In the fast-paced world of sales, employee turnover is a common challenge. Finding and retaining top sales talent can be daunting, but Cangrade’s latest study on the reasons behind sales turnover sheds light on key insights that could be the game changer your organization needs to improve sales team retention.
Understanding the Numbers
Cangrade’s research delved into the experiences and perceptions of salespeople who decided to leave their roles voluntarily. We conducted a longitudinal study of 2,685 employees from 2018 to 2022 that reveals what really drives sales turnover to help better combat resignations. The statistics we uncovered are not only eye-opening but also serve as critical signposts for employers seeking to enhance their sales force’s retention rates.
Let’s take a look at what truly drives sales turnover.
Organizations’ vs. Managers’ Impact on Retention
Cangrade’s report surprisingly uncovered that organizations have a larger impact on the retention of salespeople than managers — counter to the typical advice that people quit managers. Here are a few highlights from the study.
One of the standout findings of Cangrade’s study is that salespeople who quit are 56% more likely to believe that organizational decision-making is biased. This is a crucial indicator of discontent and suggests that addressing bias and fostering fairness in decision-making processes can play a pivotal role in employee satisfaction and retention.
To improve retention: Focus on transparency and fairness in decision-making. Here are three tips to improve organizational decision-making:
- Establish clear communication channels.
- Be consistent with policies and procedures.
- Involve employees in decision-making when possible.
Salespeople who quit are 40% more likely to believe they lack the necessary resources to do their job effectively. This highlights the importance of providing the tools, training and support required for sales teams to excel. An investment in resources can yield significant returns in terms of employee satisfaction and performance.
To improve retention: Survey your employees to uncover what resources they need but do not have access to, then develop a plan to prioritize them and put them in place. If you don’t have one in place already, create a continuous training and development program tailored to individual employee needs to give them what they need to thrive.
Managerial Fairness and Care
Cangrade’s study revealed that departing salespeople are 9.5% less likely to believe their manager is fair and 7.8% less likely to believe their manager cares about their happiness and well-being. Building a culture of empathy, equity, and support within sales teams can go a long way in retaining valuable talent.
To improve retention: Avoid the Peter Principle by assessing an employee’s ability to be a successful manager before placing them in a managerial role. Give both your new and existing managers the training they need to make fair decisions and build a positive culture within their team through development programs and support groups.
By addressing the reasons behind sales turnover, organizations can reduce turnover rates and create a more productive and satisfied salesforce, ultimately leading to improved business outcomes. Retaining top sales talent is within reach, and it starts with understanding and acting on the findings of this research.