Hiring skilled developers has become more challenging than ever as custom software and app development become essential for business growth.
With both large and small companies facing recruitment hurdles, understanding these challenges can help companies overcome them. In this article, we explore the top issues businesses face when hiring developers in 2025.
What’s Happening in the Tech Industry?
The tech industry is evolving rapidly, with new challenges and opportunities arising as a result of:
- Economic and Regulatory Shifts: The impact of the pandemic, softer consumer spending, and new regulations are reshaping the sector.
- Rising Demand for Advanced Skills: Expertise in AI, cloud computing, cybersecurity, and more is in high demand.
- Bridging the Skills Gap: Companies must invest in ongoing training to close the widening skills gap and keep pace with industry changes.
Successful hiring example:
In a recent successful hiring experience, a tech company found an intern through a recommendation from a trusted source. The intern, a college buddy of one of their senior developers, had a promising background, but the team decided to put him to the test. After an initial interview and a task review with senior developers, the intern was brought on board.
To the company’s delight, the intern exceeded expectations. Not only was he tackling unexpected issues, but he was also quickly learning new skills and taking on tasks that went beyond what was originally asked of him. His proactive approach to problem-solving and ability to learn on the job made him an invaluable asset to the team, proving the value of finding talent through trusted recommendations and a solid interview process.
Unsuccessful hiring example:
On the other hand, the company’s experience with their first highest-paid senior developer was far less positive. Recommended by another trusted individual who had worked with her in a bootcamp, the senior developer seemed like a strong fit. With relevant experience and a promising track record, the team was optimistic about her joining the company.
However, things quickly took a turn for the worse. During the first month, the developer worked under a contract that paid based on the work completed, but her performance raised concerns. She made changes to the project that hadn’t been agreed upon by the client, leading to the intern—who was supposed to be learning—stepping in to fix issues she had left unresolved. The senior developer also failed to complete any of the agreed-upon tasks, leaving the intern to review and correct her work.
Despite the lack of output, the senior developer continued to demand full pay through inappropriate channels, even though the company was offering a nominal amount for the work she hadn’t completed. The situation created unnecessary tension and confusion, ultimately leading to the decision to part ways. This experience highlights the importance of setting clear expectations and ensuring that compensation is tied to actual performance.
Top Challenges When Hiring Developers in 2024
- Understanding the Evolving Tech Landscape
The rapid pace of technological advancements, particularly in AI, machine learning, and cloud computing, means developers must constantly update their skills. Recruiting developers who can adapt to new technologies is a significant challenge. - Navigating the Global Talent Pool
With a global shortage of skilled software engineers, competition for top talent is fierce. While outsourcing provides access to a broader talent pool, remote work and team cohesion present additional challenges. Companies must balance flexibility with effective collaboration. - Balancing Cost and Quality
Hiring developers can be costly, with rates varying by location and experience. Finding a balance between offering competitive salaries and staying within budget is critical. Companies must also ensure the developers they hire meet high-quality standards. - Ensuring Cultural and Organizational Fit
It’s not just about technical skills; a developer’s fit within your company culture is equally important. Misalignment can result in poor collaboration and productivity. Defining your company’s core values before recruiting is key to finding a cultural fit. - Navigating Legal and Compliance Issues
When hiring international talent, companies face legal hurdles such as visa requirements and work authorization. Understanding local and international laws is essential to avoid compliance issues. - Keeping Pace with Industry-Specific Needs
Each industry has unique demands. Whether it’s finance, healthcare, or retail, finding developers who understand the specific technologies needed can be difficult. Staying agile and ensuring your developers can adapt to industry-specific needs is vital.
Developer Retention Insights
A recent report by OutSystems and Evans Data Corp highlights key insights into what motivates developers:
- Retention Concerns: While most developers love their jobs (64%), only 48% plan to stay with their current employer in the next year, and that number drops to 29% in two years.
- Top Reasons Developers Stay:
- Better work-life balance (50%)
- Better salary (28%)
- Better team staffing (29%)
- Low-Code Adoption and Satisfaction:
Developers who use low-code platforms report higher job satisfaction, creativity, and app quality. They’re also more likely to stay with their current company and get promoted more often than their traditional developer counterparts.
Solving the Tech Talent Shortage with Low-Code
To address the ongoing global tech talent shortage, companies are increasingly turning to low-code platforms. These platforms help developers remain productive, allowing them to focus on strategic tasks that drive innovation. By adopting low-code solutions, businesses can bridge the talent gap and stay competitive in a rapidly changing landscape.
Here are some top low-code solutions for SMEs (Small and Medium Enterprises) to help developers streamline development and improve efficiency:
- OutSystems
- A leading low-code platform offering full-stack development, from mobile apps to enterprise solutions. It features a drag-and-drop interface and integrations with existing systems.
- Mendix
- Known for its ease of use, Mendix supports both low-code and no-code development. It is ideal for creating web and mobile applications and provides excellent collaboration tools.
- Appian
- Appian offers low-code automation for business processes, data management, and mobile apps. It’s perfect for quickly developing apps that automate business workflows.
- Zoho Creator
- Zoho Creator is a versatile low-code platform, great for building custom apps and automating business processes. It integrates well with other Zoho products.
- Microsoft PowerApps
- Part of the Microsoft Power Platform, PowerApps enables developers to create apps with minimal code and integrates seamlessly with other Microsoft products, such as Office 365 and Dynamics 365.
- Bubble
- A popular low-code platform for building web apps without any coding experience. Bubble allows users to create sophisticated, interactive apps with ease.
- Betty Blocks
- Betty Blocks is a no-code platform that also offers low-code capabilities, allowing businesses to build scalable applications and integrate with third-party tools effortlessly.
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