4x+ return on investment in DX
Gusto provides payroll, benefits, and HR software, relying on hundreds of engineers to sustain innovation in a very competitive software market. As developer headcount grew, engineering productivity became critical. The company formed a Developer Productivity group to improve feedback loops and address inefficiencies but struggled to execute effectively.
“We were held back by a poor feedback cycle,” says Stephan Hagemann, Head of Product Infrastructure and Developer Productivity. “We needed a way to identify where to invest and to systematically listen to problems and address developers’ concerns.”
Before DX, Gusto relied on separate tools for engineering metrics and developer surveys, but both had significant limitations. Metrics were often misinterpreted, leading to unclear priorities, while incomplete survey participation left feedback feeling anecdotal. Developers felt unheard, and participation rates dropped, making it difficult to prioritize issues or measure results effectively.
Hagemann explains, “We couldn’t dig into the specifics. The feedback we had was incomplete, which made it hard to show engineers we were addressing their concerns.”
During the pilot with DX, it became clear that alternative solutions couldn’t provide the specificity or transparency Gusto needed. DX stood out by combining qualitative and quantitative data into a single platform, offering the depth required to address developer challenges comprehensively.
“The transparency and ease of use of DX meant almost no negative feedback from engineers. The self-reported data collection was also phenomenal—we had never seen participation rates this high from our surveys. ”, Hagemann shared. He continued, “DX strikes a great balance between quant and qual data. It doesn’t just stop at ‘here are the metrics.’ It’s set up to continue a conversation. That’s something we didn’t have before and couldn’t find anywhere else.”
DX now underpins Gusto’s Developer Productivity Program. By combining system data with survey insights, DX validates priorities, measures the impact of productivity efforts, and uncovers friction in workflows. These improvements have increased engagement and trust among engineers.
Looking ahead, Gusto plans to expand its use of DX to address team-specific bottlenecks, measure the impact of new tools, and streamline onboarding for new engineers. DX will remain central to aligning priorities and maintaining productivity as Gusto grows.