An interesting article ran in last week’s Selling Power Newsletter for Hiring & Recruiting titled “Why Do Salespeople Leave?”
According to Compensation Resources, Inc. (CRI), obtained turnover statistics and trends from a broad range of industries and company sizes. The results indicate that both voluntary turnover and overall turnover have slightly increased in 2006 over 2004 when the last data were collected. The report identified an important shift in the motivators for leaving noted by employees. In 2004, the top reasons for moving on were better pay and better benefits. In 2006, the top reasons for leaving an employer is the desire for better opportunities and increased responsibilities.
“More and more, employees are seeking to improve their abilities and be recognized for their work, and are no longer motivated by pay alone,” says a CRI spokesperson.
They touch on an interesting point that I actually posted last week in Attracting the Passive Candidate. Whether we are talking about candidates or employees, all salespeople are asking a similar question, “What’s in it for me?” Understanding their rewards is the first step whether you are looking to hire or retain salespeople.
The second step is to match your rewards to match the employee’s motivation-reward pattern. For example, say you plan to run fourth quarter contest to try and bolster sales. If your sales team is motivated Utilitarianism and rewarded by Material Possessions, providing a President’s Club reward may not align with their goals. You won’t see much of a buy-in from your team. Now, if you use money bonuses, you will have captured their attention and engaged their motivation-reward structure.