Poor compensation, management, and work environments contribute to salespeople seeking new opportunities
Sales is one of the most challenging positions to fill and retain, and it’s getting harder according to a new study by analyst firm Gartner that found nearly one-quarter of inside sales representatives are looking for new positions.
The Lowdown: According to the Global Labor Market Survey, Gartner says a significant portion of inside sales representatives – sales professionals that reach out to customers by phone and automated channels – are dissatisfied with their compensation packages, immediate management and supervisors, and the respect shown by their employers. These factors are causing as many as 24% of inside sales representatives to seek new employment this year.
The Details: Factors that attract inside sales representatives to new positions, according to Gartner, include a 15% increase in compensation and more competitive benefits packages, better work-life balance, opportunities for advancement, friendly work environment, and highly skilled managers.
While some employers may read the results of the Gartner survey to indicate pay is the biggest factor in insides sales representatives’ dissatisfaction, the reality is work-life balance and workplace culture plays a bigger factor. Of those surveyed, 60% of inside sales representatives did not select compensation as one of their top five dissatisfaction factors with previous employers. Work-life balance, collaborative work environments, and management respect for employees play a much higher role in satisfaction and retention.
The Impact: Attracting talent, training and enablement, and retention are all factors that drive and hold back insides sales organizations. Having one-quarter of inside sales at risk of leaving is a major threat to sales organizations and their overarching businesses. The Gartner study is a harbinger of the risk that could disrupt vendors and solution providers if they do not cultivate their inside sales teams with greater care.
“Leaders responsible for inside sales face a high turnover risk with reps today,” said Matt Dudek, vice president in Gartner’s sales practice. “To avoid this, sales leaders not only need to craft a compelling employee value proposition to attract high-quality candidates to inside sales roles, they must make sure they are delivering on the proposition to retain talent in a competitive labor market.”