There is a 20%-34% annual turnover in sales.
Data on sales representatives’ retention are rather worrisome. Only 6% of newly hired sales representatives exceed their employers’ expectations, while 48% will fail.
Recruiting and hiring are costly and time-consuming. A DePaul University report on sales representative turnover indicates that average cost of replacing a sales representative can reach $114,957: this figure comprises of $29,000 acquisition costs, $36,000 training costs, and $50,000 lost sales in territory. The time to replace an open position ranges from 5.8 – 7.8 months, averaging 6.2 months.
So, if your budget does not have an extra $115,000 and your territory does not have room for a 6 month opening, it’s worth paying more attention to proper hiring, effective onboarding and continuous training of your staff.
Based on experience managing a comprehensive recruiting, hiring, onboarding and training process for ensuring sales force success right out of the gate, Patrick Valtin, president and CEO of HireBox.com, recommends that companies:
- Define responsibilities, processes and expectations for the position immediately upon hiring and show the sales person HOW you are going to help them get there.
- Have on-the-job training ready, as a tool to balance theory with practical application.
- Ensure that the company’s employee handbook is reviewed, easily available and all administrative procedures covered.
- Consider pairing the new hire with a “buddy”—an employee who can answer questions, provide a stabilizing voice in the organization, and help the new staff member around.
A program such as the HireBox Sales Talent Acquisition, Onboarding & Training Program combines all three elements, providing a trifecta of the human resources experience for an effective sales force—one that will outperform the competition on every front.