Turnover is inevitable; Sales turnover is no different. There will be a turnover rate in every company, whether you’re in sales or engineering. But there is a difference between bad turnover and regular turnover. As a sales manager, it’s your goal to avoid bad sales turnover .  Your company puts a lot of resources into hiring and training new sales reps and you don’t want to be in a position where you are constantly having to train new reps as other newly trained reps decide to leave the company.

There are many reasons a sales rep may choose to move to a new company.  Some people move jobs in order to try and move up if they feel like they are stagnant and have no room for advancement where they are.  In order to try and prevent some unnecessary sales turnover, it is very important to have a good sales manager.

1. Good sales manager.

Step one in reducing sales turnover is having a good sales manager. A good sales manager will hire good sales people and build good teams.  Put is this way, a sales manager is a completely different skill set than a sales position.  So, you need to have a manager who is a leader and is able to provide proper sales coaching and mentorship.

A good sales manager will work to develop sales people to be better than they are right now.  They will provide opportunities for growth and make sure that a sales rep has everything they need to be successful in their role.


2. Have a Sales Hiring Process.

Step two in reducing sales turnover is having a good sales hiring process. A good sales manager will make sure to find the right person for the job.  If you have a bad sales manager who makes poor hiring decisions, you are wasting time and resources on onboarding someone who is not going to be a good addition to the sales team.

A good sales manager will have candidates properly profiled and make sure that there is a good job description so that everyone is on the same page. This way everyone knows what is expected from each person within the company.

They will have assessed, and written out, exactly what they are looking for when they hire a sales rep and they will have a solid explanation of the role.  With this, they will be able to conduct a proper interview and make good decisions during the sales hiring process.


3. Have a Sales Onboarding Process.

Step three in reducing sales turnover is having a proper sales onboarding process. If you do not onboard your sales reps properly you will end up losing them.  The company’s main goal in helping to develop a new rep is helping them become the best they can be. This includes a proper sales onboarding process to educate them on everything within the company. The goal of this process is to set up a rep for early success.  You want them performing at the top of their game as early as possible so that they are making quota and feeling successful.


4. Career development plan

Step four in reducing sales turnover is having a good career development plan in place. When you begin working with a new rep you need to give them every opportunity possible to grow. It seems obvious, but you’d be surprised how many managers forget this crucial step. You need to work with your new reps to get them better at their job so that they can grow their income and career and consider promotions.

This will help to reduce turnover as people who have a strong career development plan in place are less likely to leave. Essentially, you are avoiding “the grass that looks greener on the other side of the fence” complex.  They may not be where they want to be immediately but they will be able to see what the company is trying to do for them and what they need to do to reach those goals.

People have more trust in a manager who cares about their career and helps develop a plan that will have them achieving their goals faster and more efficiently.  If a sales rep can see their path to success they are more likely to stick things. In turn, they will do everything they can to achieve the goal set out for them.


5. Competitive compensation plan

Step five in reducing sales turnover is having a competitive compensation plan in place. It is important to have this plan so that sales reps feel that they are being paid fairly and in line with the current market rates.  People want to make money in their chosen career and if your company is not competitive with pay rates you are more likely to lose reps who will go where they can make more money.

Your company should also offer growth opportunities so that reps do not feel that there is no room for advancement.  Reps who work hard and are successful should be compensated accordingly.  It is important that they are not penalized for making sales and surpassing quota.

It is a good idea not to put a cap on the money a sales rep can earn.  The nature of a sales job is that the more you sell, the higher compensation you will receive.  If you take that away then it does not give your sales reps the motivation to work any harder than the next guy.  You do not want to be in a position where your reps feel that they are not being compensated for the effort they put in and the business they bring to the company.  When you put a cap on earnings it will create turnover as your reps will be looking to go somewhere else where they will be compensated for the work and the effort that they put in.


Final Thoughts.

If you have a good sales manager, an efficient hiring process, an effective onboarding program, a definitive career development plan, and a competitive compensation plan, you will be able to reduce sales turnover and company resources can be used in better ways than having to hire and train new reps all the time.


Keep Filling The Funnel

We would love to hear from you. Let us know what you think about this episode. Please feel free to reach out to us if there is a specific sales topic you would like me to cover.  You can find me on Twitter at @Sheajohnr or email me at jshea@alignment-group.com.  And if you get a chance, please feel free to review us on iTunes.


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