Looking to Improve Employee Retention in Your Software Team?

Retaining your software talent isn’t just about filling seats; it’s about nurturing a team excited to walk through the door (or log in remotely) every day. At Propel, we know the secret isn’t some off-the-shelf retention strategy; it’s about creating a strategy where your development team wants to thrive. This means driving purpose over process, connection over transaction, and growth over stagnation. 

In fast-moving start-ups and scale-ups, the pressure to deliver can be intense. Developers are expected to roll out updates in weeks rather than months, and high achievers often push themselves even harder. While scaling brings exciting opportunities, it also adds strain to teams, making burnout a real risk. Unlike larger corporations, growing businesses can’t afford the constant cycle of hiring and training new engineers. A strong retention strategy helps secure the expertise you need to scale successfully.

This guide will outline the key steps to improving staff retention in your software team by first recognising why developers leave. Understanding these reasons, whether burnout, lack of career progression, or unchallenging work, allows you to take proactive steps to keep your best talent. We’ll also explore building a strong engineering culture, offering competitive benefits, and providing meaningful opportunities that keep your software developers engaged and motivated to stay.

So, let’s first look at the reasons why people might be leaving your software development team. 

Recognise why People Leave your Software Development Team

You can use many words when losing a great team member of your team….’frustrating’, ‘unexpected’, ‘disruptive’. However, the truth is people don’t just leave for no reason. To keep your best software talent from leaving, you’ve got to figure out what’s driving them away in the first place. 

First of all, it is important to remember no matter how good your employee retention strategy is, you simply can’t always retain everyone. There will always be situations where people retire, start families or decide to move to a new location. However, what you can do is recognise why people have or may leave your software team and use this insight to improve your staff retention.

Understanding patterns of why engineers choose to stay or leave is essential for taking purposeful actions that boost retention. If you've noticed a shift in turnover within your software team, the departures can reveal important insights into what may need to be adjusted. Even if you haven’t faced retention challenges yet, spotting the reasons that motivate engineers to pursue new opportunities allows you to stay ahead of the game and develop an environment where they feel inspired to grow.

A 2023 study by Software Advice provides valuable insight into the deciding factors between why staff opt to stay or leave their jobs. 

Factors influencing people to remain with their employer:

• 52% - work-life balance 

• 42% - a good work environment 

• 39% - fulfilling and meaningful work 

• 39% - salary expectations met

• 32% - flexibility surrounding working hours, remote or hybrid work

Factors influencing people to leave their employer:

• 32% - salary expectations not met

• 26% - career change

• 25% - high-stress levels

• 25% - lack of recognition 

• 24% - lack of benefits 

The fast pace of tech means burnout is real, and a lack of career progression will drive skilled engineers to competitors with more interesting and meaningful challenges. Addressing these issues with proactive strategies like work-life balance, strong engineering culture, and competitive pay can make all the difference in keeping quality talent. Later in our guide, we explore what benefits you can offer based on these findings to help keep your hard-working developers in your teams.

To truly understand why members of your software development team leave, conducting thorough exit interviews with those who depart is a brilliant strategy. These conversations give your outgoing talent a platform to share their honest feedback about their experiences within your team and the wider business. Plus, it’s your perfect opportunity to dig deeper with questions about their decision to move on. By engaging in this way, you open the door to insights that can help shape a better environment for those who remain. 

Here are some questions you could ask software talent in an exit interview:

• What is the main factor as to why you have decided to leave?

• Were leadership and decision-making processes within the software team effective?

• Were the tools, frameworks, and technologies you worked with fit for purpose?

• Were there any development processes or workflows you found inefficient or frustrating? 

• Are there any technical skills or professional development opportunities you wish had been offered? 

• Were there any challenges or roadblocks in your role that could have been addressed better? 

• Are there any changes to the role, team structure, or organisation that might have influenced you to stay?

• What aspects of the wider business did you find particularly strong or inspiring?

Always give the individual the opportunity to ask any questions they have before concluding the exit interview. 

When an individual decides to leave, it's a golden opportunity for you to tap into their insights. Understanding the reasons behind their departure can provide invaluable information that can elevate your employee retention strategies. Plus, it’s a chance to ensure your former employee walks away with a positive impression of your business, keeping the door open for a potential return. Take all feedback as a constructive gift, hold on to it professionally and never let it get personal.

Once you’ve recognised why people leave or potentially might depart your software team, you can refine your employee retention strategy. This insight can help you improve your approach to hiring and retention, ensuring you’re doing your utmost to retain the talent within your software development team. 

Provide your Software Development Team with Challenging Work

If your business aims to scale while keeping software talent in-house, offering them stimulating and meaningful work that truly challenges them is crucial. Your software development team is a key driver behind your company's tech advancements. Keeping them inspired with projects that allow for creative freedom is key to showcasing their innovative talents.

If you overlook the need for your software professionals to engage with the latest technologies, fine-tune existing systems, or develop new products and services, you risk undermining your employee retention efforts. Talented software developers and engineers are always on the lookout for more exciting opportunities, and they won’t hesitate to explore options elsewhere if challenging work seems hard to come by.

Develop a culture of innovation and collaboration within your software development team by genuinely valuing their insights. Create a platform for your team to pitch their ideas and contribute to decision-making. When their creative visions align with your business objectives, providing them with the resources they need to bring these visions to fruition builds stronger professional relationships, drives a vibrant company culture, and improves staff retention.

Investing in the latest technology empowers your software team to excel, be more creative, and tackle more challenging projects. This commitment showcases to your current software developers and potential hires that you prioritise their growth and develop an environment ripe for innovation. Furthermore, by establishing yourself as a business that invests in its development, you'll attract talented new recruits eager to be part of your future projects. 

Offer Your Software Development Team Competitive Benefits

Offering your people competitive benefits is an excellent way to improve employee retention within your software department, from DevOps to quality assurance teams and everything in between. These incentives, from salary expectations to flexible working arrangements, act as powerful motivators, keeping talented developers loyal to your company.

To ensure your benefits catch attention and stay competitive, smart market research is key. If you're a smaller company competing against big multinational giants, you can work around this by showcasing what you can uniquely offer. Perhaps it’s greater flexibility, meaningful work, or a stronger sense of impact within your organisation. Dive deep into industry standards for salaries and perks to ensure your offerings genuinely reflect the value of your software development team.

But don’t stop at just market research! Engage your current workforce and understand what they really want in terms of benefits. Whether it’s well-being initiatives, recognition for their contributions, or support for work-life balance, their insights are invaluable.

Consider running an internal survey, hosting group discussions, or scheduling one-on-one chats with your software development team. These open conversations can go a long way; by valuing their opinions, you develop an environment that supports retention. Your team will appreciate the transparency; after all, not every employer embraces feedback.

Based on the factors we mentioned earlier that influence software developers to stay in the business, here are examples of benefits that can make a real impact:

• Work-life balance and flexibility (52%) – Flexible hybrid working, the option to work asynchronously across time zones, and additional paid time off to prevent burnout, especially after major project releases.

• A good work environment (42%) – Dedicated focus time without unnecessary meetings, access to the latest tools and technologies, and a culture that supports knowledge sharing rather than unrealistic deadlines.

• Fulfilling and meaningful work (39%) – Opportunities to work on innovative projects, involvement in technical decision-making, and clear career progression paths, such as the option to specialise in architecture, DevOps, or leadership.

• Salary expectations met (39%) – Regular salary reviews (quarterly, biannually, or annually, depending on budget) and performance-based bonuses tied to project delivery rather than arbitrary KPIs.

Budget permitting, you should aim to match or exceed the benefits offered by others within your market to ensure you retain your software talent. Additionally, these benefits can be highlighted on the job descriptions of your vacant software jobs and posted as part of your marketing collateral to help attract new talent to your business. 

Allow Your Software Talent the Opportunity to Progress

Another way to improve your retention strategy is to unlock growth opportunities for your team. Allowing your team to flourish alongside your business could be the key to deepening their loyalty and staying engaged. When you invest in their career development, they’re more likely to invest their time and talent into your organisation.

Liaise with your software development team and dive into their career aspirations. You can gather this insight through one-on-one chats or during your quarterly and annual reviews. Don't forget that capturing career goals during the interview or onboarding stages can be invaluable. Fresh perspectives on your team's ambitions will help you outline a career path that helps them reach their goals and propels (excuse the pun!) your business into the future.

Promoting from within is a must! It nurtures your team as they evolve from entry-level developers to executive-level professionals, all while supporting your recruitment efforts and rewarding hard work with professional growth.

And let’s not overlook educational development! Regardless of their current level, prioritise your employees’ learning journeys. Whether through internal training or external workshops and upskilling courses, provide your team with motivating schemes that refine their skill sets and drive their professional journeys. Examples of skills that your team will want to develop are:

• AI Infrastructures -  Building scalable AI infrastructure is an increasingly valuable skill, requiring expertise in frameworks like TensorFlow, PyTorch, and TFX. Understanding these tools enables software engineers to develop efficient machine learning pipelines, ensuring seamless model deployment and performance at scale.

• Cloud Systems - Expertise in cloud platforms such as AWS, Azure, and Google Cloud is crucial, including skills in infrastructure as code, cloud-native development, and serverless computing.

• Cyber Security - With rising security threats, engineers are looking to strengthen their expertise in secure coding practices, threat detection, and data protection.

These training opportunities give your software developers a renewed sense of focus, keeping them and your business in sync with the latest industry trends. Not only do they sharpen your talent's knowledge and skills, but they also boost job satisfaction, which is essential to achieving improved employee retention strategies.

Establish a Company Culture Software Talent Wants to Follow

We believe one of the best strategies to enhance staff retention within your software team is to develop a company culture that both your contract and permanent staff genuinely want to embrace. Designing this culture means creating a vibrant environment where everyone feels comfortable collaborating, no matter if they’re in the office day in and day out or just coming in once a week. 

A strong culture isn’t just about the perks; it is about creating an environment where developers can collaborate effectively, solve complex problems, and feel valued in their roles. Clear communication and collaboration are vital to preventing frustration, ensuring alignment and making space for innovation. 

Here are some suggestions to drive this culture: 

• Project Kickoff Meeting – Establish clear guidelines on task assignments, code review processes, and how developers should seek support. This ensures alignment from the start, prevents miscommunication, and creates a structured workflow that enables efficient collaboration and problem-solving.

• Daily Stand-ups - This should be an absolute staple of an effective software development team! Doing these keeps teams aligned by having each member briefly share what they did yesterday, their plan for today, and any blockers. A shared agenda document lets your team prepare in advance, creating a useful record for evaluations or catching up on missed meetings.

• Regular Process Reviews – Continuously refining workflows helps ensure engineers feel heard and supported. Introducing dedicated check-ins, such as a “Process Check” during sprint planning or stand-ups, allows teams to discuss frustrations openly, suggest improvements, and adapt workflows to better suit their needs. Documenting agreed changes ensures clarity and accountability, helping to create a more inclusive and efficient development environment.

Creating a collaborative and transparent company culture starts with a clear definition of your purpose, vision, and values. Whether you've already nailed these down or need a refresh, it’s essential to embed these principles into your team through engaging onboarding and effective training. These elements should be the pulse of your company culture, motivating your software team to embrace and uphold them passionately.

Remember, software talent often seeks organisations that resonate with their values, champion a mission they can get behind, and share a vision worth striving for. These foundational statements inspire your development team and also develop loyalty, giving them a compelling reason to be part of your journey and stick around for the long haul.

Ready to Tackle Your Software Engineering Recruitment? 

If you’re looking for ways to improve your employee retention strategy and boost your hiring approach, we’re the people to call! We know the ins and outs of software engineering recruitment and have a proven track record of taking businesses to the next level with the top tech professionals on the market. Our specialist consultants provide a human touch, delivering transparent permanent, contract and executive search services to help grow your software team and enhance your organisation.

Contact us today and discover how we can help scale up your company with the market's best software talent.