Friday, June 6, 2014

Sales Rep Turnover Rates at 25.5% - What Is The Cost To Your Company?

I read an excellent article recently about why we are losing our sales teams. In the article, a couple of key points are made:

    Sales Turnover Rates
  • According to CSO Insights, annual sales rep turnover rates are at 25.5% - nearly twice the national labor force turnover rate of 13%.
  • A recent exit-survey by LinkedIn found that the #1 reason people left their jobs was a lack of advancement opportunities

The article also goes on to list the other major reasons for such a high turnover rate in sales to include: Poor Sales Management, Caps in Sales Earning Potential, Lack of Training and No Sales Administrative Support.

All of these reasons for a higher sales turnover rate can be directly and indirectly sourced back to poor sales management. When poor sales management is present, the following problems typically arise:

  1. Sales compensation plans are created without an understanding that they are potentially your #1 sales talent recruiting and retention tool
  2. Poor sales managers have a far greater impact on the sales results of company that an individual sales person. Many companies today DO NOT know how to distinguish a great sales person from a great sales manager and commonly promote one expecting the other – and fail.
  3. Sales Training and advancement is critical to sales results. Sales people DO NOT have a degree in sales when you hire them. The way most companies train their sales people today and continue to fail to properly train them is merely a repeated process without improvement.
  4. Great sales people love to sale and hate being administrators. If they wanted to do administrative tasks all day, they wouldn’t gravitate to sales to begin with. When companies require their sales people to spend an average of 23% of their time on administrative tasks, they are not properly focused on sales productivity and results
#sales  #business   #leadership  #salesfacts  #salesmanagement  #management  #jobs 

1 comment:

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