Why software employees leave and how to understand why
Engineers and product staff leave for reasons beyond salary. How to run an exit conversation in a software company, read the pattern and act on it.
6 min readRead articleA 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.

Not sure what you need? Tell us about your business in six short steps and we will come to the first meeting prepared.
Share your requirementsA 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.
These are the places the people side of this kind of business tends to give way. The rest of this page works through them.
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.
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.
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.
We agree what the role must deliver, the must-have and nice-to-have skills, and how each will be scored.
Screening call, assessment, interview rounds and decision points, sized to the role and the number of people you hire.
Structured questions for each role family and a rating guide, so two interviewers judge the same answer the same way.
A short briefing for your managers on what to ask, what to avoid and how to give a clear yes or no.
Who approves, how the offer is made, and how candidates are kept informed from first call to joining.
A signed project needs five developers in a month, and the search starts after the news, not before.
People waiting for allocation are paid but not billed, and the best ones start looking elsewhere.
Who goes to which client is decided in a hurry by whoever asks first, with little regard for skills or learning.
Invoices depend on them, so a missing or guessed entry becomes a billing dispute or lost income.
Two interviewers hold different standards, so strong candidates are lost and weak ones get in.
Nobody has a current view of who knows which framework, so staffing a new project starts from guesswork.
The developer who shows up at client calls is noticed, and the one who fixes quiet problems is passed over.
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.
Requisition to joining, the same way every time.
Training planned from need rather than from the calendar.
Goals, reviews and ratings that hold up in a conversation.
How many people, in which roles, by when, and what they will cost.
Structure, reporting lines and who is allowed to decide what.
A first day that is the same for the fifth joiner as the first.
Records, attendance, leave and the day-to-day HR that must simply work.
Salary structure, payroll inputs and a month that closes on time.
Named backups for the roles that cannot be vacant.
Communication, recognition and the conditions people actually work in.
Two routes, one for complaints, one for conduct, kept separate.
Policies a manager can apply, and obligations with owners and dates.
Induction, records, incident reporting and follow-through.
Who leaves, when, why, and which of them mattered.
Resignation to relieving letter, in a defined order.
Records that survive people, and approvals that do not queue.
A short monthly pack management actually reads.
An HR function that runs the same way every month.
The pieces a custom software companies business puts in place, in an order that makes each easier. Open any card for the detail.
Share likely contracts with HR monthly so searches begin before signing.
Share likely contracts with HR monthly so searches begin before signing. See recruitment process consulting.
One set of tasks and a scoring sheet for each skill, with two interviewers and a short debrief.
One set of tasks and a scoring sheet for each skill, with two interviewers and a short debrief.
A simple grid of people against skills with levels, updated every quarter, used to staff projects and plan learning.
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.
A weekly view of who is free in four to six weeks so gaps are filled with learning or internal work, not idleness.
A weekly view of who is free in four to six weeks so gaps are filled with learning or internal work, not idleness.
Daily or weekly entry with a lead's review before invoice date, so numbers are right the first time.
Daily or weekly entry with a lead's review before invoice date, so numbers are right the first time.
Review code quality, delivery, mentoring and client feedback with peers, not only by project manager impression.
Review code quality, delivery, mentoring and client feedback with peers, not only by project manager impression.
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 requirementsConfirm 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.
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.
A hiring routine that follows the pipeline and uses one standard of assessment.
A skill matrix that supports allocation and learning plans.
A first-month plan that gets a developer onto a client project quickly.
Appraisals that reward delivery, quality and mentoring.
Start with a free conversation, or see the paid HR Diagnostic.
Understand the business, its workforce, current processes and HR challenges.
Find the missing, weak, inconsistent or person-dependent processes.
Create the structure, processes, policies, SOPs, dashboards and systems needed.
Help HR and department managers actually adopt the new system.
Digitise repetitive and approval-based workflows where it is worth doing.
Track hiring, attendance, employee cost, performance, training and attrition.
Strengthen the people-management system continuously, not once.
From the GullyHR blog: one on HR in information technology and software, and one on each of the topics this page points to.

Engineers and product staff leave for reasons beyond salary. How to run an exit conversation in a software company, read the pattern and act on it.
6 min readRead article
How a D2C founder can test a performance marketing hire on real work, ignore weak signals such as dashboard screenshots, and run a fair process.
7 min readRead article
A founder's guide to hiring freshers and running a first-year programme: campus or open drives, a screening round, a training plan by quarter, mentors and checkpoints.
6 min readRead article
A practical design for an IT services appraisal cycle: when to run it, how to rate fairly across projects, and how to explain hikes so they hold.
7 min readRead articleMore on the GullyHR blog.
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.
Plan allocation four to six weeks ahead and use gaps for learning, internal tools or helping with proposals. Idle waiting is costly and pushes good people to leave.
Use the same tasks per skill, a written scoring sheet and two interviewers who compare notes. Review the questions twice a year as technologies change.
Yes, if it is simple and refreshed quarterly. It lets you staff projects faster, plan learning and see which skills are held by one person.
Make entry daily or weekly, have the lead review before invoicing and explain how the data is used. People fill them honestly when they see the purpose.
First we would list your next quarter's projects and skills, count unallocated days and compare how interviewers score. A shared assessment and a skill matrix are a natural first job, with the scope written down for your approval.
All 6 business types in software development companies · Find another business type
See all HR topics for information technology and software, or another industry.
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.