Chapter 1: Understanding the Shift in Developer Dynamics

The office environment has evolved significantly, and many find themselves arriving late but compensating by leaving early, a sentiment echoed by Charles Lamb. Having participated in the Great Resignation by transitioning to a new company remotely six months ago, I only met my colleagues face-to-face for the first time last week.

The software development landscape has transformed, leading to benefits for developers. The demand for software has surged, resulting in a heightened need for skilled developers who are now more inclined to seek better opportunities. So, what lies ahead? Will job mobility among developers continue to rise, or is a plateau on the horizon? Are organizations set to invest more in retaining their talent rather than merely replacing those who leave?

The Phases of the Great Developer Resignation

1. Remote Work Challenges: Increased remote work has led to meeting overload and burnout.
2. Surge in Software Demand: The rise in remote work has fueled a demand for software and, consequently, for developers.
3. Job Mobility: Developers are proactively switching roles for improved positions and compensation.
4. Sabbaticals: Some developers are opting for breaks to recharge.

With COVID-19 restrictions easing globally, in-person meetings are making a comeback. During a recent office visit, I estimated the occupancy at a mere 10%. Many professionals can work from home, and most organizations are not mandating a return to the office, creating a limbo situation where the benefits of office attendance seem diminished.

Winners and Losers in the Great Resignation

The major losers in this scenario are software companies that rely on hiring developers. They have lost seasoned professionals who are well-versed in their specific projects, organizational culture, and team dynamics. Consequently, these companies are now facing increased salaries, recruitment times, and fees to fill these gaps.

As many organizations sought to expand their development teams, the mass exit of developers reached unprecedented levels. This phenomenon resembled a game of musical chairs rather than a typical resignation; developers were securing better positions with higher pay.

Onboarding new hires incurs costs as they must acclimate to the company’s projects, processes, and culture, making them less effective initially and diverting experienced developers from their tasks. The demand for software during the pandemic exacerbated the need for developers, leading to wage inflation.

If companies hire developers at the same rate they are losing them, they will incur additional expenses to maintain their team size. Many organizations struggled to adapt to this shift in power dynamics, where developers could easily seek better pay elsewhere. I observed a defeatist attitude among some managers who felt powerless to retain their talent.

The New Normal: Easier Transitions for Developers

With many developers having switched jobs at least once, and most forming remote-only relationships with colleagues, they may be more inclined to seek new opportunities. The fear of change can loom large, especially for those who have yet to switch roles. The longer one stays in a position, the more daunting a move can seem.

Change, while often unsettling due to its unpredictability, can also offer new opportunities. Developers who have successfully transitioned once tend to find it easier to do so again. However, their ability to switch jobs remains tied to the overall demand for developers and the health of the economy.

The Future: Retention Strategies

The next phase of the Great Resignation will likely involve a focus on retaining existing developers through competitive salary increases that align with their experience and skills. Companies will explore various benefits to keep developers engaged, including the option for permanent remote work.

To foster relationships and team cohesion, businesses might promote in-person events, which can be vital in forming strong collaborative teams and reducing the likelihood of turnover.

Moreover, prioritizing mental health and preventing burnout will be essential. Developers often face unrealistic demands and deadlines, which can lead to burnout—a significant factor in resignations, particularly among high-performing individuals.

Remote work is here to stay, as it has proven to maintain productivity levels over the past two years. Companies need to facilitate career growth for their developers, enhancing coaching, management, and training opportunities. Keeping developers on stagnating projects poses a risk, as they can easily opt for more stimulating roles elsewhere.

In sectors like Microsoft Dynamics and the Power Platform, there’s a trend of larger companies acquiring smaller firms to bolster their developer workforce to meet ongoing demands.

Conclusion: A Developer-Centric Future

For the time being, developers hold the balance of power, prompting companies to shift their focus toward talent retention and employee satisfaction. Emphasizing hiring alone overlooks a significant part of the equation; reducing turnover means fewer new hires are needed.

Organizations should address the underlying issues causing turnover rather than merely reacting to it. Enhanced flexibility and appealing benefits will be key to retaining developers.

As demand for software surged during the pandemic, it positively impacted developer salaries. However, should the demand for software decline—a scenario that appears unlikely—it would inevitably affect the demand for developers.

Related articles:

• Why the Great Developer Resignation is a Good Thing
• It’s Not the Great Developer Resignation, Developers Are Playing Musical Chairs
• 83% of Developers Suffer From Burnout and 81% Said It’s Gotten Worse During Covid
• Why Are So Many Software Developers Quitting Their Jobs?
• Why Is No One Talking About the Need to Reduce Developer Burnout?