Sales Coaching can often be an underutilized by companies to improve employee retention in their sales department. Better use of this powerful tool and activity can deliver tremendous financial benefits becauset the quality and tenure of the sales organization will have a direct impact on top line revenue. By being able to decrease employee turnover and improve the retention rate in the sales department, the caliber of sales resources will be maximized driving an optimum level of sales effectiveness.
How Sales Coaching Can Help
Sales coaching has the potential to improve employee retention in many organizations based on the commonality of room for improvement with the staffing process that most companies use for sales team. It is very common for companies to hire sales resources, give them a quota with a territory, and then set them out on their own. From there, the sales resources either sink or swim; they either succeed or they fail.
If sales resources are successful, everybody is happy. Not only is management happy, but the employee is happy as they will likely be rewarded financially and will have a feeling of accomplishment and productivity. But if they fail, a termination or resignation could be somewhere in the future. If the employee leaves, then management will hire a new resource and start the process over again. The frequency of this process determines the turnover rate and the level of employee retention.
If the ability to decrease the turnover rate and improve employee retention translates into better sales effectiveness and improved odds of better sales performance, then it can be advantageous to explore options that could help drive improvements. One option that can drive immediate results is sales coaching. Sales coaching is effective because it will work directly with sales resources to help them operate at their optimum level.
In-house or Oustource Sales Coaching
Options for sales coaching are to either do it in-house or to outsource. In-house coaching would typically be provided by sales management. Outsourcing coaching would typically involve bringing in a professional coach from the outside to work with sales resources.
The benefit of outsourcing sales coaching is that a professional coach will likely have been formally trained in the area of coaching. In addition, he or she will probably have years of coaching experience. With bringing in this type of individual, a company can leverage this experience, expertise, and knowledge to drive better results.
The option does exist to send sales managers to training in the area of coaching. This direction could be expensive in terms of time and money. Another factor to consider is that only a part of a manager’s day will typically revolve around coaching so the level of expertise that they could reach could be limited.
A more strategic factor to consider could be the fact that a sales manager’s time is very limited and valuable. With that being the case, by outsourcing the function of coaching to a specialist, the sales manager can then focus on more strategic activities which could lead to a higher return on investment for the way that their time is spent.