By Joe DiDonato | Chief of Staff | Baker Communications, Inc.
Did you know that the average turnover for salespeople is 34.7%? Did you know that 1 in 10 companies have sales turnover rates above 55%?
As this Forbes article points out, the average yearly turnover rate for salespeople is almost twice that of all other job titles – 34.7% versus 17.8%. We get a lot of questions on how to calculate that cost, because part of the calculation is based on a salesperson’s quota and the time it takes to hire, train, successfully transition accounts, and of course, build trust with the client.
Below is how to calculate the cost of that turnover each year. To get to your cost, you would need to substitute your own numbers for the red ones below:
These are the average acquisition and training costs based on studies by DePaul University:
Below is how to calculate the cost of your turnover each year based on the numbers provided:
To find out more about the turnover problem we’re faced within sales, you can read this article in Forbes. Here’s the first paragraph, and the link is below.
Would it surprise you to learn that the average turnover rate for salespeople is 34% and that nearly two-thirds of that churn is a result of “involuntary turnover”? Those are the findings of a 2015 Bridge Group study covered by David Skok. That same research suggests that one in 10 companies has sales turnover rates above 55%. If you compare those turnover rates with CompForce’s estimate that the average turnover rate was 17.8% for all industries in 2016, you can begin to see the problem.
If you’d like to learn more about how to use this predictive data to drive your hiring, onboarding, training, and coaching decisions, we invite you to listen to the advice and outcomes of a sales executive who changed her entire hiring and training process over to the data-driven approach. Watch the video here: https://www.bakercommunications.com/tailoredfit.html.
