According to an article at Diversity Publishing , on average, there is
a 30 percent turnover rate in sales in a given company, which means
there are always openings.
Diversity Publishing
http://www.diversitypublishingllc.com/bc-article180.htm
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?Surveys have indicated annual sales force turnover rates are as high as 27%
in the U.S.?
Source:
Central Michigan University: College of Business Administration
http://64.233.161.104/search?q=cache:YpBaS02vD0MJ:mkt.cba.cmich.edu/class/datafiles/340/jpssm2/192.txt+%22+*Salesforce+Turnover+rates++%22++-inventory&hl=es
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US Annual Employment Turnover Rates by Industry and by Geographic Region
Through Aug/04
The charts at the following link shows the annual employee turnover
rates for U.S. employees by industry and by geographic region. All
numbers are percentages.
Data is supplied by the U.S. Department of Labor.
http://www.nobscot.com/survey/us_voluntary_turnover_0804.cfm
Click here for historical turnover charts.
http://www.nobscot.com/survey/historical_turnover_rates.cfm
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?Sales force turnover rates vary from industry to industry and firm to
firm, but research finds average industry sales force turnover rates
as high as 53%.?
BNET
http://www.bnet.com/abstract.aspx?cid=118&sortby=title&docid=51193
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?Turnover statistics vary from industry to industry. The turnover for
retail sales jobs differs from the turnover for pharmaceutical reps.?
Destination CRM
http://www.destinationcrm.com/articles/default.asp?ArticleID=2350
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According to Hay Group?s recent survey of the pharmaceutical and
biotech industry, sales rep turnover rate was 14 percent in 2003.
?Most organizations consider 10 percent a normal turnover rate.?
In Hay Group?s study the key reason for sales rep turnover is ?better
opportunity elsewhere.
?Hay Group?s Voluntary Attrition Surveys of departed sales reps (which
captures reps? reasons subsequent to their departure) attribute the
number one cause as ?issues with an immediate manager.?
?Compensation ranks as the number one issue relating to turnover, and
problems with an immediate manager is the second reason listed for
departures.?
Hay Group
http://www.haygroup.com/press_room/press_releases/11_08_2004.asp
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There is a high turnover in sales and marketing in the hospitality industry.
Top five reasons for such high turnover rates:
- Money
- Leadership
- Training
- Recognition
- Opportunity
?The survey cited money as the most critical issue, and the leading
cause of sales professionals who leave their jobs. The term money
includes the total amount of salary, the method of payment and the
relationship to performance.?
?Leadership was also cited as a primary reason many sales and
marketing professionals leave their job. Leadership covers quality of
guidance and direction from their managers.?
?Training was mentioned as the third cause, in both formal seminars
and on-the-job. Quality and quantity in training were just not
adequate.?
?Recognition refers to ?pats on the back? and celebrations of success
in formal and informal gatherings.?
?Finally, opportunity was named as the fifth reason for leaving a
sales position. Career growth, personal growth, along with lack of
promotions, was all identified as causes.?
?Environment, Communication, team work, hiring and workload were all
cited as less important causes among sales and marketing
professionals.?
Hospitality Sales and Marketing Association International (HSMAI)
Foundation Survey Results at Hotel Interactive
http://www.hotelinteractive.com/hi_index.asp?page_id=5000&article_id=1598
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Turnover Rate for Realtors
?According to the 2004 NATIONAL ASSOCIATION OF REALTORS® Profile of
Real Estate Firms, 10% of all firms had 1 salesperson leave the firm,
4% of all firms had 2 salespeople left the firm, and 3% of all firms
had 3 or more salespeople leave the firm.?
?Dr. James Webb of Cleveland State University, cites studies that
indicate real estate turnover may average closer to 50 percent within
two years."
(Source: Retaining Top Personnel Toolkit)
http://www.realtor.org/referral.nsf/pages/WhatistheturnoverrateforREALTO
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Double-digit sales consultant turnover rates are considered the norm
in the automobile industry. Most sales consultants don't get fired,
they quit.
Reasons:
- Salary
- Training
- Autonomy
Find Articles
http://www.findarticles.com/p/articles/mi_m0FJN/is_n9_v32/ai_20778116
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From Spears School of Business:
?Well-trained, experienced salespeople are in tremendous demand,
allowing many sales people to be very selective where they work. Many
companies actively recruit sales and management personnel from inside
another firm's sales force. Also because a salesperson interacts with
representatives from many companies, many career opportunities are
made available to salespeople than would be to individuals who stay
inside the organization. Turnover rates in sales forces are high, not
because sales is a lousy job (as if often thought), but because the
individuals are often in high demand, both inside and outside the
organization.?
http://spears.okstate.edu/marketing/content/careers.php
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An Abstract from Ingenta:
Little research has been done on the impact of realistic job
information on the salespersons decision to terminate a sales
position. Using propensity to leave as a surrogate for salesforce
turnover, presents the results of an investigative study of realistic
job information in sales interviewing. Breaks down the construct of
realistic job information into four dimensions, namely volume;
personal relevance; depth; and accuracy. Finds that salespersons who
display a higher tendency to leave their jobs believed their job
preview to have been less realistic than those who exhibit a
propensity to stay in their positions. Also finds, however, that while
relevance, depth and accuracy of job information are strong predictors
of propensity to leave a sales job, volume of information is not,
suggesting that the problem may be one of interview quality, rather
than information quantity.?
The full text of this article is available for purchase here:
http://www.ingentaconnect.com/content/mcb/050/1995/00000010/00000005/art00004
=========================================
Search terms:
"Sales force turnover"
study://www.google.cl/search?hl=es&q=%22Sales+force+turnover%22+study
://www.google.com/search?hl=es&c2coff=1&rls=GGLD%2CGGLD%3A2005-07%2CGGLD%3Aen&q=%22salesforce+turnover%22+study&btnG=B%C3%BAsqueda&lr=
Average rates OR rate "sales force? turnover
://www.google.cl/search?hl=es&q=average+rates+OR+rate+%22sales+force%22++turnover
"Turnover rates" in sales professionals
://www.google.cl/search?hl=es&q=%22turnover+rates%22+in+sales+professionals&spell=1
Turnover rate in sales +percent
://www.google.cl/search?hl=es&q=Turnover+rate+in+sales+%2Bpercent
I hope this is helpful.
Best regards,
Bobbie7 |
Clarification of Answer by
bobbie7-ga
on
24 Mar 2005 14:32 PST
According to Daniel Abramson, president of Staffdynamics, the top 5
reasons why good salespeople go elsewhere are as follows:
"1. Lack of corporate compatibility and fit
Most sales managers can do a better job selecting, hiring and training
salespeople. Too much emphasis is placed on the technical aspects of
the job and not the ?soft people skills? Aligning culture,
compatibility and mission is critical in battling turnover or what I
call ?retentionship.?
2. Lack of appreciation by management
It?s ironic that although most salespeople have strong egos, they like
to frequently hear that they are appreciated by their sales manager
and the company. Salespeople don?t quit their companies, they
generally quit their boss!
3. Lack of support from inside staff
Rules, red tape and rigid structure between customer service, credit
and shipping can be a catalyst for driving away good salespeople, even
though the company preaches teamwork and cooperation. Customer
satisfaction and ?getting the job done? is today?s mantra. Obviously,
there must be real synergy and communication between the inside and
outside departments.
4. Advancement and personal growth opportunities
Salespeople are interested in training, development and career
advancement. Helping salespeople ?sharpen the saw? in this competitive
market by providing frequent training opportunities is a real
differentiator. Capable salespeople recognize that if they do a good
job and learn their craft, advancement opportunities will follow.
5. Compensation
You may be surprised to see that I?ve ranked ?show me the money? last.
Don?t get me wrong, money has to be in the ballpark of what someone
can get elsewhere, but it?s rarely the compelling reason why a
salesperson changes jobs. If the four previous values are out of
balance, you?ll hear salespeople say, ?You can?t pay me enough to stay
at XYZ company.?
http://www.salesforcexp.com/200307/cover.cfm
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