Recruiting in the general SaaS (Software as a Service) sector throughout 2024 has been defined by caution, renewed focus and a growing demand for candidates with specific skills. Compared to the talent acquisition trends seen with solution providers serving more specific industries, enterprise software companies are taking a much more measured approach centered around sourcing tech sales unicorns.
In this blog, we will dive deeper into these developments and how these will impact SaaS go-to-market (GTM) hiring going forward, and how Betts Recruiting will help you refine your recruiting strategy to track down the right fit candidate that aligns with your sales motion:
State of SaaS Recruiting in 2024
The entire technology sector is in a bit of a crossroads stage in 2024, especially when it comes to talent acquisition strategies. A discussion of economic uncertainties and of layoff rounds across the industry is almost inevitable, as is a comparison to hiring trends during and before the 2020 pandemic. The digital side of tech went through a relative explosion in headcount by 2021, as SaaS firms sought to hit new revenue goals by scaling their sales and other GTM teams, in expectation of a mass shift to remote work and growth in demand for software to maintain productivity. When the economy slowed down and solution buyers became much more cautious, it caused technology companies of all sizes to rethink their go-to-market strategy.
Demand for Specialized Sales Talent in SaaS
Recruiting in the technology sector in 2024 is being driven primarily by one top trend – the search for the right kind of talent with the right skill sets and experience required by a company’s sales motion. Historically, SaaS firms from new startups to established enterprises have looked for variations of the same generalist in tech sales; the current market has forced an increasing number of tech orgs to seek out more seasoned candidates with knowledge and skill specialization. This trend is especially noticeable with enterprise software and other general SaaS vendors – where firms serving other markets average between 30% to 40% interview to placement rates, these orgs usually hire only 5% to 10% of candidates they meet with.
The Search for Unicorn Sellers in Tech
The search for specialized sales talent most often takes the form of sourcing a company’s “unicorn seller” to help lock down deals. These are candidates who align perfectly with your organization’s specific sales motion and culture, as well as bring the level of experience, knowledge and skills your firm needs to engage with your target market and speak to the needs of decision-makers. This shift towards quality over quantity in hiring reflects a more strategic approach to talent acquisition in the SaaS space.
A unicorn seller typically possesses:
- Experience with the company’s target market(s)
- Alignment with the existing sales motion
- Cultural fit with the organization
- Relevant technical knowledge
- Proven track record in SaaS sales
Key Trends Shaping SaaS Recruiting
Here are the top trends driving the recruiting search for unicorn sellers in SaaS:
Sales Motion Pivoting & Alignment
In basic terms, a sales motion is defined as how, where and to whom you sell – everything that makes up your go-to-market DNA, essentially. With economic factors affecting software buying patterns and behaviors, obviously sales motions in SaaS are adapting to meet the challenges of the current market as mentioned previously in this blog. This also means reevaluating what type of GTM candidates need to be recruited to fit this new approach, i.e., what does your unicorn seller look like?
The Rise of the Technical Seller
An important factor in defining your sales unicorn type is identifying what exactly you need from a new hire to close deals. Because of the growing needs in tech, we have seen the rise of what we call the “technical seller” – someone who combines in-depth product knowledge with strong sales skills, allowing them to more effectively communicate the value of sophisticated SaaS solutions to prospects and existing clients. This trend is particularly evident in the increasing importance of roles like Sales Engineers (SEs) and the evolution of traditional tech sales roles like Account Executives (AEs) that includes a greater expectation of familiarity with key functionality points.
New Rules & Gaps in Compensation for Tech Sales & Marketing
As technology companies focus on hiring unicorn sellers and other more specialized talent, traditional compensation models are being reevaluated, which includes a growing gap in salary rates between generalists and those with specific skills or industry-specific experience. For example, an experienced technical seller that aligns with a company’s sales motion can expect to earn up to 20% over the average rate for the job, while someone with only general SaaS experience may expect 10% below the average salary for that title. Understanding these new compensation dynamics is crucial for effectively attracting and securing the right talent in the current SaaS recruiting environment.
Best Practices for SaaS Recruiting in 2024
With all of the different external and internal factors driving new changes in the tech sector, here are some of our recommended best practices for refining your recruiting approach in SaaS for 2024:
Define Your Unicorn Seller
Defining your unicorn seller is a critical first step in refining your SaaS recruiting process for 2024 and beyond. This profile should go beyond basic qualifications to include specific experiences, skills, and personality traits that align with your company’s goals and challenges. Start by identifying the key attributes that make a sales professional successful within your organization’s unique context. Collaborate with your sales leadership and top performers to create a detailed profile of your ideal candidate.
Leverage the Right Data & Toolsets
The new landscape of SaaS sales recruiting requires leveraging a data-driven approach to talent acquisition to help mitigate costs and making hiring a process centered around ROI instead of a cost sink. Take advantage of insights and reporting delivered by compensation benchmarking tools, or streamline your sourcing with a hiring platform tailored for your market. By integrating analytics and automation into your recruiting and onboarding process, you can also predict future hiring needs and proactively address potential talent gaps.
Invest in Employee Development
As the demand for candidates with the right skills and knowledge continues to grow, SaaS orgs that invest in ongoing training and development for their existing sales and marketing teams can offset the costs of sourcing and recruiting unicorn talent. Additionally, creating clear career progression paths and opportunities for professional growth through upskilling and coaching will help make your firm more attractive to top performers who are prioritizing growing with a stable organization alongside compensation competitiveness.
Unlock the Future of SaaS Recruiting with Betts
The future of talent acquisition in SaaS is changing in complex ways, but Betts Recruiting will help you navigate these new trends and scale your GTM hiring for your next stage of growth. By partnering with us, you gain access to not only our toolsets like our modern hiring platform, Betts Connect, and its extensive network of pre-qualified candidates, but also our deep industry insights and experience in the tech startup space.
Contact Betts here to leverage our expertise, insights and network of pre-vetted candidates experienced in tech, and take your talent acquisition efforts to the next level.