Every year, many sales people leave their company to take on new challenges. Nothing very surprising on paper BUT the impact can be extremely detrimental to your organization when their activities are not present in the CRM. Let’s take a look at the impact of turnover on your sales teams.

The Great Resignation

It’s hard not to talk about the phenomenon of “The Great Resignation” in the United States when discussing topics related to team turnover. Since the beginning of the pandemic and following the numerous restrictions suffered, millions of Americans have quit their jobs, a new record being reached last November with 4.5 million resignations.

The balance of power between employer and employee is reversed in favor of the latter. People don’t hold on to their jobs like they used to. Many employees are taking a fresh look at work, realizing the importance of work-life balance. Sectors with a reputation for difficult working conditions such as the restaurant industry were the first to be affected.

It is now the turn of the younger generations to take the plunge and give more meaning to their lives. Even if France seems to be spared for the moment, the testimonies of young people who leave their jobs because it would lack meaning or would not have a positive impact on society abound on the web.

Translated with www.DeepL.com/Translator (free version)

Key figures for turnover in France

Although lower than the global rate (23%), turnover in France (15.1%) follows an upward trajectory each year. Some sectors are more volatile than others, notably the retail, construction, industrial and IT sectors.

Some professions are obviously more exposed than others. For example, sales and customer service jobs have a turnover rate that varies from 10 to 25% depending on the sector, which is much higher than administrative jobs (with a turnover rate close to 0%).

Another edifying figure, according to a study by the recruitment firm Uptoo conducted in 2019, the proportion of salespeople considering changing companies rose from 55% to 79% between 2018 and 2019.

 

How do you calculate your turnover rate?
T = given period
[(Number of departures in T + Number of arrivals in T) / 2] / Headcount on the 1st day of T X 100 = turnover in %.

 

The main reasons for turnover

  • Too many activities related to sales.

According to several studies, salespeople’s job satisfaction depends on the amount of time they spend on selling. Today, many low-value-added tasks interfere with the salesperson’s workday: entering activities into the CRM, activity reports, information retrieval, administration, etc.

  • The work environment.

The work environment and the competence of the managers are also important factors for many salespeople. Other important topics include:

    • Base pay and commission.
    • The missions of the job
    • Job flexibility (telecommuting, work hours)
  • Lack of career development.

Salespeople are a fast-paced and ambitious population, more inclined to follow every new and better proposal.

  • The quest for meaning?

Even if we are only at the beginning, “The Great Resignation” is making emulators and could affect the sales function. Indeed, sales people are the most exposed population in the company and the one who is under the most pressure on a daily basis.

What are the impacts on your business in case of a sales person’s departure?

The first thing you need to make sure of is the security of your customer knowledge. A sales person who leaves his company, leaves with his knowledge of accounts, deals and contacts. Unfortunately, don’t count on him to have filled the CRM. In most cases, he will have kept this information in his head or used his favorite tools (email, calendar, phone, notebook, xls file…).

Three figures that argue for data automation in your CRM

  • According to Salesforce, less than 20% of activities are entered into the CRM.
  • 88% of salespeople admit that they do not fill in all the information about their contacts
  • In B2B, on average, more than 5 people are involved in the buying decision. As a general rule, sales representatives are content to enter only the name of the signatory

Impact n°1 : The degradation of the customer relationship.

In B2B, salespeople do not work with companies but with the contacts within those companies. We talk a lot about Business to Human or Human to Human.

Without a history of interactions, reports or presence of contacts, how can you expect your new employees to perform optimally?

Appointing a new account manager in the absence of information could damage the customer’s image of your company.

Impact #2: Decreased productivity

Even if it is difficult to quantify the cost of the decrease in productivity, one thing is certain, without information in the CRM, the sales person will have to start from scratch, wasting a lot of time playing detective within the company by questioning his colleagues or by asking his manager about the last actions taken, the deals in progress, the profile of the interlocutors…

In a word, he wastes time, produces little or nothing and wastes the time of the rest of the team. The losing trio!

Impact n°3 : Team morale

Continuation of impact n°2: 53% of sales managers declare that the departure of an employee creates stress in their teams.

EverReady is the solution that connects natively to all sales tools (emails, calls, calendar) in order to automatically feed the CRM. Secure customer knowledge and centralize all interactions in case of departure of a sales person.

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