DEV Community: Rasmus Stjernström

The Turnover Trap: How Poor Onboarding Fuels Developer Turnover

Rasmus Stjernström — Wed, 04 Sep 2024 11:41:55 +0000

In our last post, we uncovered the staggering financial toll that high developer turnover is taking on companies. Today, we’re diving deeper into one of the major culprits behind this issue: poor onboarding. Often overlooked, poor onboarding is quietly eroding developer retention and costing companies far more than they realize.

The High Cost of Poor Onboarding
Imagine hiring a talented chef, full of enthusiasm to craft culinary masterpieces. But instead of providing a well-equipped kitchen and clear instructions, you hand them a dull knife and mutter "good luck." Frustration quickly sets in, and soon, they’re searching for a new job. Developers experience a similar frustration when they are thrown into a weak onboarding process. Instead of feeling empowered, they’re left to fend for themselves, leading to a loss of motivation and eventual departure.

Consider this scenario: A developer joins your team, eager to contribute. But instead of a smooth integration, they’re met with chaotic onboarding—outdated documentation, fragmented communication, and unclear expectations. Their initial excitement fades, and within a few months, they’re out the door, adding to the turnover statistics we discussed previously.

This isn’t a rare occurrence. Poor onboarding is a significant but often ignored factor contributing to high turnover rates in the tech industry. It sets the stage for the entire employee experience, and when mishandled, it can push developers out before they’ve even had a chance to fully integrate.

The Onboarding-Turnover Connection
Onboarding isn’t just about checking off tasks during the first week. It’s an immersive experience designed to help new hires understand the company culture, tools, and expectations. Unfortunately, many companies fall short. As Tim Cochran and Premanand (Prem) Chandrasekaran noted in their insightful article "Onboarding" from the "Bottlenecks of Scaleups" series, poor onboarding can create bottlenecks, leaving developers feeling unsupported and disconnected. This lack of integration often leads to frustration and, ultimately, resignation.

The True Cost of Poor Onboarding
Delayed Productivity: Developers who are poorly onboarded take longer to become productive. What should be a time for learning and integrating often turns into a period of confusion and inefficiency, impacting both the new hire and the team’s overall output.

Increased Turnover Rates: Developers experiencing inadequate onboarding are more likely to leave within the first year. Without proper guidance and resources, they feel undervalued and unmotivated, leading to higher turnover.

Financial Implications: The financial burden of replacing a developer is steep. Replacing a developer can cost up to 150% of their annual salary, factoring in recruitment, training, and lost productivity during the transition.

Why Onboarding Matters
Effective onboarding goes beyond just paperwork and introductions; it lays the foundation for a developer’s success. A well-structured onboarding process helps new hires understand their role, integrate with the team, and quickly become productive. When this process is chaotic or disorganized, it sets off a chain reaction of issues:

Slow Time to Productivity: Developers struggle with understanding the codebase, tools, and company culture, leading to frustration and reduced productivity.

Increased Stress: A lack of clarity and support during onboarding can lead to stress and burnout, pushing developers to seek opportunities elsewhere.

Cultural Misalignment: Without proper guidance, new hires may struggle to align with the company’s values and work style, resulting in disengagement.
According to Cochran and Chandrasekaran, poor onboarding not only slows down individual developers but can also hinder overall team progress and project delivery. This creates a costly cycle of turnover, as the company is forced to spend time and resources on rehiring and retraining, all while productivity suffers.

The Domino Effect of Developer Turnover
The impact of poor onboarding doesn’t stop with the individual developer who leaves. High turnover affects the entire team. Remaining developers often have to take on additional work, leading to burnout and more turnover, creating a vicious cycle. Furthermore, the loss of knowledge that accompanies high turnover can stall projects, stifle innovation, and ultimately harm the bottom line.
In an industry where skilled developers are in high demand, companies can’t afford to lose talent to preventable issues like poor onboarding.

Why Good Onboarding Matters
The good news is that investing in a robust onboarding program can significantly improve developer retention. Onboarding is not just a cost; it’s a strategic investment in the success of your team. Here’s what makes onboarding successful:

Clear Communication: Set expectations with clear goals and roadmaps.

Structured Learning: Provide a mix of technical training, code reviews, and mentorship.

Team Integration: Foster collaboration and a sense of belonging by integrating new hires into the team.

Tools & Resources: Equip developers with the necessary tools and resources to succeed.

Onboarding: A Smart Investment
When done right, onboarding is more than just an administrative task—it’s a strategic investment that can reduce turnover, improve productivity, and unlock the full potential of your development team.

Stay Tuned! In our next newsletter, we’ll explore the positive outcomes of getting onboarding right. We’ll discuss how a strong onboarding program can lead to faster time to productivity and increased employee retention, along with practical tips for building a successful onboarding process for your developer team.

About the Authors
Silo Team is addressing the high turnover rates among developers by tackling systemic issues throughout the entire developer lifecycle, such as chaotic onboarding processes, disorganised knowledge silos, and limited automation. They have recently launched a developer onboarding tool that shortens time to productivity, offers reusable templates, and unifies development tools with real-time monitoring.

Christopher Akande is the Head of Product at Silo Team, bringing impressive experience from leading product development for the Platform Developer Experience (PDX) tribe at Spotify. He has also held key Product Lead roles at Zalando and Collibra, driving innovation in the tech industry.

Ida Stjernström is the Co-founder and Chief Commercial Officer (CCO) of Silo Team, dedicated to creating solutions that help companies retain top talent and improve their developer experience.

Reference Sources:
Happy Developers, Happy Checkwriters, and the Real Cost of Developer Turnover by Joel Hugel | Medium | Published: April 2023 | https://medium.com/walk-before-you-sprint/happy-developers-happy-checkwriters-and-the-real-cost-of-developer-turnover-372042771d2c

Bottlenecks of Scaleups: Onboarding by Martin Fowler | Martin Fowler's Blog | Published: March 2023 | https://martinfowler.com/articles/bottlenecks-of-scaleups/06-onboarding.html

The True Cost of Employee Turnover in Tech by Bucketlist Rewards | Bucketlist Rewards Blog | https://bucketlistrewards.com/blog/the-true-cost-of-employee-turnover-in-tech/

What High Turnover Means for Software Development by Intertec International | Intertec International Blog | https://blog.intertecintl.com/what-high-turnover-means-for-software-development

The Costs of Quiet Quitting: Hidden Consequences of Employee Turnover in Software Development by Kitrum | Kitrum Blog | https://kitrum.com/blog/the-costs-of-quiet-quitting-hidden-consequences-of-employee-turnover-in-software-development/

Developer Turnover is Expensive: Top 11 Reasons Developers Quit by FullScale | FullScale Blog | Published: [Date] | https://fullscale.io/blog/developer-turnover-is-expensive-top-11-reasons-developers-quit/

Impact of the Developer Experience on Businesses by Codurance | Codurance Publications | Published: [Date] | https://www.codurance.com/publications/developer-experience-a-key-to-productivity-and-satisfaction

Developers’ Life Cycle and Turnover by Outstaff Your Team | https://outstaffyourteam.com/articles/developers-life-cycle-and-turnover

Developer Retention: The Costs of Onboarding Software Developers by Growin | Growin Blog | https://www.growin.com/developer-retention-costs-onboarding

Software Developer Onboarding Costs, Tips, and Winning Practices by Coreteka | Coreteka Blog | https://coreteka.com/blog/software-developer-onboarding-costs-tips-and-winning-practices/

The Costly Crisis: High Turnover Rates Among Developers

Rasmus Stjernström — Wed, 21 Aug 2024 14:55:00 +0000

Picture this: You’ve poured countless hours into finding the perfect developer—someone brilliant, driven, and exactly who your team needs. But within a year, they’re gone. Sounds familiar? It’s a gut-wrenching experience that’s become all too common in today’s tech world. The brutal truth is that losing top talent isn’t just frustrating; it’s financially crippling.

Attracting top developers is only part of the equation; retaining them is where the real challenge lies. High turnover rates among software developers are more than just a nuisance—they disrupt operations, drain resources, and demoralise teams. It's time to stop viewing this as a routine issue and recognize it as a full-blown crisis. As we delve into this issue, it’s crucial to grasp the full impact of developer turnover and why every organisation must prioritise addressing it not only to survive but to thrive.

Alarming Turnover Statistics
According to recent reports, the technology industry experienced an employee turnover rate of 18.3% in 2022, significantly higher than many other sectors. While specific data for software developers can vary, recent studies indicate persistently high turnover rates in the tech industry. According to a 2023 report by Gartner, IT employee turnover is projected to be 13.8% higher than before the COVID-19 pandemic. This trend is even more pronounced in the software development sector. A 2023 study by iCIMS found that the tech industry experiences 18% higher turnover compared to other sectors. Furthermore, a 2022 Stack Overflow Developer Survey revealed that 74% of technologists are looking for a job now or are open to new opportunities. This indicates a significant portion of the developer workforce is potentially at risk of turnover.

A Fortune Lost: The Financial Impact of Developer Turnover
The financial toll of developer turnover is immense, hitting companies hard in recruitment, training, and lost productivity. Let's break down these costs to grasp their true impact:

Recruitment Costs: The process of finding a new developer is expensive. It includes job postings, agency fees, and the time HR spends on interviews. These costs can amount to 30-50% of the developer’s annual salary. For a developer earning $100,000, that’s roughly $40,000 spent just to fill the position.

Training Costs: Once hired, onboarding and training a new developer is another significant expense. Familiarising them with tools, systems, and company culture typically takes 3 to 9 months, costing around 20-30% of their annual salary—about $25,000 in our example.

Productivity Losses: The biggest financial hit comes from the time it takes for the new developer to reach full productivity. This can result in losses of 50-70% of their annual salary, or approximately $60,000.

These figures underscore the urgent need for companies to develop strategies to reduce turnover and its financial strain.

The Ripple Effect of Developer Turnover
Developer turnover is a silent saboteur, wreaking havoc beyond the obvious financial toll. When top talent walks out the door, they take more than just their skills with them. They carry away invaluable knowledge and expertise, leaving behind a gaping hole in a company's operations. Replacing that knowledge is no easy feat; it can take months to backfill, creating bottlenecks and slowing down progress.

The damage doesn't stop there. The remaining team often feels the strain of picking up the slack. Overworked and stressed, they're more likely to burn out or follow their departed colleagues out the door, creating a vicious cycle of loss and frustration.
The bottom line? Developer turnover is a serious problem that can't be ignored. It's a ticking time bomb for productivity, profits, and morale.

In our next post, we'll dive into how onboarding plays a crucial role in this complex issue. Is your company setting new hires up for success, or is it unintentionally pushing them out the door?

Stay tuned.

Ida Stjernström is the Co-founder and Chief Commercial Officer (CCO) of Silo Team, dedicated to creating solutions that help companies retain top talent and improve their developer experience.

References:

1 - Bureau of Labor Statistics. (2021, January). Occupational Employment and Wages, May 2020: Software Developers, Applications. https://www.bls.gov/ooh/computer-and-information-technology/software-developers.htm

2 - Growin. (2023, May 10). Developer Retention: The Costs of Onboarding Software Developers
https://www.growin.com/developer-retention-costs-onboarding

3 - Kitrum. (2023, May 2). Hidden Consequences of Software Developers Turnover - KITRUM. https://kitrum.com/blog/the-costs-of-quiet-quitting-hidden-consequences-of-employee-turnover-in-software-development/

4 - Intertec International. (2002, May 5). What High Turnover Means for Software Development. https://blog.intertecintl.com/what-high-turnover-means-for-software-development