A Newsletter from Aura Workforce Analytics: Sales Workforce Analysis
An effective sales organization is key to successfully building an enterprise. In fact, data indicates that many software and technology companies in recent years are growing their sales teams faster than any other function.
In this article, we look into sales talent in the software and technology industry: How quickly are sales organizations growing relative to other functions? In which sectors are sales roles increasing most rapidly? What are some of the characteristics of top-growth firms’ sales forces?
In the dynamic landscape of software and technology companies, where the speed of innovation reigns supreme, and market trends evolve rapidly, a company's sales organization is crucial to its success. A sales team is the linchpin that bridges the gap between technological prowess and market demand. Software and technology solutions are often quite complex, necessitating personalized consultation and support.
If developed and deployed effectively, a sales force should facilitate the dissemination of products with the right level of support to the proper audience, while also cultivating lasting relationships with clients. A robust sales infrastructure becomes imperative for companies to navigate the intricacies of the market, capitalize on emerging opportunities, and maintain a competitive edge in the industry.
A look into sales growth relative to other software and technology functions and sales force trends
Employment data from Aura highlight the importance of building a sales organization in the post-COVID economy. For US-based technology companies, over the past three years, the growth trajectory of sales functions stands out prominently relative to other functions, growing at a compounded annual growth rate of 22.2%. As firms evaluate their resource allocation and aspire to stay on pace with competitors, it is especially valuable to consider the efficiency with which they develop and deploy sales resources.
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A sector-level view of sales force trends
Within the software and technology industry are various markets with numerous products and players. Key sectors include:
- Computer and Network Security
- Computer Software
- Information Services
- Internet
- Information Technology and Services
Computer and Network Security provide vital protection against cyber threats, while Computer Software offers a wide range of applications for consumers and businesses. Information Services deliver valuable insights and analytics, while the internet sector enables global connectivity and access to information.
Information Technology and Services also provide essential infrastructure and support for businesses to leverage technology effectively. These markets drive innovation, redefine business processes, and shape the digital world.
Workforce data from Aura showcase the steep annual sales force growth over three years across these key industry sectors in the United States. Computer and Network Security lead with an impressive 38% growth, followed closely by computer software at 26%. The information services and Internet sectors also demonstrate significant growth rates of 24% and 20%, respectively. The information technology and services sector shows steady growth at 19%. This overview highlights the dynamic nature of the technology industry and the diverse opportunities for sales force expansion.
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Companies to keep an eye on
Given the importance of scaling a sales team to drive revenue growth, increases in a sales force may signal corporate booms or busts.In recent years, despite economic headwinds, some startups in the highlighted sectors have rapidly expanded their sales teams. They have leveraged innovation and agility to capitalize on market opportunities. By swiftly acquiring talent, training effectively, and strategically deploying resources, these companies have met growing customer demand and penetrated new markets. This rapid growth highlights their proactive approach to establishing a market presence and underscores their potential as a significant industry player.
Here are the top 10 tech companies with the most sales force growth over the past 3 years:
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Note: Only companies with sales organizations >50 included
A view of these companies’ sales talent
Of course, every company will have different talent acquisition strategies for various reasons. Factors such as product complexity, technical elements, sales cycle, and customer type will influence how much an organization prioritizes education level, technical expertise, and overall sales experience when hiring salespeople. A look into a few of these elements for the firms listed above sheds light on the characteristics each firm emphasizes in its recruiting strategy. Note that additional analysis would be key to identifying the particular drivers for the variations observed.
Data from Aura provide insights into the distribution of degree levels among employees across the above companies. Bachelor's degrees are the most prevalent across the set, ranging from 48.6% to 78.7%, indicating a strong preference for undergraduate education in these organizations.
However, notable variations exist in the distribution of other degree levels. For instance, Ramped stands out with a significantly higher proportion of employees holding associate degrees (20.8%) than other companies. This could suggest a focus on hiring employees with specialized technical skills attainable through associate degree programs. On the other hand, Kyndryl and Tempmee have relatively higher percentages of employees with MBA degrees (24.3% and 16.9%, respectively), indicating a strategic emphasis on business and management education within these companies.
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A look into the average overall career tenure of sales employees at each company shows a wide distribution. Kyndryl stands out with the highest tenure at 22.8 years, which may be attributed to its spin-out from IBM, indicating a stable workforce inherited from its parent company. Conversely, Tempmee records the lowest tenure at 7.2 years, which could be driven by the sales cycle, given their primary customers are dental offices rather than massive enterprises.
In conclusion, sales organizations play a crucial role in the success and growth of software and technology firms, serving as the vital link between innovation and market demand. With a compounded annual growth rate outpacing other functions, the importance of a strong sales infrastructure is evident.
Notable growth rates across sectors, such as 38% in computer and network security and 26% in computer software, emphasize the need for scaling sales teams to seize market opportunities. Additionally, examining sales organizations at the company level can offer insights into the company's overall strategy and nature.
At Aura, we support this type of analysis by making workforce intelligence readily available. This enables the comparison of relevant metrics between cohorts of companies and candidates to develop a deeper understanding of workforce trends and drive meaningful change.
Cragun Liston
Sales Lead, Aura
Sales Lead, Aura
