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Software Development Companies · Custom software companies

HR for Custom software companies: Client Projects, Bench Time and Developer Retention

A custom software company builds systems to a client's specification, so its income rides on developers being placed on paid projects. Hiring the right skills at the right time and keeping people between projects are the daily pressures.

Workplace and operations scene: software development companies.

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A custom software company builds systems for clients on fixed-price or time-and-material terms. A project team has a lead, developers, a tester and a business analyst, formed when the contract starts and reshaped as scope changes. Developers move between client projects, and a gap between projects is unpaid time for the company. Hiring is driven by the next signed contract, so the company is searching for a skill it needed last month. Some people work from home, some from a client site, and timesheets feed invoices. The wider IT and software page covers what the sector shares.

  1. Plan
  2. Hire
  3. Onboard
  4. Manage
  5. Develop
  6. Perform
  7. Engage
  8. Retain
  9. Exit
  10. Improve

When HR is weak in custom software companies, you may see

  • Hiring follows the contract, not the plan
  • A gap between projects costs real money
  • Allocation happens by shouting
  • Timesheets are filled late and loosely
  • Technical assessments vary by interviewer
  • Skills stay in people's heads
  • Appraisals reward the visible

These are the places the people side of this kind of business tends to give way. The rest of this page works through them.

Who does the work in custom software companies

HR here has to work for each of these groups, not only the office. The set-up below is written with all of them in mind.

Roles we help you hire in custom software companies

GullyHR runs talent acquisition for permanent roles in custom software companies. For each role we agree the job description with you, find and screen candidates against it, and support the offer through to joining. Tell us the role and the number of people, and we start there.

We recruit permanent employees. We do not supply contract or temporary staff.

We set up the interview and hiring process for custom software companies

Every business interviews, but few have a written process that works the same way for every role and every interviewer. GullyHR designs yours, from the role brief to the offer, trains your managers to run it, and can run it for you on the roles you hand us.

  1. 1. Role brief and scorecard

    We agree what the role must deliver, the must-have and nice-to-have skills, and how each will be scored.

  2. 2. Stages and sequence

    Screening call, assessment, interview rounds and decision points, sized to the role and the number of people you hire.

  3. 3. Question bank and scoring

    Structured questions for each role family and a rating guide, so two interviewers judge the same answer the same way.

  4. 4. Interviewer readiness

    A short briefing for your managers on what to ask, what to avoid and how to give a clear yes or no.

  5. 5. Offer and follow-up

    Who approves, how the offer is made, and how candidates are kept informed from first call to joining.

Where HR strains in custom software companies

  • Hiring follows the contract, not the plan

    A signed project needs five developers in a month, and the search starts after the news, not before.

  • A gap between projects costs real money

    People waiting for allocation are paid but not billed, and the best ones start looking elsewhere.

  • Allocation happens by shouting

    Who goes to which client is decided in a hurry by whoever asks first, with little regard for skills or learning.

  • Timesheets are filled late and loosely

    Invoices depend on them, so a missing or guessed entry becomes a billing dispute or lost income.

  • Technical assessments vary by interviewer

    Two interviewers hold different standards, so strong candidates are lost and weak ones get in.

  • Skills stay in people's heads

    Nobody has a current view of who knows which framework, so staffing a new project starts from guesswork.

  • Appraisals reward the visible

    The developer who shows up at client calls is noticed, and the one who fixes quiet problems is passed over.

HR topics for custom software companies

Start with the topics that matter most here: Recruitment and Talent Acquisition; Learning and Development; Performance Management. Then work through the rest. Each topic is written for information technology and software, not in general.

Recruitment and Talent Acquisition

Requisition to joining, the same way every time.

Learning and Development

Training planned from need rather than from the calendar.

Performance Management

Goals, reviews and ratings that hold up in a conversation.

HR Strategy and Workforce Planning

How many people, in which roles, by when, and what they will cost.

Organisation Design

Structure, reporting lines and who is allowed to decide what.

Onboarding and Probation

A first day that is the same for the fifth joiner as the first.

Employee Administration

Records, attendance, leave and the day-to-day HR that must simply work.

Compensation, Payroll and Benefits

Salary structure, payroll inputs and a month that closes on time.

Career and Succession Management

Named backups for the roles that cannot be vacant.

Employee Engagement and Experience

Communication, recognition and the conditions people actually work in.

Employee Relations

Two routes, one for complaints, one for conduct, kept separate.

Policies, Compliance and Governance

Policies a manager can apply, and obligations with owners and dates.

Health, Safety and Wellbeing

Induction, records, incident reporting and follow-through.

Retention and Attrition Management

Who leaves, when, why, and which of them mattered.

Exit and Alumni Management

Resignation to relieving letter, in a defined order.

HR Technology and Automation

Records that survive people, and approvals that do not queue.

HR Analytics and Management Reporting

A short monthly pack management actually reads.

HR Operations and Governance

An HR function that runs the same way every month.

What a working HR set-up looks like

The pieces a custom software companies business puts in place, in an order that makes each easier. Open any card for the detail.

Forecast hiring from the sales pipeline

Share likely contracts with HR monthly so searches begin before signing.

What this covers

Share likely contracts with HR monthly so searches begin before signing. See recruitment process consulting.

Use a common technical assessment

One set of tasks and a scoring sheet for each skill, with two interviewers and a short debrief.

What this covers

One set of tasks and a scoring sheet for each skill, with two interviewers and a short debrief.

Keep a skill matrix

A simple grid of people against skills with levels, updated every quarter, used to staff projects and plan learning.

What this covers

A simple grid of people against skills with levels, updated every quarter, used to staff projects and plan learning. Competency and talent management builds it.

Plan allocation ahead

A weekly view of who is free in four to six weeks so gaps are filled with learning or internal work, not idleness.

What this covers

A weekly view of who is free in four to six weeks so gaps are filled with learning or internal work, not idleness.

Fix a timesheet rhythm

Daily or weekly entry with a lead's review before invoice date, so numbers are right the first time.

What this covers

Daily or weekly entry with a lead's review before invoice date, so numbers are right the first time.

Appraise on delivery and teamwork

Review code quality, delivery, mentoring and client feedback with peers, not only by project manager impression.

What this covers

Review code quality, delivery, mentoring and client feedback with peers, not only by project manager impression.

Start by checking where you stand

Before changing anything, find out what is true today. Work through the checks using a recent operating period. The time needed depends on the records you hold; note missing evidence and use the findings to choose a priority.

Share your requirements
  • List signed and likely projects for the next quarter and the skills each needs.
  • Count developers who were unallocated for more than two weeks last quarter.
  • Check how many interviewers use the same questions and scoring.
  • Ask three leads who knows a given framework in the company and compare lists.
  • Look at how many timesheets were corrected after invoices went out.
  • Confirm with a qualified professional the employment terms, confidentiality and ownership of work, and client contract duties relevant to a company building systems for others.

Confirm with a qualified professional. What applies to you depends on your business, your state and your arrangements, and it changes. This page describes practice. It does not state a legal position.

How GullyHR helps

The services below fit this kind of business best. Each starts by recording where you stand, and every later report compares against that. We do not promise outcomes.

Start with a free conversation, or see the paid HR Diagnostic.

Our HR transformation approach

  1. 1

    Assess

    Understand the business, its workforce, current processes and HR challenges.

  2. 2

    Identify gaps

    Find the missing, weak, inconsistent or person-dependent processes.

  3. 3

    Design

    Create the structure, processes, policies, SOPs, dashboards and systems needed.

  4. 4

    Implement

    Help HR and department managers actually adopt the new system.

  5. 5

    Automate

    Digitise repetitive and approval-based workflows where it is worth doing.

  6. 6

    Measure

    Track hiring, attendance, employee cost, performance, training and attrition.

  7. 7

    Improve

    Strengthen the people-management system continuously, not once.

Blogs worth reading first

From the GullyHR blog: one on HR in information technology and software, and one on each of the topics this page points to.

More on the GullyHR blog.

Questions owners ask

Share the sales pipeline with HR each month, keep a warm list of past candidates and screen by skill early. Then hiring begins when a deal is likely, not after it closes.

Start with your business need

What does your HR team need to solve?

Tell us your industry, team size and the issue you want to address. Bring one example of where work gets delayed or ownership is unclear, and the deadline or decision you are working towards.

  • A free first conversation with an HR practitioner
  • A clear scope and fee before any paid work
  • A practical next step for your business

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