How did we stimulate our growth by setting up the HR department?

A few years ago, Codest was a relatively small software house. We started with a dozen or so people – including developers. We had clients who were satisfied with our work. It was pretty cool. Then, the moment came when we decided it was time to take a step forward. It was time to start developing our company. One of the aspects of our strategy was the creation of an HR department.

Our story in a nutshell

Let me tell you the story of how it all started. We were aware that our work could bring real value to our clients. We had been receiving feedback from them confirming that the products we created were of the highest quality. We didn’t want to change that. However, we wanted to become a larger software house and implement more projects. This is a natural attitude for ambitious companies. We wanted to grow, but wisely.

At the very beginning of our path, we were facing problems with setting up an effective development strategy. We were gradually overcoming obstacles, but our development was not as substantial as we had expected. Finally, we came to the conclusion that … we do not really have a proper HR department. We lacked employees. We started to recruit them ad hoc – depending on the needs. Our clients often required us to expand our cooperation, but we lacked appropriate manpower.

Simply put, we did not have the right recruitment process. Everything was happening very spontaneously. It was really frustrating. However, we have learned the lessons from these mistakes. A decision was made – let’s focus on a thriving HR department.

We understood that, if we wanted to be a large software house, we needed a department that would constantly hunt for qualified employees to add to our portfolio of developers. Believe me, it was a hit. First, we recruited an experienced HR manager who was responsible for creating all the recruitment processes in our company. The IT industry is a difficult sector and the recruitment of developers is very specific. Because this was such a demanding task, a properly structured approach was needed.

In hindsight, we can say with full confidence that we have successfully built the entire process. From the beginning of 2019, our staff increased by 20%. The second semester of the year is ahead of us, and we strongly believe we will keep up with this trend. Some of our developers joined our office and some of them work remotely. We give them free choice of workspace since we care for their work comfort and individual preferences. Our main principle of recruitment is the candidate experience. We always try to send our candidates accurate feedbacks. We respect their time, which is why we carry out the entire recruitment process as fast as possible. Our offer is clear from the very beginning, and we don’t hide any aspects of the job from the candidates.

I would like to emphasize that employing experienced developers in our industry is very difficult because the competition on the market is fierce. That is why we devote a lot of time to recruitment. We transparently show the candidates what our company can offer. We also want to be sure that the potential candidate is a professional and to make sure of this we ask our best developers to participate in the interviews. They verify the candidate’s knowledge and check the quality of the written code. Believe it or not, this is the moment when our growth begins. If we are sure that a real professional will become part of our team, it’s more likely that our customers will be satisfied with the end product and, consequently with cooperation with our company.

How did we stimulate our growth?

Look at a few numbers and facts that best explain the impact of an effective recruitment process on our growth:

1. Month to month we recruit 5-10% new staff, which means that we can cooperate with more clients.

2. Thanks to a larger number of customers, our revenue grows each quarter – on average by 15-25%.

3. New employees bring new knowledge and skills to our company. We are expanding our technological stack and become an even more experienced and flexible software house.

4. The lost of employees does not affect our development. Thanks to a well-managed recruitment process, we quickly supplement any vacancies.

5. The average rating of projects implemented by us is 4.5 / 5. Our clients evaluate our effectiveness after a trial period (you can read more about it here). Maintaining such a high level is possible thanks to qualified developers that the HR department finds for us.

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Conclusions

Please note that the role of recruitment nowadays is becoming more and more crucial. Without the continuity of this process, qualified employees and knowledge, your company will not grow as well and fast as it potentially could. Therefore, if you plan long-term development, take into account the development of the Human Resources department. As you can see in our example, it pays off.

Finally, I would like to share with you another observation. At Codest, we work with startups, we participate in conferences related to the IT industry. We are very involved in this environment. Interestingly, in many conversations with CEOs, CTOs and other managers, we have noticed the awareness that one of the most important factors that stimulate the development of their organization is human resources. We realized we are not the only ones that firmly believe that the people you get on board for your project are extra important for its success.

Of course, finding qualified employees that are well experienced in their field can have high costs. But think about it, isn’t it worth investing a bit more but be sure that your company is developing the best employees? I leave you with this question.

Read more:

– Is it worthy to go global, expand the business and gain new markets?

– How to effectively manage remote developers? The guide for CTOs

– Vuelendar. A new Codest’s project based on Vue.js

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