If you have low turnover in your organization right now, it may be the result of bad management rather than stellar performance. How many of your salespeople regularly provide acceptable returns on investment for the organization? Do you have a healthy turnover in your sales organization? Does the average person stay long enough to provide a return on investment? Are you regularly increasing your sales force because you know it will add value?
Dave Kurlan of Objective Management Group recently issued his white paper, The Science of Sales Turnover, and he issued statistics to show that sales managers are not managing their people. By definition, good sales managers hold their salespeople accountable, are good recruiters, motivate, coach, and mentor their employees. That is how they should spend roughly 80% of their time.
According to Kurlan’s study on turnover, more often than not, turnover is voluntary, and the employee resigns when income, culture, degree of difficulty or management practices are not to the salesperson’s liking. Involuntary turnover occurs less often because most sales managers are too patient, accept mediocrity, and avoid confrontation, especially potentially uncomfortable terminations. Kurlan’s statistics show that:
20% of sales managers have need for approval issues – the need to be liked – and shy away from confrontation.
30% of sales managers accept mediocrity, and tolerate poor performance.
61% of sales managers aren’t inclined to upgrade their sales force.
60% of sales managers have less than 65% of the attributes of accountability.
If you are not getting the proper return on investment from your sales department, look no further than its management. If it’s not performing properly, get help! There is no other department that can pay for itself more quickly than a high-performing sales organization.
Contact me if you want to receive the entire white paper at [email protected]