Dear SaaStr: Why is Marc Benioff Complaining About Worker Productivity?
I think a lot of folks are struggling with the ramifications of what happened in hiring from mid-2020 to early 2022:
- Almost everyone dramatically increased hiring
- The hiring bar was often lowered
- Compensation went way up
This had the net effect that almost everyone in tech ended up with 50% more headcount than they needed going into 2023, often paid 20%-30% more than before … and importantly, in sales, it often got “worse”, with lower attainment.
Benioff said 50% of the AEs close 95% of the business, but it’s worse than that, since it’s biased toward more tenured employees. Newer employees are struggling now to close anything.
So maybe he shouldn’t have said this on Slack. He didn’t say it publically, but he did say it to the whole company (apparently). He might have been expressing too much frustration in an attempt to be transparent. It’s a “mistake” a lot of CEOs make.
But it’s a situation almost everyone is in, to some extent.
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Jason Lemkin, Khareem Sudlow
