2024 SaaS Sales Recruiting Challenges: Must-Know Job Market Update
Mastering SaaS Sales Hiring in Today’s Shifting Economy
The job market has been unpredictable, and building a strong sales team right now can be frustrating. If you’re feeling the pressure, you’re not alone—many sales leaders are facing the same challenge.
Here’s what you’re up against…
1. Voluntary Quit Rates Slowing, but Recent Study Finds Employees’ Desire to Quit Remains High
Frequent job hopping has become the new normal, keeping SaaS executives laser-focused on retention. Yet, despite their best efforts, the number of sales reps sticking around for more than three years is still pretty slim.
According to the BLS, voluntary quit rates in the private sector dipped to 2.3% as of June 2024. A ResumeBuilder.com survey of 1,000 workers aged 18 and up, released on July 10th, 2024, shows that U.S. workers between 25 and 34 are ‘somewhat’ or ‘highly’ likely to jump ship.
Topping the list of reasons for this year’s great exodus are the classics: Compensation (56%) and Benefits (44%). But this year’s curveball? Work stress (43%) has surged into the top three, making a surprising appearance.
Other standard reasons, like a lack of advancement opportunities, heavy workloads, and family care demands, also made the cut.
Two new factors are coming into play: a growing preference for easier roles and companies pushing for the adoption of new technology. While the usual challenges remain, these shifts highlight how employees’ priorities are changing in the workplace.
2. Compensation Rates Still Rising
There’s no question that salespeople are driven by earning potential. While commissions are a big draw, even base salaries are being impacted by inflation.
Although pay growth has slowed, it hasn’t stopped. The latest ADP report (July 2024) shows that annual pay is up 4.8% year-over-year. Professional “position pickers” are seeing even bigger gains, with a 7.2% increase in compensation, while employees who stay put are enjoying a 4.8% boost.
Let’s face it, the data still favors employees who exit stage left for better pay. However, this can be countered with strong sales leadership, a healthy sales culture, and a winning compensation plan.
3. Elevated Inflation Continues
One of the biggest obstacles employers face is the ongoing battle with inflation.
The BLS reports that inflation has slowed to 3% for the 12 months ending in June 2024. But let’s get real—even at a slower pace, it still stings.
As the job market cools, star employees start to think twice before making a getaway for unlimited expense accounts, golf outings at exclusive courses, and President’s Club trips in Belize—because suddenly, those offers sound just a little too good to be true.
In this market, making a job change can feel like betting on a long shot. This makes attracting top talent even trickier for small and mid-sized companies.
4. Employee Engagement Remains at Record Lows
Low employee engagement has wiped out $8.9 trillion in global GDP, according to Gallup. Disengaged teams don’t just affect morale—they significantly impact the bottom line, accounting for a 9% loss in global GDP. If employee engagement isn’t a priority, you risk serious damage to your business performance.
5. New Revenue: Strategic Pipeline Building
High-volume pipeline building is becoming less effective, especially for teams used to thriving in stronger markets. The approach feels outdated, and AI-driven sales enablement tools are stuck pushing strategies that no longer work, often alienating potential customers.
The market has shifted. Now is the time to focus on strategic, targeted efforts and to bring in top-tier talent. Average performers won’t turn things around in a tough market—you need A-players who can create wins in challenging conditions.
While others struggle with underperforming teams, you can build a strong, results-driven sales force. Don’t settle—secure the best talent and stay ahead of the competition.
