1 minute reading time (263 words)

Eliminate Sales Turnover Costs By Focusing on 3 Things

Sally Jones, top sales performer has decided to move on from your company. She leaves abruptly and for reasons unknown. Happens every day. Agility in sales organizations starts with knowing how to respond to this scenario in an intelligent, cost effective manner.

Have you had an honest conversation about the literal costs of Sally’s departure and what it will take to replace her? It’s painful at first, yet effective in the long term.

Here are some of the costs you have to consider:

IMMEDIATELY

  • Loss of ongoing revenue from her existing clients.
  • Loss of her prospecting, qualifying and closing new business (pipeline).
  • Public relations hit. Why did she leave?
  • Morale/culture instability. Who’s next?

30-60 DAYS

  • Creating a hiring profile (job description).
  • Use of HR and/or a recruiter.
  • Marketing to solicit candidates.
  • Qualify and arrange interviews.
  • First interviews and follow up.
  • Contract updates and edits.
  • Submit offers.
  • Hire and onboard.

ONGOING

  • Compensation including benefits.
  • Cost of training.
  • Cost of coaching and development.

Depending on your situation there may be more costs than those listed here. Arriving at a figure that makes you uncomfortable is actually a good thing because it will inspire change. Keep this in mind: 

(Hiring sales talent to match business objectives) + (Clear business purpose) = Culture that thrives and retains top performers.

The root of most sales dysfunction can be tied to failure in some part of this equation.

Michael J. Lynch, Executive Sales Coach builds exceptional sales organizations by focusing on People, Purpose, and Culture.

Schedule a 30-minute complementary conversation to assess your costs, and ways to eliminate them.

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Here's A Proposal Your Prospect Can't Refuse

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Thursday, 21 February 2019