Tag: employee turnover

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.

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.

Here’s Why 79% of Talented Salespeople Quit

Posted on by hiredna

While today’s sales brands face numerous challenges, one of the biggest is salesperson retention — an issue that’s especially pressing for smaller businesses. A recent study even found that 55% of companies cited retention as the number one challenge, officially usurping lack of capital.

I’ll be the first to admit that solving the retention problem isn’t easy. It’s incredibly complex with a long list of ever-changing variables. That said, there is some low-hanging fruit that’s a great starting point. And that’s what I want to tackle in this post.

Here’s why 79% of talented salespeople quit and what you can do about it.

A Lack of Appreciation

Let’s get right down to it. There are countless reasons why salespeople quit. Better pay, a lack of career development opportunities, and a poor work-life balance are just a few that come to mind. But a recent study found that one of the biggest contributors to turnover is simply not being appreciated.

“A whopping 79% of employees will quit their job because of a lack of appreciation from leaders,” explains Georgi Todorov of Thrive My Way. To be fair, this stat doesn’t say that nearly four out of five salespeople have quit because of a lack of appreciation. It just says that they will quit.

But from this data, we can confidently say that a lack of appreciation is one of the biggest reasons companies lose elite talent.

Looking Closer into Why Salespeople Quit

A few years back in 2017, Forbes wrote an interesting article about the correlation between a lack of appreciation and turnover. In it, they mentioned that “66% of employees say they would ‘likely leave their job if they didn’t feel appreciated.’ This is up significantly from 51% of employees who felt this way in 2012. Among millennials, the number of employees who’d leave if unappreciated jumps to 76%. This helps account for the overall increase from the 51% figure in 2012, as millennials are becoming the dominant generation in the workforce, with a unique set of characteristics and needs.”

Now that we’re in 2022 and millennials have saturated the workforce even more and will continue to be the dominant force for years to come (take a look at the graph below), it’s easy to see why the number of salespeople who say they’ll quit because of a lack of appreciation has swelled to 79%.

No, Millennials will NOT be 75% of the Workforce in 2025 (or ever)!

While being appreciated has always been important, it appears to be especially important for younger demographics. A separate article by SHRM corroborates this idea, saying that recognition is huge for millennials, as well as Gen Z, which is starting to enter the workforce in larger numbers.

From a Turnover Risk to a Loyal Employee

Something else I found interesting was that placing a larger focus on employee appreciation can help companies go from battling turnover to having a team of highly engaged, loyal, dedicated salespeople. And this is especially true for younger reps.

“While some employers may see these young workers as disloyal or unmotivated, the truth is that they can be turned into an organization’s most enthusiastic and valuable resource when shown appreciation for their work and rewarded in the right way,” notes Rodney Mason, CRO of payroll technology firm daVinci Payments.

More specifically, 79% of salespeople say increasing recognition rewards would increase their loyalty.

Zooming out, nearly four out of five salespeople will quit because of a lack of appreciation. But conversely, the exact same number say increasing appreciation would boost their loyalty. So you can see firsthand just how big of an impact there can be.

Going After the Low-Hanging Fruit

While knowing that such a large percentage of your salesforce could potentially quit for one single reason is a little frightening, at the same time it’s good news because the solution isn’t rocket science. In fact, it’s incredibly simple. You just need to show appreciation.

There are several ways to go about this. Some brands go all out and create a formal employee recognition program (you can learn how to create one here if you’re interested). Some write blog posts with the sole purpose of spotlighting salesperson achievements. Some show their appreciation on social media, and so on.

But it doesn’t have to be this formal. At the end of the day, it just boils down to baking appreciation into your company culture and your daily interactions. And these five tips are a great starting point.

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This is one of the easiest ways to get your turnover under control, build stronger relationships within your company, and gain a competitive advantage. And it doesn’t require you to shell out huge salaries, offer over-the-top benefits, or implement game-changing career development opportunities. You simply need to appreciate your sales reps.

Understanding Why Salespeople Quit (And Fixing It)

Turnover is complex, with countless hours and big money often being spent trying to reduce it. While there is no magic bullet for curbing turnover, understanding the psychology behind why many salespeople quit is a critical first step. And as we’ve learned in this post, one of the biggest reasons is simply due to a lack of appreciation.

Fortunately, this isn’t something that takes deep pockets or a robust HR department to fix. You just need to adjust your mindset and make employee appreciation a focal point. Do that effectively, and your retention rate can’t help but improve.

Find out how HireDNA can not only help you find better sales talent faster but retain salespeople longer. By using cutting-edge technology like intelligent matching and science-based assessments, HireDNA eliminates 96% of hiring mistakes and reduces turnover by more than 33%.

Salesperson Turnover is Up 25%: What to Do About It

Posted on by hiredna

It’s an interesting time for sales recruiting. We’re at a point where the worst of the pandemic is over, and things have steadily gotten back to normal, albeit it’s “a new normal.” As you might imagine, this has created some significant changes, with the rise of remote work and video conferencing being some of the biggest.

Besides that, there’s been an alarming rise in salesperson turnover, where it’s up substantially from a couple of years ago. For this post, I’ll examine this trend in-depth to understand why it’s happening and how to respond.

A Sharp Rise, Then Gradual Fall in Unemployment

First, it’s important to understand the context of how things got to their current state. In early to mid-2020, when COVID got into full swing, there was a sharp rise in unemployment. It went from being just under 4% in February 2020 to nearly 15% by April.

At that point, many sales professionals were scrambling to find work, with many making the shift from a brick-and-mortar setting to remote. However, as things began to stabilize, so did the unemployment rate, and by December 2021 it was back to around 4%. This brings me to my next point.

A Surge in Flexible Work and SaaS Companies Hiring Salespeople Outside Their Industry

The backlash of COVID has had far-reaching implications, not all of which are currently known. But two particular changes that have impacted the sales industry are growing flexible work options and SaaS companies hiring outside their industry. With “the genie being out of the bottle” with remote and hybrid work models and stiff competition with high-paying tech companies looking for top talent, it’s created an employee market.

Now that the worst of the pandemic is behind us, salespeople with robust skill sets are looking for the best possible jobs. And this led to another trend — higher turnover.

Salesperson Turnover Increased By 25%

Under normal circumstances, the average salesperson turnover rate hovers around 10%. But that number has more than doubled over the past couple of years.

“One consistent theme we’re seeing,” writes Karin Kimbrough, Chief Economist at LinkedIn is that “workers across the globe are eager for change and are ‘voting with their feet’ by taking their experience and skills to new roles at an accelerated pace. Globally, the share of members changing roles in October was up 25% compared to the pre-pandemic period in October 2019.”

As a result, this has made it far more difficult for companies to retain top sales talent — an issue that can be frustrating and detrimental to their bottom line.

Why Has Salesperson Turnover Increased?

I touched on the reasoning earlier with the increased desire for sales reps to have more flexible work options and higher pay. But let me unpack this a bit more. According to LinkedIn, the three main reasons for increased salesperson turnover are better compensation (54%), better alignment with employee values (48%), and more opportunities to move up (44%).

It’s clear that elite salespeople in 2022 have far more leverage than they did during the height of the pandemic. This combined with the highest inflation rate in 39 years at 7% has basically created a bidding war that shows no signs of stopping any time soon. That’s why salespeople looking for better compensation is the number one reason for high turnover.

Beyond that, the added leverage today’s sales reps have has resulted in them seeking employers that have matching values and more career advancement opportunities.

How to Handle the Spike in Turnover

This begs the question. What exactly should you do about this trend?

The short answer is to make sure you’re offering competitive pay. Recent reports indicate that the average salesperson’s salary in 2022 is around $60,000. However, those in the top 25% earn closer to $89,000. So that’s a pretty good range to aim for when deciding how much to pay new hires.

Keep in mind, though, that the salesperson’s salary outlook has increased significantly since 2010, so you’ll likely need to keep raising it steadily as time goes on. Besides that, it’s helpful to offer the right benefits, as this can serve as an added incentive to pull in the best and brightest in your industry. I wrote a post about the top 10 benefits today’s salespeople are looking for based on concrete data, and that’s a great starting point.

Here’s an overview for reference.

But what if offering a high salary just isn’t an option?

In that case, I recommend focusing on two key areas as selling points — schedule flexibility and advancement opportunities. With many of today’s top salespeople valuing remote working arrangements, a healthy work-life balance, and the chance for growth, this can be very appealing and give your brand a competitive edge.

Wrapping Up

COVID turned the world on its head in more ways than one. And we’re still feeling the aftershocks long after the pandemic reached its peak.

The bottom line is that salesperson turnover has reached record highs in 2022 and won’t likely change any time soon. But with the right game plan and an understanding of what top reps are looking for, you should still be able to hire elite talent, and more importantly, retain them.

Looking to hire better sales talent faster? See how HireDNA can help using intelligent matching and science-based assessments. 92% of candidates recommended by HireDNA climb to the top of their sales force within the first year and turnover is lowered by an average of 33%.