Turnover in sales is high — to say the least. With an annual sales turnover rate of 27%, it’s actually double the rate of the overall labor force.
Not only are the rates unfortunate, but they’re also costly. The time and money you spend on sales training are lost. Your investment doesn’t bring the return you needed. It’s back to square one every time a salesperson leaves.
Why do salespeople leave so frequently? Mainly because they don’t hit their goals. Instead of individually fixing the problem, managers usually try to treat everyone the same and find a one-size-fits-all solution to sales challenges.
But different people have different challenges.
Most salespeople don’t want to do a bad job — they just don’t know how to do a good job. They don’t know what steps to take to be successful. They need a strategy. And as their manager, it’s your job to help them find it.
Here’s how to get them on track.
1. Be Present
Good managers are aware of what’s going on with their team. They’re keyed-in and alert to how everyone’s doing and what their team needs. They look for ways to specifically equip their salespeople and help them improve.
Good managers do NOT do the salesperson’s job for them. A lot of sales managers were good salespeople who want to be friends with their sales team. But it doesn’t help anyone when this relationship turns into favor-asking and oversights. Instead, be aware of how your team members operate and show them the path to improvement individually. Give them the flexibility to decompress. Empathize with their situation. Then give them the tools they need to turn that stress into a challenge, not a threat.
2. Match Pay to Effort
No one wants to be a part of a get-rich-quick scheme. We’re too smart to think that easy money is all it seems. At the same time, no one wants to be underpaid for what they do. People start looking for other jobs when the pay doesn’t line up. If you pay too much, they don’t feel good about their work. If you pay too little, they start looking for another company who will pay them the real value of their contribution.
The compensation has to be commensurate with their efforts. The best compensation structure is typically one that mirrors the way your business makes money. If your salespeople profit as your business does, everyone is motivated to make the company more successful. If there are certain activities that are valuable to you, then pay them for it. But make sure those efforts help achieve results that benefit everyone.
3. Recruit the Right Employees
As you’re building your team and structuring compensation, you’re also cultivating a positive environment. Keep HR in the loop on how your team works. Make sure they know your core values and the positive culture you’ve established. In the interview process, ask questions that give insight on their values. You need to know if they believe in your core values. If they have the potential to become a core value violator, don’t hire them.
Also, have your salespeople recruit when you’re looking to hire a new team member. If they’re active in recruiting, interviewing, and hiring, you’ll eliminate a lot of red-flag candidates and therefore eliminate a lot of sales turnover.
Each person has a unique approach to sales, but everyone wants a boss who’s in their court. They want someone on their team who’s rooting for their success. If you’re a tuned-in manager who helps each salesperson hone their sales approach, offers fair compensation, and hires based on values and positivity, you’ll build a team that will last.