Common SaaS Hiring Mistakes. Why Your SaaS Company Needs A Good Hiring Strategy!

How You Can Avoid Making the Wrong Hiring Decisions

Software as a Service (SaaS) or ‘cloud’ a technology not as new as some may want to believe, is fast catching on and becoming part of our daily lives.

Inevitably, creating, supporting, and maintaining an advanced technology requires a team of responsible individuals.

Companies like Antenna Software, Cloud9 Analytics, CVS Solutions, Exoprice Systems, and GageIn, are fast moving to the forefront of the SaaS phenomena.

One thing they all have in common? A drive to create and maintain the highest quality SaaS technology currently used around the world.

Where do these companies find the drive to constantly be at their very best? From employees who believe in working together to push each other and create the best products.

SaaS employers cannot afford to make hiring mistakes

As a company creating a fast growing technology and facing stiff competition, SaaS employers cannot afford to make hiring mistakes.

Remember, that a bad hire can cost you almost $20,000 per employee.

And that does not even take into account the potential damages or loss that the employee can cost you due to his/her ineptitude or ineffectiveness.

5 Avoidable SaaS Hiring Mistakes

Here’s a look at 5 common SaaS hiring mistakes and how you – as an employer looking to race ahead in a cut-throat market – can fix them.

#1 Rushing the Process

Recruiting is not easy, and anyone who thinks so, is just not doing it right. Take some time to think through some of these questions before you make any hiring decisions.

  • Do you really need another developer/customer service agent/ manager/ sales rep? Will there really be quantifiable work for this new employee in your organization? (companies often suffer from a case of too many employees and very little work, so these questions should be crucial to your hiring process)
  • How much importance are you going to place on the interview process?
  • How much importance are you going to place on resumes and references?
  • What questions will show you the true potential of your interviewees?
  • How can you know for certain that your new hire will get along well with you and other employees in the company?
  • What do you really want from your new hire? (The solution here is to make sure you have a job description that is succinct and clear)

Rushing the hiring process has often led to regrettable decisions. The greatest challenge employers face with bad hires is that they don’t get along with the rest of the team.

A conflict within a company can slow down its progress more severely that you might estimate. So remember to make responsible and careful hiring decisions.

#2 Experience Counts, But Not Always

Employers often tend to place great emphasis on past experiences, and in a niche field such as SaaS, this might also be necessary.

Don’t forget however, to take into account potential, originality, and drive while assessing your applicants.

In your rush to hire an ‘experienced’ employee, you might just miss out on someone who can bring in energy and new ideas.

Can you know for sure though whether 10 years of experience on your applicants resume was good experience or bad experience?

The new idea might just be what you need to race ahead in a competitive market.

Besides a show of experience on ones resume is no guarantee that the applicant has the required skills or talent you need to take your technology forward.

#3 Making Your First Impression, Your Last Impression

Everyone interviewing for a job knows that a smart outfit, firm handshake, and confident eye contact are important. You, as an interviewer, should know better. While first impressions are important, they should never be set in stone. The nervous young man who shuffles clumsily into your office might just be the software genius your company needs. On the other hand, the confident, suit-and-tie donning interviewee, might actually have very little of the skills he boasts of in his resumes. Learn to inspect your applicants carefully, so you know what lies beyond the surface.

#4 Hiring Someone You Wouldn’t Buy From

Developing new technology that is not yet well known, means you need marketing reps who can sell them.

You do not want to hand your technology to someone you don’t trust. You also do not want to hand your technology to someone who doesn’t seem convincing enough to you.

Though Marketing and Sales are often the two departments that will keep your company going, they are also the ones that are often overlooked at SaaS companies.

Trust your instincts. If you wouldn’t buy from them personally, don’t hire them. You will know you’ve made the right hiring decision when big clients start trickling in.

#5 Not Having a Clear Hiring Policy

As a SaaS company, you will be handing precious, new technology to brand new employees.

You might also have applicants from some of your biggest competitors vying for a position in your company.

One of the most critical mistakes a company can make is not defining a clear hiring policy before beginning its employee search.

The consequences can be many, ranging from confused managers and an inefficient hiring process to severe legal troubles.

Making The Right Decisions Is Not Always Easy

Hiring can seem more tedious than you perhaps imagined it to be.

But you will be surprised at how much bad hiring decisions can cost you, and the troubles you will be saving yourself from by making the right choices.

Finally, don’t be afraid to fire when you realize you have made a bad decision.

One bad hire can push back the progress of your whole team, or worse, lead to monetary damages or loss in credibility.

Remember to be open-minded and careful with your decisions, and you might just find yourself the perfect hire.


Written By


Pursuing an MSc in Geology, apart from science, writing on HR has always been one of my greatest passions.