Silent SaaS Hiring Crisis: Why 85% of Companies Can't Find Go-to-Market Leaders

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Read time: 3 minutes.

Welcome to the 170th edition of The Growth Elements Newsletter. Every Monday and sometimes on Thursday, I write an essay on growth metrics & experiments and business case studies.

Today’s piece is for 8,000+ founders, operators, and leaders from businesses such as Shopify, Google, Hubspot, Zoho, Freshworks, Servcorp, Zomato, Postman, Razorpay and Zoom.

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Read one of the Tweets: "We've been trying to hire a VP of Sales for 8 months. 47 interviews, 3 final candidates, zero hires. What's going on?"

Here's what: The biggest SaaS hiring crisis in a decade is happening quietly.

Numbers Don't Lie

The paradox:

• 180K tech job cuts in 2025, but SaaS companies still can't hire qualified leaders​

• 85% of business applications will be SaaS-based by the end of 2025​

• Demand for experienced SaaS GTM talent up 340% since 2023

What's actually happening:

• Mass layoffs created a flood of junior talent, not senior leaders

• Experienced SaaS operators are either building their own companies or going fractional

• Companies want unicorn profiles: growth experience + startup agility + enterprise credibility

Why Traditional Hiring Is Broken for SaaS

The skill gap reality:

• Most "experienced" sales leaders come from traditional software, not subscription models

• Marketing leaders understand lead gen, not lifecycle marketing and retention

• Customer success managers focus on satisfaction, not expansion revenue

From my experience: 90% of SaaS hiring failures happen because founders hire for traditional B2B skills, not SaaS-specific competencies.

The specific skills shortage:

• Understanding subscription metrics (CAC, LTV, NDR, gross revenue retention)

• Building scalable onboarding and activation systems

• Managing recurring revenue vs. one-time sales cycles

• Optimising for retention and expansion, not just acquisition

What Founders Get Wrong in SaaS Hiring

Hiring for the wrong experience:

• Prioritising industry experience over SaaS model experience

• Focusing on company size rather than growth stage experience

• Valuing individual contributor skills over systems-building ability

Unrealistic expectations:

• Wanting immediate results from leaders joining broken systems

• Expecting one person to fix sales, marketing, AND customer success

• Looking for proven playbooks instead of adaptable operators

Budget mismatches:

• Offering pre-revenue equity packages to post-$1M ARR candidates

• Competing with established SaaS companies for senior talent

• Underestimating the premium that experienced SaaS operators command

Fractional Solution (Why It Actually Works)

Immediate expertise:

• Access to operators who've scaled SaaS companies from $500K to $50M+ ARR

• No 6-month ramp time, experienced fractional CXOs deliver value in week one

• Pre-built playbooks and systems, not learning on your dime

Risk mitigation:

• Try before you buy, work with fractional leaders before full-time commitments

• Lower financial risk than hiring the wrong full-time executives

• Easier to pivot strategies without layoffs and hiring cycles

Bridge to full-time:

• Fractional leaders can help you define the exact profile you need

• Build systems that make full-time hires more successful

• Network effects, fractional operators refer qualified full-time candidates

Operator Framework for SaaS Hiring

Define SaaS-specific requirements:

• Subscription model experience over industry expertise

• Systems thinking over individual performance

• Metrics fluency in CAC, LTV, churn, and expansion

Hire for growth stage fit:

• $0-$1M ARR: Generalists who can wear multiple hats

• $1M-$5M ARR: Specialists who can build scalable systems

• $5M+ ARR: Leaders who can manage other leaders

Build hiring systems:

• Case study interviews focused on SaaS metrics challenges

• Reference checks specifically about subscription model success

• Trial projects that demonstrate systems-building ability

Consider fractional first:

• Use fractional leaders to audit your current systems

• Build scalable processes before hiring full-time executives

• De-risk major hires with experienced interim leadership

Bottom Line

The SaaS hiring crisis isn't going away. The talent shortage is structural, not cyclical.

Companies that solve this with fractional expertise, internal development, and smart hiring practices will outpace those stuck in traditional recruiting cycles.

Stop waiting for the perfect hire. Start building systems that work with available talent.

The companies scaling fastest aren't the ones with the best hiring, they're the ones with the best operators, however they get them.

That's it for today's article! I hope you found this essay insightful.

Wishing you a productive week ahead!

I always appreciate you reading.

Thanks,
Chintankumar Maisuria