The tech hiring market is tight. While hiring cuts and layoffs have characterized the job market, the need for key roles and skills has risen rapidly. 

Roles like back-end and front-end developers were the most in demand for 2023. And AI skills came alive in the third quarter, seeing explosive growth in the rate at which employers assess these skills.

In this market, the challenge for tech recruiters and hiring managers is to strategically hire, retain, and upskill developers to meet demand for the important skills. And to do so, you’ll need to understand what motivates developers to accept an offer or stay in their current role.

So, what defines the ideal developer opportunity? What aspects drive developers to accept a new job, remain in their current position, or decline an offer? In short, why should a developer choose you?

In our 2024 Developer Skills Report, we asked developers these very questions. We also identified disparities between what recruiters think developers want and what developers actually want. Here’s what we found. 

Top 8 Reasons Developers Accept an Offer

#1. Higher Pay

Over 21% of developers rank higher pay as the number one motivator when accepting a new offer. Meanwhile, recruiters listed higher pay as the sixth most influential factor – demonstrating a significant disconnect. 

To attract top developers, your offer will need to meet or closely match their compensation expectations. During recruitment, aim to understand candidates’ overall compensation preferences, including benefits and flexible hours. Research local market standards to provide realistic yet competitive offers. 

Also, consider being transparent about the salary range in the job description. This could increase the number of applicants you receive.

#2. Opportunities for Career Growth

Opportunities for career growth came in a close second. Recruiters also listed this factor as the second motivator for developers – one of only two factors developers and recruiters agreed on in our survey. 

Despite the challenging market and the waves of tech layoffs, developers still value opportunity over security. Our survey showed that 44% of developers prioritize opportunity, compared to 27% prioritizing security. And 28% of developers did not strongly favor either option. In contrast, managers, leaders, and recruiters believe developers prioritize security over opportunity, with a margin of 40% to 33%.

The key takeaway? Use interviews to learn about candidates’ career goals and preferences. Recruiters who communicate upskilling and career growth opportunities with candidates avoid misalignment between candidate expectations and company offerings.

#3. Opportunities to Learn New Skills

Developers identified learning opportunities as the third most influential factor when accepting an offer. Recruiters weren’t too far off in identifying this factor as the fourth most influential. 

Tech is a competitive and ever-evolving industry. Developers know this and understand the need for continuous skill improvements. Learning new skills opens up career growth and advancement opportunities – supporting developers’ desire for career growth. Developers who continuously expand their skill set are better positioned to take on new challenges, handle more complex projects, and progress into leadership roles within their organizations. 

Employers can speak to this motivation by building and promoting upskilling and internal mobility programs. 

#4. Team & Culture

Team and culture came in fourth for developers. Meanwhile, recruiters thought it was developers’ number one motivator. Despite this disconnect, culture remains a key hiring factor that shouldn’t be overlooked.

Why do team and culture matter to developers? Team and culture directly impact problem-solving, creativity, and innovation. For opportunity-minded developers, driving innovation and overcoming challenges is fundamental. Developers could reject your offer if they think your company culture is lacking or it’s, even worse – hindering growth. 

Of particular importance is the presence of a strong engineering culture, which are the values and practices that foster engineering excellence.

#5. Remote-First Policy

Four years into its widespread adoption, remote work is more popular and desired than ever before. Remote work enables developers to work from anywhere, tailoring their work environment to their preferences and lifestyle. It also reduces commute time and costs. Developers who find an office setting distracting can customize their work setting to increase productivity.

But not every company has embraced this working style that developers love. Companies that terminate or walk back their remote first policies risk alienating developers.

#6. Interesting Projects to Work on

Developers do not like to be bored. They prioritize learning new skills in the context of work projects. Developers want interesting projects that challenge and take them out of their comfort zone. Why not highlight some exciting projects your team has worked on during the recruitment stages?

#7. Flexible Schedule

Along with location flexibility, developers want a flexible schedule. This factor is seventh for developers, yet recruiters rank it fifth. Flexible scheduling allows employees more control over their work-life balance priorities and personal pursuits. 

Implementing flexible schedules benefits developers and employers alike. They’ve been shown to increase employee job satisfaction, health, and work-life balance. And they also benefit employers by increasing productivity, reducing absenteeism, and decreasing turnover.

#8. Four-Day Work Week

Coming in eighth is the four-day work week. This is the only other factor developers and recruiters agreed on. This reinforces just how valuable work-life balance and schedule flexibility are to developers. If your company can offer this, it’s beneficial to highlight it in the recruitment process.

What Makes Developers Stay? 

We’ve reviewed what factors have the biggest impact on whether developers accept a job offer. But what factors motivate developers to stay in their current position? To answer this question, we asked developers what’s keeping them in their current role. Here’s what they said.

Surprisingly, compensation drops in rank from the first to the fifth strongest motivator. 

Instead, learning new skills and a flexible schedule rise on the list. Opportunities for career growth and skill development are still significant motivators.

Here we also see the team and company playing a bigger role in developer decision making, ranking as the second most important reason developers say. So while culture can affect hiring outcomes, its biggest impact is in retaining employees.

Remember, developers aren’t just sticking around out of habit. They’re constantly seeking out better prospects with an opportunity-first mindset. Keep them engaged by offering challenging projects that pique their interest. Stay in the loop with the latest industry skills and regularly assess your developers’ current skill sets to pinpoint areas where they might need support or additional training.

The post What Factors Actually Impact a Developer’s Decision to Accept an Offer? appeared first on HackerRank Blog.

Your tech team is the backbone of your business. Regardless of your size or industry, the quality and dedication of the tech professionals on your team can make or break your success. But there’s a catch: while it’s essential to hire the right talent, keeping them is a whole other challenge. And when it comes to tech roles, the stakes are exceptionally high.

Research has repeatedly shown the staggering costs associated with employee turnover. For technical roles in particular, the average cost to replace an employee can be 100% to 150%of their annual salary. And we’re not just talking about recruitment expenses. Think about the time invested in training, the gaps left in projects, and the potential drop in team morale. In the tech sector, where projects can be intricate and require specialized knowledge, losing an employee can set a team back by weeks, if not months.

But the story doesn’t end with challenges. High retention rates translate into consistent product development, more effective teams, and often, a stronger bottom line. If you’re an HR leader or a hiring manager, prioritizing employee retention isn’t just a nice-to-have; it’s a must.

Ready to make the shift? Read on as we delve into tried-and-true strategies for retaining your top tech talent, ensuring they’re not just onboard but here to stay.

1. Create an Upskilling Program

In 2019, 94% of employees reported that they would stay at a company longer if it invested in helping them learn. By investing in your employees’ growth, companies can increase employee job satisfaction and make them more likely to stay with the company in the long term.

Enter upskilling. Upskilling refers to the process of teaching your team new skills or improving their existing ones to meet the changing demands of your industry. It’s about investing in your people, helping them grow, and ultimately ensuring that your organization is equipped to navigate the tech landscape of today — and the future. 

Effective methods for upskilling your team include:

• On-the-job training: Perhaps the most effective way to learn is by doing. Encourage your team to take on new responsibilities or projects that will stretch their current skill set. Provide them with an upskilling program, but allow them the autonomy to learn and grow.
• Online courses and certifications: The internet is a treasure trove of learning resources. Companies like HackerRank, Coursera, and Udemy offer courses in a wide range of tech subjects. Additionally, these courses often come with certifications that can further validate your team’s new skills.
• Conferences, webinars, and workshops: These events provide opportunities to learn from industry experts and keep up with the latest trends. Encourage your team to attend these events, either in person or virtually.
• Mentoring and coaching: Pairing less experienced team members with more experienced ones can be a great way to transfer knowledge within the team. The less experienced members can learn from the successes and mistakes of their mentors, while the mentors can also learn from fresh perspectives.
• Experiential learning: Experiential learning is an educational approach that emphasizes the importance of learning through direct, hands-on experiences and active engagement. rather than solely relying on traditional classroom instruction or passive learning methods. An example of experiential learning for developers would be a hackathon.

2. Foster a Growth Mindset

Embracing a growth mindset — the belief that abilities can develop through dedication and hard work — is pivotal for tech teams. In fact, Carol Dweck, who first coined the term, found that employees at companies that embrace a growth mindset are 49% more likely to say that the company fosters innovation — a sentiment that can go a long way toward retaining top talent — and 34% likelier to feel a strong sense of ownership and commitment to the company.

Tech professionals constantly face novel challenges. A growth-mindset culture champions adaptability, turning statements like “We’ve never done this before” into “Let’s learn something new.”

Here are a few tips for building a growth mindset among your tech team:

• Celebrate Efforts: Recognize hard work and problem-solving, not just successful outcomes.
• Encourage Curiosity: Hold monthly tech talks or innovation days to discuss the latest trends.
• Provide Learning Tools: Give access to courses, workshops, and resources to motivate growth.
• Normalize Mistakes: View errors as learning opportunities, not just setbacks.

Prioritizing a growth-mindset culture ensures that your tech team stays innovative and resilient in the face of change.

3. Offer Competitive Compensation and Benefits

The tech industry is known for its lucrative salaries and swanky perks. But in this competitive landscape, simply offering a good paycheck isn’t enough. 

Research has shown that salaries and benefits are the number one motivator for workers changing jobs. Even with the best culture and most exciting projects, if your tech talent believes they can get a better financial deal elsewhere, the temptation to jump ship increases.

However, a competitive salary is just one side of the coin. Tech professionals today are looking for a complete package that balances both monetary compensation and a range of benefits to enhance their quality of life. 

Benefits that play a pivotal role in retention include:

• Health and Well-Being: Comprehensive health insurance, mental health support, and wellness programs are no longer luxury perks; they’re a standard expectation.
• Professional Development: Consider offering a yearly stipend for courses, conferences, or workshops. When employees see that their personal growth aligns with the company’s investment in them, it fosters loyalty.
• Unique Perks: Some companies have started to introduce more unique benefits such as pet insurance, child care assistance, or extended parental leave. Such perks, although not universally applicable, can make a huge difference for specific employees.

Regularly evaluate your compensation and benefits against industry standards, and listen to your team’s feedback to craft a package that resonates — and retains.

4. Support Work-Life Balance and Flexibility

In an age where the boundaries between work and personal life can blur — especially in tech — offering flexibility is a necessity. For many tech professionals, the ability to maintain a harmonious work-life balance is as valuable, or even more valuable, than a pay raise. And companies that offer good work-life balance experience 25% less attrition.

Tech roles can sometimes demand unpredictable hours. While the occasional crunch is understandable, consistently expecting late nights and weekend work can lead to burnout. This not only affects an individual’s health and well-being but can also have repercussions for team morale and overall productivity.

So, how can companies support a better balance?

• Flexible Hours: Allow employees to start and end their day according to what suits their personal schedule best. This flexibility can be especially beneficial for parents, caregivers, or those with long commutes.
• Remote Work Options: Even post-pandemic, the appeal of remote work remains strong. Offering the option, even if it’s just a couple of days a week, can make a world of difference in employee satisfaction.

5. Encourage Inclusion and Diversity

A thriving tech team is often a diverse one. It’s not just about assembling talent from various backgrounds but about fostering an environment where every team member feels valued and included. A commitment to diversity, equity and inclusion (DEI) is increasingly becoming a key factor in retaining top tech talent, with research showing companies are 2.6 times more likely to engage and retain talent when they promote and support DEI in the workplace.

Here are some strategies for enhancing DEI on your tech team:

• Skills-Based Hiring: Shifting to a skills-based hiring approach helps furthers workplace diversity, equity, and inclusion. By prioritizing candidates’ competency and skills companies can expand their search to a broader range of applicants.
• Mitigating Bias in Hiring: Introduce hiring practices like blind recruitment and diverse interview panels to minimize unconscious biases.
• Continuous Education: Regular workshops on topics like unconscious bias and cultural sensitivity can reshape company culture over time.
• Elevate Diverse Voices: Actively promote and support underrepresented groups to leadership roles and decision-making positions. When team members see diversity at all levels, it reinforces the company’s commitment to inclusion.

6. Give Regular Feedback and Recognition

In the high-paced environment of tech, where projects often run on tight deadlines and the pressure can be intense, acknowledgment of effort and achievements is paramount. Feedback, both constructive and positive, has a direct impact on an employee’s sense of value, motivation, and, ultimately, decision to stay or leave a company. A study from Gallup and Workhuman found that when an employer recognizes important life events and work milestones, their employees are more than 30% more likely to say they plan to stay with the organization for the next five years.

Here are some effective ways to increase recognition and feedback on your tech team:

• Regular Check-ins: Don’t wait for annual reviews. Regular check-ins, whether monthly or quarterly, offer a platform for real-time feedback.
• Public Praise: Recognizing an individual’s or a team’s achievements in company meetings or group channels can have a profound impact on morale. It not only acknowledges their effort but elevates their status amongst peers.
• Constructive Feedback: While positive recognition is crucial, so is constructive feedback. It should be precise, timely, and offered in a manner that facilitates growth rather than demotivation.
• Tailored Reward Systems: Beyond verbal recognition, consider implementing reward systems, whether through bonuses, gift cards, additional time off, or other meaningful incentives that resonate with your tech team.

Embedding a culture of consistent feedback and recognition within your tech team is an investment. The return? A motivated, engaged, and loyal workforce committed to driving the company’s vision forward.

7. Provide Opportunities for Advancement

Most tech professionals are inherently driven by innovation, learning, and growth. One of the primary reasons tech talent may seek opportunities elsewhere is the perceived ceiling on their career trajectory within their current company. In fact, research from Paychex found that 63% of workers said they would be more likely to stay at their company if they were given better opportunities to advance in their careers. When looking at tech teams specifically, 47% of technologists consider leaving their current employer in order to grow their responsibilities and skill sets. 

When tech professionals can envision a future with the company, seeing tangible steps and opportunities to climb the career ladder, they’re more inclined to stay and grow with the organization.

Here are some strategies for showcasing advancement opportunities:

• Clear Career Ladders: Design and communicate a transparent career progression path within the tech team. Whether it’s moving from a junior developer to a senior one or transitioning into a managerial role, knowing the steps and requirements can empower employees to drive their careers forward.
• Leadership Training: For those showing potential or interest in management or leadership roles, offering training specific to these skills can be invaluable. It not only prepares them for future positions within the organization but signals that the company is actively investing in their progression toward such roles.

Cultivating a Retentive Tech Culture

With the rapid pace of innovation and a competitive talent market, retaining your best tech talent is paramount. Increasing retention in your tech team is less about grand gestures and more about building a culture. A culture where growth is encouraged, effort is acknowledged, and each individual feels they’re an essential piece of the puzzle. In doing so, you’re not just retaining talent; you’re fostering an environment where they can thrive.

This article was written with the help of AI. Can you tell which parts?

The post 7 Ways to Increase Employee Retention on Your Tech Team appeared first on HackerRank Blog.