This post will explore why all turnover is not created equal. Measuring sales turnover as a percentage can be misleading. A lower percentage isn’t always better. Yet turnover is probably the most measured sales metric. HR, sales leaders, and Sales ops all measure it.
Instead of focusing on an overall turnover percentage, focus on retaining ‘A’ players. Many sales organizations are proud that they have a low turnover metric. But they are retaining the wrong people.
Want to retain 100% of your 'A' players? Download the Top 10 Ways to Prevent ‘A’ Player Turnover Checklist. Print it out and put it on your desk.
The first step in preventing 'A' Player turnover is properly identifying 'A' Players. This is not as easy as many think. Here’s an example:
Top Territory Todd:
Todd has exceeded quota the past 5 years. His quota is approximately the same as everyone else. Yet he has 3x the average territory potential in his patch. He has some of the largest current customers. Prospects fall into his lap with little effort. His boss does not want to split his territory. Why mess with a good thing? Todd hasn’t needed to be a student of the game. He has made boatloads of cash and played golf on Friday afternoon for years. Why spend time sharpening the saw? Because of this, Todd isn’t extremely competent on relevant sales skills. Is Todd an 'A' Player? Many would think so based solely on his results. But place him in an equal territory and watch him flounder.
Newbie Ned:
Ned has been on your team for 9 months. He impressed everyone during the hiring process. He was diligent during onboarding. His activity is through the roof. He is teaching others of the team new skills he learned in previous roles. Yet, Ned’s results are average for his tenure group. Ned was given the smallest territory and worst customers. Why? His Sales Manager didn’t want to rock the boat. He doesn’t feel Ned knows the product or industry well enough to approach large customers. He is holding Ned back. Ned walks into the Sales Manager’s office and resigns. The Sales Manager looks at Ned's revenue numbers and doesn’t bat an eye. Once Ned is gone, the Sales Managers labels Ned a ‘bad hire’.
What would have happened if Ned was given Todd’s territory? Odds are, his revenue would have skyrocketed. He possesses better hunter competencies and works much harder. In the long run Ned would have significantly out produced Todd. But the Sales Manager was focused on the next 30 days.
The Sales Manager in this scenario missed his number by 4% last year. If he gave Ned a fighting chance he would have hit the number. Backfilling Ned’s territory led to a $1.2 million year-over-year territory revenue deficit. That revenue would have bridged the gap.
This is a common issue. So how do you solve it?
Comment
You're right. But a lot of times it takes someone from the outside to make that happen. I have been at many places as a salesperson and manager where no one wants to rock the boat no matter how justified your argument is. That's when it's time to move on in search of the winners.
Thanks Bobby-Now if there were only enough talented, secure and motivated managers to go around. Why dealers who are actively engaged in their business don't understand that they need someone on the outside looking in who can offer qualified unbiased objective analyses is a costly error.
The ROI on that investment can be phenomenal and the consequences enormous.
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