Reducing turnover by 24.3% in a software house from Krakow
The company was losing seniors after a year of work. We introduced a new career path system and changed the bonus model to one based on real project results in 4 months.
VeloTech Solutions from Krakow struggled with a constant outflow of key developers. In just 4 months, we rebuilt their internal structures, which stabilized the team and kept knowledge within the organization.
The challenge
In January 2024, the turnover rate in the backend team was 31.4%. The company was losing experienced seniors on average after 13 months of work, generating a loss of 86,200 PLN for every new recruitment and onboarding process. Developers in surveys indicated chaos in the bonus system. Bonuses were awarded in an unclear manner, building a sense of injustice and demotivating the most hardworking people.
Our approach
We began work with 17 in-depth interviews with employees at different levels. Our team from Mosty Zarządzania analyzed the promotion history of the last 2 years. We discovered that 68% of promotions were not backed by hard skills. Together with the board, we developed new success metrics that, instead of empty promises, gave employees a clear insight into their future in the company.
The solution
We delivered a complete competency matrix for 5 levels of technical positions. Each developer received a list of 8 specific skills necessary for a raise. We also changed the bonus model. Instead of 'discretion', we introduced bonuses for delivering project stages on time and code quality measured by the number of corrections after Code Review. The system became transparent and predictable for everyone at VeloTech Solutions.
Results
After implementing the changes in June 2024, the office atmosphere significantly improved. The board stopped putting out personnel fires and could focus on acquiring new foreign contracts.
Timeline
-
March 2024Work culture audit and 17 interviews with IT staff
-
April 2024Building competency matrices and testing new KPIs
-
May 2024Training for 6 leaders on providing feedback
-
June 2024Launching a new employee portal with results
"We were afraid that hard metrics would scare people away. The opposite happened. Seniors appreciated that we are finally playing with open cards and everyone knows how to earn their bonus."