b"TCHEEN TCEERN TFEORRFSOARLE SSA SLTERS ASTTERGAYT EBGLYOG5 Ways to Reduce HighTurnover Ratesby Trey MorrisF rom prospecting clients to making the pitch,Recruiting costs: It typically takes over 30 days, its the sales team that brings your businessand many additional resources, to source and profits. When you work in a profession wherehire new sales reps.quarterly quotas and revenue goals need to be met,Training costs: Onboarding new reps takes an you cant afford a high turnover rate. average of 6 months and requires significant in-Whenmeetingwithclients,howoftenaretheyvestment in training and coaching.experiencing sales problems that are often due toLostrevenue:Saleswillinevitablygodown extreme turnover on their sales team? There arewhen you have a vacant position. The longer the multiple reasons behind sales rep turnover, one ofvacancy, the greater the overall revenue loss.the biggest being ineffective sales managers. OtherCustomerrisk:Customersbecomeirritated reasons range from poor company culture and in- when there isnt a stable sales relationship. This adequate pay to lack of training. also creates an opportunity for competitors to A modest amount of turnover is expected. Plus, itssneak in.good to bring on new people with different per- How much is turnover costing your organization? spectives,ideas,andcapabilities.However,turn- When you honestly do the math and look at the over rates near 35% can be costly and reflect poor- ratio, you realize high turnover rates are financial-ly on your organization in more ways than one. ly crippling. So, how do you reduce high sales rep turnover rates? The Financially Crippling TruthIt's simple, but not easy. It's a process that takes about High Turnover Rates months and sometimes years to fix, but its possible with strong dedication.Onaverage,everysalespersonthatyouloseand have to replace costs your organization approximate-ly $112,500. This is how we calculate that number: 5 Strategies for Reducing Sales Rep TurnoverThe average cost of turnover for an employee is 1.5 times annual compensation With turnover as such a costly problem, there are If a salesperson earns $75,000 yearly, it will costsome strategies that you can utilize to reduce turn-your organization $112,500 over rates and keep your sales team engaged.75,000 x 1.5 = $112,500 1. Fill Your Talent BankIf your top salesperson is making $50,000 per year, then the cost of losing that sales rep and replacingYou can't hire great people unless you have great them will cost your business $75,000. This is justcandidatesready!Inthelong-run,afulltalent the average cost of annual compensation. You mustbank is the very first step in reducing turnover. You also consider other factors, such as: should always keep your bank loaded with talent, 88"