Here is how I define my newly minted syndrome – an irrational hope that a grossly underperforming salesperson will miraculously turn things around and become a sales superstar.  It rarely happens.

The problem stems from the business owner who has invested in this failing salesperson.  Notice I used “business owners” – I do believe this syndrome is more prevalent among this group as they are closely tied to the business (i.e. financially, emotionally, historically).  They usually have a relatively accurate count of the money invested in this salesperson.

The sinking stock analogy will be understandable to anyone who buys and sells stock.  When you purchase a stock, you expect (hope) it increases in value.  When it goes the other way, you encounter a sinking feeling as you have now lost money.  It is at this point that you need to make cold, objective decisions about the stock.  Is it going to rebound in an acceptable time frame or did you make a bad investment?

The temptation is to hang on to the stock with the expectation it will turnaround and at least get back to the buy price you paid so you can break even.  While you wait, the stock drops further and you have now lost more money.

Hope keeps you from dumping the stock.  The desire to earn back what you have lost keeps you from making the tough decision to sell.

Business owners can get caught in this same trap.  They know a salesperson is not performing and that they are losing money by continuing to keep them in the role.  Other employees see that this salesperson is not closing deals and they start to become upset.  This salesperson stays on the payroll even though it is clear that he/she cannot do the job.  At some point, the tough decision has to be made.  It can be to put together a get-well plan for the salesperson.  However, most times it is to part ways…or should I say cut your losses?

It is difficult, almost an admission of failure that hits the owner directly.  But it has to be done.

According to a new CareerBuilder survey, more than one-quarter (28 percent) of sales employers are concerned about losing their high performing workers in the second quarter, while more than one-third (35 percent) of sales workers said it is likely they will start looking for a new job when the economy picks up.

And here is why:

Increased workloads, longer hours and fewer resources related to the recession may be contributing to job dissatisfaction. Looking at key factors that influence job satisfaction and company loyalty, sales workers reported the following:

•Pay – More than one-third (35 percent) of sales workers said they are dissatisfied with their pay.

•Work/life balance – One-in-five (20 percent) sales workers said they are dissatisfied with their work/life balance.

•Career progress – One-in-five (21 percent) of sales workers said they are dissatisfied with the career advancement opportunities provided by their current employers.

I’m a bit jaded here in that I think pay is probably much higher then what is normally reported in these surveys.  Nonetheless, I have talked to a handful of salespeople recently who are starting to put their ears to the tracks regarding new opportunities.  I still believe the hiring landscape will be slow this year, but will begin to ramp up in Q4.  A year from now may be one of the largest retention struggles we have seen in quite some time.

Without going into specifics, I can tell you where we start in these situations – motivations.  The first place to look when there is interpersonal conflict within an office team is the motivation pattern for each individual.  In the instance with our customer, we have two people with almost polar opposite motivational patterns.

Here is why this matters – neither person can understand where the other is coming from, especially in terms of decision-making.  Each person finds the other one to be inconsistent, off-base and…well, wrong.  The relationship has deteriorated into acerbic communication.

Unfortunately, this customer did not assess this employee when they were in the hiring phase.  Instead, they made an emotional hire.  This employee has the skills to succeed in this role, but the hiring manager was never informed of the employee’s motivational pattern.  If he had been, he would have known the differences between the two of them and he could have managed through them.

I’m not sure the relationship is salvageable.  I am certain it was avoidable.

After a traditional face to face layoff session, my company tried a new kinder gentler approach. They called a big meeting and announced that every employee had e-mail back on their computer that would tell them if they still had a job. I didn’t!

I’ve been let go during layoffs before and there isn’t any easy way to do it.  However, it seems to me that if your communication strategy is to use some form of electronic notification (like Radio Shack from a few years ago), you are probably taking a bad approach to it.  Just a thought.

“One of the mistakes companies have made in the past is that they make decisions without real input from the people who are most affected by the hiring decisions,” says Opton. “Companies need to realize that they always have two sets of customers – internal and external. The minute that someone comes to work for them, that person becomes an internal customer to the organization. The organization needs to listen to what their needs are and act on those needs.”

The article references a survey regarding executives’ wants, but it is representative of employees also.  The interesting stat that always seems to come out of these surveys:

“Just 12 percent pointed to compensation as the reason why they leave companies,” says Opton. “We see this year after year – money will motivate people to come on board, but it can’t make them stick.”

Excellent point, can’t make them stick.  Many managers assume a decent paycheck (the manager gets to define “decent”) will keep most salespeople happy.  But look at these numbers:

“Nearly half of the dissatisfied executives reported limited advancement opportunities; lack of challenge; a desire for more managerial responsibility, autonomy or technical improvement; or dislike of the work as the reasons they were ready to bolt,” states the study. “Issues relevant to lifestyle – work/life imbalance, commute, relocation, and business travel – became deal breakers for another 21 percent. Difficulty with the culture and the boss accounted for 13 percent of executive dissatisfaction.”

I suspect the commute topic will become more prevalent in the next study thanks to the gas price trend.