Skip to content
Mike Lieberman, CEO and Chief Revenue ScientistSat, Sep 2, 2017 5 min read

The Real Cost of Sales Team Turnover

{}Even as the economy has its highs and lows, top salespeople are always highly sought after by companies. With skills that are easily transferable from one sales environment to another, losing expert sales staff is perhaps one of the biggest blows your company can experience.

Why do top performers leave? Are they head-hunted by your competition? What can you do to keep them loyal to your business?

Here’s the real cost of sales team turnover.

Hiring New Employees Is Costly

Although the cost of hiring new employees for any position depends on the industry, many formulas calculate costs ranging six times an employee's annual salary.

Team turnover will not only run you the obvious tangible costs such as severance and vacation pay, but also the unseen time and manpower that must be sunk into the filling of that vacancy.

Businesses rarely factor in the time spent recruiting, reading resumes and interviewing, and then acclimatizing and training eventual new hires. Time is often money and the resources spent on managing team turnover could be better allocated to other core business processes.

However, employee turnover does happen, whether employees are terminated or leave of their own accord, so it’s important to have the tools to deal with this process. If you’re well prepared to hire new reps for your sales team, you’ll have the tools and resources to make sure they hit the ground running.

Value Your Current Employees

The sales industry is always evolving and if you don’t want to lose your best sales staff to the competition, it’s time you actively show your appreciation for and communicate with your employees.

Morale is perhaps one of the biggest wild cards in the sales industry. You can have the most qualified staff with years of experience, but if morale is low and everyone is feeling a slump, it’s hard to make headway. If your sales reps are having trouble closing and meeting their sales targets, they may lose motivation and stop trying altogether.

Another factor to consider is the overall mental health of your sales reps. Are they overworked and feel underappreciated, because that’s not a good sign! If you suddenly task your reps with more work than they can handle or unachievable quotas, you will exhaust them. Exhausted workers who then can’t achieve success are often labeled as “not working hard enough” and are ultimately more likely to seek other employment.

Consider Sales Enablement to Invest in Your Employees

Sales enablement is the process of setting up your employees for success by turning old-school outbound sellers into inbound sales people. The sales world has changed in recent years and it’s important for your sales staff to understand the type of people they are selling to.

The sales enablement process helps reduce sales team turnover because reps will be better equipped to deal with this new future of selling. With more traditional outbound marketing methods, sales teams would rely on things like cold calling and aggressive tactics, techniques that are unfortunately less effective. If they can’t close with old-school techniques, they won’t meet their quotas and are more likely to quit or seek work elsewhere since they won’t find success in doing business this way.

Sales enablement can boost the morale of these old-school sales representatives by helping them gain new skills and the confidence to succeed in the digital age. Inbound works and with it, your sales teams will be able to increase their sales success. And this, in turn, will boost morale and team performance.

Grow Your Company

If you equip your staff with the proper know-how and the latest tools to succeed in the world of modern sales, you will see a reduction in sales team turnover and an overall boost in morale.

Whether you use sales enablement strategies or simply appreciate your employees more, happier workers are more productive and will labour tirelessly for the success of your business.


Mike Lieberman, CEO and Chief Revenue Scientist

Mike is the CEO and Chief Revenue Scientist at Square 2. He is passionate about helping people turn their ordinary businesses into businesses people talk about. For more than 25 years, Mike has been working hand-in-hand with CEOs and marketing and sales executives to help them create strategic revenue growth plans, compelling marketing strategies and remarkable sales processes that shorten the sales cycle and increase close rates.