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In the Bloom


2024 STATE OF ENGINEERING MANAGEMENT REPORT: INSIGHTS FROM 600+ ENGINEERING
LEADERS, MANAGERS, ICS



Andrew Lau
June 12, 2024

For decades, engineers were expected to take orders and build products without
shaping the business as a whole. Today, that’s no longer the case. Engineering
leaders and their teams are now strategic partners, helping to guide strategy,
grow revenue, and ensure the organization works as efficiently as possible.
Jellyfish has tracked this evolution over the past five years through our annual
State of Engineering Management Report.

This year, we aimed to see how engineering teams have evolved in the ways they
organize, measure, and staff their work by surveying 604 CTOs, engineering
leaders, managers, and ICs. Of course, we also paid attention to the arrival of
generative AI coding tools. We discovered stark differences in the experiences
of front-line engineers and their leaders, as well as varying predictions for
how AI will shape engineering organizations in the months and years to come.
Below are the key findings from the 2024 State of Engineering Management Report.


KEY FINDINGS FROM THE 2024 STATE OF ENGINEERING MANAGEMENT REPORT

 1. Engineers are now strategic partners, not just builders. Overall, 90% of
    respondents said their engineering team helps inform business strategy, 94%
    said engineering helps the business grow, and 95% said engineering helps the
    business work more efficiently. 
 2. 65% of all respondents experienced burnout in the past year. The problem was
    particularly acute for short-staffed engineers and leaders overseeing large
    organizations. Despite this rise of burnout, we are seeing engineering
    hiring and budgets increase for a majority of respondents, which may provide
    some relief for those experiencing burnout.
 3. 60% of engineering managers and executives report a shortage of qualified
    candidates in the market for engineering roles. Organizations looking to add
    headcount may find fewer candidates than expected — even after widespread
    layoffs in tech.
 4. 61% of engineering organizations have embraced AI. 94% of AI users said that
    the integration of AI positively influenced their team’s productivity, 81%
    said AI increases the quality of code, and 84% said using AI frees up time
    to focus on high-value activities.
 5. Not everyone is onboard with AI. Of the non-AI users, 48% said their team
    has not adopted the technology due to concerns about security, 34% said the
    reason was a lack of expertise, and 24% said budget constraints had
    prevented them from using AI. Notably, 19% of executives who had not
    embraced the technology cited their belief that AI was a gimmick; just 3% of
    engineers and managers shared that opinion. 


COMMON THEME: MISALIGNMENT BETWEEN EXECUTIVES AND ENGINEERS

Engineers are going through a significant period of change: shifting market
conditions, transformative technologies like GenAI, and emerging approaches to
organizing engineering work and quantifying impact.

Throughout each of these themes, a common thread we found was lack of alignment
between business leaders and the engineers building their products:

 * 43% of engineers feel that leadership at their company is out of the loop
   regarding engineering challenges, compared to 92% of executives
 * 46% of engineers report that their teams are experiencing burnout, compared
   to 34% of execs
 * 71% of execs at large enterprises (more than 500 engineers) believe
   productivity decreased in the past year, compared to 40% of engineers


ESTABLISHING COMMON GROUND

To bring these responses in line in 2024 and beyond, engineering leaders must
find the metrics and discussions that will help to establish common ground
between engineering teams and their company’s leaders.

Jellyfish helps answer the critical questions that are relevant to boards of
directors, business leaders, and engineering teams alike — providing
easy-to-understand metrics that can be directly tied to business value. This
ensures alignment throughout the entire engineering organization to anticipate
the future, build with efficiency, and deliver business impact. And as engineers
embrace AI, Jellyfish is launching new capabilities that will better enable
teams to adopt emerging tools and quantify the impact of their AI investments.

Download the 2024 State of Engineering Management Report to continue exploring
insights and trends 


DIVE DEEPER WITH JELLYFISH CONTENT

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FOR 7TH STRAIGHT QUARTER

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PRODUCTIVITY IN 2024

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READY TO DRIVE ENGINEERING IMPACT?

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