How to Retain Key Software Developers in Your Startup

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August 18, 2023
Productivity

So you've successfully got investors to bankroll your tech idea, congratulations. That means finance is the least of your worries, welcome to the world of managing startups. One of the things that can sometimes be hard to find is fantastic software developers. This is especially true if you’re at the stage where you can't afford to hire the big guns.

News flash, that's only the half of it because when you do find the right hands, getting them to stay is another task entirely as digital skills are always in demand. If you can relate, this article on how to retain key software developers in your startup company will do you some good.

1. Recruiting is the premise of retention.

There's a saying, "the first impression counts." As a startup, you need to realize you are not on the same level as the tech giants in the industry; therefore, your efforts should start from the recruitment stage. Many times, you can trace back one of the reasons for leaving a company to a couple of flaws at the recruitment stage.

It's not uncommon for companies to offer a potential hire sugar-coated offers that are far from reality. Here's the thing, after employees settle in and realize the offer stated in the package is far from reality, they can feel betrayed. Trust us, employees can be vindictive, and the only way to get back at you when they have no legal claims is to walk away at the slightest opportunity.

An unexpected resignation of your key developers could cause majors setbacks, especially when it happens in the middle of an important project development. Not only will you have to go through the stress of replacing them, but you’ll also waste more time and money before your product hits the tech market.

So, what should you do? Put all the cards on the table. Don't get tempted to overstate your company position. Avoid making any ambiguous or vague offers that you have at the back of your mind to alter when your employee demands them. If you are going to present any bonus attached to performance, then make sure you have proper and fair performance-measuring systems in place.

Furthermore, recruit the right people. Yes, you want someone with experience and qualifications, that's great. But that's not all there is to it. You might want to consider a talent that's flexible with the willingness to adapt and learn.

2. Understand the market.

Just as you focus on the market to remain competitive, remember, one of your greatest assets are your employees. You are technically competing with other companies to keep them on your side. You’ll do well to learn what offers and opportunities your competitors are presenting to their developers.

Of course, you may not be able to compete with the big guns in the industry, but know the average among startups. Don't exploit people just because they need the job, trust us, there's always offers for tech professionals. They may leave you hanging when it matters the most.

If you have offshore developers, then you probably have the exchange rate advantage on your side. Again, please don't see it as an opportunity to pay measly wages. Also, know the technology that's hot in the industry; when the lines between companies become blurry in terms of salary offer, developers will stay where they have resources to grow.

3. Pay on time

One of the common issues with startups that do not have investors bankrolling their tech is finance. Paying late is common, especially when the business is struggling. However, if your business is doing well, don't form a habit of paying your developers late. While you may offer them other perks such as a conducive working environment and technologies to grow, they also need to pay bills.

We understand one-off situations can exist, but once the salary-paying trend is constantly epileptic, every other perk my not matter. Don't get us wrong, we’re not saying a well-paid employee cant resign, but one of the biggest reasons startups find it difficult retaining their developers is non-payment or late payment of salaries.

4. It's not always about wages.

Yes, the take-home package is essential to any employee, but software developers want a balance between work and personal life. Many prefer remote working because of the freedom it offers. Remember, their skill can be offered from any location, seize that opportunity to offer non-standard working hours.

Some startups with in-house teams now offer flexible work hours different from the usual 8-5. So, it can save you some money in the long run. If given the opportunity, many employees will choose a better option from the conventional 8-5 work hours. You can research what perks other companies are offering their developers other than fat salaries.

5. Find out if your developers are happy.

We can't overemphasize that money isn't all that matters to employees. In fact, many employees have switched roles with a pay cut because of not being challenged in their current job. Developers like to create new things. They want to solve problems. So, if the position you offer them makes them feel redundant and unhappy, they'll likely move to other places with the hope that they'll get something worth it.

The truth is, unhappy software developers, may not reveal to you they are unhappy because of fear of the outcome, so you might need to ask. If you have a dedicated HR team, allow them to evaluate your software developers. One of the ways to know if your developers are happy is that they'll want their friends to come in too.

You can create a means where your employee can make anonymous suggestions about how they feel concerning their work conditions. That's what you'll receive honest opinions and a way to help them.

6. Give room for creativity.

Apart from the presence of the latest technologies and far paychecks, another big difference between startups and established tech companies is the bureaucracy that exists between software developers and the ability to express their skills. This condition is why some seasoned coders will prefer to work with startups because they'll have more chance to express themselves.

Software developers want a place they can develop their skills and truly create. Don't get us wrong, we’re not saying you should give them the freedom to dictate to you. But while they work on your in-house project, allow your developers to play with programming languages. Try not to cage or limit them; this style will make them feel you trust their competency and in turn help retain them.

7. Offer them a sense of belonging.

One of the ways to retain employees is to develop in them an "owners mentality." As a startup, you probably won't have all those complex hierarchies, so it’s easier to bring down any walls between boss and employee so that they can contribute to decision making.

For example, if you've got a new project, engage them one-on-one on how the project will move from idea to market. Discuss together what programming language is best to design a project. Listen to them, and ask for their input. This way, your developers will always feel like they are more than just disposable assets.

When employees have the feeling that their opinion matters where they work, taking the exit door when other companies come knocking may not be easy because of the uncertainty of the culture and work style on the other side.

8. Offer learning and career growth opportunities.

You may have heard that transformational leaders achieve more in the long run than their transactional counterparts. That's because transformational leaders create opportunities for employees to attain their personal goals as the company achieves its set vision. No employee doesn't desire career growth. A company that will leave an employee the same way he walked in seven years later is a "no" for most employees.

So don't be afraid to provide learning opportunities. Yes, it might seem like a risk, what if they leave after investing so much in them? Well, the truth is, there are no guarantees at the end of the day. However, as long as your developers are still with you, the best version of them should be your goal as you strive to hit your company's goals as well.

Moreover, training does not have to be expensive; some online educational courses offered by online universities are affordable. You can attach completion of courses with potential promotion, responsibility, and pay rise. Another form of learning is inspirational talks that can benefit all employees. You can introduce this as a seminar in batches if you have a large team or at once during a weekend break in combination with a team bonding session.

9. Build a relationship with your developers.

While you are not looking to start a "bromance" or make a chat buddy out of your employees, remember the tech business is still a people's business at the end of the day. Try not to see your software team as your money-making machine; therefore, build a relationship with them that'll make them trust you and see you more than just their paycheck.

A good relationship with your team of developers will save you some headache when the chips are down. Furthermore, your tech team can be a good source of other software developer talents. If you have a good relationship with them, chances are, they'll help grow your business.

Author
Chief Technology Officer
Work with world leading tech companies from the Philippines
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We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring

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Full-Stack PHP Developer (Mid to Senior)

Cloud Employee is a fast-growing UK-managed offshore recruitment and staffing company in the Philippines. We tackle the growing global IT skills shortage by connecting tech companies based in Europe, the US, and Australia to our pool of expert software developers in the country.

We are now seeking passionate mid to senior-level Fullstack PHP Developer to join our team of skilled talents. This is an excellent opportunity to join a fun and dynamic work environment and to significantly advance your career.

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Full-Stack PHP Developer Tech Lead

Cloud Employee is a fast-growing UK-managed offshore recruitment and staffing company in the Philippines. We tackle the growing global IT skills shortage by connecting tech companies based in Europe, the US, and Australia to our pool of expert software developers in the country.

We are now seeking passionate Lead Full-Stack PHP Developer to join our team of skilled talents. This is an excellent opportunity to join a fun and dynamic work environment and to significantly advance your career.

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Full stack RoR/VueJS Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Fullstack Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Fullstack .NET Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Lead/Senior Frontend Developer (UI/UX) - Brazil

Cloud Employee is a UK-owned business established eight years ago. We connect high-performing software engineer talent worldwide with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines and Brazil as part of international engineering teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting edge workplace that continuously invests in staff development, engagement, and well-being. We provide security, career paths, individual training programs, and mentoring.

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Marketing Specialists

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Backend Developer (Python)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Senior Full-Stack PHP Developer

Cloud Employee is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineering teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting-edge workplace that continuously invests in staff development, engagement, and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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January 2, 2024
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How to Retain Key Software Developers in Your Startup

February 16, 2024

So you've successfully got investors to bankroll your tech idea, congratulations. That means finance is the least of your worries, welcome to the world of managing startups. One of the things that can sometimes be hard to find is fantastic software developers. This is especially true if you’re at the stage where you can't afford to hire the big guns.

News flash, that's only the half of it because when you do find the right hands, getting them to stay is another task entirely as digital skills are always in demand. If you can relate, this article on how to retain key software developers in your startup company will do you some good.

1. Recruiting is the premise of retention.

There's a saying, "the first impression counts." As a startup, you need to realize you are not on the same level as the tech giants in the industry; therefore, your efforts should start from the recruitment stage. Many times, you can trace back one of the reasons for leaving a company to a couple of flaws at the recruitment stage.

It's not uncommon for companies to offer a potential hire sugar-coated offers that are far from reality. Here's the thing, after employees settle in and realize the offer stated in the package is far from reality, they can feel betrayed. Trust us, employees can be vindictive, and the only way to get back at you when they have no legal claims is to walk away at the slightest opportunity.

An unexpected resignation of your key developers could cause majors setbacks, especially when it happens in the middle of an important project development. Not only will you have to go through the stress of replacing them, but you’ll also waste more time and money before your product hits the tech market.

So, what should you do? Put all the cards on the table. Don't get tempted to overstate your company position. Avoid making any ambiguous or vague offers that you have at the back of your mind to alter when your employee demands them. If you are going to present any bonus attached to performance, then make sure you have proper and fair performance-measuring systems in place.

Furthermore, recruit the right people. Yes, you want someone with experience and qualifications, that's great. But that's not all there is to it. You might want to consider a talent that's flexible with the willingness to adapt and learn.

2. Understand the market.

Just as you focus on the market to remain competitive, remember, one of your greatest assets are your employees. You are technically competing with other companies to keep them on your side. You’ll do well to learn what offers and opportunities your competitors are presenting to their developers.

Of course, you may not be able to compete with the big guns in the industry, but know the average among startups. Don't exploit people just because they need the job, trust us, there's always offers for tech professionals. They may leave you hanging when it matters the most.

If you have offshore developers, then you probably have the exchange rate advantage on your side. Again, please don't see it as an opportunity to pay measly wages. Also, know the technology that's hot in the industry; when the lines between companies become blurry in terms of salary offer, developers will stay where they have resources to grow.

3. Pay on time

One of the common issues with startups that do not have investors bankrolling their tech is finance. Paying late is common, especially when the business is struggling. However, if your business is doing well, don't form a habit of paying your developers late. While you may offer them other perks such as a conducive working environment and technologies to grow, they also need to pay bills.

We understand one-off situations can exist, but once the salary-paying trend is constantly epileptic, every other perk my not matter. Don't get us wrong, we’re not saying a well-paid employee cant resign, but one of the biggest reasons startups find it difficult retaining their developers is non-payment or late payment of salaries.

4. It's not always about wages.

Yes, the take-home package is essential to any employee, but software developers want a balance between work and personal life. Many prefer remote working because of the freedom it offers. Remember, their skill can be offered from any location, seize that opportunity to offer non-standard working hours.

Some startups with in-house teams now offer flexible work hours different from the usual 8-5. So, it can save you some money in the long run. If given the opportunity, many employees will choose a better option from the conventional 8-5 work hours. You can research what perks other companies are offering their developers other than fat salaries.

5. Find out if your developers are happy.

We can't overemphasize that money isn't all that matters to employees. In fact, many employees have switched roles with a pay cut because of not being challenged in their current job. Developers like to create new things. They want to solve problems. So, if the position you offer them makes them feel redundant and unhappy, they'll likely move to other places with the hope that they'll get something worth it.

The truth is, unhappy software developers, may not reveal to you they are unhappy because of fear of the outcome, so you might need to ask. If you have a dedicated HR team, allow them to evaluate your software developers. One of the ways to know if your developers are happy is that they'll want their friends to come in too.

You can create a means where your employee can make anonymous suggestions about how they feel concerning their work conditions. That's what you'll receive honest opinions and a way to help them.

6. Give room for creativity.

Apart from the presence of the latest technologies and far paychecks, another big difference between startups and established tech companies is the bureaucracy that exists between software developers and the ability to express their skills. This condition is why some seasoned coders will prefer to work with startups because they'll have more chance to express themselves.

Software developers want a place they can develop their skills and truly create. Don't get us wrong, we’re not saying you should give them the freedom to dictate to you. But while they work on your in-house project, allow your developers to play with programming languages. Try not to cage or limit them; this style will make them feel you trust their competency and in turn help retain them.

7. Offer them a sense of belonging.

One of the ways to retain employees is to develop in them an "owners mentality." As a startup, you probably won't have all those complex hierarchies, so it’s easier to bring down any walls between boss and employee so that they can contribute to decision making.

For example, if you've got a new project, engage them one-on-one on how the project will move from idea to market. Discuss together what programming language is best to design a project. Listen to them, and ask for their input. This way, your developers will always feel like they are more than just disposable assets.

When employees have the feeling that their opinion matters where they work, taking the exit door when other companies come knocking may not be easy because of the uncertainty of the culture and work style on the other side.

8. Offer learning and career growth opportunities.

You may have heard that transformational leaders achieve more in the long run than their transactional counterparts. That's because transformational leaders create opportunities for employees to attain their personal goals as the company achieves its set vision. No employee doesn't desire career growth. A company that will leave an employee the same way he walked in seven years later is a "no" for most employees.

So don't be afraid to provide learning opportunities. Yes, it might seem like a risk, what if they leave after investing so much in them? Well, the truth is, there are no guarantees at the end of the day. However, as long as your developers are still with you, the best version of them should be your goal as you strive to hit your company's goals as well.

Moreover, training does not have to be expensive; some online educational courses offered by online universities are affordable. You can attach completion of courses with potential promotion, responsibility, and pay rise. Another form of learning is inspirational talks that can benefit all employees. You can introduce this as a seminar in batches if you have a large team or at once during a weekend break in combination with a team bonding session.

9. Build a relationship with your developers.

While you are not looking to start a "bromance" or make a chat buddy out of your employees, remember the tech business is still a people's business at the end of the day. Try not to see your software team as your money-making machine; therefore, build a relationship with them that'll make them trust you and see you more than just their paycheck.

A good relationship with your team of developers will save you some headache when the chips are down. Furthermore, your tech team can be a good source of other software developer talents. If you have a good relationship with them, chances are, they'll help grow your business.

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