State of Engineering Management Report reveals key trends

Jellyfish has released its 2024 State of Engineering Management Report, highlighting significant changes in the role of engineers within organisations. Now in its fifth year, the report draws insights from over 600 full-time professionals in various engineering roles, uncovering trends and challenges faced by engineering teams.

According to the research, engineers are increasingly seen as strategic partners rather than mere implementers. An overwhelming 90% of respondents indicated that their engineering teams contribute to business strategy, 94% believe engineering aids business growth, and 95% think engineering improves overall business efficiency. This marks a notable shift in the perception of engineering roles, traditionally viewed as operational rather than strategic.

The report also spotlights several critical issues faced by engineering teams. A significant 65% of respondents reported experiencing burnout in the past year. This issue was particularly pronounced among short-staffed teams and leaders of large organisations. Among engineers in teams of fewer than 10, 85% reported burnout. At companies with over 500 engineers, 85% of managers and 92% of executives reported the same.

Another key finding is the reported shortage of qualified candidates for engineering roles, with 60% of managers and executives noting this issue. This comes despite recent tech layoffs, indicating a persistent gap between the demand for engineering talent and the available supply.

The report also explores the impact and adoption of artificial intelligence (AI) within engineering teams. Of the respondents, 61% of organisations have embraced AI tools, with 94% of these users stating that AI positively impacts productivity. Additionally, 81% indicated that AI enhances code quality, and 84% mentioned that AI integration allows them to focus on high-value activities.

However, AI adoption is not universal. Among those who have not adopted AI, 48% cited security concerns, 34% mentioned a lack of expertise, and 24% pointed to budget constraints. Notably, 19% of executives viewed AI as a gimmick, a sentiment shared by only 3% of engineers and managers.

The report identified the disconnect between business executives and engineering teams as a critical theme. For instance, 71% of executives at large enterprises believe productivity has decreased, while only 40% of engineers share this view. Additionally, 43% of engineers feel that their leadership does not understand their challenges, compared to 92% of executives who believe otherwise. Burnout perceptions also varied, with 46% of engineers and 34% of executives acknowledging burnout among their teams.

This misalignment extends to the perceived adoption of AI, with 76% of executives believing their teams have embraced AI compared to only 52% of engineers. The findings suggest a need for better communication and shared metrics to bridge the gap between engineering teams and business leaders.