Reducing Sales Force Turnover
February 15, 2008 – 11:37 pmI have a client that I started working with over 3 years that had 30% annual turnover with their new sales reps. Since I started working with them we have placed 49 reps with them and 42 are still with their organization. Their annual turnover is much less than 10% currently. We put alot of work into uncovering what does and doesn’t work at that company but I am confident that one of the biggest reasons for the reduction comes down to expectations.
Simply put, when interviewing sales candidates I think it is imperative to spell out realistic expectations within a sales role. We provide earnings expectations, annual quotas, average deal sizes, full outline of the compensation plan, activity levels, etc. I make a point of outlining areas where a potential sales rep may struggle in this role and/or challenges that they will face when selling the product. Of course, I sell the opportunity and show them the possibilities but at no time do we over sell. I would rather not make a placement then have someone accept a sales job by misleading them.
Occasionally I am sure that we don’t make a placement with our client because a sales candidates is being sold the moon at another sales job. I am also just as confident that we occassionally have a sales rep accept our offer over a potentially more lucrative position because we are so upfront about everything. Our motto is “no surprises.” It’s like how Toyota sells a Million Camrys each year not because they are the most exciting cars out there but because you know what you are getting when you buy one - no surprises.
If your sales organization is experiencing high turnover perhaps you can start by setting the right expectations for new hires.