Software Product Development: When It's Time to Hire a Developer

The core talent at a technology company is its product development team, so gauging the capacity of this team and managing its growth is critical for a business looking to expand. Like other businesses in the technology space, Software Testing Solutions (STS) relies on the talents of its product development team for maitaining its software product -- and when the company decided it was time to start expanidng its product offerings, they realized they would need more engineering resources. When the company’s clients began asking about additional software products, business owner Jennifer Lyle knew that it was time to expand her development group.

“When you have only one developer, you’re very limited to how much you can accomplish,” says Jennifer Lyle, owner of STS. “Not only do we have new development projects going on, but routine maintenance to existing solutions and code, or we find a block or enhancement that needs to be done. You don’t have any kind of multi-threaded process since it all flows into one point, our developer Rob.”

STS's software tests certain computer systems at hospitals. It performs a critical service to the company's clients, and it has found success serving this niche market. But STS’s market is also limited because the current product is tailored to interact with one particular computer operating system. The company will have to create software for other operating systems if the business is going to grow and maintain its market position, says consultant David Finkel, who is working with STS.

“They have about 25 percent market penetration and are one of two big players in the marketplace, but if the underlying company who sells the software or operating system decides they no longer want to allow a third party to write software on top of their program, then they’re in trouble,” Finkel says. “In this industry that is not unheard of.”

Yet a good software developer has been hard to find for STS. Lyle has gone through two software developers who didn’t last more than eight months, since they didn’t meet the standards and high demands of a small company like STS. A software developer at STS is required to not only write code well, but also must perform code review and accurately test their code, which, Lyle says, can be difficult for developers used to working in a corporate environment where development tasks can be insular and more refined.

When hiring for important roles in a small to medium-sized business that may not have a human resources department, consultant David Finkel says it’s important to first compile a list of the skills and experience required for the position, as well as the roles and responsibilities performed in the position.

Next, Finkel suggests identifying the “800 pound Gorilla,” or the three or four essential traits required for the position, which could include experience, skills, qualities and characteristics. For instance, a sales person might need ability to be self sufficient and rely on 100 percent commission, or an operational role might need a person to handle multiple projects simultaneously with tight deadlines.

“For example, if you’re hiring a programmer, it would be nice if they have a wonderful personality, but is that really an 800 pound gorilla?” Finkel says. “Is that really a must have for that role to be successful? Chances are they are not.”

Once the essential traits are identified, Finkel suggests writing an appropriate job description and posting, then identifying the available job outlets including employment Web sites, job placement firms, and local college job boards. Next, it is important to gather referrals from personal and professional contacts including friends, colleagues, and professionals. Finally, organizations make wish to enlist the help of a recruitment firm, which is the most expensive means of recruiting a new employee.

What worked for Lyle was reviewing the personal contacts collected by her and Rob Schultz, her first developer. They identified Mitch Fisher, a friend and previous coworker of Schultz, as an ideal candidate. They had tried to hire Fisher before, but had no luck. This time, however, Lyle convinced Schultz to become a team member by outlining for him the benefits of working for a growing company whose revenues grew 110 percent last year.

“We’re doing something new and innovative and working with us is a chance to make a difference in the industry, make a mark and not be a cog in the wheel but be a whole new wheel,” Lyle says. “Besides profit bonuses for employees I think our employees have the chance to obtain financial freedom without having to start up their own company.”

Next year Lyle hopes to bring a third developer on board to continue her company’s strong growth. She feels confident that with generous employee benefits, STS’s strong growth, and the hiring lessons she learned from Finkel, she will have no problem doing so.