Sales turnover is an issue for every B2B company. In an average year, sales rep turnover is statistically very high – more than 34% – nearly three times higher than any other field. Additionally, according to Xactly, the average sales rep tenure is only 18 months!
Sales rep turnover is a significant problem for B2B companies because:
- Replacement costs are very high ($115,000 in the United States, according to DePaul University)
- Sales rep turnover means there is unattained quota
- Managers’ bandwidth is stretched thin
- Turnover leads to poor sales team morale
It’s not getting any easier
2020 and 2021 were incredibly difficult years for turnover, especially for sales. In 2020, 58% of companies experienced higher voluntary sales turnover as Covid-19 put the world on lockdown, and many businesses struggled to adapt. That generated a phenomenon called the Great Resignation. In late 2021, the nation saw a 20-year high in the Quit Rate – workers simply leaving their jobs. And in March 2022, a record 4.53 million U.S. workers quit their jobs.
According to Pew Research Center, workers are leaving for a variety of reasons, including compensation and a lack of career advancement opportunities. What this means for companies today is that competition not just to hire but to keep employees is fierce. With the number of remote and hybrid jobs expected to continue increasing in 2022 and 2023, professionals have more choices than ever before.
Here’s the bottom line for sales
There are fewer salespeople to choose from, and sales reps can choose to work for any company anywhere in the world. According to LinkedIn, sales is the second-most in-demand job in the world right now.
What can businesses and their sales leadership do about turnover?
It starts with establishing a great sales culture that includes a strong sense of camaraderie and investment in every employee. Check out 4 Ways to Avoid High Sales Rep Turnover and 5 Tips for Building a Great Sales Culture to learn more.
