Comp Engine - Real Time Comp Insights

Compensation

Guide

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I'm excited to introduce our revamped Compensation Guide for 2024! As we continue to shape the future of recruiting, we're dedicated to providing content that's not only informative but also interactive. In this updated guide, you'll find straightforward insights into the changes in sales, marketing, and customer success compensation, all based on the data from the thousands of placements we made last year.

We hope you discover practical value in these updates, and as always, we aim to make your experience engaging and enjoyable. Thank you for choosing us as your partner on this journey, and we look forward to your exploration of the guide as we navigate the dynamic landscape of talent and compensation trends in 2024 together.

A Messsage From Betts Founder and CEO,

Carolyn Betts

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2024 Overview

Will 2023 chaos flow into 2024?

The current risk of under-hiring

Will there be a great resignation 2.0?

Adding to the complexity, a recent study of the top 50 MM/ENT companies revealed a doubling of active candidates in our network compared to the previous year. This surge is attributed to both more intricate sales cycles and how companies have managed layoffs. Contrary to The New York Times article, the great resignation continues in the tech sector, and early 2024 is anticipated to witness a renewed wave of individuals seeking new opportunities.

The reminiscent challenges of the Covid era have returned, squeezing internal recruiting teams grappling with an abundance of talent struggling to find suitable roles for their expertise. This predicament is expected to result in under-hiring in the first or second quarter due to constrained budgets, with companies aiming to play catch-up in the latter half of the year. This hiring delay will, in turn, strain funding efforts, exacerbating challenges in meeting forecasted goals.

2023 proved to be yet another challenging year for the tech startup market, with minimal signs of recovery. Startup hiring needs plummeted by over 50% year-over-year, and investments mirrored this decline, leading to a halving of overall tech startup valuations. However, amidst this turbulence, the latter half of the year witnessed a resurgence in startup hiring, particularly in early-stage and mid-market segments, propelled by the sustained success of larger tech companies and the emergence of Adaptive AI.

Demand Versus
Supply

The demand for Account Executives (AE) is expected to outstrip the available supply, creating a competitive landscape where companies will actively seek qualified professionals for these roles. This scarcity in AE talent is anticipated to intensify in early 2024, posing a considerable obstacle for companies aiming to expand their sales and business development teams.

The Challenge

The Great Resignation 2.0 is Happening

H1 2024

H2 2024

H1 2023

H2 2023

Looking ahead to 2024, it is poised to be the year of the seller, specifically the unicorn seller. Among our current 250 clients, 65% are actively seeking this elusive figure – a seller with the perfect blend of vertical experience, sales motion expertise, proven success, and cultural fit.

Whether it's the initial hire, a new team or segment addition, or a mid-market replacement, companies will grapple with the challenge of securing such indispensable talent.

The rapid shift in the startup landscape has created a substantial gap, as the talent pool has struggled to keep pace, amplifying the difficulty of filling these critical roles.

Finding the Talent

Everybody’s Looking for a Unicorn

Notably, some startups are even bypassing these programs altogether. This shift poses a significant challenge for the years ahead, as the SDR traditionally served as the entry point into Sales and Customer Success.

With fewer SDR opportunities, the influx of new sellers is expected to decline sharply, potentially driving wages for unicorn sellers to unprecedented levels.

Companies are now confronted with the choice of substantial investment in their sellers or facing a potential shortage of qualified talent in the foreseeable future.

Another pivotal theme for 2024 revolves around the role of Sales Development Representative (SDR) programs in the evolving technological landscape. With the accelerated adoption of AI, outbound emailing success plummeting, and cold calling considered outdated for the new generation of SDRs, companies are reassessing their SDR programs.

How Do You Scale Sales Teams Without Entry Level SDR Talent?

Sales

Customer
Success

Marketing

In this guide, we will dissect the trends from 2023 that are expected to persist into 2024.

We'll also explore the emerging trends specific to 2024 and provide detailed insights into the compensation for sales, marketing, and customer success roles. Our breakdown includes the target compensation, ensuring you get the best market breakdown and value for your investment.

Additionally, we will organize roles by timezone, offering a tailored perspective on regional dynamics. Join us as we navigate through the intricate landscape of trends and compensation, arming you with the knowledge to make strategic decisions in the ever-evolving professional arena of 2024.

Tech Startup and
Talent Trends

Market and Hiring Dynamics

Mid-Market Undergoes Restructuring -
Layoffs Are Wrapping Up... Temporarily.

In the past year, nearly all our Mid-Market (MM) partners temporarily halted hiring, flirted with layoffs, and are now gearing up for a shift towards the enterprise in 2024. However, history has shown us that the Enterprise isn't the solution for everyone. The upcoming year, 2024, will be a pivotal moment for Mid-Market companies—either they make their mark or face a breakdown, as growth stagnates and the venture landscape frowns upon prolonged periods of inertia.

The Resurgence of the
Enterprise Unicorn Seller

Aligning seamlessly with the aforementioned Mid-Market trend and what we mentioned in the introduction, the quest for the unicorn seller takes center stage in 2024. Our recent webinar featuring Shane McCauley, Executive in Residence, from Scale Ventures offers a comprehensive exploration of strategies to identify, evaluate, and compensate these exceptional individuals.

In essence, the crux of the matter lies in the universal search for a unique persona, albeit with distinct characteristics. Everyone grapples with overcoming the common hurdles presented by LinkedIn profiles, which often fail to provide substantial insights into the nuances of sales approach, success, and cultural compatibility.

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On Demand Webinar

Hiring for Sales Success 2023

Aligning with Modern Market Demands

A New Generation of AI and Industry Disruptors on the Hunt for First Hires

In the past six months, we've initiated the hiring process for over 105 seed or series A companies, with a whopping 90% falling into two key categories—you've got it, AI and what we term as industry disruptors. These disruptors span a variety of sectors, from manufacturing tech to clean tech and supply chain tech.

The ongoing surge in these innovative startups translates to significant opportunities for the right sales and marketers.

As of the start of 2023, a mere 5% of our clients operated in a fully in-office model, with 25% embracing hybrid arrangements. Fast forward to the end of the year, and the landscape has transformed, with 15% now committed to in-office work full time, and nearly 40% opting for hybrid setups. It's essential to note that these figures represent our client pool, potentially skewed due to the ease of locating remote talent compared to in-office roles.


However, the unmistakable trend, especially for less experienced positions, is a resurgence of the office. Yet, the silver lining remains — plenty of remote options still abound. The choice is yours to make.

In-Office is Back - Embrace it... 

or Not...

Talent and Work Environment Trends

Growth Marketing - Everyone Wants it, 
but Who Holds the Playbook?

The term "growth marketing" has echoed through the corridors of industry buzz for the past 4-5 years, witnessing both ascents and descents in popularity. With the resurgence of events and the decline of email marketing, the quest for a skilled growth marketer is at an all-time high. However, in reality, the pool of candidates who have truly mastered the 2023/2024 demand generation landscape is quite limited. In the last three months alone, we've launched more searches for heads of marketing or heads of growth marketing roles than in the preceding 12 months, aiming to assist this new generation in achieving meaningful scale.

Despite early expectations that 2023 would be the pinnacle year for Customer Success (CS), the reality painted a different picture. Contrary to the anticipation of a surge in focus on retention and substantial growth in CS teams, the number of CS roles observed was less than half of that in 2022. Notably, the prevailing trend mirrored the trajectory of sales, with companies predominantly channeling investments into the Enterprise facet of customer success. As we step into 2024, it appears that this trend is set to persist, with a continued emphasis on investment in the Enterprise side.

Reflecting on Customer Success in 2023

The Changing Role of SDRs in This New Tech Landscape

In this evolving tech landscape, the role of Sales Development Representatives (SDRs) is undergoing a significant transformation, marked by a notable 60% reduction in SDR job opportunities. For college graduates aspiring to break into the tech startup space, the path might seem more challenging than ever.

As of now, the entry into sales, particularly for recent graduates, is facing constraints. The decline in entry-level SDR positions is evident, and unless companies develop comprehensive training programs or begin to feel the pressures of a tightening tech labor market, opportunities for college grads may continue to dwindle.

Perhaps, for the coming year or so, the age-old advice from your parents about being content with any sales job out of college may hold more truth than ever.

Leadership Compensation Stagnant, Anticipated to Persist in 2024

For the past three years—2021, 2022, and 2023—leadership compensation has remained flat, and there's little indication of change on the horizon for 2024. Leaders have faced the challenge of doing more with fewer resources throughout 2023, and the outlook suggests a continuation of this trend into the coming year, without corresponding increases in compensation.

While job security is undoubtedly valuable in a slower tech market, leaders find themselves in a challenging position, grappling with increased responsibilities without commensurate financial recognition. This ongoing squeeze on leadership roles is anticipated to further contribute to burnout and turnover. Frontline managers have felt the impact as well, experiencing a 5-10% dip in compensation, dependent on the role. As we navigate these dynamics, the industry is at a crucial juncture, balancing the realities of a challenging market with the need to support and retain valuable leadership talent.

Job Design is Breaking Down


If there is more than 20% crossover, there is a critical flaw in job design.

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2024 Target Compensation

Target Compensation

Below we outline our target compensation recommendations and the trends behind them.

Target compensation is the Market Rate. It's the benchmark that companies must strive to meet if they want to have an extensive candidate pool and hire rapidly to meet their growth goal.

Falling below this benchmark may result in prolonged hiring timelines and a more limited candidate pool. Conversely, exceeding the benchmark significantly may expand the candidate pool, but returns on investment diminish as compensation moves further beyond the market rate. Striking the right balance is key for achieving an effective and efficient hiring strategy.

Example Target Compensation

Sales

Rule of Thumb

Adjustment for Exceptional Candidates

+20%

Rule of Thumb

Standard SaaS Seller

-10%

Layoff Considerations

This compensation framework for 2024 underscores the dynamic adjustments for exceptional candidates, recognizing the unique value they bring. Additionally, it addresses the sensitive subject of layoffs, outlining expectations for both laid-off and currently employed candidates. The goal is to foster a fair and considerate approach in navigating the challenges of the job market.

Rule of Thumb

Currently Employed: Can Negotiate

+10%

Rule of Thumb

Laid Off Candidates: To Secure Fitting Role in 60 Days

-10%

Target Compensation

SDR (Recent Grad)

SDR (6 Months+)

Account Executive (AE) (0-3 yrs)

Account Executive (AE) (3-5 yrs)

Mid-Market Account Executive (MM AE) (3-5 yrs)

Enterprise Account Executive (EAE) (5-10 yrs)

Sales

SDRs, AEs and EAEs

Compensation by Location

All compensation is listed in thousands of $USD, all timezones are US timezones.

As of now, regional trends have diminished in significance with the continued prevalence of remote work in startup technology companies. However, a potential shift in this dynamic is on the horizon for 2024 as the emphasis on in-office work gains momentum.

The following outlines compensation variations across major hubs and time zones, with a spotlight on San Francisco and New York, which consistently maintain their positions as the most expensive talent markets in North America.

This nuanced perspective highlights the evolving landscape of work arrangements and their impact on compensation structures within the startup technology sector.

Specialization is on the rise, and compensation for specialized roles is on a consistent upward trajectory, even in a softer market. Over the past year, both RevOps and Sales Engineers have witnessed a notable 5% year-over-year increase in compensation.

Simultaneously, Revenue Operations (RevOps) is gaining significance, especially in the face of more intricate buying cycles. The need for improved tracking and analytics has become paramount for organizational success.

This surge in specialization is particularly pronounced as products become more technically intricate, necessitating sales teams to target increasingly complex buyers as they ascend the market.

Sales Engineers (SEs) are now indispensable to the success of sales teams, playing a vital role as products become more technical and complex.

Sales Operations

Sales Operations, Revenue Operations, and Sales Engineers

Compensation by Location

All compensation is listed in thousands of $USD, all timezones are US timezones.

Sales Operations, Revenue Operations,
and Sales Engineers

Sales Leadership

Sales and SDR Managers

In the domain of Sales Leadership, encompassing Sales and Sales Development Representatives (SDR) Managers, compensation has remained stagnant for the second consecutive year. However, leaders find themselves navigating a landscape where they are tasked with achieving more with fewer resources than two years prior.

Anticipated for 2024, this trend is expected to intensify, with companies potentially breaking away from the conventional 50/50 compensation rule. Economic conditions in the tech startup landscape are steering organizations towards slightly higher base salaries than variable components.

This has resulted in a phenomenon known as job design creep, where leaders are increasingly expected to craft playbooks, scale teams, and often take on the responsibility of actively selling, given that hitting quotas has become twice as challenging since 2022.

Sales Leadership

Sales and SDR Managers

Compensation by Location

All compensation is listed in thousands of $USD, all timezones are US timezones.

For VP, C-Suite, please see our Executive Compensation Guide.

Betts General Guidelines

In the competitive realm of Sales Development Representatives (SDRs), Account Executives (AEs), and Enterprise Account Executives (EAEs) compensation for 2024, this framework establishes a baseline with a $100,000 base salary and an On-Target Earnings (OTE) of $100,000 for the average SaaS seller.

Adjustment for Exceptional Candidates

Sales

Customer Success

Customer Success and Account
Management

Despite customer success compensation seeing minimal movement from 2022 to 2023, and with similar expectations for 2024, a notable shift has occurred – Enterprise Customer Success Managers are now more sought after than ever.

Example Target Compensation

In the domain of Customer Success and Account Management, 2023 was anticipated to be a pivotal year for customer success, but it unfolded quite the opposite.

Betts General Guidelines

Enterprise CSM With Over 3 Years Tenure

Rule of Thumb

Higher Compensation Than Target

+10%

This adjustment acknowledges the heightened value and expertise that seasoned Enterprise CSMs bring to the table in navigating the intricate landscape of customer success in the current business environment.

Target Compensation

Customer Success Manager (CSM) (0-3 yrs)

Customer Success Manager (CSM) (3-5 yrs)

Customer Success
Customer Success and Account Management

Compensation by Location

All compensation is listed in thousands of $USD, all timezones are US timezones.

For VP, C-Suite, please see our Executive Compensation Guide.

Customer
Success

Marketing

Content, Demand Generation,
Product and Event Marketing

While marketing compensation held steady amid the turmoil of the past couple of years, there is now a widespread demand for marketers with a wealth of experience. Those who have successfully crafted marketing programs or playbooks during the tumultuous last four years are poised to thrive in more favorable times.

For Content, Demand Generation, Product, and Event Marketing, the latter part of 2022 proved to be challenging for many startups. With email marketing witnessing a decline and events making a tentative return, a prevalent trend has emerged – companies are actively seeking to rebuild or, at the very least, recalibrate their marketing strategies.

Betts General Guidelines

Marketer With Over 3 Years Tenure

Rule of Thumb

Higher Compensation Than Target

+10%

This adjustment recognizes the added value and expertise that seasoned marketers bring to the table.

As events make a comeback, event marketing is experiencing a resurgence, with positions increasing by approximately 5% year-over-year. However, it's essential to note that event marketing positions are still down by about 25% from pre-COVID days.

Marketing
Content, Demand Generation, Product and Event Marketing

Compensation by Location

All compensation is listed in thousands of $USD, all timezones are US timezones.

For VP, C-Suite, please see our Executive Compensation Guide.

Marketing

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as a Service

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