Last month, I just put together a presentation for a handful of VC-backed portfolio companies on building attrition into SDR planning. The broader topic was what happens to your 2024 SDR pipeline number if your quit rate spikes. You can watch a shorter video version of the talk here.
For many companies in the audience, the SDR operating plan was built off of 2023. “We did $20M new logo ARR last year, want to grow by 30%, goal for this year is $26. We need sales development to source 25% of that so we need 2 more SDRs.”
This is a very common aspect of the headcount planning process but what is often overlooked are the underlying assumptions of rep attrition. If 2024 attrition mirrors 2023, no problem. But what if it doesn’t? And is that even a reasonable expectation?
Turning to the BLS Quits Data
We’re coming off of 15 months of the lowest quit rate that we’ve seen in a decade. With layoffs being broadly publicized and stiffer market conditions keeping people in role longer, voluntary attrition (aka quits) dropped significantly during Q4’22-Q4’23.Read More