Companies have an interest in adjust their compensation budget upwards whether they want to recruit or retain their salespeople in 2022. In its latest white paper, recruitment agency Uptoo reveals average sales rep salaries in 2021 and forecasts for 2022.
They are expected to rise sharply for two reasons: first, the recovery is stronger than expected, companies therefore need to recruit and the labor market is under pressure. Recruitment resumes much stronger than in 2019, with a 50% increase† † The sellers are in a strong position playing the one-upmanship to go to the highest bidder The study notes. The sectors most in demand for recruiting are: IT and digital, banking and insurance, and industrial infrastructure, who all three? experience an accelerated recovery in recruitment as candidates struggle to return to the market †
According to the study ” 70% of companies recruit the same profiles, with between one and seven years of experience. The pressure is on these candidates who no longer hesitate to give up in the middle of the recruitment process to look elsewhere. The proof: barely 28% say they are willing to have three interviews and only 3% to four… †
Yes the balance of power is in favor of the sellers in recent years this has become even more pronounced and Uptoo notes that not all companies have ” didn’t follow the direction of the story While compensation is one element in attracting and retaining talent, others are emphasized: an attractive presentation of the company project, modernized recruitment methods and attention to training and work environment, with option for sellers to learn and grow over time “, and a ” access to benefits that are widespread in their work environment (teleworking, company car) †
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The second reason that should lead to significant wage increases is that due to the crisis wages have stagnated since 2019† In 2020 they fell by 2% and in 2021 they remained the same as the year before, with an average of 51,000 euros per year, of which 39,000 euros is fixed and 12,000 euros is variable† With strong differences between novice sellers (average 38,000 euros including 28,000 euros fixed and 10,000 euros variable) and confirmed (66,000 euros including 50,000 euros fixed and 16,000 euros variable). According to the study, the three occupations that have seen the largest wage cuts and where the largest increase is expected are those of sedentary representative, export manager and business developer.
All positions and sectors are not in the same boat
For sitting salespeople, the average salary is 38,000 euros per yearwith moderate differences between start and end of career: 32,000 euros against 47,000 euros. Remuneration down 5% in 2021with a salary comparable to the previous year for the most experienced and a decrease of 6% for the most novice.
in 2022, the sectors that pay the most are software (44,000 euros), the chemical industry and plastics and metallurgy (42,000 euros). With computer manufacturers, a sitting salesman with more than fifteen years of experience may even hope to exceed 60,000 euros per year.
on their side, field sales representatives were one of the functions most affected by the crisis † “they were forced to change their methods, reduce the number of visits to continue selling remotely. Despite this, their average salary remained higher than that of their incumbent counterparts (+13%) and reached 43,000 euros this year, proving that the position has been able to modernize to cope with the crisis Salaries range from 32,000 euros at the start of the career to 52,000 euros at the end of the career. in 2022, the most profitable sectors should be the chemical industry and the electronics industry for 51,000 euros, and the ESNs for 50,000 euros.
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Side sales managers, Uptoo notes that salaries have not increased in 2021 and that there is a very large difference between one sector and another. On average, the annual fee is 75,000 euros ranging from 63,000 euros at the start of the career to 86,000 euros at the end of the career.
By 2022, the sectors that pay the most should be first office automation and software with 91,000 euroswith under publishers up to 100,000 euros after five years of experience and more than 120,000 euros after fifteen years of experience. Then come the ESN, IT consulting and telecom with 88,000 euros, and even more than 110,000 euros after fifteen years of experience (as with computer manufacturers).
Other sectors remain far below: in industry the average salary after fifteen years of experience is around 85,000 to 95,000 euros. In other sectors, salaries are after fifteen years of experience on average between 80,000 euros and 90,000 euros.
The study also notes that the health crisis has shown that: variable pay can turn out to be very random, sellers now tend to secure their fixed salary rather than seeking a very high variable pay. Otherwise, startups have specific characteristics : Despite rarely guaranteed profitability, large fundraisers allow them to bid competitive packages, often 10-15% higher than average of the industry in which they operate.
Variations according to the geographical area and especially the level of studies
Compensation should also vary in a fairly traditional way according to geographic area, with the modulations of the average compensation roughly corresponding to the differences in the cost of living: 52,000 euros in Ile-De-France, 51,000 euros in Provence-Alpes-Côte-d’Azur, but only 45,000 euros in Brittany and New Aquitaine. The variable remuneration follows this logic, but remains close from one region to another, fluctuating between 11,000 and 13,000 euros.
On the other hand, there are significant differences according to educational level. High graduates are logically the ones to expect the most significant pay, and surprisingly technical school graduates are those who qualify for the highest salary, before business school graduates. Thus, their average salary is 32,000 to 41,000 euros in the two years after they leave school, and 70,000 to 88,000 euros after fifteen years of experience. The figures range from 28,000 to 36,000 euros at the start of a career and from 66,000 to 83,000 euros for the most experienced holders of a Maser or an MBA.
Business school graduates come in third with 25,000 to 31,000 euros and 60,000 to 80,000 euros respectively. According to the recruitment agency high graduates are very expensive because they are becoming more and more rare: sales do not make them dream, but companies continue to look for these profiles and therefore have to set up sole proprietorships to acquire them.
This sole proprietorship to a certain extent benefits the less educated with salaries above the French median income. † Sales are still a social lift in 2020 ‘, Uptoo assures. Whether you’re self-taught or have a Master 1, you can hope from 23,000 to 34,000 euros per year in his first two years of experiencegrades comparable to business schools.
On the other hand, the gap widens with experience : an autodidact or a baccalaureate holder will claim much less in his remuneration and can hardly hope to exceed 55,000 euros after fifteen years of experience. This figure goes up to 60,000 euros with a BTS, a DUT or a bac +2 and 67,000 euros with a license or a Master 1.