Good software sales representatives are hard to find, but they’re even harder to keep. The turnover rate for sales averages about 34.7 percent per year. If you’re finding your sales reps are dropping like flies, it’s time to take a look at why. Here are a few reasons why software sales reps leave your company:
More money. This might surprise you, but your compensation plan might not be good enough for the talent you want. If a salesperson feels their compensation—salary, benefits, commission—aren’t enough, they will seek other opportunities. Money may not be the sole factor, but it can play a pivotal part in one’s decision to leave.
Unrealistic expectations. Whether it’s sales quotas that are too high or simply too many daily tasks, it’s easy for sales reps to get burned out. As turnover increases, other sales reps may be forced to pick up the slack of missed work. It can be exhausting. For a sales rep, this excess work is probably not figured into their compensation and commission. For example, if sales reps are doing non-sales jobs, they literally lose money. If a salesperson spends just one hour a day on a research project, they could sacrifice up to 12.5 percent of their earning potential.
Loss of Faith. Salespeople put their own reputation and value on the line when selling your company’s product. If that product is faulty in any way, it can affect their desire to sell it or believe in it. If the products don’t live up to their expectations, why would they sell them? Similarly, if a company isn’t doing well, salespeople feel that pressure. If the people around them are being let go, they are more likely to begin seeking new opportunities. If they fear being let go for any reason, they will leave before their reputation is tarnished.
Lack of Support. Even the best salespeople need to ask questions. When those questions don’t get answers from management, it can lead to discouragement. When they aren’t recognized for a job well done, they feel undervalued. Salespeople will also feel discouraged if they don’t feel empowered to pursue or see the opportunity to pursue advancement within the company. Without the ability to learn from management or help mentor new sellers, they could feel stagnant in their position and therefore encouraged to leave the company for better opportunities.
Ultimately, it comes down to leadership. Now that you know why software sales reps leave, it is easier to identify where leadership at your company might be lacking. If your leadership style does not inspire your sales reps, their chance of walking out the door increases. If you’re losing software sales reps, it could be time to reflect on your leadership style and the structure of your company. Find new ways to encourage your sales representatives to work better for your business.