The Mansfield Sales Blog

3 Reasons Your Sales Turnover Rate Is Too High, And A Solution

A well-organized, motivated and dedicated sales force is central to a company’s sales efforts. And the quality of your sales team is reflected in the growth -- or lack thereof -- of income. When salespeople are constantly coming and going, revenues, of course, decline, causing cash flow problems.

If you can't seem to retain a consistent team of sales professionals, there may be many reasons, including:

  • Selecting applicants who are not able to meet expectations or who lack experience
  • Paying a low base income that does not cover minimum living requirements or offering a compensation program that does not adequately reward performance
  • Failing to provide adequate motivation and future opportunities

By making improvements in these three areas, you can effectively reduce the sales turnover rate of your sales staff.

Select qualified and successful sales personnel.

When a company’s recruiting and selection process is ineffective, it may result in salespeople who are unable to meet sales goals. These personnel will become dissatisfied with their results and look for other opportunities. To avoid this, find sales personnel that will work well with your company. Determine the traits shared by your top producers and hire people that have those characteristics.

Provide adequate compensation.

Many sales compensation packages reward sales staff based on performance. Base salaries should provide a level of stability that enables salespeople to pay their basic bills. Commission structures should reward top sales producers so that they continually work to achieve high sales goals.

Keep sales personnel challenged and motivated.

It is management’s responsibility to provide challenges and motivation so that the sales staff feels appreciated and stays motivated. When salespeople are motivated and excited about the products they sell, they remain excited about their jobs and feel that there is growth potential within the company.

If your efforts to maintain a stable sales force have failed, consider outsourcing. Bring in a team of experienced sales executives that can start at the beginning with you, clearly defining your strategy and working with you through the sales process, even helping you select and train new salespeople. You'll find that sales force stability is an achievable goal.

Topics: Sales Consulting


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