Advices to a software company owner
Last week, a friend who owns a software company complained:“Today, most software developers do NOT have the passion about their jobs anymore. They just want money and more money. If someone give them more money, they will leave.”
I disagreed and told him: “You should not have that negative view about developers. If they are not passionate about software, they probably study another area. I think most developers love software, they love their works, they love technology and have passion about their jobs. The reasons some software developers want money because the company is NOT fair with them. They are asked to work hard, they are forced to work extra hours without pay. They are threatened with laid-off when the job market is not good. Since the company is not fair with them, they have no loyalty to the company. That means the relationship is strictly based on a financial aspect between developers and the company. Of course, when other can give them better salaries, they have no reason to stay with your company. Today, there is high demand for skilled workers all over the world. Software developers with experiences can go to work for any company that they choose. So losing key workers does have significant consequence. As owner, you must take this into consideration”.
He thought for awhile: “You are right, it is very expensive to replace workers. Especially after you trained them, you invested in them and then they leave. The cost of hiring new people, advertise the job, interview them, select them, and train them require a lot of efforts and time. Is the only option to raise the salary to keep them?”.
I told him: “It is not necessary. You should not consider money as the only thing to keep employees. There are better ways”.
He seemed surprised: “Which better ways? Are there another ways?”
I told him: “You told me about the lack of passion of software developers but I told you that nobody would leave for a few dollars more if they are passionate about their works. Nobody would leave their friends, their family for an extra money. So the best way to keep employees is to treat them fair, to consider them as member of the family. You must treat them with respect and understand their needs. People love to work for company that care about them. For example, as the owner, you can give employees extra vacations. I know that your company gives everybody three-week vacation each year but if they work hard, you should give them extra week as bonus. You should reward them for their efforts. If they work extra hours, you should pay them more. You should also challenge them with exciting works too. The best developers should be able to select which new project, or new technology to work. That will give them the incentive to stay with your company. Software developers love technology, especially any new technology so you should have a policy that every year, your developers could spend a week to attend special trainings, seminars to learn new technology at the company’s expenses. People who stay for more than few years should receive stock options. When they become shareholders, the company is theirs and there is no reason to leave. Of course you must also evaluate what you paid with what the market offer and raise their salary accordingly”.
He told me: “But that means I still have to pay more”
I explained: “If you only concern with money, your people will also think the same. If you do not want to pay more, they have the option of working for someone who will pay more. However, there are many more options than just money, although money is certainly a part of these. I know you are a smart owner, you are a successful business person, so you must let your imagination soar. What is important to you? Having the right developers, having the best developers to do the works so you can spend more time to expand the company, to grow your company bigger, better? or you have to always look to hire new people, train them and see them go? If you look at all successful companies and what they do, have you notice how they treat their employees? Today knowledge and skills are the key assets, NOT money. Please remember that these knowledge and skill always go with developers as they moves from job to job. Invest in your developers, treat them fair, consider them as family members than the money will follow”.
Sources
- Blogs of Prof. John Vu, Carnegie Mellon University
