Company leaders are competing for employees in general, and sales talent in particular. Prospective employees are in the driver’s seat - and if you are an accomplished sales professional, you may be able to write your own ticket.
Employee turnover is a challenge for any organization, but sales turnover is especially costly. A Society of Human Resource Management (SHRM) study finds that the loss of just a single employee can lower sales performance by as much as 5%.
The loss of a manager can lower sales performance by 6% and when the manager leaves and takes a key employee with them…do the math.
SHRM also reports that once the employee is replaced (which could take almost a year), it will take between 10 and 16 months for the company to see financial recovery.
The Role of Sales Incentives
The cost of attracting, on-boarding, training and retaining key employees is high. Because the organizations with the lowest turnover rates also enjoy the highest employee engagement scores, an engaged workforce is no longer just nice to have, it’s essential.
Executives believe that their companies can perform at higher levels, and that employees offer their greatest challenge and their greatest opportunity. Human Resource managers are combating employee turnover by instituting effective programs that increase employee engagement, such as performance based reward & recognition programs including sales incentives.
Organizations that have used sales incentives in the past may be tempted to think that what has always worked will continue to work in today’s environment. It’s a new work world! Partner with an experienced firm that can help you structure sales incentive programs that will be effective in today’s business environment, reward performance, retain key sales talent and achieve company goals.
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About the AuthorMore Content by Deb Broderson