It’s impossible to create a non-stop sales boom in your organization with a high turnover rate.
Have you thought about how to reduce it on your sales team?
Here’s an interesting statistic, the average turnover rate for companies is roughly 15%. Specifically in sales though, that number jumps up to 25%, almost double the average.
Yes, sometimes sales reps leaving is for the best, but surely you’d agree that ultimately the best sales teams retain talent and have consistency on their rosters.
There’s a number of reasons sales reps will leave a particular team or company. The most common reasons are poor management and being unable to hit their quota.
So, let’s take a look at a few steps you can take to reduce turnover on your sales team:
1. Create a Clear Compensation Plan
Unclear compensation plans can easily frustrate sellers. When they don’t have a clear breakdown of what they get paid and why, it’s easy for them to get disgruntled. It makes sense. When they consistently, based on their understanding, believe they’re going to be receiving X, and end up receiving Y (usually a lesser amount than X), it’s difficult for them to remain loyal.
2. Coach Regularly
We’ve spoken about this before, but when I say coaching, there’s actually a deeper reason why this is important beyond the obvious one you’re likely thinking about. Yes, coaching helps drive up performance, which helps drive up sales and results. But, sellers perform best when they truly feel their manager has their back. When a seller (or anyone for that matter) feels like their management doesn’t appreciate them, or downright “has it out” for them, they begin seeking out other employment options very quickly. Coaching and regular communication shows that a manager is invested in their sales reps success and has their back. Be consistent with your coaching.
3. Get Rid of Poor Performers
As I mentioned earlier, some churn is to be expected and sometimes invited. But, here’s an important awareness you need to keep in mind, A-players don’t like to hang out with B-players. Especially when compensation or bonuses are tied to an entire sales team’s performance, top salespeople will easily become disgruntled if they’re surrounded by other sellers who aren’t performing. You don’t want to let the slackers on your team fester, drive away all the top performers and have a sales team left with people unable to hit their quota.
What’s one way you’ve reduced turnover on your sales team?
