Most companies spend more on hiring in sales than they do in any other part of the organization. With an average annual turnover rate of 25 to 30%, and direct replacement costs ranging from $75,000 to $300,000, there’s a big opportunity for improvement. Here are a few places to start:
- Focus on behaviors. A primary cause of turnover is poor job fit. Consider ramping up assessment tools, simulations, and interviewing techniques to help identify the right people. Or, try temporary positions to assess people on the job before offering a full-time position.
- Be clear about the relevant “experience” needed. Make sure that a candidate’s previous experience really aligns with your own market, geography, culture, customer groups, and technologies.
- Conduct on-going talent assessments. Salespeople need to constantly adapt their own skills to changing markets and buyer motivations, and managers need to vigilantly track those skills.
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