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How little are you paying your dev that it can be 1/8th of a contractor?

Even the cheapest dev I have ever met in London wasn't as low as 1/5th of the most expensive contractor I have met.

Ah yeh, sorry, my mental maths strayed a bit into hyperbole there, it's more like 4-5x

How much are you trying to pay your dev that it can be 1/5th of a contractor? It's no wonder you're having trouble finding anyone.