Top 10 Reasons for Sales Turnover…and the waste of someone’s money.

There is no greater loss in resources, market time, goodwill and MONEY than in the staffing of sales people. Why is sales turnover always around 50% year in and year out?

Here are the Top 10 Reasons:

  1. Miscast or misunderstood Sales Role – hiring a solution oriented; C-Level Relationship person who is expected to be on the phone setting their own appointments 5 hours per day – tip hire an appointment setting firm – I recommend Virtual Sales Force.
  2. Poor selection (no objective candidate qualification process).  The most common error is hiring previous contacts even though the business they excelled in and your current business have no similarities in selling process, solution or environment.  Please if you feel sorry for them just write them a check but don’t hire them and waste your time, other company resources and worse allow them to mismanage your clients, prospects and marketing leads.
  3. You’ve hired an expert who won’t need training.  Don’t kid yourself, there are always a myriad of internal issues which require training to expedite success.  Make a list, assign names responsible for each area and be sure the proper resources are in place before they start.
  4. No effective on-boarding plan to support them during the critical first 30 to 90 days.  Their manager or other supporting resources must set aside time in their calendar to support new staff members.  If there are critical business meetings, vacations and the like, you are better off moving out the start date.  The first few days set the tone.  What’s it going to feel like – a house in order or a house in disarray?
  5. Unrealistic sales and compensation expectations – of yours or theirs. 
  6. Ineffective to non-existent sales tools – Unless these “tools” exist in written form and are used consistently in your sales organization you don’t have “them”
  7. Undocumented sales process (wasted sales time and worse loss of credibility with prospects)
  8. Loose to non-existent activity goals (I’m not talking about quota assignments) for first 90 to 180 days
  9. Loose daily management – “I’m hiring a professional if I needed to manage them daily I shouldn’t hire them”.  EXACTLY you shouldn’t hire them.  New people need attention to properly assimilate and succeed.  This does not need to be onerous – google “Daily Huddle”.
  10. No formal monthly performance meeting or written recap.  Once a month take an hour and assess the performance (including attitude and departmental interactions).  Quantify the success of their monthly performance and set specific goals for the coming month.  Resolve issues quickly by getting them on the table – read “Fierce Conversations” by Susan Scott.

Management should have all the above prepared and thoroughly planned out prior to starting the interview process. Why? Because the best candidates you interview will expect them to be ….and the “loose sales cannons’ will know their gig won’t fly at your organization.

By addressing these issues you will have done your part to bring down sales turnover and most importantly, improved your sales results while not wasting your organizations resources, time, goodwill and MONEY!

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This entry was posted in Business Plans, Leadership strategy and tagged , . Bookmark the permalink.

One Response to Top 10 Reasons for Sales Turnover…and the waste of someone’s money.

  1. Karen Jame says:

    Good article JR – I believe we have made all of these mistakes!!

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