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The 2025 State of Engineering Management: What Leaders Need to Know

As software continues to drive value across all industries, engineering teams have taken center stage—not just as product builders, but as key partners in strategy, growth, and operational efficiency. The 2025 State of Engineering Management survey, based on insights from over 600 professionals across all engineering levels, paints a compelling picture of where engineering orgs stand today—and where they’re heading.

Here are the most important themes and takeaways for engineering leaders.

1. Engineers Are Now Strategic Partners

The overwhelming majority of respondents—over 90%—agreed that engineering plays a crucial role in:

  • Shaping business strategy
  • Driving growth
  • Improving overall company efficiency

This marks a shift away from the “order taker” perception of engineering and reinforces its evolving role as a business-critical function.

2. Burnout Is Widespread and Deeply Uneven

Burnout continues to plague the industry, with 65% of respondents reporting experiencing it in the last year. The issue is most severe among:

  • Engineers on very small teams (less than 10)
  • Managers and executives in large organizations (500+ engineers)

This suggests both understaffing and scaling issues are fueling burnout in different ways.

3. AI Adoption Is Accelerating—But Misunderstood

While 61% of teams have adopted AI tools in some form, there’s a noticeable disconnect:

  • 76% of execs believe their team is using AI
  • Only 52% of engineers agree

The benefits cited by AI adopters include:

  • Higher productivity (94%)
  • Improved code quality (81%)
  • Greater focus on high-value work

That said, barriers still exist: security concerns, lack of expertise, and budget constraints are the top blockers.

4. Metrics Are Gaining Traction, But There’s Room to Grow

Metrics are becoming central to how engineering leaders manage and communicate, especially in large organizations. Key findings include:

  • 84% believe metrics are useful for decision-making
  • Only 75% of leaders at larger orgs (500+ engineers) say they’re using them effectively

Quality metrics ranked highest in perceived value, followed by productivity and alignment metrics. But vanity metrics (like story points or lines of code) are losing favor in favor of more meaningful indicators like cycle time, allocation, and team sentiment.

5. Visibility Into Work Remains a Challenge

Nearly one-third of engineering professionals say they lack visibility into project status and progress against goals. This number jumps to 57% among executives in large companies—highlighting a persistent communication gap between leadership and frontline teams.

6. Headcount and Budgets Are Rebounding—Cautiously

  • 67% of organizations reported increased engineering budgets
  • 57% have grown their engineering teams in the past year

Yet, hiring remains tough. Over 60% of managers and execs report a shortage of qualified candidates in the market. Organizations must solve process and efficiency challenges before ramping up hiring—or risk exacerbating issues.

7. Disconnect Between Engineers and Executives Is Real

Across multiple questions, engineers and executives showed diverging views:

  • 71% of execs at large orgs believe productivity is falling, compared to 40% of engineers
  • 92% of execs say leadership is out of touch with engineering challenges—only 43% of engineers agree

Bridging this gap is essential for building healthier, more aligned teams.

8. Teams Are Investing in Resilience

To tackle external market pressures and internal stressors, organizations are prioritizing:

  • Skill development and training
  • Improved collaboration and communication
  • Efficiency-boosting tools and technologies

Operational support and innovation were cited as top priorities for engineering investments moving forward.

Final Thought: Alignment Is Everything

As engineering organizations mature, the need to connect engineering efforts to business outcomes becomes even more important. Whether it’s through smarter use of metrics, improved tooling, or better leadership communication, the winners in 2025 and beyond will be those who align execution with strategy—without losing sight of the human experience of the engineers building the future.