When do hires by function pay back fully-loaded cost, and how do they compound across their tenure?
№ 220 · Hire ROAS curve by function
Definition
MetricCumulative gross margin contribution per dollar of fully loaded hire cost, plotted across tenure
UnitMultiple of cumulative cost recovered (x)
Cumulative revenue contribution per hire cohort divided by fully-loaded comp across tenure. Multiple lines per function. Build per-function cohort. Different functions have very different ramp shapes. Example: Sales reps 1.0x at M8; Engineers 1.0x at M6; Marketers 1.0x at M14.
- ROAS
- Return on ad spend. Revenue attributed to a campaign divided by the spend on that campaign.
Benchmarks
| Bottom 30% | Median | Top 30% |
|---|---|---|
| Never crosses 1.0x before the median tenure of the role ends | Crosses 1.0x at month 14 to 20 and reaches roughly 2x by month 30 | Crosses 1.0x by month 9 or 10 and reaches 3x or more by month 30 |
B2B SaaS quota-carrying account executives, 2026 inputs, cumulative gross-margin-adjusted bookings against fully loaded cost at about 1.4 times cash compensation plus recruiting cost · This is a construction, not a survey result, and it is marked low confidence for that reason. No publisher reports a cumulative contribution curve by tenure. Every input is published: median quota $960K, median OTE $200K, quota to OTE 4.6x, ramp 6.2 months and attainment 48% from Bridge Group across 158 companies, segment quotas of $750K, $1.35M and $2.25M from ICONIQ, fully loaded cost at about 1.43 times base pay from BLS, and average tenure near 2.8 years. Combining them gives a median rep producing roughly $250K of first-year new bookings against roughly $270K of first-year loaded cost plus recruiting, which is why crossover lands in year two rather than year one and why retention dominates the curve. The curve is also sensitive to whether the numerator counts bookings, recognised revenue or gross profit, and those three choices move crossover by six months or more. Do not carry the shape of this curve across to the sales-function or marketing-channel ROAS cards, which measure different objects entirely.
Category split omitted: Only quota-carrying sales roles have published productivity-by-tenure inputs from two or more independent sources, so curves for engineering, support and back office would be entirely invented.
When it looks bad
The cumulative curve flattens while still below 1.0x, and the cohort's tenure marker sits to the left of the crossover point, so the average hire in that function is retired at a loss.
The curve reaches 0.8x at month 24 and the function's median tenure is 22 months, meaning each completed hire cycle destroys about 20% of its own cost.
What to do about it
- Plot median tenure as a vertical line on the same chart. Bridge Group data implies a productive window of roughly 27 months once a 6.2 month ramp is removed from a 2.8 year tenure, and any curve crossing after month 20 is one bad quarter away from being uneconomic.
- Move attainment before moving quota. At 48% attainment and a 4.6x quota to OTE ratio, a five-point attainment gain shifts crossover by roughly two months, while a quota increase at unchanged attainment shifts the curve backwards because OTE follows quota upward.
- Segment the curve by deal size rather than by team. ICONIQ puts quotas at $750K for SMB, $1.35M for mid-market and $2.25M for enterprise, so a blended curve averages three genuinely different payback profiles into a number that matches none of them.
- Treat regrettable attrition as a curve input, not a separate report. Replacing a rep at Gallup's professional multiple of about 80% of salary resets the curve to zero and adds the recruiting cost on top, so retention in the twelve to twenty-four month band is the single largest lever on cumulative return.
Sources
- The Bridge Group Ramp time reached 6.2 months, the highest in the research history. 48% of reps achieved quota, down from 51% in 2024. Median OTE $200K, median quota $960K, quota to OTE ratio 4.6x. Experience required at hire rose to 3.7 years. Companies in the top AI engagement tercile reported 57% of reps at quota versus 39% in the lowest. blog.bridgegroupinc.com ↗
- Blossom Street Ventures summarising The Bridge Group Average ramp time rose to 5.7 months, average tenure to 2.8 years, with median annual turnover of 30% of which 11 points are voluntary. 51% of AEs met quota, down from 66% in 2022. blossomstreetventures.medium.com ↗
- The Bridge Group Median annual ACV quota rose to $800K from $740K in 2022, growing at a 2% compound annual rate since 2012. Median OTE was $190K on a 53:47 base to variable split. blog.bridgegroupinc.com ↗
- SaaStr reporting ICONIQ Growth 2026 GTM survey Quotas run $750K for SMB, $1.35M for mid-market and $2.25M for enterprise. Reps are paid in total roughly 20% of what they close. Leading B2B and AI companies report 85% to 90% attainment against a traditional 65% to 75%. saastr.com ↗
- ICONIQ Growth Pipeline coverage fell from 3.9x to 3.6x. The share of ramped account executives achieving quota stayed flat year on year, while $25M to $100M ARR companies saw attainment decline. cdn.prod.website-files.com ↗
- US Bureau of Labor Statistics Private industry compensation cost averaged $46.60 per hour worked. Wages and salaries were 69.9% of employer cost and benefits 30.1%, implying a fully loaded cost of roughly 1.43 times base pay. bls.gov ↗
- InterviewCost.com reporting SHRM 2025 Benchmarking Report figures SHRM's 2025 Benchmarking Report puts average cost per hire at $5,475 for non-executive roles and $35,879 for executive roles, up from the long-cited $4,700. interviewcost.com ↗
- Pin reporting Mercer 2025 US Turnover Survey and SHRM 2025 Benchmarking US voluntary attrition averaged 13% in 2024 to 2025, down from 24.7% in 2022. Retail and wholesale run 26.7% against 8.2% in insurance. SHRM's median voluntary turnover was 9% with a 13% average. pin.com ↗
- Gallup Replacing an employee costs one-half to two times annual salary, described as conservative. A 100-person organization at $50,000 average salary faces $660,000 to $2.6 million of annual turnover and replacement cost. 52% of exiting employees say their manager or organization could have prevented the exit. gallup.com ↗