Gigster Vice President Cory Hymel noted that AI-driven data metrics play a key role in measuring and improving engineering team performance, laying the foundation for greater adaptability and success in 2024 .
Business leaders have until recently demonstrated a surprisingly low level of understanding of the activities of their engineering teams and the extent to which technology resources are being used. However, as the need for change increases in tech organizations in 2024, leaders are no longer satisfied with being kept in the dark about their engineering teams. They are actively looking for ways to increase transparency around contributions to internal development teams, partners and contract work.
It is expected that by 2024, data-driven performance reviews will become an important tool for technology leaders to gain better insights into their workforce, identify top performers and make informed decisions. This approach will help them better respond to changing needs.
According to a recent Gartner study, about 65% of business leaders believe the decisions they make now are more complex than they were two years ago. , while 53% said they now face higher pressure to justify these decisions. Sadly, however, only 33% of large enterprises have analysts to implement decision intelligence practices.
When it comes to engineering teams, increased complexity stems from changes in how development teams are sourced and assembled, as well as increased pressure to quickly adapt to new technologies, cut costs and improve performance. Instead of relying on in-office teams, technology organizations are leaning toward a mix of employees completing projects, including remote workers, contractors, outside agencies and partners. As a result, managers are left to rely on traditional qualitative methods to consider the most visible employees when assessing and managing talent.
At the same time, development teams are being pulled in many different directions as businesses adapt to continued disruption from AI and other emerging technologies, as well as the need to roll out new features and products. Without a good understanding of individual or team contributions, how can managers evaluate the performance of various projects? In reality, only a subset of the data can address visibility issues in engineering performance, which is why it is thought It's impossible to measure the performance of a development team. As an engineer, you'll need deep knowledge and understanding of day-to-day activities and code commitments to understand what's being done, what your priorities are, and ensure your engineering team is aligned with the larger business strategy.
When companies focus solely on output or time spent, they get only part of the picture. To get an objective, comprehensive view of a development team's performance, dozens of characteristics and metrics need to be tracked.
The success of this holistic view requires providing both strategic and tactical insights. Companies realize the need for engineers' tactical perspective in 2023 and need more of it. To make decisions and evaluate team and individual performance, reliable, objective performance data is essential.
However, as tech leaders look to fill this gap in 2024, they will begin to recognize gaps in their strategic view of development team performance. There is value in measuring individual contributions, but if you don't gather insights across the entire software development lifecycle and identify ways to improve the process, any changes will only exacerbate your problems. 2024 is the year to explore data-driven ways to better understand your teams and processes.
AI and Objective Performance Data
A recent study from Stanford University investigated the effectiveness of algorithmic evaluation as a tool for measuring engineer performance. Research has found that many freelancers prefer to be evaluated by AI rather than potentially biased human managers. This preference is even higher when the assessment is how it works and shows consistency in performance metrics.
Building a more agile workforce for 2024
Some of the customers we work with are using these AI-powered performance metrics to gain greater transparency into what their engineering teams and partners are doing. Others use it to compare suppliers and see which ones contribute the most. Some companies are looking for ways to help improve the performance of struggling engineers and adapting their existing processes to help.
These targets demonstrate that 2024 will bring greater flexibility to the workforce to quickly adapt to changing needs. Once companies have a more objective, comprehensive view of their technology resources, they will begin to assemble distributed teams that best meet their needs, which may mean a greater reliance on outsourced and remote workers. This could mean more companies adopting flexible staffing to improve development costs and speed.
While still determining what your ideal engineering organization will look like in 2024, it’s clear that you need to fully understand what your current organization is doing before you can make any changes. What is your team doing, who are your top performers, what is working and what is not working in your development process? Algorithmic performance metrics are the data-driven engineering teams needed to answer these questions and create the next year an important first step.
2024 will be another year of major changes in the technology industry. Ensure your organization has the insights needed to intelligently adapt to these changes.
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