From platform engineering to AI, many new DevOps initiatives aim to improve internal developer experience (DX). Developer experience is essentially like user experience but considers the experience a developer has with a framework or tool. The promise is that quality DX creates a more satisfied workforce, reducing burnout and avoiding employee churn. But can improving developer experience also reduce costs?

I took to LinkedIn with this question, and the response was a resounding “yes.” In today’s lean tech climate, you might think that making the case to invest in employee satisfaction is a tough sell. But, it turns out that developer experience has significant ripple effects that benefit the business in diverse ways, making it a lucrative opportunity for technical leadership.

Developer experience contributes to outcomes like better efficiency, easier onboarding, less re-engineering, reduced overhead and more, which all — indirectly, granted — can reduce costs. Below, I’ll outline some of the ways developer experience can affect the bottom line, featuring viewpoints from various sources across the field of tech.

Improved Efficiency = Dollar Savings

The most obvious impact of enhancing developer experience is that improved efficiency can equate to dollar savings. For a concrete example, consider an API that provides useful error code responses and explains them within a developer portal. This saves developers time and money, said Brandon Boyd, product manager at Tekion. “Otherwise, they will have to guess about error codes and implement improper code, which requires rework,” he said.

With solid DevOps practices, a release that might have taken three months with manual processes could take a single sprint, said Anna Daugherty, director of product marketing, Opsera. “This leads to expensive development time saved while simultaneously getting the release to market faster to improve customer satisfaction and reduce churn,” she said.

Better Cycle Times Reduce Cost

Reduced friction can also lead to reduced cost. Specifically, better developer experience around areas like provisioning, scaling, and security can help things run more smoothly, equating to development and tooling efficiency, added Daugherty. “Taking out the guesswork and human error from development can save money on infrastructure, redundant tool costs and time costs,” she said.

Improving developer workflows, a practice some call developer productivity engineering, can have tangible outcomes that reduce costs. “Developers need flexibility and support from the right technology stack to be successful and deliver on quality work for overall business success,” said Dana Lawson, senior vice president of engineering, Netlify. “Investing in a cohesive workflow using composable web architecture streamlines processes to enable developers to focus on the higher-level thinking their projects need, and therefore cut time and budget spent on busywork.”

Good developer experiences also have minimal context switching, which can further reduce cycle time. “Forcing developers to toggle between various screens, applications, and docs inhibits deep work and focus and directly impacts how long projects can take and even the quality of the work,” said Isaac Nassimi, SVP of product, Nylas. Removing friction in the developer workflow can help launch projects faster, “creating longer revenue-generating timelines and opportunities,” he said.

Less Turnover and Onboarding

Developer turnover and onboarding can be expensive. LinkedIn reports that for each employee lost, the cost to the company could be up to 250% of their annual salary. Better internal developer experience can improve employee retention, which saves significant expenses. “It costs to hire a developer, and it costs to bring a new one up to speed,” said Andrew Cornwall, senior analyst, Forrester. “Happier developers are less likely to leave.”

But instilling a good reputation amongst developers has other side-benefits, Cornwall explained, such as attracting more first-tier, productive engineers. Developer retention also leads to better familiarity with the code, aiding debugging efforts and reducing human error. “Happy developers who have been there for a while start to understand what the goals of the team and the business actually are,” he said. “They can align what they do to satisfy a greater outcome.”

Reduced Overhead For Support

Another outcome for software products with good developer experience is that they are more self-service, meaning developers are more empowered to find the information they require to do their work. This, in turn, lowers the need for manual support and reduces labor costs.

Daan Stolk, co-founder, Alphadoc.io, recounted how his team at a previous company tracked whether support tickets could have been prevented with the right information architecture up front. He estimated that over 50% of cases could have been solved with the proper documentation and resources. As you can imagine, this finding led to a big overhaul of their developer support materials. “Ultimately, this resulted in customers not having to wait for responses to their questions and becoming more self-sufficient,” he said.

Less Re-Engineering

Developers make up an increasingly high expense on the balance sheet, and forcing them to re-engineer code is wasteful. One way to avoid re-engineering is to have better practices around reusable interfaces. For instance, GraphQL is proving to be a helpful layer to aggregate disparate data sources and federate a graph across an organization, making data retrieval more efficient.

“Reduce the time it takes [developers] to do recurring tasks by 30% or 40%, and you are talking about millions of dollars in savings annually,” said George Snowflack, director of central U.S. & LATAM, Apollo GraphQL. “This is why so many of the Fortune 500 have moved to a federated GraphQL architecture, because of its ability to compose a modern data access layer just one time, and then reuse it infinitely across any apps or clients on the front end.”

More Accountability and Responsibility

When employee needs are respected, they tend to feel more kinship with their internal community and take on additional accountability for their actions. “When a company’s developer experience promotes developer ownership, developers are more likely to take responsibility for their cloud environments, including cost optimization,” said Brandon Turner, VP of engineering, Kion. “Developers that feel empowered are much more willing to take accountability for their actions, including optimizing costs.”

Access to a Wider Talent Pool

When software is more usable, more people can participate, thus lowering the barrier to access and reducing the need for high-cost resources. “For some, this could include analysts moving into the developer role creating new efficiencies,” said Rob Koplowitz, former vice president, principal analyst, Forrester. “For the more intrepid, it could enable business developers that could change the paradigm significantly,” he said. However, a citizen developer culture must involve the proper controls around areas like change management, governance, and guardrails.

Furthermore, internal education costs are reduced with good developer experience. “The cost-savings value of prioritizing the developer experience is that companies do not have to make investments in continued education or hiring new individuals to help build upon new skills,” said Neil Kanungo, VP, product-led growth, KX. “Conducting in-person or costly training exercises can be viewed as an expansion if organizations have the time and budget, rather than a necessity.”

So, How Do We Get There?

It’s clear that improving DX can reduce expenses, especially regarding reduced labor costs. But how do you go about building out experiences that developers love? Well, it’s important for technical leadership to clearly understand what positive developer experience improvements actually look like. “These improvements should include introducing self-service mechanisms, removing friction, making educational training simplified and more accessible, and providing free access to community resources and support,” said Kanungo.

Lastly, leaders shouldn’t expect developers to optimize their costs without the proper support. Instead, cost savings will hinge on giving developers more visibility into their applications, especially for complex shared cloud environments. “If a development team can’t tell what cost inefficiencies are related to their application, they are less likely to optimize those costs,” said Kion’s Turner. “Simplifying the developer experience by giving development teams isolated environments that they own promotes responsibility for the health of those environments,” he added.

Furthermore, helpful tools will be required to move developer experience initiatives forward. Jon Peck, senior manager, developer relations and enterprise advocacy at GitHub, explained how DevOps practices, such as AI pair programmers, cloud IDEs, automation, asynchronous communication formats and shift-left security tools can work together to improve developer experience and indirectly bring cost-savings. The latter, developer-first security, could have real tangible monetary benefits since fewer vulnerabilities in production means fewer costly security incidents.

Lastly, as leaders seek to optimize their IT departments, much thought has been placed on ways to measure software developer productivity lately. Yet, most savvy executives view this as a red herring. While taking account of some development metrics is helpful, relying too heavily on minute analytics, such as individual commits or bug fixes, can negatively affect developer experience.

Final Thoughts: Good DX = Less Humanpower = Cost Savings

The most obvious outcome of improved developer experience is that less energy and time are expended. Developer cost per hour doesn’t have as much of an economic impact. This impact is apparent in both bustling and lean economies. “In times of expansion, improved developer experience can improve new-hire onboarding costs,” said Kevin Swiber, API strategy lead at Postman. “In times of contraction, developer experience can help improve cycle times as folks do more with less.”

It’s also evident that developer experience is especially important for API-first strategies. Better usability around API gateway management, for example, can increase simplicity and enable teams to allocate resources elsewhere, explained Abdallah Abedraba, developer relations, Zuplo. Mark Rovetta, senior programming writer at F5 Networks, also added that improving the quality of API documentation can reduce costs substantially since it enables deployment fluidity and aids learnability.

So, with all that said, listen to your developers and their needs. You might learn a thing or two. And save a buck or two.