Breaking the Employee Turnover Cycle
How Career Pathing, Manager Coaching, and Strategic Hiring Can Improve Your Sales Team Performance
From the desk of Maria Simon, VP Talent Strategy & Partnerships
In the fast-paced world of sales, employee turnover can be a persistent challenge. High turnover not only disrupts operations but also incurs significant costs, both in terms of lost business and the expenses associated with hiring and onboarding new talent. It's a cycle that many sales teams find themselves stuck in, losing sales talent far too soon after ramp up. Many sales orgs try to engage and retain with temporary strategies–using President’s Club trips, introducing sales SPIFFS, or short-term accelerators. But these strategies rarely work for long-term success.
Several years ago, I was part of a sales organization grappling with a constant turnover issue, especially among entry and mid-level employees. It seemed like a revolving door of new faces. While turnover at these levels is common in the industry, what made this situation particularly challenging was the complexity of the industry, the amount of time it took to train a new salesperson, and how costly a mistake could be. The new employees required extensive training and support, which placed an immense burden on senior managers. They had to divert a significant portion of their time and energy into training and mentoring the newcomers.
This created a double-edged sword. Top performers began to suffer; they were left with less guidance and support from their managers, leading to lost business opportunities. And, at the same time, Sr Managers felt burnt out. The imbalance between training new recruits and nurturing the existing talent was becoming unsustainable.
As illustrated by this example, the turnover problem for sales organizations is multifaceted:
Financial Impact: High turnover rates lead to direct financial losses. The cost of recruiting, hiring, and onboarding new employees can be substantial. Moreover, the revenue lost due to gaps in the sales team can be even more significant (all that time that could have been spent selling!).
Operational Disruption: Frequent turnover disrupts the daily operations of the sales team. The time spent on recruitment and training can take managers away from their primary roles, which is nurturing client relationships and driving sales.
Decreased Morale: High turnover can erode team morale. The constant influx of new team members can be demotivating for existing employees, affecting their performance and job satisfaction.
The Solution: Career Pathing, Manager Coaching, and Strategic Hiring
Breaking the costly employee turnover cycle requires a multi-faceted approach. Here are three key differentiators that can lead your sales team towards a solution:
1. Career Pathing: Supporting Employee Growth and Development: Career pathing is about more than just helping employees advance within your organization; it's about facilitating their growth and development. By offering a clear path for advancement, you empower your team members to see a future with your company. This reduces the temptation to explore opportunities elsewhere.
Research shows that implementing structured career pathing programs significantly reduces turnover among entry and mid-level employees. They have a clear understanding of their potential growth within the organization, which improves job satisfaction and commitment.
2. Manager Coaching: Nurturing Leadership Skills: Equip your managers with coaching skills to develop their new members of the team effectively while also maintaining their focus on top performers and client relationships. Investing in manager coaching not only improves your team's overall performance but also reduces the strain on senior managers, creating a more balanced workload.
3. Strategic Hiring: Finding the Right Fit: Strategic hiring goes beyond filling vacancies. It's about finding individuals who align with your company culture and values. A well-thought-out hiring strategy can significantly reduce turnover by ensuring that you bring in employees who are likely to stay and grow with your organization. Strategic hiring also considers the skills and qualifications needed to excel in your industry. It reduces the need for extensive training, freeing up senior managers to focus on high-value activities.
For commercial teams, where the cost of employee turnover can be steep, finding a way out of the perpetual cycle is not just a solution; it's a strategic advantage. This is where CFW Careers can make all the difference. Our commitment to transforming sales teams is deeply rooted in three key differentiators: career pathing, manager coaching, and strategic hiring. These pillars form the foundation of our mission to address all aspects of the talent continuum—from hiring to retaining, engaging and transitioning.
By embracing these strategies, you not only reduce turnover but also unlock the full potential of your team, boost morale, and safeguard your bottom line. We've seen it happen, and we want to bring these transformative solutions to your sales organization. Let's start a conversation about how CFW Careers can tailor these strategies to your unique needs, providing a roadmap to a thriving, stable, and high-performing sales team.