How Building Product Manufacturers Can Recruit and Retain Successful Sales Reps and Lower Attrition Rates
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The Content Team,
HALSTEAD.
Originally published on October 11, 2015. Updated on October 27, 2022.
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More than any job position, the sales rep position has a notoriously high attrition rate. The turnover rate for sales reps is 27% higher than the rate for the overall labor force, creating an endless cycle of recruiting, hiring, and training—costing your building product manufacturing business valuable time and money.
Studies suggest that the average turnover cost per sales rep is $97,690, including costs related to recruiting, training, and lost sales. Add this stunning stat to the fact that it takes approximately four to six months to replace a sales rep, and the figure continues to grow.
It’s time for the building product manufacturing industry to stop this cycle and start recruiting and retaining top-performing sales reps, but knowing where to start can be a daunting task. Companies with healthy attrition rates see the importance of investing in their recruitment and retention strategies.
How Building Product Manufacturers Can Determine What’s Causing Their Sales Reps High Attrition Rate
The first step is identifying what’s contributing to the high attrition rates for sales reps in your company. It’s wise to perform exit interviews when employees quit, especially if they’re quality employees with great potential.
Have someone they feel comfortable with conduct the interview so you can get the most truthful answers possible. Their answers will provide insight into areas where your company can improve to accommodate the needs of your employees.
While the reasons may differ slightly across all manufacturers, industry-specific factors tend to contribute to this ongoing and pricey problem, including constant travel and the long sales cycle.
Why Creating Work-Life Balance for Sales Reps Who Travel Constantly Is Essential
Since most sales reps for building product manufacturers are required to travel (often across large territories), it can quickly lead to burnout. A reason for quitting is often because they’re unable to find a good balance between home life and work life. When one area of life is thriving, another area is suffering, causing these individuals to make the hard choice between their job or their family—and who can blame them for putting their family first?
Consider that 72% of workers view work-life balance as a crucial factor when choosing a job, and 57% say that a poor work-life balance is a deal breaker when considering a job. These stats prove the value of showing your sales reps that you care by implementing policies demonstrating awareness of their need for work-life balance.
Many companies with lower attrition rates offer trade-offs that allow the sales rep to create their work schedule, often with weekly or monthly flexibility. Others offer three days per week of travel with a day off before or after the trip. Offering a lucrative number of paid vacation days helps traveling sales reps have a chance to rest and recharge, which promotes mental and physical health.
While these trade-offs may be expensive, consider the cost involved with recruiting, training, and the substantial amount of time new sales reps spend re-establishing relationships with customers where trust was already formed with the former sales representative. With this mindset, it is well worth investing in helping your sales reps find a positive work-life balance.
How to Help Sales Reps Stay Motivated Throughout Long Sales Cycles
Compensation isn’t the number one factor contributing to high attrition rates, but it can influence it. You pay for what you get, and offering below-average salaries for the position may not attract the high-performing sales reps you wish to add to your team. Instead, you will likely end up with poor performers who quit and cost you more money. Offering comprehensive packages with competitive salaries can go a long way.
With the sales cycle generally long in the industry, it can be difficult for sales reps to stay motivated. One way to help keep your sales reps motivated is by offering rewards throughout the sales process. For example, you could offer a percentage of commissions before the sale closes, with clearly defined guidelines of what rate they will receive and when, to help keep them motivated.
Identifying KPIs beyond the close of the sale can be effective. Keeping the prospect engaged is a win, so celebrate it! The goal is to help your sales reps feel as if they are consistently winning, making their job feel more rewarding in the interim before closing the sale.
The Importance of Establishing a Sense of Purpose for Your Sales Reps and Employees
No matter the industry, employees in all positions need a sense of purpose and conviction in their work to feel fulfilled. People want to know that their work is making a difference and that it’s helping others in some way.
Studies indicate that companies are most successful when their purpose aligns with the employees’ purpose, and the benefits include greater loyalty, higher engagement, and willingness to recommend the company to others. When goals align, it positively impacts customer relationships and the organization. This alignment doesn’t mean everyone will always agree on everything but that you all work toward a common goal.
A large part of this conviction comes down to the company culture, which starts at the top and trickles down to employees at every level. A company culture that positively influences employees' attitudes and behaviors will experience positive results.
Genuinely caring about how they can support them and improve their lives makes all the difference. People may enjoy traditional benefits but stay at a job because of their coworkers. Forming great relationships with mutual respect can significantly impact attrition rates.
Leaders of successful businesses that share the company’s aspirations and what the future holds empower sales reps by showing how their job performance plays a significant role in their success, and offer ample opportunities for career growth.
Why Offering Sales Reps Opportunities for Growth Is Essential for Building Product Manufacturers
More than one-third (37%) of employees left their organization because they lacked career advancement opportunities. One of the most significant contributors to high attrition rates for sales reps is the lack of growth opportunities. Sales reps don’t want to be in an entry-level position forever; they want a job where they will have opportunities to improve their skills, advance their rank, and establish a positive reputation within the company.
The Positive Impact of Ongoing Training Opportunities
Offering ongoing training opportunities shows your employees that you want to see them succeed and are willing to equip them with the knowledge and tools to do so. These training sessions don’t have to be elaborate or costly to have an influence.
Sending your sales reps to the manufacturing plant for the day to see the manufacturing process of the products they sell can be impactful. You could also have them spend the day with your product design team working on future developments. Seeing the technology and complexity of the manufacturing process can help create a sense of pride that will be evident in their interactions with prospects. Passion and excitement are contagious, and if your sales reps can develop that level of enthusiasm, it will inevitably have a positive effect.
Training opportunities can break the monotony that often comes with the repetitive tasks in sales positions. Simultaneously, learning from professionals in different parts of the organization can be insightful and help improve their performance.
Why You Should Provide a Career Path or Ladder for Sales Reps
Having an established career path is one way to retain top talent. When your sales reps can see the potential for their career path, they will have a goal to work toward that promises professional growth and a way to build their portfolios.
Depending upon the size of your sales organization, you may not find that there is an easy way to ladder the sales positions in a way that offers growth. There are always opportunities for increased responsibilities that provide development.
For example, a sales rep could advance to a higher-level position with a title such as Account Executive II. In this position, this person could mentor or informally train new sales reps in the field. The next place on the ladder could take on responsibilities such as acting as a formal trainer for a portion of new hire programs, attending formal meetings with higher-level executives and bringing a topic for discussion.
Recruitment Strategies to Attract the Right People and Lower Sales Rep Attrition Rates
Hiring the right people for the job is sometimes an elusive endeavor, but you can achieve it when you implement the right strategy into the recruiting process. Sometimes the talent you’re looking for has been there the entire time, but you weren’t looking in the right place.
Hiring from Within: A Strategy Worth Considering
Many organizations overlook promoting internally when there may be a wealth of expertise and talent already within. Think about employees who may be working in other divisions of your company. Who are the ones already demonstrating loyalty, drive, and professionalism? You can recruit people with industry knowledge and personal attributes and then train them in sales.
For example, perhaps you have an incredibly charismatic and dedicated employee working in your manufacturing plant. Their expert knowledge from working in the factory will only benefit them in a role as a sales rep. Identifying the personality traits that would make them an excellent sales rep may help them pursue a fulfilling career they had never considered before you pointed out their aptitude.
Why You Should Use Marketing Strategies in Your Recruitment Efforts
Thinking of recruiting from a marketing standpoint can revolutionize the way you recruit. Your business branding aims to attract the right prospective customers, just as your employer branding should serve the purpose of attracting the right prospective sales reps.
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INVESTING IN CONTENT FOR YOUR MARKETING STRATEGY
Your company website can be used as a tool to attract sales reps, just as you use it to attract potential customers. Professional copy, videos, and photos can be used across numerous marketing channels, making content creation an excellent investment.
Harness the power of SEO (search engine optimization) by creating content that attracts top talent. Your website should have a landing page dedicated to your recruiting efforts and filled with professional copy, photos, and even videos that show why working for your company is the right decision.
Successful companies often invest in professional case studies that demonstrate the potential career path. For example, this could include a professional video with the sales rep’s testimonial about where they started, where they are currently in their career, their aspirations, and how your company is helping them achieve them. Efforts like these help establish your employer brand.
Consider the words used in your job descriptions. When approached from a marketing perspective, how they’re written will undoubtedly change. Create enticing job descriptions that focus on the benefits of working for your company. For example, start the job description by sharing how the opportunity can help them achieve personal fulfillment or about the compensation package they’ll receive.
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THE INFLUENCE OF EMPLOYER BRANDING ON RECRUITMENT
Employer branding goes beyond recruiting; it also affects how current employees view your company. Your company’s reputation matters. Finding talented sales reps to join your team will be a struggle if your employees don't hold your company in high esteem.
Awareness of employee satisfaction, specifically with sales reps (in this case), is essential. Top talent cares about the quality of the product they’re selling, but they’re also looking for something more. They want a career with opportunities to learn and grow, a positive company culture, great benefits, excellent pay, and purpose.
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WHAT YOU NEED TO KNOW ABOUT HAVING A SOCIAL MEDIA RECRUITEMENT STRATEGY
The secret to employer branding is meeting the needs of your current employees and then marketing how your company meets those needs. Go beyond the job boards in your recruiting efforts; social media is an effective platform for establishing your employer branding.
For this scenario, let’s assume your company has consistently put in the effort to improve the sales rep experience, resulting in happy reps. In your recruiting efforts, you could post a video testimonial to your LinkedIn account where the sales rep talks about why they enjoy working for you. You could even include ad spending to boost the post, allowing more potential candidates to see your employer branding. Post photos of smiling employees at company-hosted gatherings, anything that shows how your company focuses on its people.
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THE POWER OF REFERRALS IN RECRUITING EFFORTS
Offering referral incentives can be a great way to recruit top talent. Studies show that referred hires have a higher retention rate, with 46% staying on for at least a year, while only 33% of career site hires do the same.
When companies invest in a great workplace, employees will be more than happy to refer their friends and family. An employee referral program can maximize this effort. Using an application tracking system will help ensure each employee is rewarded for their referral efforts.
Some companies offer referral incentive programs where the person making the referral receives a cash bonus after their referral has been an employee for 90 days. Get creative with the incentives and ask for feedback on what would inspire your current employees to share.
How Your Website Functions as a Sales Rep
Sales reps are critical to your company’s success, and regardless of your strategies, this isn’t an area to skimp on investment or attention. Keep in mind that your business website functions as a sales rep.
There are numerous ways that an effective website can help your manufacturing company’s sales efforts, and it starts with having an easy-to-use and aesthetically pleasing website design. Recruiting the help of a marketing agency that is familiar with the industry is the best way to maximize your efforts.
Your website can help qualify leads, nurture leads, and automate marketing efforts. It’s a great tool to provide for your sales reps, as it will help generate leads they can follow up with and close the sales faster. With quality content, it can become a massive resource of helpful information that your sales reps can share with prospects to help close more sales.