Women in Tech AllSTARSIT

A look at the career of , founder and CEO of AllSTARSIT Solomon Amar

And why female empowerment is a keystone for the company

Solomon Amar believes that leading by kindness is key.

“Nobody's working for me,” he says. “I don't mislead myself. If you're a CEO or a leader or a company owner and you tell yourself that people are working for you, you are lying to yourself. Start with telling yourself that you are working for everybody, and then everybody will start to work with you and not for you.”

Solomon has built AllSTARSIT from scratch, providing full-service, end-to-end IT outstaffing services to global companies. “We are approaching 20 years in business,” Solomon says.

Entrepreneur origins

Solomon s achievements didn t come easily. He rose from humble beginnings born and raised in Israel in a family of immigrants from Europe, before joining the Israeli Army where he served for 3 years. After finishing his service, Solomon started his Software Engineering studies in Tel Aviv.

“To finance my studies, I began taking up primary positions in the high-tech field.”

As he studied and developed, Solomon also reached management positions Where he recruited engineers for different positions in start-up companies.

Alongside the technical work as a manager at the beginning of his career, Solomon encountered service providers in the field of outstaffing, which was still in its infancy at the time. “I identified trends and created a vision in my mind to establish a developed and advanced service that provided outstaffing services,” he recalls. “Today this has become the mission statement of the company ‘Bringing Talents For Global Innovation.’

With the establishment of the company in Israel in 2004 and in light of the high quality service it offered from the very beginning, AllSTARSIT was soon joined by dozens of leading international clients operating in Israel, through a local development center.

“These companies have paved the way for breaking into the international markets and establishing the company in Eastern Europe as a center and fertile ground for the development of talent groups that serve the best leading companies in the industry to this day,” Solomon says.

Solomon built the business on more than an ability to provide hiring expertise and top-notch HR solutions. He built AllSTARSIT on an ethos of service, core values, and building lasting customer relationships.

We are also honored to have such a long and respectable list of clients that chose us over the years, bringing along other leading companies into partnership with us, and making us a center for excellence in the market for our services.”

I’m proud of the team that we’ve gathered, which is running in the long term and developing along with the company.

After establishing its major centers in Ukraine and Poland, the company continued its global expansion strategy, opening additional centers in Eastern Europe and an international development center in Dubai. AllSTARSIT now has software development, testing, and technical support centers in India, the Philippines, and Latin America, and is currently the largest offshore outstaffing service company in Israel and the only one able to provide services 24/7 thanks to its employees spread across all timezones.

Social responsibility

“I really care about social responsibility and impact.”

“I believe that if we are in a position where we could use our power to help society in any way, we should do it.

AllSTARSIT actively organizes and participates in various charity and volunteer events, such as blood donation drives, supporting orphans, elders, and people affected by the war, bringing food to animal shelters, donating funds for critical cases, charity runs, and many others.

“People working at our company — from the juniors to the back office managers, up to senior staff and myself — we are all privileged. But this is less than five percent of humanity not everybody is as lucky as we are. So yes, I think that all of us at AllSTARSIT should be very much engaged and responsible for everything that goes around the world.

Solomon has become well known in the Israeli business community as an entrepreneur and board member – a leader who believes success “comes from the head and the heart”. He is also known for his philanthropic efforts, a leader always open to promoting the field of innovation and high-tech.

kindness,” Solomon says.

Women Empowerment Philosophy

Another strong belief I have is that women are better,” Solomon says. “You can look around yourself – I don't see men anywhere in the back office. “98% of our leadership team is made up of women.”

I think that can be seen even more so in our line of work – ultimately we are working with people. I think that women are more sensitive, empathetic, and they have better personal skills, which helps them in establishing and maintaining strong relationships with our clients and employees. We’ve seen the results of having women in positions of power over the years, and we will continue to give them leadership roles because they can make a difference that can be felt beyond their direct influence: society as a whole.

“You’ve got to have corporate

Lead by kindness is my motto.

Tech Job Market Outlook for 2023:

How tech companies can overcome the talent gap

F ive trends to win the talent war

There is a great turmoil in the tech job market. A fierce competition among companies searching to hire the best talent out there. The current financial and geopolitical landscape, and the chronic talent shortage only compound the issue. And the looming specter of a recession is making things even worse.

So is there any silver lining for the tech job market? What can tech companies do to take the talent gap challenge head-on over the coming months?

Let's find out.

A quick interlude: demand for workers in America will outpace supply in 2023

We're less than a month shy of the new year. The war in Ukraine is still raging. The world teeters on the brink of a new recession. And in the United States, analysts predict that the demand for skilled workers will greatly outpace supply in 2023. Many businesses will face staff shortages that the local talent will simply not be able to satisfy. This is likely to force these companies to look elsewhere if they want to stay in business. But the problem is, many other companies will be doing just the same, leading to a situation that some market experts refer to as the war for talent, a term coined by Steven Hankin of McKinsey & Company first in 1997.

In short, the war for talent refers to the competitive race that businesses must engage in to locate and hire the best talent, before someone else does. Big corporations are somewhat spared of this competition, since their brand name, budget, and sheer reputation usually enable the big names in tech to fulfill their recruitment needs relatively easily.

It is the smaller firms that face the most challenging conditions, as these companies might be either starting up, or they may not yet have a large footprint in their industry, so prospective candidates might not be as inclined to work for them.

According to Olga Tsymbaliuk, AllSTARSIT's Chief Operating Officer, one of the reasons for the legacy talent shortage is that increased demand far exceeds supply. Olga says that there are two main ways to address talent shortage: expanding the geography of search, and developing your own professionals from scratch. If the second option requires a lot of time and effort, the first one is easier in terms of time and requires expertise in international operations.

Some big names in the tech industry recently announced substantial job losses. Meta and Twitter have shed a sizable portion of their workforces. This seems to respond to an uncertain future, and surely the thought of a recession weighed heavily on the decision makers. Both firms probably had a bunch of reasons to drop staff, but it responds to a larger trend that can be defined as conservative budgeting when it comes to staffing. That is, while companies might in the past have been willing to pay above-market salaries to attract the best talent, the new trend is to offer a range of benefits and perks in lieu of higher salaries.

The overall consensus is that we have lived in a globalized world since the 19th century, though many would argue that globalization had started much earlier, as far back as the first century, when trade routes began appearing. Whichever school of thought you choose, today s world is globalized. Products manufactured in one corner of the world find their way to the other corner in record time. Services can be accessed on demand from almost anywhere on the planet.

There is no doubt that hiring outside talent can address skill shortages. But that outside talent sometimes just isn't there, or the skills required aren't available, or there might be budget limitations. In this situation, companies might take a look inward, towards their own staff. As mentioned earlier, companies are now offering substantial benefits in perks in lieu of higher salaries. Among these perks there are educational opportunities, either in-house or by reimbursing money for third-party courses. Such educational initiatives might help to 'level up' employees, and help bridge the talent gap.

Conser vative budgeting

Globalization also opens up new markets and enables access to new talent worldwide, which is a clear advantage for a hiring company experiencing talent shortages.

Globalization

In-house talent development

The new take on remote work

Once considered a perk reserved only for the most senior staff, remote work is now commonplace, and something that most candidates will take for granted for many tech jobs going forward. If one thing is for sure is that remote work is here to stay, for good.

It is safe to say that the perception of remote work has evolved. Whereas many companies might have considered that people working remotely weren't 'really working', such outdated concepts have given way to an understanding that work is work, irrespective of the physical location where it is being done. Working remotely, in fact, tends to lead to increased productivity and wellbeing for the employee.

This new paradigm works surprisingly well both for the staff and the company. As personal job satisfaction grows, so does the possibility of growth for the company itself. Besides, offering remote work as an opportunity from the start means that the company will have access to a wider talent pool that specifically seeks that particular benefit.

Outstaffing: talent source diversification

Diversifying the source of talent is another strategy that tends to yield many positives, particularly when engaging an outsourcing and/or outstaffing partner.

According to Olga Tsymbaliuk, an outsourcing/outstaffing partner can help address talent shortages in different ways. A powerful team of professionals who know how to recruit people in the "employees–not employers–market", for example, and more importantly, they know how to maintain and keep people in the fast paced environment with the highest retention rate.

Olga Tsymbaliuk Chief Operating Officer

Globalizing Your Recruitment Strategies

04

The ongoing talent shortage worldwide has many detrimental effects on international organizations. Competition for top talent is fierce, which leads to undesired outcomes and wasted recruitment efforts. Compounding the shortage issue is that many companies lack a coherent recruitment strategy at a global level. Often, branding or legal issues, or uneven candidate experience across different locations cause difficulties for the recruitment teams.

This article explains why a cohesive and consistent global recruitment strategy is essential to ensure long-term growth and competitiveness.

Benefits of a Global Recruitment Strategy

Global recruitment strategy can be defined as a set of policies and practices that apply to the acquisition of talent across a company's international locations. The implementation of this strategy determines whether or not an organization achieves its recruitment objectives, and whether or not these objectives align with overall corporate goals.

A cohesive global recruitment strategy offers several benefits:

Better candidate selection

Forward-thinking recruitment

Opportunities for global expansion

Greater market insights

Promotes diversity at the workplace

Improves overall productivity

Taps into a global talent pool

Greater market insights

By operating with an underpinning global recruitment strategy and hiring abroad, organizations gain access to valuable local knowledge, including tax systems and labor laws. This local awareness may help the company to hire faster and more efficiently.

05

Promotes diversity at the workplace

A diversified workforce enriches a company's culture and overall status. This, in turn, might attract further business.

06

Su

pports increased productivity

It is always a positive development to operate across different time zones. By doing this, clients can be supported around the clock.

07

Taps into a global talent pool

Even though talent shortage is international, it's often starker at a local level. Many companies simply cannot find the talent they need locally, hence a global recruitment strategy enables these organizations to access talent at a global level.

08

Builds brand reputation and awareness worldwide

Organizations engaging in global recruitment enjoy greater brand recognition, which may help attract better talent. Brand reputation adds a level of familiarity between candidates and you, says Anastasia Chernenka, Head of Recruitment at AllSTARSIT. “More importantly, it creates the same level of familiarity with potential candidates looking for new job opportunities, she adds.

The overheated employment market, in which the demand for specialists exceeds the supply, dictates new rules for finding ideal candidates for each company, explains Anastasia.

Builds brand reputation and awareness worldwide 01

Better candidate selection

Global recruitment patterns attract the candidates with the skill sets and personal traits better aligned with the company's overall corporate goals.

Forward-thinking recruitment

Recruiting talent does not only satisfy an immediate need for the company; it is an investment for the future. This means that the employee needs to develop and grow in sync with the employer's own evolutionary path.

Opp

ortunities for global expansion

Global recruiting opens up new revenue streams and possibilities for a company looking to expand into new markets.

Generally, this task falls on the shoulders of recruiters. Being at the "frontline" of the company's communication with the external market, the recruiter largely determines how the company will be perceived by potential candidates and competitors.

Components of a strategic recruitment plan

As we have seen, the creation of a solid and comprehensive strategic plan for global recruitment is a key factor in corporate expansion

But just what are the components of such a strategy? What elements are needed for such a plan to succeed?

Recruitment is a 'personal' experience for any company. Every organization has different staffing needs, depending on size, industry, budget, and a myriad other factors. Because of this diversity, no singular strategy will work for every organization out there.

But generally speaking, there are four core elements that apply to most international companies:

Employment brand

Candidate experience

Employee referral program

Global labor market data analysis

Anastasiia

01

Employer brand

Being known locally is great, but any organization that intends to expand and recruit abroad needs to build a globally recognizable brand. This highlights the importance of awareness of the local customs, cultural and societal traits, traditions, etc., to ensure the messaging is effective and appropriate for the relevant country.

02

People centric candidate journey

People looking for a job often complain of grueling recruitment processes that ultimately prove futile. A successful global recruitment strategy should begin with a people centric approach, to ensure that the candidate journey is as smooth and friendly as possible, so people who apply do not give up a quarter of the way into the journey because of unnecessarily convoluted online applications or any other reason.

03

Employee referral program

Word of mouth is an invaluable asset for a company's reputation. Employees are more likely than not to have a circle of college or university friends, or other acquaintances who may also be a good fit for the company. Incentivizing employees to refer some of these acquaintances will help to find talent, either locally or abroad.

04

Global labor market data analysis

Data analysis of current market trends across different geographical locations will help paint an accurate picture of what's going on in the market at the time. This will help adjust the strategy accordingly and plug in any recruitment gaps, if any exist.

Chernenka Chief Recruitment Officer

According to Anastasia, a recruiter needs “to be up to date with all current global trends to provide the best solution for their clients and establish strong relationships with candidates and potential candidates, considering local peculiarities.”

Benefits of a Global Recruitment Strategy

Global recruitment is not without its challenges, as outlined above, and while many companies embark on recruitment drives worldwide on their own, they often run into unforeseen pitfalls. Limited knowledge of the local market's cultural traits, unfamiliar legal regulations, etc. often present barriers to entry.

Avoiding these potential pitfalls is in the company's interest, and the best way to operate a successful global recruitment strategy is partnering up with a recruitment process outsourcing (RPO) partner. Usually, these specialized companies have a multinational presence, which means their staff gain insightful knowledge about every country where the company operates. RPO partners are invaluable assets to help clients navigate the local employment markets.

Engaging an RPO should become a fundamental pillar of every client's global recruitment strategy. AllSTARSIT offers a set of RPO solutions that are customized by country and by client. Learn more about how AllSTARSIT can support your recruitment strategy.

As a partner of AllSTARSIT, you can expect to have a transparent, fast, and efficient recruitment process. We are sharing our experiences in international hiring to achieve the partners' targets and solve all issues related to finding top professionals in a particular region

Hire top IT talents faster than ever before

Top Fortune companies have already reduced their hiring timelines by with our help

500 up to 50%

A Customer-Centric Approach to B2B Customer Service

Interview with AllSTARSIT Chief Customer Officer Mila Miller

The field of customer success is constantly evolving. Chief Customer Officers (CCOs) have the essential task of fueling innovation and ensuring that their teams can build and sustain excellent customer relationships across the product journey.

We sat down with AllSTARSIT’s CCO Mila Miller to find out more about the challenges and rewards of leading B2B Customer Service at the company.

Q: A:What

is your background?

Before becoming CCO here, I worked as HR business partner for three years. Over this time, I gained a lot of experience in planning strategic HR initiatives, running onboarding processes, supporting employee development, and maintaining staff relations. I was also in charge of updating policies and processes, building corporate culture, and implementing benefits programs, as well as health and wellness initiatives.

I have two master's degrees, one in psychology and the other in international relationships

My experience living in multiple countries like Ukraine, Israel, and the UAE, has helped me better understand the mentality of different nationalities, which I can successfully apply in my current position, building bridges between clients and employees.

Q: A:

B2Bs often enter long term relationships with their clients. For me, having the opportunity to forge close ties and loyalty with client companies is very rewarding I see first hand how our business helps other businesses thrive and it is truly gratifying.

Q: A:

Success for our clients achieving their milestones. As a trustworthy partner, we help them to scale their teams and bring them high quality and efficient employees who will stay with them for a long time, bringing results and achievements to their companies.

Q: A:

All departments contribute to a successful customer journey for our clients. From Recruiting, to Marketing, HR, Legal, Finance, and IT this global team of more than 80 people works daily to provide the best services for our clients and their teams.

Q:

A:What does customer ser vice mean to

Customer service is all about making sure the customer is happy and satisfied with the service provided. We treat our customers in a friendly and respectful way, showing that they really matter to us. We cooperate with them as with our partners, always trying to find a mutual agreement that will suit all sides.

Mila Miller Chief Customer Officer

you?

What does success mean for your clients?

What is one great thing about what you do? How is your job rewarding?

What do you need from the rest of the company to drive success for our clients?

Q: A:

What are the main challenges/barriers to B2B Customer Service?

I would consider a challenge the fact that, while aiming to solve a customer’s issue and be their advocate, at the same time, we need to represent the business interests of our own company. Solving a customer’s problem means finding a compromise between these two issues, a common agreement that benefits both parties.

Q: A: How would you describe the customer journey for AllSTARSIT clients?

At the start of our partnership, new clients are a little hesitant, but once they understand that they can trust us, they continue expanding their teams, choosing us as their sole outsourcing provider.

From our side, we put a lot of effort into retaining their employees and keeping them satisfied, because this, in turn, ultimately leads to a successful business outcome for our clients.

Q: A:

Tell me about a time that you had to go the extra mile for a customer.

We appreciate our clients and try to provide the best service to them. It often happens that we have to make some concessions for the sake of our clients and to maintain their employees. As we position ourselves as a company with minimal bureaucracy, this process is very smooth – there is no need to write long emails and make requests to solve any issue. Everything is easy with us – one call to the customer success manager and everything is solved.

Q: A:

What is the best way to manage loyalty programs and customer feedback?

As we can see from our experience, when the client is satisfied with our services, they will recommend us to their business friends and acquaintances. So for us, there is no need to develop any loyalty programs. We just keep working hard and being a trustful partner for our clients.

Q: A:

How do you develop new processes by incorporating the customer s point of view?

We value the opinion of each and every one of our clients, and we always listen closely to their needs. We consult with them before implementing new processes or making strategic decisions related to our cooperation, thus keeping them involved in the consultation process at all times.

Q:

From a Customer Service

perspective, what would you tell potential clients who were thinking of partnering with AllSTARSIT?

A:

Don’t be afraid of building an offshore team. We will assist in hiring the best talents for your team, retaining them, and making sure they are part of your business’ success.

Be global with AllSTARSIT

Hire in USA

Hire in Latin America

Philippines India Emirates

Portugal Macedonia

Hire in Central and Eastern Europe

Hire in Dubai

Hire in Israel Hire in Philippines

Hire in

India

Bulgaria Colombia Mexico

Costa Rica

10 Employee Retention Strategies for Your Business

From small enterprises to major corporations, the so-called Great Resignation is having a significant impact on businesses worldwide.

01Onboard ing and orientation

According to data released by the U.S. Bureau of Labor Statistics, 4.3 million Americans quit their jobs in August 2021, leaving 10.4 million jobs open by the end of that month.

As a result, the employment market became extremely competitive, with many organizations struggling to retain employees and recruit new talent.

THE GREAT RESIGNATION

Every new hire should be set up for success right off the bat. In addition to discussing the role, your onboarding process should teach new employees about the corporate culture and how they may contribute to and succeed in it. The training and support you give from day one, whether in person or remotely, can set the tone for the employee's entire employment with your company.

At AllSTARSIT, employees have all the support they need from the beginning. After a candidate is hired, HR People Partners will focus on onboarding and coordination.

We try to engage new employees as much as we can, having People Partners check in on them every two weeks to see how they are doing, or if they need anything.

The Importance Of Employee Retention

Employee turnover has far-reaching consequences that extend beyond temporary interruptions. Cost is one drawback. According to the Work Institute, replacing an employee costs nearly one-third of their annual compensation. And as reported by the Houston Chronicle, in addition to these costs, high turnover has an impact on the remaining staff—and the business's customers.

Employees' workloads often increase when their colleagues quit. This can result in a downward spiral of tension and resignations. Frustrated and overworked employees are less likely to perform at their best, which means the company's products or services degrade and customers have more negative experiences with the company.

Effective Employee Retention Strategies

So how can businesses keep their employees satisfied and discourage them from exploring new prospects elsewhere? These 10 employee retention strategies will get you started in the right direction. For inspiration, you can get an idea of how AllSTARSIT implements them as explained by Irina Teut, Customer Success Manager.

We put a lot of attention on the onboarding period, because it's a very sensitive time for employees.

Mentorship programs

Pairing a new hire with a mentor is an excellent addition to your extended onboarding process, especially in a remote work setting. Mentors can welcome new employees to the team, give advice, and serve as a sounding board. And it benefits both parties because new team members get knowledge from seasoned colleagues while also providing their mentors with a different perspective.

“Our HR People Partners help new hires during onboarding and throughout their journey at AllSTARSIT by checking in on their mood, sending welcome boxes and birthday gifts, and guiding them toward the right internal resources they need. After the onboarding period, the People Partner holds a 1:1 with the employee each month for a personal check-in.”

03 Employee compensation

Employers must continuously review and revise salaries to provide their staff with competitive compensation. Even if your company is currently unable to raise remuneration, think about whether you might be able to offer additional forms of compensation, including bonuses. Don't forget to improve retirement and health benefits, which can also boost employee job satisfaction.

“Usually, people tend to change jobs to get a salary increase. AllSTARSIT provides above market compensation, which is an important factor for our employees to keep them motivated and retain them for a long time.”

04

Benefits

And since we re on the topic of benefits they can help your workplace stand out to potential new workers, re-engage your present team, and raise morale among employees. Flexible schedules and remote work possibilities are the benefits that many professionals value most, according to the world s top researchers.

Wellness offerings

Keeping employees healthy on all fronts—mentally, physically, and financially—is just smart business practice. To encourage employees to prioritize their wellbeing and feel supported, many top employers increased and upgraded their wellness programs throughout the pandemic.

“AllSTARSIT offers employees wellness programs, extended medical insurance, multisport cards, yoga & stretching classes, and therapy sessions.”

06Communication

The transition to remote and hybrid work has highlighted how essential workplace communication is. Whether employees are based on-site or remotely, they should feel comfortable approaching their manager at any moment with suggestions, questions, or concerns. Additionally, as team leaders, managers must ensure that they are promoting timely, constructive, and effective communication within their teams. Additionally, they should make sure to actively communicate with each team member on a regular basis to learn more about their workload and level of job satisfaction.

“I believe there should be constant communication between a manager and their direct reports. And I think it should always be with the camera turned on, to make up for the loss of personal connection remote work can sometimes create. Additionally, managers can set up a 1:1 with their subordinates each or every other week, and also have an open door policy.”

07

Wellness offerings

As part of providing constant feedback on performance, you can assist employees in identifying opportunities for professional progress, such as the need to learn new skills. Your staff needs to upskill now more than ever as technology continues to disrupt the way we operate and workplace requirements change Investing in the professional growth of your employees should be a top objective. Give them time to participate in virtual conferences, pay for their continuing education, or provide tuition reimbursement.

“I strongly believe that by offering learning & development to our employees, we will encourage retention. If they develop, they will stay with us longer because the workplace can be more than the place where they work, but also the place where they can get knowledge and grow. In this sense, we offer our employees a budget for self-education, free language courses, online course subscriptions and more.”

AllSTARSIT takes care of your employees – we have a 360° approach with a full recruitment cycle.

Work-life balance

Do you expect your employees to be available around the clock? A healthy work-life balance is vital for job satisfaction. People need to know that their managers are aware of their personal lives outside of work and that managing a work-life balance can be particularly difficult while working from home. Encourage workers to create boundaries and take vacation days. And if working late into the night is necessary to finish a project, think about compensating by giving them extra time off.

“At AllSTARSIT, we want people to rest. In the remote era, people can often forget to set up some boundaries and take time off. So we’re always pushing our employees to not perform overtimes and take vacations, so they can come back refreshed and ready to hit on those KPIs.”

09

Flexible work arrangements

Many businesses recognize that, even after reopening their offices, some of their employees prefer to work remotely, at least part time. Lacking that choice might lead to staff resignations .

Therefore, if remote work on a permanent basis is not a possibility, consider what you can offer staff as soon as possible. A compressed workweek? Flexi time? Or how about a partially remote working option? All these solutions can reduce stress for your team while increasing employee retention.

Our policy is work from anywhere.’ We offer our employees the benefit of working remotely, without restricting them to a certain timeframe. They can choose to take some time off in the morning and take care of chores or take their children to school before starting work. At AllSTARSIT, we don t care about 9 5, we care about KPIs and measure the performance.”

10Acknowledgement of milestones,

big and small

Finally, highlight noteworthy accomplishments to boost employee retention. Seize the opportunity to celebrate any milestone with your staff, whether it's a significant project that your team finishes ahead of schedule or a person reaching a three-year work anniversary.

“I think sharing team events and milestones could help connect people, even if they are over Zoom with a take-out pizza or a drink, so we often gather for parties in our office or on Zoom for our international employees.”

The 10 employee retention strategies listed above are just a few ideas for increasing your team members job satisfaction. Make sure to assess your efforts regularly. This includes staying current on market compensation and benefit requirements, as well as creating an appealing company culture and effective manager-employee relationships.

Four B2B Marketing Budget

Benchmarks to consider for your

2023 Strategy

Avoid this common mistake: too many B2B organizations perceive marketing as an expense, so they review previous year's marketing expenses and decide whether to spend more or less. Instead, you should think of your B2B marketing budget as an investment that will eventually yield a measurable return.

According to Polina Poliakova, Chief Marketing Officer at AllSTARSIT, the flexibility of the marketing team will become a big aspect of a business’ success in 2023. “Economic changes that were catalyzed by Covid and by the Ukrainian-Russian war are now in full swing; therefore, your company will change and adjust spendings a few times in the next year,” Polina says. “Marketing is a business’ front side and it requires responding to market changes the fastest," she adds.

Choosing the right budget can be challenging — you don't want to cut corners or overspend. “The first step is to map out your business goals and a marketing plan to achieve them,” explains Polina. “From there, you can apply the 80/20 principle and focus on the most important areas to cover, or you can determine your budget using a variety of B2B marketing budget benchmarks.”

According to a September 2022 CMO survey, most marketing budgets account for approximately 13.8% of a company's overall budget.

Over the past decade, the portion of spending allocated for B2B marketing has steadily climbed, as competition has grown. Product-focused B2B businesses typically allocate 10.4% of operating expenses on marketing, whereas marketing accounts for 12.6% of total spending at B2B companies that are more service-oriented.

Once you've determined a percentage and a figure, break down your marketing budget into categories. Even though the distribution varies from business to business, the following categories are more or less universal, particularly in the present digital-focused world:

B2B marketing as a percentage of total revenue

According to a 2022 CMO survey, most marketing budgets account for approximately 8.7% of a company's total revenue.

The average business spends between 6.4% and 6.8% on B2B marketing as a proportion of total revenue. B2B product companies usually spend 6.4% of total revenue annually, whereas B2B service companies typically spend 6.8%.

The general rule of thumb for this B2B marketing budget benchmark is taking 5% of overall revenue, but the exact percentage will depend on your marketing plan, business overhead expenses, and available finances.

Budgets for B2B marketing have grown in recent years as a result of the intense competition. Even B2B businesses that had a decline in overall income the previous year still need to invest the same amount in marketing as before, if not more, to keep their brands visible and well known.

B2B Marketing Spend by Industry

Different industries spend at different rates. Companies will choose their B2B digital marketing budgets based on internal and external criteria that can vary considerably from one company to the next, even within industries.

Finding out how much money your industry's product or service providers budget for B2B marketing is a smart place to start when determining your overall budget. Since competitors face similar circumstances and difficulties, this information may be helpful.

According to a research by Deloitte and the Duke/Fuqua School of Business, the following industry benchmarks reflect average marketing costs as a portion of their annual budget based on growth strategies:

B2B Marketing Spend by Growth

Delta

Examining your growth delta is another way to think about B2B marketing costs. Examine the ARR (Annual Recurring Revenue) that your business generates annually. Then, project how much growth you want to see in the upcoming quarter or year. This will be your growth delta.

The bigger your projected total revenue, the more you should spend on marketing to achieve that target. Similarly, if you run a B2B start-up, you must be aggressive in your marketing to get recognized.

When it comes to determining your marketing budget, keep in mind that there is no single correct solution. Using these four B2B marketing budget benchmarks will give you the information you need to decide how much to spend on marketing and how much to devote to each channel of your marketing mix.

Ultimately, your marketing budget should be adapted to your company's goals and marketing strategy and help you achieve new levels of growth while choosing the most cost-effective strategy for your business. And don’t forget — marketing is an investment, not a cost.

is an investment, not a cost.

Solomon Amar CEO of AllS ARSI

Solomon Amar CEO of AllS ARSI