{"id":7030,"date":"2016-04-05T12:17:34","date_gmt":"2016-04-05T12:17:34","guid":{"rendered":"https:\/\/www.peaksalesrecruiting.comblog\/25-reasons-why-great-sales-talent-is-leaving-your-company\/"},"modified":"2021-12-11T12:17:34","modified_gmt":"2021-12-11T12:17:34","slug":"top-25-reasons-great-salespeople-leave","status":"publish","type":"post","link":"https:\/\/www.peaksalesrecruiting.com\/blog\/top-25-reasons-great-salespeople-leave\/","title":{"rendered":"The Top 25 Reasons Why Great Salespeople Are Leaving Your Company"},"content":{"rendered":"

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Great salespeople do more than just consistently drive profitable revenue for their employers. They inspire confidence in customers and partners, increase brand trust, and contribute positively to company culture. And these salespeople are rare, representing only 10-15% of the sales population, so when a company has great salespeople, it\u2019s in its best interest to get them to stay. However, a <\/span>study by Compensation Resources, Inc. (CRI)<\/span><\/a> found that the voluntary turnover rate for salespeople is 15.9 percent, whereas the average rate for other types of employees is 14.3 percent. This study underscores a reality that all executives need to beware of: when salespeople aren\u2019t happy in their organization, they are more willing than other employees to leave.<\/span><\/p>\n

A high churn rate for a sales team is <\/span>expensive<\/span><\/a>, and it can negatively affect a sales\"\" team\u2019s culture. Great salespeople leave their employers for a reason, and any company that suffers from a high churn rate in the sales department needs to take a deep look at why their talent is departing in order to improve retention rates.<\/span><\/p>\n

In this article we examine the most important reasons why top sales talent decides to leave their current employer and how corporate leaders can mitigate the risks of losing their top performers. <\/span><\/p>\n

Here are the top 25 reasons great salespeople are leaving your company:<\/strong><\/h2>\n

1. Low compensation<\/strong><\/h3>\n

In our experience, one of the biggest factors influencing a sales rep\u2019s decision to leave an employer is the feeling that they should be receiving higher compensation for their results. If a salesperson doesn\u2019t see opportunities for increased bonuses, promotions, or raises after being successful year-after-year, then they are likely to move on to a company that can offer a better compensation plan with more room for growth.<\/span><\/p>\n

\"\"<\/p>\n

\u201cWhen I look back on the various strategies I used to grow our sales force from zero to several hundred people, I realize that one of the biggest lessons I\u2019ve learned involves the power of a compensation plan to motivate salespeople not only to sell more but to act in ways that support a start-up\u2019s evolving business model and overall strategy,\u201d said Mark Roberge, the fourth employee at HubSpot who built the sales team from the ground up, in an <\/span>article for the Harvard Business Review.<\/a>\u00a0<\/span><\/p>\n

2. Lack of confidence in offerings<\/strong><\/h3>\n

Salespeople who lack confidence in a business\u2019 offerings are unlikely to stay with the company. Anaplan<\/a>, an enterprise software company, and SiriusDecisions surveyed 400 sales executives <\/a>to learn why they would leave a company, and found that confidence in the offering portfolio was the top reason that sales executives decided to leave for a new opportunity.<\/p>\n

3. Changing compensation plans<\/strong><\/h3>\n

Compensation plans vary from company to company, though the standard is to\"\" provide reps a plan comprised of a 50% base salary and a 50% commission. However, when executives decide to change compensation plans, it must be done extremely strategically and in consultation with the rep(s) these changes affect. Failing to involve the affected reps and communicate why the changes are happening sends a confusing message to the sales team and can undermine the trust built between reps and their managers. <\/span><\/p>\n

\u201cSudden changes in compensation is one of the biggest red flags a top salesperson can get that their company does not appreciate their contributions or thinks they are making too much money regardless of the beneficial new revenue they are bringing in,\u201d wrote Denise M. Barry, a seasoned sales executive, in<\/span> an article on LinkedIn Pulse.<\/span> \u201cThis can take the form of a sudden lower salary \/ higher commission arrangement, or even a surprise doubling of quota.\u201d<\/span><\/p>\n

4. \u00a0Reducing the commission rate when\u00a0reps start close large deals<\/strong><\/h3>\n

Salespeople should be rewarded for making more sales, not punished if they\u2019re doing their jobs well. If salespeople are able to close large deals and consistently achieve quota, then they should not see a reduced commission rate because of their success. It may make sense for a sales leader to raise a salesperson\u2019s quota and agree on new sales goals, but reducing the commission rate will frustrate salespeople, and encourage them to explore more financially-rewarding opportunities with other employers.<\/span><\/p>\n

5. Too much time spent on non-sales activities