Janek Performance Group > Blog > Why High Salesforce Turnover Is Bad for Business

Sales Performance Blog

10 Dec 2014

Why High Salesforce Turnover Is Bad for Business

By: Nick Kane

Why High Salesforce Turnover is Bad for BusinessThe sad truth is, employee turnover is inevitable for any company. Some business executives would say that it’s a normal part of doing business, and there is no way around it. After all, sales professionals are highly-driven, energetic and dynamic individuals who are constantly on the lookout for bigger, better and more fulfilling opportunities. If they get bored or feel under-challenged and under-appreciated, they may quit and seek out greener pastures. While it is almost impossible to avoid employee turnover altogether, high turnover may cause serious damage to your organization, disrupt your progress and hurt your bottomline. In addition to that, it can damage morale among remaining sales reps.

In this blog post, we take a close look at high sales rep turnover and explain its effect on your organization, your customers and your sales team.

Casting a shadow on your reputation

Companies with a high salesforce turnover usually fail to provide high-quality service for their customers. When buyers develop successful relationships with sales professionals, they hate to see them go. It may take a while for a new account rep to adjust, establish credibility and get up to speed. Your customers will have to explain to each new sales person what their situation is, what their needs are and what they are looking for, which is time-consuming and frustrating. Simply put, it may disrupt the flow and create more stress for busy buyers.

If the pattern repeats itself over and over again, customers will assume that internal problems, inefficiencies and low employee morale cause good people to quit. There must be a reason why so many smart and efficient sales professionals walk out the door to explore other career opportunities. As a matter of fact, high sales rep turnover may raise red flags even among some of the most loyal customers who have been buying from your organization for a long time. They will be put off by all the turmoil going on at your company and may be tempted to check out other service providers, including your competition.

Putting a damper on employee morale

If sales rep turnover continues, the remaining sales people (including new hires) will be discouraged by the unfolding scenario and, at some point, will start questioning the value of their employer and their job. Most folks realize that good companies with a steady reputation and rewarding work environment, find ways to hold on to good employees and lower employee turnover. If too many sales professionals are heading towards the exit, it may eat away at staff morale. The unpleasant scenario taking place at your organization will make everyone wonder if “following the herd” and submitting their own resignation is the way to go.

Turning off potential job applicants

As you know, in business the word gets around fast. People talk, exchange ideas and pass information on to their peers. Sales professionals who have resigned from your organization, may spread the word and let everyone know why they decided to leave. If there is a notion in the job market that your company is plagued by a high salesforce turnover, the most capable and ambitious sales candidates will be reluctant to knock on your door and submit their applications. Their lack of enthusiasm is understandable. High turnover will not only stain your reputation among potential job candidates, but also preclude you from providing any sort of meaningful training and mentoring. Besides, all the time, money and resources you invest in sales training will eventually end up wasted.

Therefore, you need to get your act together right from the start. Avoid bringing bad hires on board. Make sure you carefully vet and evaluate each candidate applying for a sales position. Do they have the right skills, the appropriate background and the stamina for the job? Do you think they could fit well with your culture and hit it off with the rest of the team? Sales professionals not only need a stimulating job with a lot of room for growth, but also social interaction, a positive work environment and recognition and respect from sales executives.

Bottomline: As we pointed out above, most organizations deal with a certain amount of turnover. Some employees come and go, while others are more loyal and stick around longer. The problems arise when the turnover rates continue to increase or get out of control, posing risks to your organization, its reputation and profitability. It’s bad for business, plain and simple. If there is a problem that has been festering for too long, don’t waste your time. Find a cure, stop the “bleeding” and get your organization back on track.

Categories: Talent Management, Sales Management

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