Controlling Turnover in an Inside Sales Organization: What are the Contributing Factors

The turnover rate for inside sales team, particularly in Central Florida, is exceedingly high. I have experienced this negative scenario managing inside sales teams for two major Telecom companies over the past 11 years, having as many as 40% of the salesforce resign within 30 days. Organizational costs to hire a new salesperson can be as high as 300% of the replaced employee’s salary and take as long as eight months to reach full productivity. The purpose of this research is to determine the internal and external factors that impact a salesperson’s propensity to leave a company. This qualitative research study applies the employee turnover model designed by Mobley et. al. Interviews with current and past inside salespeople provide the data for coding and analysis. The study results prove that many factors impact the propensity to leave, and no single attribute is prominent. Most important to those interviewed was the flexibility of the company to create a work/life balance followed by dynamic sales quotas and key performance indicators. The interviewees’ expectations were that compensation, work environment, operational support, and the tools needed were on par with contemporary standards. Any deviation could trigger one to review the expectations they receive from their job against those available in other companies. Based on the research conducted, companies that can embrace and execute a flexible work environment along with dynamic performance indicators will see an improved employee turnover rate