There is a current misalignment in the technology sector between engineers and executives, according to a recent report by Jellyfish, an engineering management platform that enables technical leaders to align engineering insights with data-driven business decisions.
The 2024 State of Engineering Management Report, which surveyed more than 600 engineering professionals, ranging from individual contributors to managers and executives, highlighted the increasingly strategic role of engineers within an organization.
It also revealed the disconnect between tech professionals and leadership on perceptions of productivity, engineering challenges, burnout and the extent of which they have adopted artificial intelligence within their teams—demonstrating the critical need for better measurement, management and communication practices.
The State Of Engineering
The Jellyfish survey found that engineering teams are now overwhelmingly viewed as strategic partners that help inform business strategy, drive business growth and boost efficiency.
However, despite their pivotal role within tech organizations, engineers are increasingly facing hurdles, like high rates of burnout, a talent shortage of qualified candidates and a growing divide between them and leadership.
Tech companies have adopted generative AI coding tools, with some users believing that it positively impacts productivity, while others are concerned about security, lack of expertise and budgets.
Burnout
There’s a disparity between executives and employees regarding burnout, with engineering teams being more heavily impacted. Yet, managers often fail to recognize the severity of the problem within their organizations.
According to the study, 46% of engineers reported teamwide burnout versus 34% of executives.
Workers who suffer from high levels of burnout generally experience low job satisfaction and a diminishing confidence that their employers care about them, resulting in decreased productivity and overall well-being, as well as a greater likelihood that they’ll seek new opportunities outside of their current company.
When expressing their sentiments about their current roles, 44% of the tech professionals said leadership is out of touch and not abreast of engineering challenges, while 34% of engineers do not see a clear path for career development at their current organization, and 32% are considering a job switch or career pivot.
Other challenges impacting engineers are related to tight budgets and hiring and retention, which can contribute to elevated burnout.
The pervasiveness of economic uncertainty in the U.S. has led to corporate belt-tightening. As a result, companies are reigning in expenses. However, “budget constraints limit resource availability, affecting project scope and team morale,” the report stated. This could have unintended consequences on team performance and long-term retention and organizational strength.
In 2024, nearly 100,000 employees were laid off from tech companies, according to Layoffs.fyi. Although midsized companies—those between $20 million and $100 million in annual recurring revenue—are bouncing back in headcount, large companies are stabilizing their workforces or making cuts to engineering teams.
For those who escaped termination, the prospect of continued headcount reductions can have a significant impact on their mental health. They will feel increased anxiety and fear when operating under the cloud of looming layoffs. That coupled with the burdensome workload from being short-staffed can exacerbate burnout amongst engineering teams.
Efficiency And Productivity
The survey also found differing perspectives on productivity levels between engineers and leadership. At companies with more than 500 engineers on staff, 71% of executives believe productivity decreased, compared to just 40% of engineers. At organizations with a limited engineering team of 10 or less, 55% of executives reported efficiency dropped, compared to just 21% of engineers.
In recent years, major tech CEOs have prioritized driving efficiency and productivity. Alphabet’s Sundar Pichai and Meta’s Mark Zuckerberg urged their respective staff to fill productivity gaps at the onset of the layoffs in 2022.
In a December 2023 memo, Wayfair’s chief executive told employees, “Working long hours, being responsive, blending work and life, is not anything to shy away from. There is not a lot of history of laziness being rewarded with success.” The company’s cofounder and co-chair Steve Conine echoed similar sentiments, stating, “If bankruptcy is inevitable then shame on all of us for not working harder,” according to reporting by the Wall Street Journal.
Some CEOs blamed remote work for declining productivity. Salesforce CEO Marc Benioff openly complained in a companywide Slack memo in 2022 that newly hired remote workers were not being productive. He lamented that these new employees were isolated at home without the benefits of an office culture.
The Adoption Of AI
With efficiency and productivity being top of mind for C-suite executives, organizations (61%) are turning toward AI to help fill the gaps. However, engineers and leadership are not on the same page when it comes to the level of adoption.
“Leadership is only looking at the business opportunities and the business case for Generative AI. Engineers are the ones actually using the technology. They come to it from different places,” said Jellyfish cofounder and CEO Andrew Lau in a Zoom conversation.
Seventy-six percent of executives believe their team has embraced AI, while only 52% of engineers say the same.
According to the data, an overwhelming majority of AI users reported positive impacts on their team’s productivity (94%), code quality (81%) and ability to focus on high-value tasks (84%).
For those who have not adopted AI technology, the primary reasons cited were security concerns (48%), lack of expertise (34%) and budget constraints (24%).
Interestingly, there was a notable difference in perception between executives and engineers regarding the value of AI. Nineteen percent of executives who had not embraced the fast-emerging technology believe that is gimmicky. In contrast, only 3% of engineers share this opinion, suggesting a more positive view of AI’s potential among technical professionals.
“Fundamentally, Generative AI is going to change the nature of how software engineering works. Organizations, processes and outcomes will evolve and people have to be thoughtful about that evolution,” Lau stated.
How To Bridge The Gap
The Jellyfish CEO offered solutions on how executives and their engineering teams could align their perceptions and approaches to bridge the disconnect.
“Misaligned expectations lead to fear and wasted resources, and they’ll eventually lead to turnover on engineering teams,” he warned.
“Bridging the gap between engineers and leadership requires individual contributors and teams to understand the business intention of what they’re working on. Companies should clearly communicate what change they hope to achieve, then measure it,” Lau added.
In today’s data-rich business environment, the ability to collect, analyze and act on data has become a critical factor in organizational success. It enables companies to set specific, measurable goals and track progress toward achieving them.
Data can identify and address employees’ challenges, fostering a supportive work environment and enabling timely interventions. It allows employers to pinpoint areas for improvement, leading to increased productivity and efficiency across the organization. By embracing data-driven decision making, businesses can make more informed choices, change course and drive sustainable growth.
Source: Forbes
