SDR compensation trends for the tech sector are reflecting how the industry is positioning itself in 2024. The role of the Sales Development Representative was hugely impacted by the market shifts in technology over the previous year, perhaps more than any other go-to-market (GTM) job in the SaaS space, and this affected both earning and hiring rates across the board.
Betts has compiled our findings from over the past year into our annual Compensation Guide here, and will dive deeper into the biggest trends affecting average salaries for SDRs in the tech industry in this blog:
Navigating Compensation and Hiring Trends for SDRs
The current hiring landscape in technology is starkly reflected in how Sales Development is evolving across the market. In the startup world, recruitment for SDRs dropped by half compared to previous years – namely in 2020 to 2021, when widespread digital transformation caused the SaaS market to explode. Now, as most of the industry outside of Generative AI and a few other disruptors is scaling back on their headcount, the Sales Development Representative is caught up in a period of broad restructuring and reevaluation.
Part of this shift is a growing demand for more experienced GTM professionals that come already equipped with the knowledge and soft skills that early stage startups need and don’t have the time or resources to train – what we call the “unicorn seller.” This adds another layer of complexity when calculating compensation for entry-level and mid-tier sales roles. In the 2024 Guide, we outline new rules for adjusting rates based on how closely or distantly a candidate is from this benchmark.
Average Salary Rate for SDRs in 2024
Salary averages for Sales and Business Development Roles in tech stabilized over 2022 to 2023 after peaking in the immediate wake of the pandemic. This means that rates generally leveled out from dropping between 5% to 10% in the previous year.
The average base salary for an entry-level SDR ranged from $50,000 – $65,000 across all time zones. Those with at least 6 months of prior experience saw a slightly bigger average of $55,000 – $75,000. OTE (on-target earnings) usually ranged from 33% – 40% of base compensation.
| NY / SF | Pacific | Mountain | Central | Eastern | Remote | |
| Base | OTE | Base | OTE | Base | OTE | Base | OTE | Base | OTE | Base | OTE | |
| SDR (entry level) | 50-65 | 75-90 | 50-65 | 75-90 | 50-65 | 65-80 | 50-65 | 65-80 | 50-65 | 75-90 | 50-70 | 70-90 |
| SDR (6 months) | 60-75 | 80-100 | 60-75 | 80-100 | 55-70 | 70-90 | 55-70 | 70-90 | 60-75 | 80-100 | 60-75 | 80-100 |
New Compensation Targets for SaaS Sales
With every release of the Betts Compensation Guide, we include target benchmarks for attracting top talent for a given role. However, with the many evolving developments in the market, the latest Guide also includes new Rules of Thumb for adjusting salary offers according to additional factors. When hiring SDRs in 2024, consider these new guiding targets:
- Your Unicorn Seller – If a candidate fits your unicorn seller persona, compensation will need to be adjusted by an additional 20%
- Currently Employed – If a candidate is currently employed, compensation will need to be up to 10% more than their current salary
- Standard SaaS Seller – Sales candidates that are not unicorn sellers could see up to 10% less than the target salary rate
- Recently Laid Off – Candidates that have been laid off trying to be employed again within 60 days could see up to 10% less than the target salary rate
The Future of Sales Development Jobs in Tech
2023 was a year defined by economic uncertainty and reevaluation, and while 2024 shows signs of recovery, for the technology industry there are already major changes underway. Sales and Business Development functions are one such area going through significant disruption, with a variety of factors contributing to the nosedive in hiring for SDRs among SaaS startups. These developments are going to have long-term effects on talent acquisition in tech for years to come, and compensation rates are likely to go through another major shift as a result.
AEs, SDRs and Entry-level Sales in the New Tech Landscape
In addition to scaling back on recruitment, many organizations have also pulled back on or outright eliminated their SDR programs. These teams have historically been a major pipeline for entry-level college graduates starting their careers in tech sales before moving up to an Account Executive (AE) position with better pay potential. With the greater emphasis on experience and specialization in the current market, there is less need for a development program to train the inexperienced.
Additionally – or consequentially – many of the lead generation and management responsibilities of SDRs are being folded into the duties of AEs. We saw traditional sales channels and job design break down throughout 2023, and force Sales Managers and executives to jump back into selling while Account Executives had to take on lead gen in many cases.
AI and Tech Disruptors Impacting Hiring
Generative AI is playing two key roles when it comes to tech sales hiring:
- Gen AI was the leader in GTM hiring among Seed & Series A technology startups
- AI is being increasingly used to automate lead gen activities like email writing & outreach
The second trend is having the most impact on SDR hiring and compensation, as many organizations are trying to leverage new tools to scale repetitive lead generation tasks while AEs take on the core sales-related parts. This is a bit of a paradox, as this approach presents a lot of risks to scalability while offering future opportunities if the automation proves effective. Time will tell if this is viable long-term, but in the meantime it is going to fundamentally transform the role of SDRs.
Stay on Top of SDR Compensation Trends with Betts Recruiting
The market is evolving and even these trends are likely to change, with the role of the SDR likely to go through another transformation in the midst of this shake-up. Working with Betts Recruiting will empower you to stay on top of these developments, and our expert recruiters will ensure that you find your right fit candidate in a shorter time and control your Cost-Per-Hire (CPH).
Contact Betts today and get started on your search for your unicorn seller, armed with the latest compensation data and more to help you secure your perfect fit candidate.