How to Succeed with A High Turnover Sales Force

I am never surprised to walk into an organization that doesn’t have a stable, efficient sales force. Many don’t deserve one; they disrespect sales and blame the force for every conceivable (and sometimes inconceivable) dysfunction. Other companies don’t even want tenured people selling for them, preferring to lure in inexpensive workers with false hopes and distorted expectations. Once in the door, those companies milk the new salespeople for whatever they can squeeze out quickly and spit them back out — without remorse.

Callous employers like that — the car business is notorious for it — squeeze short-term sales out of unknowing new reps who are just starting out and rely on their families and friends to buy whatever the new job has them selling. After booking these quick hits, the employer gets rid of the new hires, cycles in a fresh crop, and then milks and disposes of them too. It’s a quick, vicious cycle that very few survive.

I have seen all sorts of piggish schemes tied to this approach, perfumed by a thousand different scents. But a pig is a pig and I pity a titular boss who treats good, hardworking salespeople like dirt on a shoe. While these may be sales jobs, they certainly are not professional sales jobs.

Not all companies that deal with high turnover are unethical or undesirable. Some are quite the opposite; some are great brands. For them, a revolving door of new hires and quick exits has nothing to do with the company, leadership team, product or service, environment, or compensation plan. Even when all of those are top-shelf, good people still leave quickly because of something much more difficult to manage through: the basic demands of the job. Those collateral realities, unfortunately, are often unavoidable.

For example, the job may be maddeningly pressure-packed or super service-oriented; or maybe the work requires a string of high-pressured nights or stressful weekends. Seasonal demands can force long, unhappy stretches of all-nighters or sunrise-to-sunset days. Everyone caught in the vortex wonders if there is, in fact, a better way to earn a living. Complex integrated teams that force long hours and tense, interdependent working relationships build mounting stress, too.

So, while sometimes businesses operate on the shady side of ethics and others operate above reproach, both can share the daily leadership tests tied to excessive turnover. Hiring-losing-sourcing, hiring-losing-sourcing cycles create an endless managerial challenge. Some crusty old souls can deal with it; many cannot. Leading a high-turnover business is a stern test of managerial skill and confidence.

From a solution standpoint, unethical companies (and those with debatable business practices), of which there are far too many, need to fix their business model before they can fix their people model. For example, I witnessed a company with 70 percent sales turnover intentionally run off its people in order to force the reps to leave earned but uncollected commissions on the table. The management team used these forfeited commission dollars to boost their bonuses. If this information were printed on their product brochure, would you buy from them? Heck no! No one would.

When a strong brand finds itself caught on the a merry-go-round of hire-train-replace, it’s vital for the management team to know what it should and should not do. Here are seven basic shoulds:

Interview and hire smartly. Emphasize this attribute more than someone’s age or previous experience. Candidates eager to learn stick around longer.
Onboard for success. The faster you properly assimilate new people into a state of effective readiness, the cheaper it is and the quicker they will generate profits.
Keep teaching. As long as a person is learning, and feels the job is an investment in his or her personal or professional growth, the harder he or she will work and more consistently they’ll produce. Monotony cause the reverse; monotony accelerates the quitting decision.
Keep things simple. Focus on, and emphasize, what’s necessary. Worry less about what’s nice to know but not essential. Manage the critical few.
Make your people feel valued. The emotional equity someone feels toward the organization determines how engaged and loyal he or she are to the task at hand. Loyalty has a conscience; attitudinal cesspools have none.
Manage results first, activities second. If the results are there, the heck with the activities. If the results aren’t there, inspect the activities. If the activities are there but the performance isn’t, coach for improvement.
Align the comp plan smartly; pay quickly and accurately. Pay for performance that’s tied to specific, controllable objectives. In high-turnover environments, reps suspect deception. They sense hidden agendas. Salespeople will do what they are incented to do, especially when they trust the system. Pay fairly, accurately, and promptly.

Here are seven things a good company should not do when faced with high sales turnover:

Do not blame people for leaving. People come in the front door for a reason, stay for a reason, and leave for a reason. Learn the reasons. Persist at improving the workers’ emotional working experience.
Do not treat salespeople like lower life forms. Without sales, no one stays in business. Respect the role and all the frustration that comes to people who face being told no for a living.
Do not manage by fear. Fear drives short-term results followed by mass exodus. This is especially true now because of the Gen X and Gen Y value systems. There are a lot of pent-up frustrations in the current workplace. With 2011 expected to be a better year, good people will again have options. Many will bolt fear-driven cultures.
Do not set unrealistic expectations. Any gap between what someone is sold during the hiring process and the reality of the job experience creates mistrust and disillusionment. When salespeople weigh what they’ve heard against what they’ve experienced and draw these negative conclusions, the good ones will leave. Only the slugs will stick around. Slugs mess up everything. Sales will sink like a setting sun.
Never act unprofessionally. Leaders lead by example. They should dress the part, act the part, and role-model the part. Offensive language, sarcasm, belittling others, inconsistent work habits … all of these are unprofessional and dispiriting. While respect drives everything forward, lack of it shoves everything backward.
Do not invest too little or too much into the force. If you know, by nature of the demands of the job, that turnover will come quickly, don’t over-train or over-invest. Train for quick functional competence but do not overdo it. Many smart competitors steal well-trained people from other companies, treating that company like a farm system. Don’t be someone else’s farm system. Give your people what they need — no more, no less.
Do not cheat, scheme, connive, or renege on a compensation issue. If the burro catches the carrot, let him eat it.

Turnover is very expensive, and many causes of high turnover can be minimized. Never compromise ethics and values.Good managers know it’s better to smartly deal with exodus triggers than it is to tolerate too many leaving too fast.

After all, companies are nothing but collections of people. Good salespeople help forge good companies. Bad ones weaken companies. The solution to better selling is in the mirror. A smile, a wink, and a willingness to do what’s right can solve a whole lot of problems in a hurry. Try it and see.

PenGwen says

July 14, 2015 at 10:10 pm

Ocean,

Interesting coincidence seeing another “Gwen” wrote to you recently! She and I seem to have more in common than just our names…. You gave her great advice (I took notes).

Thank you for this article. It’s the best I’ve read on the subject—and I’ve read a lot of them. Although it seems to address employers rather than sales people–it’s exactly what many oblivious business owners and managers need to hear–and hear often!

Your post came up during my search today on “high turnover sales jobs.” Unfortunately, this is the new norm for employers; lure in top-level sales pros, pay them a very small wage with no intention of keeping them long enough to see a commission check. It’s a devastating; heartbreaking career-killer with serious consequences for a job seeker/new hire. Unscrupulous tactics should carry some penalty for the shady employers who would play around with someone’s livelihood. It’s not okay when the burden falls squarely on the shoulders of those most willing—and those who least can afford it (materially or otherwise).

The past five years have been incredibly troubling to me in this world of deceptive “sales” jobs, coming from a stellar track-record with more than a decade of success as VP/Director of advertising. Unfortunately, I experienced a triple blow when my industry crashed with the economic downturn–followed by the sudden death of my business partner. Tragedy aside, I still had confidence in my abilities. Prior to advertising sales, I’d done well in other professional roles and industries. It hardly seemed like a stretch to make another change. My diverse background should be an asset, or so I thought…

I’ve tried a renewed approach, selling other products and applying within different industries. However, it’s been a merciless disappointment and it struck hard.

Of three sales jobs in less than two years, I found all had these common traits:

1. At interview, promised a moderately healthy commission income within the first year—but a starting salary just above poverty level. Hiring manager says, “Since you’re new to this industry, we have to train you… so just bring in the leads, we’ll help you close and you still get the full commission.” Sounds fair, right?

2. During interview process, am told, “We had a sales person some time ago but they didn’t work out. We don’t have anyone else selling right now so the territory is wide open.” I’m later surprised to discover that there ARE other sales people in the company (but they’re hidden by other titles such as “Customer Service Representative).” Why aren’t employers honest and upfront? This destructive ruse only sets one up for failure, carrying the extra penalty (for the new person) creating irreparable harm and conflict between co-workers. It’s hard enough being the “new person.” I found myself in the same losing situation repeatedly in the last few years. Suddenly, I’m the most resented person in the entire place simply because the hiring manager, lacking in courage, left out a few important facts? Why hide the truth? Why not just say there are other sales people within the company? I can’t figure that one out.

3. A top performer by nature, I don’t feel entitled to anything. I work hard and go after new business knowing that cold-calling; legwork; trial and error will yield results. Because of my energy, enthusiasm and persistence, I prospect well and bring a lot to the table. Instead of gratitude, I get the bombshell. The manager says, “Oh, that’s a mistake—you can’t take commission on that sale because it’s so-and-so’s account.” I end up with nothing but a pink slip and another gap in my employment history. I’ve tried many ways to handle this phenomena and cover the bases in advance; asking about territories, designated, written account lists etc. but the owner/managers always find a way to wiggle out. No matter what I’ve done to resolve the matter, it never works. If I let it go and allow the repeated “account theft,” I’m letting others know they can walk all over me. It’s about as successful a move as remaining in a domestic abuse situation. I’ll never gain respect — and things just get worse for it. Coincidentally, I seem to always find out it’s “someone else’s account” after I’ve done all the heavy lifting.

4. Another tactic employers seem to like is; the income-killing non-compete contract (NCC)—but they don’t tell you that upfront either. Two out of three of my most recent employers hit me with this AFTER hiring me, in one case, five-months into my tenure. Coincidentally, this happened just before a commission check was to come for some hard-earned sales. The timing was obvious; the commission check was leveraged for my signature. I knew, once I signed, they’d let me go. What kind of company would pull a trick like that so late in the game, just as my wages were edging above poverty? No one I want to work for.

I made that mistake once. Nearly two years ago, I ignored my better judgment and compromised, signing a NCC (two-years in duration). Hardly worth it; as the position lasted only four months. I later learned that I was among a long list of sales people “that didn’t work out.” Despite winning sales contests and praise initially, by my third month, the manager suddenly had no time to accompany me on appointments as promised and I was let go. I left the company with a healthy roster of new, qualified leads and valuable information. Good for them. Not so good for me. I was faced with a much narrower field of job prospects; lacking yet another job reference and found myself with another seven month gap in employment.

I’ve found “lead generation” positions–not sales careers. Employers intentionally mislead and dangle that carrot in front of new hires with no intention of paying any commission. The NCC serves them well for gaining an edge over their competitors by effectively yanking herds of qualified sales people out of the market for years. While saving a few bucks in the name of “the company,” they’re likely sending a few of those unfortunate sales people into bankruptcy; the mental hospital; or an early grave—whatever’s closest.

That may sound like a harsh reality. Sadly, it’s true! Most of us sales people won’t hesitate to do what it takes. We’re a tough lot! The majority of us are not self-serving narcissists. As productive people, we enjoy earning our keep and take pride in knowing the company’s doors remain open because we contribute. It’s not a job for the faint of heart. We’ll not complain of our worn out shoes with holes in our soles and our blistered feet—IF allowed to keep what we’ve earned—be it a little or a lot. It’s the “holes in the souls” of so many bad leaders today that’s hard to come to terms with.

Gone is the way of integrity and fair practices (unless feigning this has PR value). We’re as good as our last bad job. And any and all “gaps” in our employment are because we’re just awful people who can’t keep a job. Why isn’t it worthy of respect for one to leave a job because the employer (or his staff) is dishonest and unscrupulous?

By today’s standards, it seems that if you can stomach working among those lacking in courage and honesty (and you don’t mind lice); if you can artfully look the other way, you’re a “good candidate.”

Thank you for letting me get that off my chest—not sure you’d have any advice for me? I’d love to hear it if you do. I’ve done many other worthwhile things to fill in the employment gaps (volunteering, writing, etc.) not mentioned here. However, none of that matters to most companies—they want someone with a “stable” and “gapless” work history within that particular industry.

Comments

PenGwen says
July 14, 2015 at 10:10 pm

Ocean,

Interesting coincidence seeing another “Gwen” wrote to you recently! She and I seem to have more in common than just our names…. You gave her great advice (I took notes).

Thank you for this article. It’s the best I’ve read on the subject—and I’ve read a lot of them. Although it seems to address employers rather than sales people–it’s exactly what many oblivious business owners and managers need to hear–and hear often!

Your post came up during my search today on “high turnover sales jobs.” Unfortunately, this is the new norm for employers; lure in top-level sales pros, pay them a very small wage with no intention of keeping them long enough to see a commission check. It’s a devastating; heartbreaking career-killer with serious consequences for a job seeker/new hire. Unscrupulous tactics should carry some penalty for the shady employers who would play around with someone’s livelihood. It’s not okay when the burden falls squarely on the shoulders of those most willing—and those who least can afford it (materially or otherwise).

The past five years have been incredibly troubling to me in this world of deceptive “sales” jobs, coming from a stellar track-record with more than a decade of success as VP/Director of advertising. Unfortunately, I experienced a triple blow when my industry crashed with the economic downturn–followed by the sudden death of my business partner. Tragedy aside, I still had confidence in my abilities. Prior to advertising sales, I’d done well in other professional roles and industries. It hardly seemed like a stretch to make another change. My diverse background should be an asset, or so I thought…

I’ve tried a renewed approach, selling other products and applying within different industries. However, it’s been a merciless disappointment and it struck hard.

Of three sales jobs in less than two years, I found all had these common traits:

1. At interview, promised a moderately healthy commission income within the first year—but a starting salary just above poverty level. Hiring manager says, “Since you’re new to this industry, we have to train you… so just bring in the leads, we’ll help you close and you still get the full commission.” Sounds fair, right?

2. During interview process, am told, “We had a sales person some time ago but they didn’t work out. We don’t have anyone else selling right now so the territory is wide open.” I’m later surprised to discover that there ARE other sales people in the company (but they’re hidden by other titles such as “Customer Service Representative).” Why aren’t employers honest and upfront? This destructive ruse only sets one up for failure, carrying the extra penalty (for the new person) creating irreparable harm and conflict between co-workers. It’s hard enough being the “new person.” I found myself in the same losing situation repeatedly in the last few years. Suddenly, I’m the most resented person in the entire place simply because the hiring manager, lacking in courage, left out a few important facts? Why hide the truth? Why not just say there are other sales people within the company? I can’t figure that one out.

3. A top performer by nature, I don’t feel entitled to anything. I work hard and go after new business knowing that cold-calling; legwork; trial and error will yield results. Because of my energy, enthusiasm and persistence, I prospect well and bring a lot to the table. Instead of gratitude, I get the bombshell. The manager says, “Oh, that’s a mistake—you can’t take commission on that sale because it’s so-and-so’s account.” I end up with nothing but a pink slip and another gap in my employment history. I’ve tried many ways to handle this phenomena and cover the bases in advance; asking about territories, designated, written account lists etc. but the owner/managers always find a way to wiggle out. No matter what I’ve done to resolve the matter, it never works. If I let it go and allow the repeated “account theft,” I’m letting others know they can walk all over me. It’s about as successful a move as remaining in a domestic abuse situation. I’ll never gain respect — and things just get worse for it. Coincidentally, I seem to always find out it’s “someone else’s account” after I’ve done all the heavy lifting.

4. Another tactic employers seem to like is; the income-killing non-compete contract (NCC)—but they don’t tell you that upfront either. Two out of three of my most recent employers hit me with this AFTER hiring me, in one case, five-months into my tenure. Coincidentally, this happened just before a commission check was to come for some hard-earned sales. The timing was obvious; the commission check was leveraged for my signature. I knew, once I signed, they’d let me go. What kind of company would pull a trick like that so late in the game, just as my wages were edging above poverty? No one I want to work for.

I made that mistake once. Nearly two years ago, I ignored my better judgment and compromised, signing a NCC (two-years in duration). Hardly worth it; as the position lasted only four months. I later learned that I was among a long list of sales people “that didn’t work out.” Despite winning sales contests and praise initially, by my third month, the manager suddenly had no time to accompany me on appointments as promised and I was let go. I left the company with a healthy roster of new, qualified leads and valuable information. Good for them. Not so good for me. I was faced with a much narrower field of job prospects; lacking yet another job reference and found myself with another seven month gap in employment.

I’ve found “lead generation” positions–not sales careers. Employers intentionally mislead and dangle that carrot in front of new hires with no intention of paying any commission. The NCC serves them well for gaining an edge over their competitors by effectively yanking herds of qualified sales people out of the market for years. While saving a few bucks in the name of “the company,” they’re likely sending a few of those unfortunate sales people into bankruptcy; the mental hospital; or an early grave—whatever’s closest.

That may sound like a harsh reality. Sadly, it’s true! Most of us sales people won’t hesitate to do what it takes. We’re a tough lot! The majority of us are not self-serving narcissists. As productive people, we enjoy earning our keep and take pride in knowing the company’s doors remain open because we contribute. It’s not a job for the faint of heart. We’ll not complain of our worn out shoes with holes in our soles and our blistered feet—IF allowed to keep what we’ve earned—be it a little or a lot. It’s the “holes in the souls” of so many bad leaders today that’s hard to come to terms with.

Gone is the way of integrity and fair practices (unless feigning this has PR value). We’re as good as our last bad job. And any and all “gaps” in our employment are because we’re just awful people who can’t keep a job. Why isn’t it worthy of respect for one to leave a job because the employer (or his staff) is dishonest and unscrupulous?

By today’s standards, it seems that if you can stomach working among those lacking in courage and honesty (and you don’t mind lice); if you can artfully look the other way, you’re a “good candidate.”

Thank you for letting me get that off my chest—not sure you’d have any advice for me? I’d love to hear it if you do. I’ve done many other worthwhile things to fill in the employment gaps (volunteering, writing, etc.) not mentioned here. However, none of that matters to most companies—they want someone with a “stable” and “gapless” work history within that particular industry.

Comments

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