune 500 companies and startups. The big entities are nice because their teams usually have lots of experience with software and….well, they can pay the bills. However, we get a lot of enjoyment from the world of early entrepreneurs for all the things that are more difficult to come by in large companies. Some call it unbridled creativity, optimistic ignorance, passion, or agility. We like to call it the “fire in their belly.” That undeniable urge to take on the world and change it for the better.
When we build software for early-stage companies, the question we get most often is “shouldn’t we be building our own internal team of design and technical expertise?” The short answer is “yes.” But it isn’t quite that simple. If the venture has not raised a very significant Series A or B, scaling headcount may not be the best idea. And even if one of the founders is very technical, chances are slim that they are also a great interaction designer, user interface designer, visual brand strategist, project manager, and programming language polymath.
For a tech start-up, here are some of the team members one would ideally hire to build a product and grow the human resource talent in their company.
Project Manager
When building software, the project manager is responsible for planning, coordinating, and overseeing the development of software projects. This includes defining project scope, setting timelines and milestones, assigning tasks to team members, managing project risks, communicating with stakeholders, and ensuring that the project is delivered on time, within budget, and meets the client's requirements.
Like all human resources, the average compensation for a project manager in the United States can vary depending on their level of experience, location, and the size of the company they work for. According to data from Glassdoor, as of 2021, the average base salary for a software project manager in the United States is approximately $90,000 per year, with the range typically falling between $70,000 and $120,000 per year. However, like all hires, this can vary greatly depending on the individual's qualifications and experience, as well as the specific industry and region they work in. Additionally, project managers and any other full-time hires may also be eligible for bonuses, stock options, and other forms of compensation depending on the company and the project's success.
Product Manager
The product manager is responsible for defining the product vision, identifying customer needs, and guiding the development team to create a product that meets those needs. The product manager works closely with stakeholders, customers, and the development team to determine what features the product should have, prioritize those features, and ensure that the product is delivered on time and within budget.
Some specific responsibilities of a product manager in software development include:
Conducting market research to identify customer needs and market trends
Defining and prioritizing product features and requirements
Creating user stories and product backlogs
Collaborating with cross-functional teams, including developers, designers, and quality assurance engineers
Ensuring that the product meets quality and usability standards
Analyzing product performance and gathering feedback from customers and stakeholders
Making decisions about the product roadmap and release schedule
According to data from Glassdoor, as of 2021, the average base salary for a software product manager in the United States is approximately $110,000 per year, with the range typically falling between $85,000 and $150,000 per year.
UX Designer
When building software, the interaction designer is responsible for creating the user interface and ensuring that it is intuitive, user-friendly, and meets the needs of the user. The interaction designer works closely with the product manager, development team, and user experience (UX) designers to create wireframes, prototypes, and visual designs that communicate the flow and functionality of the software.
Some specific responsibilities of an interaction designer in software development include:
Collaborating with product managers and UX designers to define user needs and requirements
Creating wireframes and prototypes that demonstrate the software's functionality
Designing the user interface, including layout, typography, and color
Conducting user research and usability testing to gather feedback on the software's design and functionality
Collaborating with developers to ensure that the design is technically feasible
Staying up-to-date on emerging design trends and technologies
According to data from Glassdoor, as of 2021, the average base salary for an interaction designer in the United States is approximately $95,000 per year, with the range typically falling between $70,000 and $125,000 per year.
Visual ID Designer (Brand)
A brand designer, or visual identity (ID) designer, is responsible for creating the visual elements that represent the software brand. This includes designing the logo, selecting the color palette, choosing typography, and creating other visual assets that help to establish the software's visual identity.
Some specific responsibilities of a brand designer in software development include:
Collaborating with product managers, UX designers, and interaction designers to define the brand strategy and visual identity for the software
Creating the logo and visual assets, such as icons and illustrations, that communicate the brand identity
Selecting the color palette and typography that align with the brand values and visual identity
Creating brand guidelines that establish the rules for using the brand identity across different platforms and media
Collaborating with developers and UX designers to ensure that the brand identity is implemented consistently across the software
According to data from Glassdoor, as of 2021, the average base salary for a brand designer in the United States is approximately $82,000 per year, with the range typically falling between $60,000 and $115,000 per year.
User Interface Designer
The user interface (UI) designer is responsible for designing the visual elements and interactions of the software's user interface, including buttons, menus, icons, and other graphical elements. The UI designer works closely with the product manager, interaction designer, and development team to create a visually appealing and intuitive user interface that meets the needs of the user.
Some specific responsibilities of a UI designer in software development include:
Collaborating with product managers, interaction designers, and developers to define the user interface requirements and design goals
Creating wireframes and prototypes that demonstrate the software's visual and interaction design
Designing the user interface, including layout, typography, color, and other graphical elements
Creating design guidelines and standards for consistency across the software
Conducting user research and usability testing to gather feedback on the software's user interface
Staying up-to-date on emerging design trends and technologies
According to data from Glassdoor, as of 2021, the average base salary for a UI designer in the United States is approximately $90,000 per year, with the range typically falling between $65,000 and $120,000 per year.
Front End Developer
A front-end developer is responsible for creating the user-facing portion of the software, which includes the user interface and the client-side programming that enables user interactions. Front-end developers work closely with product managers, UX designers, and back-end developers to ensure that the software functions seamlessly and is user-friendly.
Some specific responsibilities of a front-end developer in software development include:
Translating UX designs and wireframes into code using front-end technologies such as HTML, CSS, and JavaScript
Developing user interface components and interactions that are consistent across the software
Optimizing the user interface for maximum speed and scalability
Collaborating with back-end developers to ensure the front-end and back-end of the software function seamlessly
Conducting browser compatibility testing and debugging to ensure the software functions on all major browsers
According to data from Glassdoor, as of 2021, the average base salary for a front-end developer in the United States is approximately $90,000 per year, with the range typically falling between $60,000 and $130,000 per year.
Back-End-Developer
The back-end developer is responsible for developing the server-side logic and database of the software. They work closely with front-end developers, product managers, and designers to ensure that the software functions seamlessly and securely.
Some specific responsibilities of a back-end developer in software development include:
Developing server-side code using back-end technologies such as Ruby on Rails, Python, or Node.js
Building and maintaining databases that store and retrieve data for the software
Collaborating with front-end developers to ensure that the back-end and front-end of the software function seamlessly
Conducting security testing and implementing security measures to protect the software and its data
Optimizing the back-end of the software for maximum speed and scalability
Staying up-to-date on emerging technologies and trends in back-end development
The average compensation for a back-end developer in the United States can vary depending on their level of experience, location, and the size of the company they work for. According to data from Glassdoor, as of 2021, the average base salary for a back-end developer in the United States is approximately $99,000 per year, with the range typically falling between $70,000 and $135,000 per year.
Quality Assurance Engineer
The quality assurance (QA) engineer is responsible for ensuring that the software meets the required quality standards and is free of defects. They work closely with the development team and other stakeholders to ensure that the software is fully functional, reliable, and meets the user requirements.
Some specific responsibilities of a quality assurance engineer in software development include:
Developing and implementing test plans, test cases, and test scripts to verify software functionality and performance
Conducting various types of testing, including functional testing, regression testing, and load testing
Identifying, documenting, and tracking software defects and working with the development team to resolve them
Collaborating with developers and other stakeholders to ensure that software is fully functional and meets user requirements
Developing and maintaining automated testing frameworks and scripts
Staying up-to-date on emerging QA trends and technologies
The average compensation for a quality assurance engineer in the United States can vary depending on their level of experience, location, and the size of the company they work for. According to data from Glassdoor, as of 2021, the average base salary for a quality assurance engineer in the United States is approximately $80,000 per year, with the range typically falling between $55,000 and $120,000 per year.
When a company in the United States hires an employee, they usually end up paying more than just the employee's base salary. This additional cost can include various expenses such as payroll taxes, benefits, and other compensation.
According to data from the US Bureau of Labor Statistics, the average cost of employee benefits in private industry was approximately 30 percent of total compensation in 2020. This includes expenses such as health insurance, retirement benefits, paid time off, and other fringe benefits. However, the exact percentage can vary depending on the industry, company size, and specific benefits offered.
In addition to benefits, employers are also responsible for paying various payroll taxes, such as Social Security and Medicare taxes, which can add another 7.65 percent to the employee's compensation. Some employers may also offer additional compensation such as bonuses, stock options, or profit sharing, which can further increase the total cost of employment.
Overall, the total cost of employment can vary significantly depending on the industry, location, and individual company. However, as a rough estimate, employers can expect to pay between 1.25 and 1.4 times the employee's base salary in total compensation, including benefits and taxes.
How much will it take in agency fees to get your product to market? $30,000? $100,000? $300,000? Based on the level of complexity, these sums can sound astronomical to an early-stage venture looking to accrue intrinsic value. But if you take the published median salary of the above resources (which you may find comically low based on current market comps), and add the average ancillary costs of a full-time hire, your year one product team still fetches an average of $2,155,775.00 in salaries. Of course, this also assumes you are fortunate enough to have the bandwidth to procure this talent, or the capital to pay a great headhunter. On the product side, it also assumes you are lucky enough to get by with only two developers with their respective disciplines, but the reality often leans towards way more cooks in the kitchen.
A reputable product agency will deploy all of the above on a block of flexible hours with a blended so that the start-up can bob and weave with the inevitably evolving go-to-market strategy. Want to learn more? BOOK A FREE CONSULT
