Month: January 2025

Why Sales Turnover Is Killing Your SaaS Growth and How to Stop It

Posted on by Nick Mann

Turnover is an issue for many industries. But it’s especially problematic in SaaS sales. According to research, the average turnover rate of US salespeople is around 30%, which is more than double the 13% of all other professions. Based on these numbers, one out of every three salespeople you hire will quit each year. And if left unchecked, this can be disastrous to your SaaS growth.

For this post, I’ll examine the impact high sales turnover can have on your SaaS company and common sense ways to stop it.

Sky High Recruiting Costs

Hiring salespeople isn’t cheap. While the costs can widely vary, experts say that it can easily cost $7,000 to $8,000 per rep. If this happens at scale, it can quickly result in exorbitant recruiting costs that can eat away at your bottom line.

Because of this added expense and the constant strain on resources, profitability can take a big hit. And if you’re constantly hiring and rehiring, you’re basically running on a hamster wheel, making it hard to achieve any real progress.

Loss of Expertise

Seldom can an elite salesperson be easily replaced. Because they possess a unique knowledge and skillset and have an in-depth understanding of your existing customers, you can’t just grab somebody off the street and expect them to operate at the same level.

Even if you find another superstar sales rep, it still takes time to get them up to speed with how your company operates, learn your products, build rapport with customers, and so on. As a result, sales turnover can be detrimental to your sales process and make it difficult to close deals like you would if retain top talent.

Customer Experience Disruptions

Try to put yourself in an existing customer’s shoes for a second. Their primary point of contact has left your company, and all of a sudden, they have to deal with a new rep who’s just learning the ropes. This is almost guaranteed to disrupt the customer experience and could potentially sour the relationship.

At best, it can create frustration with an existing customer. At worst, it may compel them to seek out a competitor.

And for a potential customer who’s interacting with a new rep rather than an established one, it’s hard to provide the same level of experience simply because a new rep doesn’t know the ins and outs. So from a customer experience standpoint, high sales turnover can be toxic.

Sluggish Sales Cycle

Whenever there’s a constant stream of new reps getting their bearings and learning your product and market, it’s likely to slow down the sales cycle. And that can be a big problem given that the SaaS industry has a notoriously long sales cycle — and getting longer all the time.

“The SaaS sales process has grown more complex,” explains Channel as a Service. “Now, the average B2B buying cycle is 43 days, up from 33 days in 2020. For big businesses, this can go up to 65 days, hurting revenue and growth.”

If you continually have to replace salespeople, it can result in a sluggish sales cycle, which can slow down revenue generation and impede growth.

How to Drastically Reduce Sales Turnover and Fuel SaaS Growth

The bottom line is that turnover is more than simply an inconvenience. Not to be melodramatic, but it’s an issue that can have far-reaching consequences and erode a SaaS company from the ground up. But what can you do about it?

It should probably go without saying, but first, make sure you’re offering a competitive salary and benefits, as this is a precursor to anything else. Even if you check all of the other employee retention boxes, you’re going to struggle if you can’t pay top talent what they’re worth.

As for specific numbers, our research found that, as of 2023, the average SaaS salesperson’s salary was just under $100k at $99,826. We wrote a comprehensive article on this topic that breaks this down in detail, which you can find here.

As long as you’re close to this number, you should be in pretty good shape.

Next, I recommend optimizing your SaaS sales hiring process. In particular, take steps to ensure you find the best of the best candidates who not only meet your qualifications but who are a natural fit your for company culture.

For example, it’s smart to use sales recruiting solutions with in-depth, science-based assessments to quantify a candidate’s capabilities.

This takes the guesswork out of the process, and you can easily compare SaaS sales candidates side-by-side and identify the cream of the crop before moving on to the next round of hiring. Not only does help you find the true superstars, it saves a lot of time.

Third, create a 90-day game plan for onboarding new sales reps to get them up to speed and equip them for success. This could include offering new hires a welcome package, offering structured, phased onboarding, setting concrete goals, and measuring success along the way.

Here’s an illustration of what that might look like.

Note that we wrote an entire blog post about creating a 90-day blueprint to maximize retention, which you can read here.

Fourth, make sure that you prioritize ongoing salesperson development and promotion from within. Feeling like someone is stuck in a dead-end sales job with no room for growth is a surefire way to send reps packing.

But if they’re given a chance to continually develop their skill set and climb the ranks, the odds of them sticking around for the long haul increase considerably.

Lastly, get in the habit of not only accepting sales rep feedback but encouraging it. More often than not, being on the lookout for ways you can improve can help you address small issues before they escalate. Not to mention, reps who feel listened to and their opinion valued are far more likely to be satisfied in their jobs.

Retaining Sales Talent: The Key to SaaS Growth

We all know that high sales turnover is harmful. But not everyone understands the full implications. With SaaS sales having a higher-than-average turnover rate, this is something to tackle head-on.

If you’re ready to level up your sales recruiting, try our Hiring Readiness Assessment. It can help you find ultra-qualified candidates, reduce hiring mistakes, and fill positions faster.

The Future of SaaS Sales Recruitment: Leveraging AI for Smarter Hiring

Posted on by Nick Mann

AI is, admittedly, one of the most overused words in today’s vocabulary. While many companies are jumping on the bandwagon and using it just so they say they can, the fact is that leveraging AI for smarter hiring can have an immense impact on SaaS sales recruiting.

“Around 85% of recruiters think AI is a useful technology that will replace some parts of the hiring process.” And 70% of companies plan on using it in 2025.

But what are the practical applications of AI for smarter hiring? Here I’ll discuss some of the top use cases and their benefits.

Talent Pool Filtering

Historically, one of the biggest obstacles to SaaS sales recruiting has simply been sifting through a large candidate pool to find a handful of ultra-qualified reps. Sure, applicant tracking systems can be helpful for screening and have certainly streamlined the process.

But at the end of the day, much of a recruiter’s time is still spent combing through candidates and trying to find the perfect picks.

But AI has truly changed the game when it comes to talent pool filtering. By using advanced algorithms, AI can search through a massive volume of SaaS sales candidates and narrow it down to the individuals who possess the exact education, skills, and personality traits you’re looking for. In terms of quantifiable impact, “data suggests that up to 70% of time could be saved by strategically using generative AI.”

While there’s still the need for the human touch when you look over a candidate’s resume, cover letter, and credentials, this can dramatically speed up recruiting and provide you with a list of cherry-picked salespeople who are ready to be moved to the next round of hiring.

Applicant Success Predicting

What if before deciding to greenlight a new SaaS salesperson you could see into the future and know how they’re going to perform once the bright lights are on them? With AI you basically can.

Although you can never say with 100% accuracy that a particular salesperson will work out, you can use predictive analytics to analyze previous hiring data to decide which candidates are most likely to succeed in your unique sales environment.

Say, for example, that after looking at past data, you know that some of the most critical traits of successful salespeople are having strong motivation, controlling emotions, and being able to handle rejection. You could use candidate assessments to objectively determine how a potential candidate ranks in each of these areas.

From there, you could prioritize candidates accordingly, so you’ll know for certain which individuals are most likely to thrive on your sales team. With AI, you can evolve from relying on a hunch to relying on legitimate data to reduce your time-to-hire and find the best of the best.

Recruiter Bias Reduction

As humans, we naturally have certain biases. It’s unavoidable.

But when bias is left unchecked in SaaS sales recruiting, it can be detrimental because it can skew your judgment, lead to missed opportunities, and reduce your diversity. And in some cases, hiring bias can even harm your reputation and lead to legal issues.

According to research, “96% of recruiters think that unconscious bias is a problem in the recruitment process, and more than a third believe it’s a big problem.”

Fortunately, this is yet another area where AI can be utilized. Because AI just focuses on the data, you can essentially eliminate unconscious bias from your SaaS sales hiring.

“By leveraging objective algorithms, AI software can assess candidates based solely on their qualifications, skills, and experience without being influenced by factors such as gender, ethnicity, or age.”

Optimized Candidate Experience

Besides making things better for SaaS sales recruiters, AI can also positively impact the candidate experience. There are several applications, but here are two specific examples.

One is to use an AI chatbot to serve as a dedicated point of contact throughout the hiring process. After someone has applied, for instance, they could ask the chatbot questions or find relevant resources. The chatbot could also provide them with information about the next hiring steps, help them prepare for interviewing, send them updates, and so on.

The chatbot would be available 24/7, so any time a candidate needs assistance, they can get it. Of course, if they need to speak to a human member of your sales recruiting team they could do that (the chatbot could point them to the appropriate party). But the vast majority of the process can be handled by AI.

Another use case is having AI automate interview scheduling.

Let’s say you’ve narrowed your candidate pool down to four candidates and you have three rounds of interviews. That would be a total of 12 interviews. When you combine that with all of the subsequent communication that comes along with it, things can get chaotic in a hurry.

Rather than manually reaching out to each person for each round, as well as following up, you could greatly streamline the process with AI automation. For example, you could develop a series of interview workflows and use AI to perform outreach for you. This would ensure timely communication for candidates and recruiters so you could move through interviewing more efficiently and not waste a candidate’s time.

AI for Smarter Hiring: Better Outcomes with Less Effort

With nearly three-quarters of SaaS sales companies planning to incorporate AI into recruiting in 2025, this technology has officially become ubiquitous. However, not all recruiters are entirely sure of how to properly leverage it.

While AI has a wide range of applications, some of the most practical are filtering the talent pool to find elite candidates that match your company’s style, quantitatively predicting candidate success, reducing recruiter bias, and enhancing the candidate experience.

And that’s just the tip of the iceberg. As AI continues to evolve, the applications will only continue to increase, making now the perfect time to get on board.

Are inefficiencies and weaknesses hurting your SaaS sales hiring process? Use our Hiring Readiness Assessment to reduce mistakes and source candidates faster.

Why Your SaaS Company Struggles to Hire Top Sales Talent (And How to Fix It)

Posted on by Nick Mann

Multiple factors impact the success of your SaaS company. Software quality, pricing, and customer retention are just a few examples. But one of the biggest is the caliber of your sales talent. Without a professional, stable sales team in place, SaaS company struggles are almost guaranteed.

In this post, I’ll examine the most common reasons why brands find difficulty hiring top sales talent and practical strategies for overcoming this problem.

Competition

As of early 2025, there were approximately 30,000 SaaS companies across the globe, with 60% in the US.

This industry is scorching hot right now, with new companies constantly popping up in every niche imaginable. As a result, the sheer volume of SaaS companies is a major reason why so many brands struggle with recruiting.

With talented reps having so many options, you’re likely to face challenges if your brand doesn’t have a strong unique value proposition (UVP) and lacks anything to distinguish you from the rest of the pack.

Inefficient Hiring Process

Slow, meticulous, or chaotic hiring is another common way SaaS recruiting teams shoot themselves in the foot. Top sales reps know their worth, and even if they have a strong interest in your company, many will “get off the line” if your hiring process is inefficient.

Pinpointing the exact problem isn’t always easy, but here’s a list of eight particular issues that harm the candidate experience.

Poor Pay and Benefits

It should come as no surprise that elite sales talent expects competitive pay and benefits — if not above average. If, for whatever reason, you’re unable to offer this, it’s going to be an uphill battle from the start.

For reference of what’s considered competitive, you can check out an article we wrote about SaaS sales salary in 2023. Note that there’s been a slight increase as of the time of this writing in early 2025 because of inflation, but it should still provide a basic reference point.

Lack of Career Development Opportunities

MIT research states that 67% of SaaS sales reps value career development. If the position you’re advertising for has little to no options for career development, it’s understandable that you likely won’t attract a large number of qualified candidates.

And even if you do manage to land some A+ talent, your turnover rate will probably a lot higher than what it should be.

Weak Branding

By “weak branding,” I mean lacking the brand presence and desirability it takes to pique the interest of top SaaS sales reps. With so many SaaS companies going after a finite number of qualified reps, it takes something special to make reps want to choose you.

Some of the best examples of companies with excellent branding include HubSpot, Slack, Zoom, and Canva.

How to Fix SaaS Company Struggles

Now that we have crystallized the most common contributing factors to SaaS company struggles, let’s create a formula for overcoming them to help your brand bring in more elite talent.

As we mentioned in the first point, competition is one of the biggest hindrances to building an A+ sales team. By following the strategies for the subsequent SaaS company struggles, which we’ll discuss below, this should give you an edge over many of your competitors and make your brand a more desirable place to work.

This starts with optimizing your hiring process. One of the best ways to go about this is to use cutting-edge technology to objectively identify the best of the best candidates.

HireDNA, for instance, uses sophisticated assessments to determine how well a person will fit in with your unique sales culture and examines core competencies.

It’s also smart to provide a clear outline of what candidates can expect at each stage in the hiring process and maintain close communication from start to finish.

The next issue, poor pay and benefits, can be fixed by 1) identifying what’s considered competitive pay in the SaaS sales industry (in 2023, it was just under $100k) and 2) adjusting your payment structure to match or exceed it.

Admittedly, this can be easier said than done, especially for newer SaaS companies with limited funds. But if you truly expect to build an elite sales force, you’ll need to at least get within the proximity of what other successful brands are offering.

When it comes to career development opportunities, the simple solution is to build your SaaS company in a way that promotes growth from within. Not only can this make your business feel more desirable to work for, it offers a host of impressive benefits, including the following.

  • “Employees stay 41% longer at companies with high rates of internal hiring.”
  • “56% of employees believed promoting from within is better for morale.”
  • “Managers promoted from within were 10% more likely than external hires to report having a highly productive team.”

And given that “33.63% of the workforce has looked for a new job in the last six months due to lack of career growth,” this can be huge for preventing unnecessary turnover and keeping sales superstars around for the long haul.

Finally, weak branding can be addressed in a few ways.

First, work on developing your UVP so that candidates know exactly what makes you different from other competitors and why they should want to work for you. Strive to create unique brand messaging that incorporates your genuine style, philosophy, and values, while being true to yourself.

Build a strong presence on social media and other online outlets to increase exposure and make your brand more recognizable. Also, incorporate positive testimonials on your website and social media from current or previous salespeople to articulate the benefits of working for you.

Making Your SaaS Company a Premier Destination

Unless you’re a well-known mega SaaS brand like HubSpot or Slack, you’ll likely encounter some challenges when attempting to hire top sales talent. By pinpointing the most common reasons for SaaS company struggles — competition, inefficient hiring, poor pay/benefits, lack of career development, and weak branding — and tackling them head-on, you should be able to solidify your brand as a desirable one to work for.

Hopefully, this will supply you with the momentum you need to take the next step forward and build a team of ultra-talented reps.

If you’re looking for the ultimate hiring readiness assessment, check out this one from HireDNA. Use it to source candidates faster, drastically reduce mistakes, increase retention, and build a better sales culture.