UK SaaS firms face big risks from poor hiring. Explore the hidden costs and how better recruitment avoids them.
Jacques Malecaut
Aug 29, 2025
The Cost of Getting It Wrong
In the UK’s SaaS sector, competition for talent is fierce. Yet a poor hiring decision can derail growth strategies and waste investor funding. Data from Oxford Economics highlights that replacing a mid-level SaaS employee costs on average £30,000 in lost productivity and recruitment fees. For senior sales hires, that figure can be much higher, especially when factoring in lost pipeline revenue.
Why SaaS Is Different
Bad hires in SaaS are not simply an inconvenience — they cut directly into customer acquisition. UK SaaS businesses rely heavily on recurring revenue and rapid scaling. A mis-hire in sales or customer success often leads to missed renewal targets, lower upsell opportunities, and reputational damage. The 2023 State of SaaS Sales report found that 62% of UK SaaS companies cited hiring mistakes as a key barrier to scaling effectively.
Avoiding the Trap
Mitigating these risks requires more than gut instinct. Effective benchmarking of salaries ensures realistic scopes and helps attract candidates with the right technical understanding and growth mindset. Structured interviews and scenario testing reveal how candidates perform under the pressures typical of the SaaS model. Above all, prioritising retention — through training and culture fit — reduces churn.
With venture funding still cautious across Europe, SaaS firms cannot afford expensive mis-steps. Recruitment that focuses on fit, retention, and scalability protects bottom lines and sustains growth trajectories.
