How To Retain Your Top Sales People |
 |
 |
|
Sales Leadership -
Retention
|
|
Written by Jim Klein
|
|
A management skill that will reap huge benefits is retaining your top sales people. When you realize 80% of your companies sales volume comes from the top 20% of your sales people you should understand your time and money are best spent on them.
Spend your time, money and educational resources to locate, hire, train and supply top sales people. Don't leave this to chance.
Top sales people have big egos that need to be fed. Making them feel important and appreciated is a big step towards building their loyalty to you. Spend time finding their needs and how you can help. Instill upon them the vision and mission of the company and how they're an integral part. Praise them for a job well done. They will reward you with more of the same.
Spending money on training for them is a part of this management skill that will be beneficial to both you and your top sales people. It's a great way to show them how important they are and their valued long term.
 For you as manager, training your sales people has many benefits.
Training:
* is an inexpensive investment.
* is a great recruiting tool.
* will keep business out of the hands of your competitors.
* helps to lower sales costs.
* helps to lower turnover.
How much would your organization's profits, sales effectiveness or competitive position improve if your sales people were better trained? Studies show it takes approximately one and one half years salary to bring a new hire up to full production. So investing a few thousand dollars on sales people currently on your staff is a wise investment.
My recommendations in this management skill don't mean you should bow to your top producers every wish. On the contrary, be tough when you need to be. Don't let your top people run the company. Do what ever you have to do to make your best people work harder and smarter than they've ever worked for any one else. A good way to get your sales people to perform at a higher level is to regularly replace your weakest links with stronger ones.
Let them know you're still in charge!
As a manager you will reap the largest rewards from the top sales people in your company. Put this management skill into action. Train them, push them, scold them, praise them show them that you care and they will produce for you for many years to come.
|
Dealing With Troubled Employees |
|
|
|
Sales Leadership -
Retention
|
|
Written by Nicki Weiss
|
|
Has one of your salespeople recently made you angry or frustrated?
The answer is probably yes. Friction frequently arises when people depend on one another to get work accomplished. If co-workers don't get something done on time, or somehow drop the ball, you feel “something” – anger, disappointment, frustration – and you may feel that “something” very strongly. Of course, the first step is to talk about what happened and to try and resolve the issue. However, if you are finding that the work of one employee in particular frequently raises your emotional temperature, you might want to consider that he or she may be having troubles outside the job. Those troubles may be marital, financial, alcohol- or drug-related, or perhaps the employee has suffered a loss or is dealing with a sick relative.
In the past few weeks I have learned about these situations:
• Cynthia, Lisa and Steve lost their fathers recently, and all three find they can’t focus on their jobs. Cynthia is often weepy.
 • A long-time salesperson in Robert’s team is having tremendous difficulty working because his spouse is ill with breast cancer.
• Debra is coping with a clinically depressed husband.
• Sonya holds a full-time job and is also the primary caregiver for her ill and disabled mother.
• David’s 18-year-old child recently died of leukemia.
These personal heartaches are not uncommon in any organization. While you may not know the details of your sales team’s lives, you may have noticed a decline in one employee’s work that does not improve, even though you’ve tried to address it. This decline may be a tip-off that you’re dealing with someone who is struggling.
What you can do:
Don't go it alone
Most of us can’t sort out difficult situations by ourselves. We need help. (And many of us forget that asking for help is a powerful leadership quality.) Consult with someone who knows how to compassionately untangle messiness, perhaps an employee assistance counselor, an HR specialist or a coach.
Helpful hint:
Before diving into the nuts and bolts of how to work with the issue, talk with your helper about what an ideal relationship with this salesperson would look like:
Imagine your best hope for the situation.
For example, Robert’s best hope was that his salesperson trusted Robert enough to open up about the kind of help he needed, and that this salesperson would be an active contributing member of the team.
Then look at what already exists that could make that hope a reality, for instance, you usually like the salesperson's work and you mutually respect each other.
Then talk about your worst nightmare.
In Robert’s example, his worst nightmare would be that his salesperson would drain the energy out of the team, that Robert would feel helpless, and that he would have to fire this salesperson. The conditions that could lead to that scenario coming true might be: Robert is getting pressure from above for results, he is uncomfortable giving balanced feedback about poor work, the salesperson is unapproachable and there is no improvement in behavior.
You are in a good position to talk about next steps.
Some possible next steps that could arise might be: role playing the conversation beforehand, acknowledging the salesperson’s struggle and their accomplishments, asking them about what is possible for them given their difficulties, and alerting senior management about how you are handling the situation.
Don't ignore a developing problem
Ignoring a problem doesn’t solve it. In fact, doing nothing just might make the situation worse. Pick up the telephone and get help at the first signs of trouble. Early action will frequently eliminate the need for discipline.
Be a role model
Support the individual who is struggling, while continuing to promote office morale and productivity. It may be helpful to ask your employee what the office can do to relieve some of the work stress during this difficult time.
Knowing the "right thing" to say to someone who is struggling or grieving is not critical, but a few guidelines are helpful.
Saying nothing is worse than saying the wrong thing.
Appropriate words are: "I am sorry to hear about your loss/difficulties;" "You are (or have been) in my thoughts;” "How are you doing?" or "I don't know what to say, but if I can be of any help, I'm here."
Offering time to listen can be helpful, or temporarily taking over some burdensome tasks. Managers also can show appreciation to team members who may be carrying an extra load due to the situation.
Most employees can and will resolve their problems, given time and support.
|
|
Four Factors Determine Top Sales Staff Retention |
|
|
|
Sales Leadership -
Retention
|
|
Written by Betsy Harper
|
|
The other day when I had a call from a CEO whom I've known for a long time. (In this case, about fifteen years.) He was bemoaning the recent resignation of one of his best inside sales people.
I know the woman. She's a gem — a real performer and I could understand why he would be upset about her leaving. It would definitely impact his sales numbers. But then I asked him how long she had been at the job.
"Well, she's been here about five and a half years," he replied.
"Well, it's time for her to move on. She's doing the right thing," I said. Needless to say, that wasn't the response he wanted from me.
I see this all the time — hiring managers being disappointed when someone leaves. But, if they could only put themselves in their employee's shoes, they'd probably be more understanding when this happens and, more importantly, more prepared for this eventuality. Good managers plan for employee turnover.
 A shorter or longer stint of employment will be based on lots of factors, of course, but here's a tool that will help you determine (as much as anyone can do this of course) what you can expect. I call it "The Harper Sales Employee Retention Formula." (SERF, for you government types.) And here's how it works.
In my experience, the duration someone stays with you depends on these four factors:
1) The Short/Long Sales Cycle
The shorter the sales cycle, the shorter the period of employment. I see inside salespeople usually lasting anywhere from 2.5–3.5 years at their jobs. The good ones go on to bigger and better opportunities anytime after that.
As I told my CEO friend, the last two years of his employee's time were "a gift." And here's why. His company has a highly transactional and relatively low-cost sale (think Yellow Book advertising). There's nothing particularly challenging about it once you get the hang of it, and the sales cycle is relatively short. It's a true hunting position. And while you can certainly make a good living while you're doing it, the smart salesperson will feel the need to grow and move on.
Conversely, products with a longer sales cycle – almost by their very nature – will keep salespeople in your organization longer. Salespeople will be working on bigger deals and will be more reticent to leave when there is so much "pending" in their pipeline. Longer sales cycles, with more steps in the process, seem to lock people in for a longer time.
2) The More/Less Consultative Sale
The more "transactional" the sale, the more deals can be done. In a highly transactional environment, once a salesperson is up to speed, it's more a job of repetition than skill. At this point, and after honing their "basic" skills, many salespeople opt for the greener (read "bigger") and more challenging pastures of a consultative sale.
In addition, and because consultative sales typically both take longer and often have an "annuity" element to them, salespeople are less likely to turn over quickly.
3) The Better/Worse Compensation Package
This is pretty self-explanatory, but I cannot stress enough how important it is, especially in a tight labor market, to be sure you are compensating your people well and that your benefits package is robust. A solid compensation and a great benefits package will add time to your employees' tenure and make it more painful for them to leave. Without these incentives, there's a lot less hesitation before walking out the door.
4) The Better/Worse Extenuating Circumstances
That's right. There could be other factors that affect how long your people stay. For example, if you have a fast growing company that is constantly innovating, providing your sales force with new products and new markets, you can realistically add a year or two to an employee's tenure. Other factors such as exciting international travel or access to a corporate Skybox at Fenway Park may tip the scales as well.
If, however, you have just the opposite situation (e.g., you are in a "mature" market with a "mature" product), you can deduct time. Unfortunately, you should probably also deduct time if you have Celtics season tickets.
So, the next time you have a valued employee tender a resignation, ask yourself, "How long would I stay in that job?" and answer honestly. Don't feel bad when an employee leaves for a better opportunity that was not available to them at your company. Be proud and happy that you were part of their career growth. Only feel bad if you could have provided the next best step in their career and you didn't.
|
Sales Force Retention is a Myth |
|
|
|
Sales Leadership -
Retention
|
|
Written by Jeremy Miller
|
|
Turnover is a sign of a deeper problem
Employee retention is a top-of-mind management topic today. As it should be! With the boomers leaving the market and an already overheated job market, companies need to hold onto their top performers. A fully trained, engaged and productive sales person is a huge asset, and is potentially crippling to lose. But the real question is not, "How do we retain our top performers?" Rather sales managers need to look deeper to identify, "Why do I have a retention problem?"
A revolving door of sales talent is a symptom of a much deeper problem. Sales people don't leave jobs when their products are in demand, leads are plentiful and sales performance exceeds quota. They leave when the wheels are falling off the bus. When management starts talking about "improving retention," take a deep look at the sales environment.
1. What is happening to your market?
Coal miners used to take canaries into the mines to detect harmful gases. It was pretty grim. If the canary died, the miners knew they were in danger and to take action. When sales people start leaving, they can be your canaries – an early warning system of problems happening in your market.
When a market begins to consolidate or a product becomes dated, the sales cycle becomes even more difficult. It is harder to find leads. Customers stop investing the time they used to with the sales people and closing ratios decline. A shifting customer base can be a very demoralizing sales environment. Sales management tries to stay on top of the sales people to achieve their numbers, but the customers just aren't buying. It is a lose-lose situation for the sales people.
All is not lost. If management recognizes the changes in their market soon enough, they can adjust. At this stage it is key to recognize the problem is not the sales reps; rather it is a corporate, product development or marketing problem. Sales is being directly impacted today, but with the right product and marketing mix the sales team can return to a fun and rewarding environment.
2. What is their manager doing?
"People don't leave companies, they leave managers." This is a hackneyed phrase, but it speaks the truth. The front line sales managers are the most important people in a sales organization. They are responsible for acquiring, coaching, motivating and retaining the sales reps. When you have a bad sales manager, the damage can be deep and pervasive.
It does not matter how good the product is, how fast the company is growing or how much money the sales people are making. If the manager is making the reps' lives hell, they will leave. No money is worth the hassle.
Identifying bad managers is easier said then done. Often you don't find out until it is too late, but you can implement early warning systems. Tracking and analyzing sales metrics are a good starting point. Metrics provide the data to identify trends and problems. Is the manager achieving her sales targets? What is the employee turnover in the group? How does the team relate to the other territories? Sales departments are very accustomed to being managed to the numbers. By including retention and employee performance metrics, the executive team can manage beyond hard revenue goals.
Tom Peter's coined the term, "Management by Wandering Around" in his book In Search of Excellence. The philosophy is very applicable in a sales department. Executives and Sales VPs should make time to constantly meet with the sales people one-on-one. If the reps are facing a management problem, they will tell the senior management. It may not be overt, but if you are paying attention you will see the signs in a one-on-one session. They will articulate issues such as morale, micro-management, politics and other non-sales related problems. Do not overlook these comments; it may come to haunt you later.
3. Would you sell for your company?
Too often sales is boiled down to a numbers game. Management will say, "For every 'no' you hear, you are that much closer to hearing 'yes.'" Bull! Cold calling is the most inefficient lead development tool out there. Sales people can make calls until they are blue in the face, and still not have a qualified prospect. A "learn to love no" sales culture is no joy to work in. It is filled with rejection.
When an organization does not value sales people, the compensation plan shows it. The sales people are often paid 100% commission or an extremely low base salary. Management wants the sales people to be hungry. As the saying goes, "If you pay peanuts, you get monkeys." It is very hard to attract and keep highly talented sales people when the company has no skin in the game. The compensation plan must be tuned to the market value of the sales people, and adequately compensate the reps for the value they bring to the business.
People may take a low paying sales job to start their career or when they are desperate. Yet when they find their feet, you can bet they are going to look for something better: a product that is easier to sell, better pay or a more professional work environment. In this labor market there are plenty of choices available to all levels of sales people.
Can turnover be eliminated?
Sales people go through a natural cycle in any job. The first year is typically a build year. This is an exciting time for a new sales rep as he learns the product, the market and how to sell it. In the second year the sales person finds his legs. He is achieving quota and reaping some of the rewards from the hard work he has done to date. The third year is a quota buster. At this point the sales person has mastered the product, the market and can easily exceed quota. It is a great time, but is also a turning point.
By the time sales people reach their fourth and fifth year in a role they begin to plateau. In this phase, they have mastered the job and complacency can kick in. The money might be great, but they could be bored and looking for the next challenge. At this point the organization should be looking to promote sales people, adjust their position or give opportunities for growth. Otherwise the sales people could leave. This might not be bad turnover and can be accounted for in the workforce plan.
On the other hand, if sales people are leaving in the first 24 months, this is a sign of a retention problem. Now it is time to look at your customers, look at your managers and look at your sales organization to determine if you have a much larger problem. Sales people don't leave great jobs; they leave crumbling ones.
|
|
