Quitting is a natural part of anyone's professional path. Sooner or later, and for different reasons, software engineers decide to quit their job and seek a better position elsewhere. But, for business, it is not only about losing an experienced team member. It is about high cost as well — replacing a team member can cost anywhere between 50 and 200 percent of their monthly salary.

When compared to the IT average salary, these replacement costs can become a significant burden for companies, making retention a much more cost-effective solution.

To cut costs and not to lose experienced team members, modern businesses need to understand why do software engineers quit and what steps they need to take to increase their retention rate.

Why Software Engineers Are Quitting Software Engineering?

What is the reason of software engineers’ resignations?

Lack of Recognition

65% of workers say they haven’t received any kind of recognition at work over the last year. Almost the same amount of professionals — 69% — say recognition is one of the top factors that helps them stay with their current employers. At the same time, 52% of employees stay with their job because they feel appreciated and valued.

Tech engineers are quitting large companies, in part, because they do not receive enough recognition and have a lot of responsibilities for their project’s success.

No Possibility for Growth

Professionals who have the possibility to grow at their job are 15% more engaged in their workplace. The ability to grow is one of the core possibilities when it comes to preventing software engineers from quitting. 94% of professionals say they are more likely to stay with an employer that allows them to grow and develop. Without access to meaningful career opportunities, engineers feel stagnant and begin seeking roles that offer better professional advancement.

The tech industry is changing. Constantly, there are new developments and solutions. Not providing tech professionals with access to new knowledge will not only encourage them to quit software engineering, but will also cripple the product’s development.

No Feeling of Impact

Almost every professional wants to feel they are making a difference, both in their company and in their industry. The feeling of futile effort and absence of impact can push tech professionals to quitting software engineering.

They question their career choices, asking themselves, “Should I quit software engineering?” When it comes to tech, frequent monotonous tasks and the lack of room for creativity is what kills the feeling of impact and can cause fast burnout.

Communication Blocks

Effective communication can increase retention — that is a fact. Bad communication can become the reason tech professionals quit software engineering. The development process should work like a well-oiled machine, which is impossible without streamlined communication. When engineers are managing multiple projects without clear communication channels, tasks get misaligned, leading to frustration, delays, and dissatisfaction.

Tech Engineers Are Quitting Large Companies Because There Is No Room for Inventiveness and Creativity

The tech industry is rarely seen as a creative one, which is not exactly true. Staying on with the team and making every solution user-friendly takes creativity and inventiveness, especially when it comes to development and UI/UX design.

75% of workers say their creative potential is not realized to the fullest. 80% of professionals say they are feeling the pressure to be productive rather than creative at work.

Leaving no room for creativity and heavily regulating the software engineers’ work will lead to fast burnouts and high churn within the tech team. With roadblocks along the way, a lot of pros will be prone to quitting software engineering.

No Work-Life Balance

Since the breakout of the COVID-19 pandemic, 60% of workers have been saying they have a good work-life balance. At the same time, 43% more remote workers report working overtime than in-office teams do.

Lack of the work-life balance is one of the core reasons why tech exec engineers are quitting companies. Addressing the issue and taking measures to prevent burnout will help ensure retention improves over time.

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Burnout is a significant factor in software engineers leaving the field, and preventing it starts with fostering autonomy, flexibility, and purpose. Engineers thrive when they have ownership of their work, flexibility to balance personal and professional lives, and a clear sense of purpose driving their efforts. A supportive culture, regular check-ins, and recognizing achievements go a long way in reducing burnout and improving retention.

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Companies can collaborate with talent management services to monitor workloads, distribute tasks evenly, and ensure engineers maintain a healthy work-life balance.

With constant overtime, unrealistic deadlines, and unsustainable demands, it’s no surprise that software engineers get burnout. It forces them to reconsider their roles and seek healthier work environments.

For some, the relentless pressure and unsustainable demands become so overwhelming that they ultimately quit engineering in search of healthier, more balanced careers. In addition to poor work-life balance, the issue goes deeper.

  • Overwork and burnout. Constant overtime and excessive workloads lead to software engineer burnout, pushing talented professionals to seek healthier roles.

  • Unrealistic deadlines. Pressure to meet tight timelines creates stress and frustration, reducing job satisfaction.

  • Unsustainable demands. Work that disrupts personal time leaves engineers with little room for rest or hobbies, making the role unsustainable.

Are Software Engineers Quitting Because of the Rise of AI?

The adoption of AI across sectors and areas of development raises concerns among specialists, pushing them to reconsider their roles. For some, the pressure to reskill or shift focus can feel overwhelming, leading to burnout or even quitting engineering entirely.

The Rise of AI and Job Displacement Concerns

As AI tools advance and help with such tasks as debugging, testing, and basic coding, many software engineers fear of their replacement. This is particularly felt among junior positions and in the environments where companies prioritize cost-cutting and efficiency.

Pressure to Reskill Amid Rapid AI Growth

The dynamic environment of AI requires specialists to constantly upskill, keeping their finger on the pulse of evolving technologies. For some professionals, this relentless pressure raises concerns and leads to questions like, “Is software engineering oversaturated?” The anxiety of falling behind or competing in an increasingly crowded market can drive engineers to seek roles with less reskilling pressure.

Shifting Roles and Loss of Creativity

AI adoption often shifts engineers’ focus from coding to higher-level tasks like system architecture, AI tool integration, or managing data pipelines. While some embrace these changes, others feel disconnected from the creative, hands-on work they once enjoyed. This shift can reinforce the perception that software engineering is boring, especially when repetitive or automated tasks replace opportunities for innovation.

Moral and Ethical Dilemmas in AI Development

Engineers are increasingly conflicted about working with AI technologies that raise ethical questions. Concerns about biases, misuse of surveillance, or negative societal impacts can cause moral dissonance, particularly when company practices don’t align with personal values. This discomfort drives some to leave for more ethically aligned opportunities.

AI-Driven Career Shifts and New Opportunities

With all concerns, there are always those who treat AI as an opportunity rather than a threat. Some engineers pivot to careers in AI research, machine learning engineering, or data science. Many also explore entrepreneurial ventures or freelance work, working on innovative products.

For those considering flexibility, understanding the difference between an independent contractor vs. freelancer can help engineers choose the right path that aligns with their skills, goals, and desired level of autonomy. The rise of AI has opened pathways for professional reinvention beyond traditional software engineering.

Unrealistic Expectations Around AI’s Capabilities

Many companies often overestimate AI’s capabilities, believing it can solve complex problems effortlessly. This misconception leads to unrealistic deadlines and increased pressure from management, which can ultimately force the software officer to quit as frustration and burnout set in. Specialists often leave for healthier, better-managed environments.

The Best Ways to Encourage Tech Team Not to Quit Software Engineering

Establish Streamlined Communication

No matter the number of software engineers on your team, establishing streamlined communication is not only a must, it is also not as difficult as it might seem. Even when the team is expanded remotely.

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Provide Encouraging Feedback

Do you think this code is perfect? Like the new design? Your mobile web is becoming more popular thanks to updates? Tell your software engineers!

Tech engineers are quitting large companies because, just like in any other field, they want to be encouraged and receive good feedback from their supervisors and managers. There is no reason to hold on to kind and inspiring words — share them with everyone and see your retention, productivity, and overall quality of work increase.

Ensure Work-Life Balance

Components of developers’ retention

To make sure every software engineer has well-balanced professional and personal lives:

  • Monitor everyone’s workload and make sure tasks are evenly distributed.

  • Conduct anonymous satisfaction surveys to gather feedback on team workload and pressure.

  • Use task-distribution software like Asana or Trello to streamline project management.

  • Follow the team’s size and adjust it to the current workload and tasks.

Setting clear schedules, workload, and making sure everyone’s workload is even are the main steps on the way to tech professionals’ work-life balance.

Reducing Hiring Costs Through Retention

High turnover in tech comes with steep hiring costs, ranging from half or even a whole of an engineer’s annual salary. If you’ve ever wondered how much does it cost to hire a programmer, the answer includes not just recruitment expenses but also onboarding, training, and productivity gaps.

When companies focus on retaining software engineers by investing in recognition, work-life balance, and growth opportunities, they significantly cut these costs while maintaining a stable and productive team.

For additional flexibility in scaling your teams, IT staff augmentation services offer a reliable way to access skilled engineers while keeping hiring costs under control.

Want to reduce hiring costs and build a strong, loyal tech team? Let our specialists guide you through.

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So, Why Are Professionals Leaving Software Engineering?

The answer to why do software engineers quit is quite simple. They want to feel they are making a real impact within the tech industry, they want their effort to be recognized, and they want to have that sweet work-life balance. The lack of all of that is the perfect answer to “Why are developers quitting?”.

Do Software Engineers Quit More Often Than Other Professionals?

Compared to more stable and traditional sectors, software engineers indeed quit their positions more frequently. There are several reasons for that:

  • High demand for talent

  • Competitive job opportunities

  • Fast-paced nature of the industry

The reasons range from burnout rates, and lack of recognition to a desire to thrive for continuous growth. This mobility makes retaining top engineering talent a unique challenge for companies.

FAQ

How can companies improve software engineer retention?

Companies can improve retention by prioritizing work-life balance and offering competitive compensation and benefits. They can invest in professional development and create a positive, supportive work environment where engineers feel valued and empowered.

Are engineers quitting due to better opportunities in startups or freelancing?

Yes, many engineers leave for startups or freelancing due to greater flexibility, autonomy, and opportunities to work on innovative projects. However, roles in startups often provide faster career growth and higher job satisfaction than in freelance.

Do engineers leave due to lack of remote work opportunities or flexibility?

Yes, engineers value remote work and flexible schedules. Companies that don’t offer these options risk losing talent to competitors that do. Flexibility has become a key factor in job satisfaction, directly impacting retention rates.

Yaroslav is our adept Account Specialist with over 10 years of experience in the service industry. Yaroslav plays a key role in leveraging the relationship between Outstaff Your Team and our clients. He’s our main point of contact in terms of cooperation and onboarding. He’s the one who coordinates both small and big teams, making our Tech Specialists feel at ease and ensuring they have all the needed tools and support.

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