Sales teams are essentially the heart of an organisation, keeping the business going. Yet retaining a superior sales team is a difficult and costly task. Research shows that it’s within the first three months of employment that 47% of employee turnover occurs. Employee turnover within the first three months is associated with organisations having poor induction processes. Today we are focussing on how poor induction processes for new starters impact sales management.
New starters need mentorship for guidance on company policies, procedures, products and services as well as the company as a whole in order to reach their full potential. At first new starters lack confidence, because they start to feel so overwhelmed with the amount of content and information they need to retain.
New starters who experience a poor induction process generally feel like they have been left to ‘sink or swim’. Many employers lack mentorship programmes due to their assumptions about a new starters previous experience in sales. Employers tend think when a new starter has worked in sales before they know exactly what to do, but it is more than likely that your company’s sales operation works in a different way. New starters therefore tend to feel unwanted, too nervous to ask any questions and unsure of who to ask.
After seven months in the position, new sales starters are finally up to speed and delivering successful results. New starters who have not been mentored from the outset will have little idea of how to deliver a successful selling approach. Thus over the course of the first seven months new starters tend to take a trial and error approach to selling. Trial and error may seem like a good way to go about selling in a new starter’s mind, yet they often become disheartened when approaches are unsuccessful.
Employees who are engaged with a company’s overall mission, value propositions and products/services are shown be 30% more effective in their productivity. New starters’ experiencing a poor induction process generally have no desire to engage in the company, particularly when they get the feeling they are not wanted. In addition, new starters may have low engagement in the company if they do not understand the overall mission and value propositions, resulting in low productivity.
Low company engagement not only results in low productivity but also affects the way in which a sales person communicates key messages to clients. Messages communicated by sales people with low company engagement are unlikely to provide prospects with the value in which they desire. Consequently, customer satisfaction decreases.
Poor induction processes are not only costly but also costly time-wise. Due to a high turnover rate sales managers tend to get trapped in a vicious recruitment cycle. Managers are repeating the same ineffective process with each set of new starters in the hope that they will stay and reach their full potential.
This series will discuss the induction process as well as provide solutions, tips and advice on how you can deliver a quality induction process for your new starters. For more have a read of our New Starter Induction Guide.