Why Your Sales People Keep Leaving

By Perminus Wainaina

As a manager or leader of a medium-sized business, you know that a strong sales team is the backbone of your company. Yet, you might be experiencing a very high sales staff turnover. You either seem to hire the wrong people, or those with potential don’t stay.

At Corporate Staffing, we see this pattern all too often with our medium-sized clients, especially because over 40% of client recruitment requests are for roles in sales or business development, ranging from hiring sales executives to commercial managers.

The good news is that this high sales turnover isn’t some unavoidable curse. Often, it boils down to a few key areas where things might be going off track. Let’s look into some of the common culprits and, more importantly, what you can do to build a sales team that sticks around and delivers.

1. Rushed Recruitment Processes

When you desperately need someone, the temptation to fast-track the recruitment process is strong. But settling for an “available candidate” instead of the right fit often leads to disappointment for both you and the new staff. They might lack the necessary skills, cultural fit, or passion for the role, leading to poor performance and a quick exit. Sometimes, it’s common to find a client asking for CVs today, wanting to interview tomorrow and give employment contracts right after. Three months later they will be emailing saying it didn’t work.

Solution: The way you hire an accountant should not be the same as for a salesperson. Recruitment for a salesperson should be rigorous. Invest time in your recruitment process. Remember, a slightly longer search for the right candidate is far more cost-effective than constantly replacing the wrong ones. And nowadays, don’t just rely on face-to-face interviews. Assess the candidate in multiple ways, i.e., case studies, psychometric tests, role-playing, and giving them tests. You should never hire a salesperson based solely on the strength of their CV and one interview. The more practical the interview is, the more likely you’ll end up with a good candidate. The more tests you conduct, the higher the chance of hiring the right person.

2.Hiring Candidates with No Clue About Your Industry

Bringing on an employee with a stellar sales track record is exciting, but if they don’t understand the nuances of your industry, your product/service, or your target customer, expecting immediate results is unrealistic. They’ll spend valuable time trying to get up to speed, potentially missing targets and feeling overwhelmed. For example, consider a sales executive who has been selling fast-moving consumer goods (FMCG), i.e., coke soda, and one that needs to sell a Ksh 50 million property in an upscale estate. One candidate is used to a fast-paced environment, while another only knows how to sell a product that takes months to close. It would be a big mistake to imagine that simply because a salesperson has done a great job selling coke, they can also sell houses.

Solution: If you desire quick results or don’t have the time to train, always prioritize candidates who have a demonstrable understanding of your industry. If you hire someone without direct experience, invest heavily in training and mentorship to bring them up to speed. And if you don’t have the patience, hire from within your industry.

3.Below Market Salaries and Commission-Only Structures

I’ve sat in countless boardrooms where the client says he wants a hardworking sales executive who will earn a ‘small’ salary and work so hard to make it up through commissions. This never works. While the allure of commission-based compensation is strong, especially for sales roles, relying solely on it while offering a below-market base salary is a risky game. Top sales employees know their worth and the ones that say yes is because they are desperate. If you’re not willing to offer a competitive retainer that reflects their experience and the market rate (do your research!), they’ll likely find an employer who does. Hoping commissions will magically bridge the gap often leads to resentment and a feeling of being taken advantage of. Trust me, the sales executive will use your low salary as a tool to actively look for a job the moment you onboard them. Are you then surprised when they don’t last?

Solution: Offer a competitive base salary alongside a well-structured and achievable commission plan. This demonstrates that you value their contribution. If you need help setting performance targets, KPIs, and commissions, this is an area where we can assist. Please reply to this email, and we shall organize a meeting.

4.Unrealistic Sales Targets

You might have taken time to recruit the right sales staff and could even be paying the market rate, but what about the targets you’ve set for your team? Setting ambitious sales targets for your team is essential, but when they become unrealistic, it can lead to frustration and burnout. If your sales team feels they can’t meet expectations due to a lack of proper performance management, morale will plummet. Targets should be set in a way that they are challenging but not unrealistic.

Solution: Last month, we helped a client review their sales staff job descriptions and come up with realistic KPIs and targets, which were later communicated to the staff through training. Now, every sales executive knows what’s expected of them. Don’t fall into the trap of thinking, “They are experienced and I’m paying them a salary, they should know what’s expected of them.” Without a clear understanding of market realities, individual capabilities, and a clear performance management system to track progress and provide support, those numbers simply become a source of stress. Click here for on our HR consultancy services where we help your business set up proper structures including performance measures.

5. Lack of Training

Imagine being thrown into a complex sales environment with little to no guidance on your product/service, the industry landscape, or even basic sales techniques. It’s a recipe for frustration and failure. Ignoring training, whether it’s on product knowledge, essential soft skills like presentation skills, or understanding your target audience, signals to your team that you’re not invested in their success.

Solution: Make training a priority. Develop onboarding programs and ongoing learning opportunities that cover product knowledge, sales methodologies, industry insights, and crucial soft skills. Empower your team with the tools and knowledge they need to excel. Any sales/commercial manager worth their salt should conduct monthly training sessions for the team, especially on product and client engagement. And once in a while, for motivation and a different perspective, you can bring on board external trainers such as ourselves. As such, 80% of the training should be conducted in-house, and only 20% by external parties/consultants. Visit our sales training page here.

Poor Management/Leadership Practices

Your manager or those you’ve put in charge could be costing you good salespeople. Another key component ignored is the leadership ability of the sales/commercial manager. Sales is not an easy job, and therefore, how a manager leads their sales team can be a major factor in their retention. I’ve interacted with managers who are overly fixated on minor infractions while overlooking significant contributions (like penalizing a top sales performer for being 15 minutes late), which creates a toxic environment. Poor leadership can contribute to a negative and stressful work environment characterized by blame, negativity, and a lack of team spirit. Hardworking salespeople want to work in a supportive and positive atmosphere.

Solution: Promote based on leadership skills, not just sales performance: While strong sales skills are important, promotion to management should be based on demonstrated leadership potential and interpersonal skills. Not every good salesperson should be put in charge of a team. Secondly, you can implement systems (i.e., anonymous surveys) for salespeople to provide feedback on their managers, especially if you suspect turnover is due to poor leadership issues. This can provide valuable insights into areas for improvement. If you feel your manager needs to improve on their leadership skills, visit our leadership training page.

Building and retaining a high-performing sales team takes time, effort, and expertise. At Corporate Staffing, we understand the unique challenges faced by medium-sized businesses in finding and keeping top sales talent.

We can help you:

• Develop realistic performance management frameworks.
• Streamline your recruitment process to identify the right fit the first time.
• Advise on competitive salaries that attract and retain top performers.
• Connect you with candidates who have the industry knowledge and skills you need.

Stop the revolving door and start building a sales team that drives business growth. Let’s have a conversation about how Corporate Staffing can be your partner in achieving your business goals. Reply to this email today to set up a meeting – we’re here to help.

Perminus Wainaina is a Certified HR Consultant and the C.E.O at Corporate Staffing Services. He helps Directors, executives, and managers solve their people management issues for business success. For more, visit our HR consultancy services page. For a free consultation meeting on your people management issues, reply to this email.

Want to know why your top salespeople keep leaving? Watch our YouTube video where we break down the real reasons and what to do about it. Watch now and learn!

>>> Why Do Your Best Sales People Keep Leaving You