The turnover within an average sales organization is more than 25% according to the 2015-2016 Sales Effectiveness – Sales Acceleration Survey conducted by DePaul University. Many industries accept this level of turnover among the sales ranks as normal, but consider this—would Google accept a 25% turnover in engineering?
Probably not. The reason is simple—that type of turnover affects an organization’s ability to deliver value to customers and has a negative impact on growth and profitability.
Things should be no different in the sales ranks. Turnover costs can be as high as 200% of the rep’s salary. These costs include finding and training a new rep as well as the lost opportunities while the new hire is brought up to speed. If you also consider that there’s only a 50/50 chance of finding a fit when hiring a sales rep, the impact on your organization can be staggering.
Some sales leaders struggle to find good candidates because they don’t spend enough time looking. Far too many sales leaders wait until they have a spot to fill, then choose the best person they can find at that time. Best-in-class sales organizations—whose turnover is only 10%—are always on the lookout. When they find great talent, they are willing to nurture the candidate for as long as it takes. If you have a pool of talent that can be re-engaged, you’ll be positioned to acquire a great candidate who is ready to make a move when the time is right for you.
Is it time to reconsider the way you find great sales talent?
Quote of the Week: “Recruiting and hiring will be one of the most important things you can do to grow your company.”
— Mike Volpe, Former CMO of Hubspot