Building a tech hiring strategy for go-to-market (GTM) jobs in tech today faces many challenges, from limited budgets to navigating unicorn seller recruitment. Enter Comp Engine by Betts, a powerful tool designed to provide hiring managers at technology companies with the compensation insights they need to make data-driven recruiting decisions and attract unicorn talent for sales, marketing and other GTM roles.
In this blog, we will dive deeper into the biggest trends impacting the evolution of salary rates and benefits packages in tech, and how to to leverage our new Comp Engine to meet them head-on:
The Future of Compensation Planning in Tech
The future of compensation planning in the technology sector will be increasingly defined by more data-driven decision-making, improved transparency for on-target earnings (OTE, or total role comp), and the need for agility in sourcing top performers from the available talent pool. Tech companies have had to adapt to a myriad of changes in recent years from the Great Resignation to COVID-19, and from a troubled economy and several rounds of layoffs to the rise of Generative AI. These changes have had a profound impact on comp expectations and market realities, creating new rules for hiring top performers versus non-unicorn candidates.
Unicorn Sellers & the New Tech Compensation Rules
One of the key trends shaping technology recruiting in 2024 is the growing need for many SaaS companies to find their unicorn seller – that rarer, specialized candidate who already aligns with your sales motion and can hit the ground running to start driving revenue growth without needing more training. These tech sales pros are the keys to achieving scalability for many startups that are competing in crowded markets, must grab the attention of prospects quickly, and need to communicate the critical value points of their solutions.
Of course, specific talent means specific compensation expectations; in our Betts Compensation Guide and other planning resources, we provide guidance on our recommended target rate to decrease your Time-to-Hire (TTH) for a given title and have also included adjusted rates for unicorn sellers. You can leverage these resources in conjunction with the Comp Engine and other tools like the Betts Cost-per-Hire Calculator to help you:
- Identify salary averages for different GTM roles and calculate the premium to add for your unicorn seller
- Understand how factors like location, experience, and talent pool availability are impacting rates
- Craft tailored offers that balance your budget with candidate expectations
- Leverage Betts Connect and RaaS (Recruitment as a Service) to shorten TTH and consolidate outsourced recruiting costs
Building a Data-informed Hiring Culture
Creating a data-informed hiring culture starts with integrating target KPIs (key performance indicators) and other driving metrics into your recruitment process, and leveraging modern tools to capture these insights. The Comp Engine provides access to granular data on compensation trends, allowing hiring managers to make evidence-based decisions that align with market realities. For example, calculating for performance-based pay can help ensure that you are not overextending financially with your salary pitch while still offering competitive packages.
By empowering your hiring managers with robust compensation insights, you can cultivate a data-driven hiring culture that:
- Aligns compensation strategies with overall business goals
- Develops standardized processes for hiring offers to your unicorn seller
- Creates a feedback loop where hiring outcomes inform future planning
Building Predictive Hiring Metrics
The additional long-term value of using the Comp Engine over time will be the ability to help anticipate trends and pivot your compensation planning to get ahead of new developments, including changes to rates for your top GTM roles. By keeping track of how metrics evolve for each data point or filter dimension you will be able to get ahead of shifts as they occur and adjust your comp plan accordingly. For example, if the target salary rate for Account Executives (AEs) in New York or another location – or within a certain industry – begins to trend upwards you will be better positioned to develop a more attractive compensation pitch.
Beyond Salary: Crafting an Attractive Comp Package
While salary is a critical component of any compensation package, it is far from the only factor that will attract top talent. A comprehensive comp package includes not only base pay and bonuses but also equity, benefits and other perks that align with the candidate’s personal and professional goals.
To ensure you are able to providing competitive offers for your target unicorn talent, consider:
- Structuring performance-based bonuses and incentives that motivate top talent
- Designing equity compensation plans that align employee and company interests
- Offering unique perks and benefits that address the evolving needs of your workforce
Creative Compensation Tactics for Budget-Conscious Startups
When market-rate salaries are out of reach, startups can use the Comp Engine to inform creative compensation strategies leveraging OTE and perk improvements:
- Equity Compensation: Offer stock options or company equity to give employees a stake in future success
- Signing & Retention Bonuses: Use one-time bonuses to attract talent, or encourage retention when rates begin shifting
- Expense Coverage: Cover pre-tax expenses like parking, transit passes or other travel costs
- Professional Development: Invest in the growth of your employees by offering training, mentorship programs or other professional development opportunities
- Performance-based Pay: Use Comp Engine data to inform performance incentives, tying compensation to specific, scalable metrics
Practical Tips for Startups Using the Comp Engine
For startups, maximizing the benefits of the Comp Engine requires a strategic approach. Here are some practical tips to get the most out of this powerful tool:
- Regularly Update Your Compensation Data: Compensation trends can shift quickly, especially in tech. Make it a habit to regularly check the Comp Engine for the latest data to ensure your offers remain competitive
- Use Data to Customize Comp Offers: Leverage the Comp Engine’s detailed insights to tailor compensation packages to the specific needs and expectations of each candidate, particularly those in those roles with high demand for tech sales unicorns
- Integrate the Comp Engine with Your Existing Hiring Workflows: Access the Comp Engine directly through your Betts Connect account to seamlessly view compensation data alongside candidate profiles
- Establish Regular Compensation Review Processes: Schedule monthly or quarterly check-ins to monitor changes in the market and identify opportunities to adjust your offers
- Leverage Geo-informed Remote Hiring Strategies: Use the Comp Engine’s location-based data to identify emerging talent hubs and structure compensation packages that balance your hiring budget with candidate availability locally or in other locations
- Develop Unique, Data-backed Compensation Packages: Stand out from the competition by crafting tailored total rewards programs that address the specific needs and motivations of your target candidates
Sign Up for the Comp Engine by Betts & Get Started
Ready to refine your hiring strategy and gain a competitive edge in the talent market? Sign up for the Comp Engine by Betts and gain access to the insights you need to build your unicorn GTM team and scale up your company’s success. With Comp Engine by Betts, you can filter compensation data by job title, years of experience, industry and location to ensure insights are tailored to you.
Contact Betts here to learn more about how we can revolutionize your tech recruiting and compensation planning processes.
