The tech industry has faced strong economic headwinds over the past year or so. We’ve seen thousands of layoffs at public tech companies, along with weak stock performances and a decline in venture capital funding. Although some analysts see light at the end of the tunnel, the current slump doesn’t seem like it’s quite over yet. As such, some IT leaders are learning to cope with a slashed budget and a leaner engineering team.
Simultaneously, engineers commonly desire more flexibility from their employers, both in terms of remote working opportunities and flexible hours. In fact, only 15% of developers are working 100% on-site, according to The State of Tech Hiring 2023 survey, which surveyed 14,000 professionals. In addition to being open to flexible working conditions, some organizations are examining how their internal tools could be improved to increase developer experience and productivity. Amid a downturn, leaders might need to consider these new strategies and many others to maintain steady progress.
I recently met with Amanda Richardson, CEO of CoderPad, to discuss tips to lead your engineering team during this downturn. According to Richardson, finding the right blend of contractors, remote work opportunities, and helpful tooling is necessary amid the current climate. Leaders can also adopt many creative methods to encourage productivity and motivate developers. Below, we’ll overview four ways technical leaders can build and sustain their teams.
1. Consider Hiring Contractors Vs. Full-Time Developers
Recruiters often struggle to fill highly technical positions like full-stack developers, backend developers or DevOps professionals. If a company can’t fill full-time roles, contractors are another valid option. According to Richardson, contractors provide companies with more flexibility because they are easier to hire and cut. These mercenaries could swoop in to pick up the slack by solving common tedious problems, like Salesforce integrations or less-sexy administrative work, she said.
Of course, contractors don’t solve every need, and they’re not bought into the company’s vision. That being said, more and more companies are leaning toward contractors to help fill technical gaps. In fact, 63% of recruiters now say their company hires contingent workers for tech needs, up from 42% last year, the report found.
2. Target Remote Work
Work-life balance has become a top requirement among today’s engineering workforce. For example, remote working options rank as the third-highest priority when looking for work, right behind salary and flexible working hours. Many engineers work better without the interruptions and noise of a traditional office space, explained Richardson.
Yet, the desire to work remotely is at odds with the policies of some large tech companies, who are attempting to push developers back into the office. Interestingly, this may present an opportunity for small-to-medium enterprises to embrace flexibility and get a leg up on the competition. “Give the people what they want,” said Richardson. “If you want to retain talent, remote work is what you must do.”
3. Use Tools to Fill in the Gaps
Another method for filling technical gaps amid a downturn is improving efficiency with new tools. For example, platform engineering is a strategy that aims to develop reusable, self-service platforms to manage internal infrastructure. Centralizing common automation and builds could bring more consistency to deployments and reduce grunt work, freeing up engineers and making them more productive.
Of course, we’ve also seen a lot of interest in new generative AI technologies, as well as development automation using low-code/no-code platforms. According to Richardson, leveraging AI and new automations presents a newfound opportunity to empower the workforce. For example, ChatGPT can solve interesting challenges in the prototyping phase, like generating a mock database or co-authoring support materials. Technical experimentation is a critical aspect of any team, and new AI capabilities could help bolster and support the operational sides.
4. Retain a Strong Culture
Lastly, maintaining a vibrant culture is another strategy to help retain talent. Richardson suggested internal hackathons and coding challenges to bring teammates together in an organic way. An internal hackathon could also be organized to rethink internal processes, providing an outlet for engineers to suggest innovative solutions. There’s also the basic stuff, like daily standups or brown bag lunches, that can create a space to share ideas. “It takes a good leader to figure out what’s going to engage their team,” said Richardson. (One business owner I interviewed actually condoned cooperative gaming during work hours to build community and has seen moderate success with this approach).
Final Thoughts
Of course, the above suggestions are easier said than done, and it will take a leader with a keen understanding of their unique engineering team’s attitudes and requirements to find their own version of success. On that note, talent comes in many shapes and sizes and traditional education isn’t everything when assembling a development team. In fact, a full 59% of developers do not have a university degree in computer science, the CoderPad report found, indicating that leaders may have to be more flexible when it comes to recruiting.
In general, following the above tips could be helpful when managing technical talent. Enabling the company to hire contractors and remote workers increases your potential talent pool, and investing in new tools and company culture could help retain workers. Considering half of today’s developers are considering a job change in the next year, leaders should act now to avoid high turnover before it negatively impacts their team’s output and morale.