LOS ANGELES, CALIFORNIA--(Marketwire - Aug. 28, 2012) - The turnover rate of sales personnel is notoriously high, as is the cost of replacing personnel and having to train someone new. According to Lisa Terrenzi, co-founder and CEO of business advisors, ProLeaders, the solution to staff turnover lies in top notch sales management, sales strategy, and effective training of sales personnel.
"Many companies we've worked with have a high sales personnel turnover," said Ms. Terrenzi. "Sometimes the problem is lack of a sales strategy but, more often than not, companies fall short on the sales training, which is a vital part of sales management."
Although staff turnover is often one of a company's largest expenses, the actual costs tend to be hidden. Direct costs like separation pay, taxes, advertising, signing bonuses, finder's fees, and overtime pay to existing personnel trying to take up the slack until new people are hired are easy to track.
But a number of indirect expenses are not taken into account: Time spent by HR conducting exit interviews and interviewing potential new hires, testing, meetings, new staff orientation, job training, and other administrative functions related to both the departing and newly hired staff all add up. There's also the lost production of all concerned.
In fact, the total cost of replacing an employee is 38% of that employee's annual salary, according to estimates by the Society for Human Resource Management and other experts.
"The figures are astounding. The average turnover rate of sales personnel in the U.S. is 26% and there are 20 million salespeople just in the top 30 direct-selling corporations. If you estimate each person's salary at $50,000, and if it costs 38% of that to fire someone and hire someone new, you're talking about billions of wasted dollars," said Ms. Terrenzi. "Good strategy, good sales management and good training can reduce those costs significantly."
To help their clients and the general public with sales personnel issues, ProLeader has written several articles and blogs regarding sales strategy, sales management and sales training. Some of the topics covered include how to increase sales in a tough economy, how to motivate sales people, why sales people can't close deals, and how to double your sales revenue overnight.
The company also offers training and one on one consulting to companies looking to reduce their sales staff turnover, tighten their sales team and boost statistics.
To read the articles and blogs, go to the sales strategy section of ProLeaders' Knowledge Center. To find out more about ProLeaders' sales training and personal consulting as business advisors, go to www.proleaders.com.
About ProLeaders: ProLeaders was founded by former CEOs with years of experience and success in their fields. Their mission is to empower executives, public leaders and celebrities to succeed in all areas of their professional and public lives - executing responsibilities, performing functions, engaging in activities and reaching goals. Services include Business Analysis, Business Consulting, Executive Life Line, Executive Coaching, Seminars and Workshops, Public Speaking, Webinars, Team Building, Training, Knowledgeable Newsletters and more. A substantial knowledge base in each of these areas is also available within the web site. To find out more about how ProLeaders business advisors can help with developing executive leadership skills visit the ProLeaders website at http://www.proleaders.com.