Sales organizations spend more to hire new talent than any other part of the company, yet experience some of the highest turnover rates, around 25% to 30% annually. When a new seller leaves, the departure can cost a company $75k to $300k, before accounting for lost revenue, missed opportunities, and lost customers due to missed coverage.
After hiring a replacement, it takes an additional three to six months for a sales rep to become productive. This prolonged time-to-productivity, combined with the common problem of slow ramp up to peak productivity can cost companies between 1% and 2.5% of total business revenue. Those losses would be unacceptable in any other department, yet organizations routinely put up with them on their sales teams.
Most of these problems can be traced back to poor onboarding practices. CEB research on sales onboarding tells us that engaged employees are 9 times less likely to leave, and effective onboarding programs have the potential to increase employee performance by 15%. Boston Consulting Group’s study, Realizing the Value of People Management, identified onboarding as the second most important capability (after recruiting) among 22 HR capabilities that impact revenue growth and profit margins.
A well-executed onboarding program can help you fast-track new sellers to productivity, reduce risk, and reduce attrition. Perhaps that’s why 45% of sales executives list “Decrease new seller ramp-up time to productivity” as a #1 sales enablement goal.
We work with clients to design effective training based on what’s actually happening in the field, that is easy to apply and reinforce, and that meets these 5Cs to help new sellers hit the ground running.
Explore how the world’s fastest payments processing network provider ensured new sellers would be off to a positive and productive start with a sales-specific onboarding program.