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SDR Employee Turnover Rate

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From recruitment expenses to training, compensation, benefits and more, maintaining an in-house sales team is costly.

Why Are All My Sales Development Reps Leaving?

Let’s face it: hiring and training new Sales Development Representatives (SDRs) is an investment — and an expensive one at that. 

From recruitment expenses to training, compensation, benefits and more, maintaining an in-house sales team is costly. And in today’s wild pandemic altering recruitment market, we’re no longer seeing the same returns on investment.

1 in 10 companies
experience annual attrition
rates higher than 55%

Harvard Business Review found that attrition on sales teams is nearly twice the rate of the overall labor force. High turnover, lengthy training or “ramping up” periods, new work from home desires and widespread poaching means B2B software companies in particular have pivoted away from “how to hire the most talented sales reps” to “what can we do about sales turnover?”

Even if you’re paying top dollar for your recruits, who you hope will stay on with your company for long enough to pan out, you must provide constant oversight and perks to retain talent.

In this article, we’ll cover:

  • SDR recruitment and retention in 2021 by the numbers
  • What you can do about sales turnover
  • A new approach to building out a sales team


SDR recruitment and retention in 2021 by the numbers

The Bureau of Labor Statistics has reported that the turnover rate in 2021 is 57.3% – and while that accounts for overall turnover – multiple companies have been reporting similarly high figures for their sales teams.

  • 34% annual attrition
    The Bridge Group Inc. surveyed 342 B2B SaaS companies and found an industry average annual attrition rate of 34%. More than a third of the SDR employee base. Even more shocking, 1 in 10 companies experience annual attrition rates higher than 55%. Over 50% of companies experienced higher SDR turnover rate in 2020 and that trend is only increasing in 2021.
  • 5 months
    On average, it takes about 5 months for SDRs to become effective at their job and begin delivering results for their company. Factor this in with the annual attrition rate and this means that a third of your new hires will only deliver returns for 7 months before leaving.
  • 89% leave due to compensation
    Of the SDRs who voluntarily leave their company, approximately 89% leave due to compensation — driving up the base amount or perks you must offer quality team members. Only 17.6% of sales reps rate their job satisfaction as outstanding.


And then, we add in the pandemic.

  •  2020
    The last two years have ushered in new workplace norms — specifically the remote workplace. Almost all SDRs are looking to work from home in 2021, and working remotely has opened doors to a much larger job market. Talented sales people no longer need to live close to where they work — they can work for any company anywhere willing to offer a work-from-home policy. Again, this increases the competitive nature of the hiring market, opens the door to poaching of talented employees, and drives up the cost of maintaining an in-house team.
  • 15 months
    Burnout is very high among SDRs, who are each tasked with the job of prospecting, qualifying leads, and driving your sales machine. On average, SDRs report feeling ‘burnt out’ after 15 months (yes, only about 10 months after they’re fully up to speed on your company and delivering strong results).


All of this turnover, constant hiring and ongoing poaching creates a messy situation for B2B SaaS companies.


How to reduce employee turnover in your sales teams

Google this question anywhere online and you’ll find a slew of related articles and results. Most of them will recommend the following advice:

  • Hire and train the right sales reps
  • Prioritize culture and benefit perks
  • Proactively manage rep performance
  • Hire even MORE experienced reps…


Which leads to the question — so how do you hire and retain a team of talented SDRs? 

To which we pose the question: just because an in-house sales team was a previous business model, does it make sense in 2021?


Do in-house sales teams make sense in 2021?

The investment in a team of SDRs may not yield the reliable growth your software company is looking for. With resourcing challenges and expenses, you need a reliable option to drive qualified leads, so your team can focus on closing. 

Enter outsourcing your sales needs. 

In the past, most people associated outsourcing sales with only offshore options — but did you know there are a growing number of companies that specialize in helping you scale your business?


A new approach to building out a sales team

Here’s our approach – partner with us

Here at Hyperio.ai we know the B2B software industry, and we know how to sell your product. 

Cut the hassle and stress of wondering how you’re going to replace the next three sales reps that have just sent their resume out to the competition this week. 

Whether you’re looking to penetrate a new market, grow market share or target white space growth, we have the expertise to deliver sales-qualified leads to your digital doorstep — without the turnover. 

We combine B2B software expertise, best practices and proprietary artificial intelligence (AI) technology to drive results. 


Are you looking for opportunities to grow sales without hiring new SDRs?
Talk to our team today.

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