Everything You Need to Know about Communication Issues and Employee Attrition
By outsourcing software development services or projects, you can better achieve business goals. In nearshoring, two options are available to you: you can work with a service provider who develops the finished product for you (keyword: outsourcing) or who provides you with the necessary developers in the nearshoring country (keyword: outstaffing or dedicated team). If you choose the second model, you have more freedom in shaping the project, but you bear the project responsibility and manage the software development team yourself. Projects don’t run themselves. Your team will face several challenges that need to be overcome. In the following, we explain why you should pay attention to communication issues and high employee attrition. You will also learn how to successfully carry out your nearshoring projects with cultural, technical, and management expertise.
Common Challenges in Nearshoring Projects
But first, let’s look at the challenges software development teams face in nearshoring. This is not an exhaustive list, but it narrows down the selection to very typical and the most common challenges.
Prioritization and Evolving Goals
Even if requirements were initially specified and project goals defined and prioritized, changes are quite common. What are the reasons for this? Often, new requirements and functionalities arise that need to be developed. Or a product vision cannot be implemented as initially envisioned and must be adjusted. Every change inevitably affects the three parameters: time, cost, and quality/performance. Therefore, changing priorities and still successfully achieving project goals is not a trivial task, but a major challenge in software development.
Speed – the Time Factor
A common problem is the speed at which software is developed. Often it takes longer than initially thought and planned. Or changes and additional features slow down the entire project. The product is completed later, which, for example, drives up development costs.
Pressure
Pressure inevitably arises as a consequence of the two points mentioned above. If requirements and goals change during the project, tasks are reprioritized, and development times are extended, this creates pressure: to finish on time, to stay within budget, and still deliver very good quality.
Quality and Development Process
Speaking of quality, it also happens in nearshoring development projects that the quality of the software is not as expected. A very good project or delivery manager is needed to counteract this. In general, it should also be precisely defined and specified for a nearshore team according to which processes and methods the software is developed.
Communication
Communication issues occur quite frequently in development teams. Especially under time pressure, the tone often becomes harsher. However, technical, linguistic, and cultural reasons can also lead to communication problems, even conflicts within the team. That’s why we will look more closely later at what these reasons are in detail and how you can prevent them.
Motivation and Team Spirit
Nearshore teams work in a remote setting. The team consists of an internal team and an external team at the nearshoring location. Or the development team is entirely located in the nearshoring country, and only the project manager or CTO is at the home location. Whatever the constellation, it is important to form a team, keep employee motivation high, and work towards a common goal. Because as soon as motivation decreases, the quality of work also drops, and employees are more likely to leave.
Employee Attrition
This brings us to the topic of employee attrition. The departure of employees can jeopardize an entire project. Indeed, it is more common in nearshoring projects for employees to leave the team. Due to short notice periods, a transition to a new employer can be quickly completed. This needs to be prevented, which is why in this blog post we also address the question of why someone leaves the team and what you can do about it. But first, let’s look at the topic of communication.
Communication Issues: What are the Causes?
Communication takes place in a cultural context. Proficiency in the English language does not in itself cause difficulties. However, even if the English is correct, language difficulties persist due to nuances of meaning (What exactly is meant when someone says “Maybe”?) or structure. The latter is evident, for example, in long emails where the reader wonders what exactly the other person wants to convey. Often in nearshore projects, too much is communicated in writing, with too many emails. Misunderstandings are inevitable, as it’s not possible to determine the exact meaning from facial expressions, gestures, or by asking questions, as it would be in a conversation. You should also be sensitive to cultural differences. A large power distance combined with respect for superiors can lead to someone not saying “No” when in a subordinate position. Likewise, that person will not say that something is not feasible or that they cannot do something. We then assume that person will handle a task, which is not the case. From the Product Owner’s perspective, requirements are clearly formulated and unambiguous. However, the development team does not understand them. This can be due to language, prior experience, and the existing knowledge each individual brings. The same applies to processes: they either don’t exist or are poorly set up. It is not always clear when and who talks to whom. Meetings are not sufficiently prepared. What is often noticeable in nearshoring: company goals are not communicated. Even if the development team is geographically distant, they still want to know the direction and their contribution. Finally, technical problems (hardware used, tools deployed) can also be the reason why communication does not function smoothly.
How Can You Avoid Communication Issues with the Nearshoring Team?
During the interview, check whether English language skills are truly present and how good these skills are. Without sufficient language skills, any collaboration becomes difficult to impossible. Be respectful and appreciative towards all employees, regardless of their origin or whether they are part of the internal or nearshore team. Say what you mean, and mean what you say. Be precise and check if you have been understood. Even more important: Take your time, listen. Make sure that you also understand what the other person wants to communicate. Setting up a communication plan can be very helpful. This also requires an agenda and goals. Using the W-questions (what, who, when, where, etc.) you can ensure that nothing is forgotten during meetings. While these should be time-limited, still ensure that a common understanding of what everyone needs to do is achieved.
Reasons for High Employee Attrition in Nearshoring
Employees usually do not stay with the same company their entire lives. A certain level of attrition is normal. However, if employees stay with the company for only a very short time or several employees leave within a very short period, then there is certainly a reason for this high employee attrition. This should be investigated, because in the worst case, it can jeopardize an entire nearshore project. The endeavor could fail. From our perspective, there are two main reasons for employees leaving: poor management and better career opportunities at another company. Better career opportunities can be provided by financial incentives. One earns more money elsewhere. However, they can also be content-driven. The new job, the associated project, and the technologies used are more interesting. The software developer can thus build new competencies, which promotes their career in the long term. A new project also means new supervisors and project managers. It is not uncommon for employees to switch because they get along better with the new boss and escape the poor management of their current job. What does “poor management” mean? A team is poorly managed if there is no team cohesion. If there is no team identity. This is a clear indication that something is wrong. Even if the team divides into two or more factions, something is wrong, and problems are inevitable. In the nearshore area, this often happens because a kind of class system prevails. While the internal team “can do anything,” the nearshoring team is restricted. This can be quite diverse: information is withheld, there is less communication with the team, it is technically less equipped, and much more. In nearshoring, too: Whenever we act as a boss rather than a leader, problems arise. Leadership competencies are needed more than ever.
How Can You Retain Employees in the Team?
Communicate with employees as equals. Establish a connection by, for example, allowing small talk and scheduling time for it. Find out what drives each individual. Meet colleagues where they are. Equally important: Regularly explain “where the journey is going”. What are the next goals, tasks, milestones, etc.? Meet regularly in person with your employees. While face-to-face meetings can also take place online, personal contact is irreplaceable. Personal exchange is easier to implement in nearshoring than in offshoring projects, which are characterized by a large geographical distance. Team-building measures help to form a team and maintain motivation and team identity. These can be team events or parties. Consider how you organize this and to whom you entrust the role of “Happiness Manager”. For very large teams, it can make sense to have a person who primarily or exclusively takes care of this. Assign tasks to the team based on the roles and competencies of the employees. Through good skill management, you prevent someone from not fitting the position or performing the role poorly. The employee then leaves, or much worse, colleagues leave because, for example, they consider the manager incompetent. Often, their only remaining option is resignation. This applies not only to software developers but also to the manager. If poor management is the reason for employee attrition, you will inevitably have to replace the manager. Only with a new manager can the project still be saved. There is virtually a point of no return. Before employees leave, motivation has usually significantly decreased, and the team’s mood is poor. How do you find out what the mood is like, whether something is changing for the worse? Through observation, by asking the project manager, through conversations, and through regular surveys. Preferably anonymously. Stay up to date regarding the salary level. Inform yourself about how salaries are developing in the respective country. Intense headhunting for programmers means that good developers can be quickly lured away if their salary is no longer competitive. So, salaries must be adjusted accordingly.
What Improvements are Possible? – our Conclusion
If a team is well-managed, performance increases by 50-100% from our perspective. Good management is therefore crucial in nearshoring and in large teams. It needs leaders, not bosses. Managers who are attuned to the team, feel its pulse, balance the interests of the team and stakeholders, and act in time when changes are necessary. Sometimes a little diplomatic skill is more than helpful. This means that companies must invest time and money to get there. 5-10% of the total software development budget should be allocated for this. Depending on the team size, this can be a full-time or part-time person who is responsible for this holistic improvement program, takes care of the team, and sets up processes. And don’t forget the fun factor – your team and you yourself must feel comfortable and be motivated for your nearshoring project to be successful.
