At Inglis, we’ve partnered with software developers for over a decade, and recently, the challenge of attracting and retaining top talent has become more pronounced than ever.

With salaries climbing across all sectors due to unprecedented inflation, recruitment and employment costs have soared. Therefore, striking the right balance between offering competitive compensation and managing these expenses sustainably has never been more critical. To help, we've put together 10 strategies we’ve found effective in keeping employee costs in check while still appealing to the best talent.

1. Offer Flexible Work Arrangements

Flexible work arrangements are highly valued by many employees, especially after many of us became accustomed to remote working and flexible hours during the pandemic. By offering these options, businesses can attract talent without necessarily having to compete solely on salary. Remote work can also open a wider talent pool, allowing companies to hire skilled developers from regions with lower living costs, potentially reducing salary expenses.

2. Invest in Professional Development

Providing opportunities for professional growth and development can be a strong incentive for employees to stay with your company. Offering training programmes, certifications, and opportunities to work on projects they find interesting can enhance job satisfaction and loyalty.

3. Implement a Performance-Based Incentive Structure

Instead of offering high base salaries, consider implementing a performance-based incentive structure. Bonuses, profit-sharing, and stock options can be attractive to employees while aligning their success with the company’s performance. This approach not only controls fixed salary costs but also motivates employees to contribute to the company’s growth and success.

4. Focus on Company Culture

A positive company culture can be a significant draw for top talent. Create an environment that promotes collaboration, recognition, and a healthy work-life balance. Employees who feel valued and part of a supportive team are more likely to stay, reducing turnover and the associated costs of recruiting and training new staff.

5. Utilise Freelancers and Contract Workers

For certain projects or during peak periods, hiring freelancers or contract workers can be more cost-effective than maintaining a large full-time staff. This approach provides flexibility in scaling your workforce according to project demands without the financial commitments of full-time salaries and benefits.

6. Optimise Recruitment Processes

Streamline your recruitment processes to reduce the time and cost associated with hiring new employees. Utilise efficient recruiting tools, leverage social media, and engage in proactive talent scouting to find the right candidates quickly. A more efficient recruitment process can help you secure top talent before they are snapped up by competitors.

7. Leverage Employee Referrals

Employee referral programmes can be an effective way to find high-quality candidates. Employees are likely to refer individuals who they believe would be a good fit for the company culture and work ethic. Referral bonuses are typically less costly than traditional recruitment methods, and referred employees often have higher retention rates.

8. Outsource Non-Core Functions

Consider outsourcing non-core functions, such as administrative tasks, HR, and IT support, to specialised firms. This can free up resources and allow you to focus on retaining and compensating your core development team more effectively. Outsourcing can also provide cost savings by tapping into the expertise and efficiencies of external providers.

9. Utilise Technology and Automation

Investing in technology and automation can reduce the workload on your development team, allowing them to focus on higher-value tasks. Tools that automate repetitive processes, improve project management, and enhance collaboration can increase productivity without the need for additional hires.

10. Regularly Review Compensation Packages

Regularly review and adjust compensation packages to ensure they remain competitive and aligned with industry standards. Keeping on top of market trends and making incremental adjustments can prevent the need for sudden, large salary increases. Transparent communication about pay reviews can also build trust and loyalty among your team.

Get in touch

If you have any questions or would like assistance with implementing these strategies, feel free to get in touch with us on 01904 787 973 or book a discovery call with Donald Inglis. We have extensive experience working with software developers like Fusion eCare, Thumbmunkeys, and iConsentU. So if you are a software developer looking to partner with a specialist accountant who understands your unique challenges, we would love to hear from you.