The tech SDR (sales development representative) salary and benefits trends we have noticed over the past year match up with shifts impacting the industry, with overall compensation decreasing for this role. However, technology companies are still going through a time of change and we encourage employers to stay on top of future expectations when it comes to hiring. For our recommended target rates for SDRs and other sales, marketing and customer success roles in 2023, check out our updated Compensation Guide here.
Continue reading to see the top SDR compensation trends in tech and some of the factors defining them:
SDR Compensation Trends to Watch
Sales development reps are responsible for generating leads and creating a strong pipeline that AEs (account executives) and other salespeople can take advantage of. This role became a priority for SaaS companies to scale up as worldwide transitions to remote work created a huge demand for digital tools.
We have seen most of the sector scale back down certain jobs in sales and marketing over 2022 as those demands changed again, including SDRs. This has contributed the biggest impact on salaries for the role in 2023, though we expect rates to go up again once the job market rebounds before the end of the year.
Here are some of the top trends to watch that are affecting SDR salaries in tech:
Tech SDR Salaries for 2023 Dropped
- One of the most notable trends for SDR compensation in technology was that the average rate dropped from its 2021 peak by about $5000 per hire. The 2023 base salary range ($50,000 – $75,000) still stands a little higher than pre-pandemic normals, but less than the jump we saw from 2020 on.
Experience Equals Bigger Compensation
- While entry-level salaries decreased for nearly every sales and marketing role in tech, those with more experience typically saw better compensation rates. Some employers were also more willing to negotiate listed OTE (on-tracking earnings) for SDRs that had a certain amount of experience, both in number of years worked and familiarity with specific industries as clients.
SaaS SDRs Are Still Paid More
- Despite the drop in average salary for tech SDRs, overall they still have a bigger earning potential than they would in most other sectors. SaaS companies – especially startups – are still relying on strong sales development to drive growth in a competitive market, and remain willing to invest in new hires here to maintain their pipelines.
More Comprehensive Benefits
- In addition to salaries, tech companies also often offer comprehensive benefits plans to attract the right SDR candidates. We have seen an increase in organizations that are including health insurance, 401(k) plans, stock and equity options, unlimited paid time off, commuter benefits, gym stipends and more in their recruiting pitch to stay competitive – AND more candidates are prioritizing these too.
Hiring Platforms Give Salary Visibility
- Recruiting has gone increasingly digital on both sides of the line, with candidates and recruiters both leveraging systems like hiring platforms to collect data. This includes market-leading compensation rates, which has added a new layer of visibility and transparency when negotiating salary for SDRs.
Hybrid vs Remote
- The majority of sales roles in our network have transitioned to remote work, though we are starting to see some shifts in this area among companies that started returning to the office in 2022. However, it is interesting to note that remote SDRs see a slightly higher compensation on average. This is likely to change as more companies are showing preference for hybrid schedules.
Keeping Up with SDR Salary Trends
We expect salary and benefits trends to change again for many go-to-market (GTM) roles in tech by 2024, including SDRs. To stay competitive, you need to stay ahead of the current direction and be positioned to adapt for the changes of tomorrow. Our hiring platform, Betts Connect, will help you keep up to date with what candidates are looking for and fill your open jobs when the time comes to hire.
Betts Connect Can Help
If you’re building go-to-market teams, or seeking your next opportunity, Betts Connect can help. After more than a decade of building relationships with the world’s most innovative companies and professionals, you can now access this network with Connect. As the only go-to-market recruiting platform built by recruiters and powered by recruiters, Connect enables you to search through a network of vetted go-to-market professionals actively looking for their next opportunity, and reduce time to hire, save money, and spend more time on your growth strategy. Plus, our clients see ROI in less than 3 months.
In addition, our experienced teams always know the most up to date information on compensation and the working arrangements that top professionals are seeking from a future employer. If you have any questions, please reach out. We look forward to speaking with you!
Contact us here for a demo of Connect and learn more about this recruiting platform.