There is no shortage of competition in the alcoholic beverage industry. Every day, there's a new start-up entering the marketplace, hoping to leave its mark on the industry and win over your customers. In such a saturated market, a quality sales team can be the critical factor that helps your product stand out from the crowd. You can't undervalue the importance of sales skills. The challenge is finding and retaining the right salespeople for your team.
In a competitive labor market, it can be difficult to find talented salespeople. Once you do, it can be harder to get them to stick around. The Harvard Business Review reports turnover among the sales force is as high as 27%. To put that in perspective, that's twice the turnover rate for other industries. Numbers like these aren't just frustrating, they can quickly eat away at your budget.
Did you know, the average US employer spends over $4,000 to onboard a new employee. It takes the average employer 42 days to fill an empty position. And that's just to get the employee in the door. Employers spend approximately $1,886 on new hire training. Let's imagine you have a sales force of 50 people and a turnover rate of 30%. That’s $88,290 walking out the door.
What would happen if you could decrease these costs by 10%? The truth is most employees don't want to leave a job where they are happy and fulfilled. As a manager, there are things you can do to increase employee retention.
Your company is unique. Your values, goals, and culture are what set you apart. When you create a job profile, it's important to consider these factors. Look at what you really want from your sales force and who you want on your team. When you create a job profile that includes desired skills and personal qualities, you increase the likelihood both you and your new hire will be happy with the fit.
Far too many organizations leave onboarding and training to the human resources department. First impressions make a big difference on whether an employee is happy, and ultimately, how long they will stick around. When you get managers involved from the beginning, your employees know you're invested in their success. This makes them more likely to work harder and be just as invested in your company's success.
Clear performance expectations help ensure you and your sales team are on the same page. They give your team something to work towards, and you a metric to measure their performance. When you don't set clear expectations, both you and your sales team are likely to become frustrated. When your sales force is frustrated, they're less likely to stick around. A few things to keep in mind:
You should never have a sink or swim mentality when it comes to your sales force. When your sales team succeeds, you succeed. Ongoing coaching can help improve employee performance. As your company's goals and metrics change, so should the strategy of your sales team. By providing meaningful feedback and training, you show your employee you're invested in helping them improve in their role.
One of the most important things you can do as a leader is to remember that your sales force is composed of a group of humans. They are not robots. Because of this, you may need to adapt your leadership style, depending on the situation. The more you get to know your team, the more you will understand each salesperson's individual needs and what motivates them. When you understand the human element, your sales team is less likely to find a reason to leave.
High sales force turnover is often a sign of a bigger problem. It's important to understand the role managers and sales leaders hold within your organization. In this competitive recruiting environment, investing in someone with minimal sales skills is ok if you provide a strong sales training and development program. This expands potential candidates beyond only those with sales experience.
Don't settle for high employee turnover. When you invest in your sales team, they're more likely to invest in you.