Paying and Keeping Salespeople

Here are some facts and figures from a Sibson Consulting survey of 65 major North American companies.

At 90 percent of companies, a top sales rep can earn more than the rep's managers do. At 48 percent of companies, a top sales exec can earn more than the top sales executive does. And at 19 percent of companies, a top sales executive can earn more than the CEO does.

During the past two years, companies have experienced 12 percent annual sales force turnover.

Only 9.7 percent of companies (but 23 percent of high-tech companies) view stock or stock options as an advantage in attracting and retaining salespeople.

When salespeople quit, the majority of the time it’s because there’s a better opportunity to improve their career at another company. The second-most-common reason is higher base pay, followed by higher incentive pay, followed by more attainable quotas.

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Top 3 Reasons Rainmakers Stay Where They Are

It's easy to believe that money is the prime motivator for a top sales Rainmaker, but surveys indicate that it's actually number four or five on the list of what keeps them in their jobs. The top three answers, in order, in every survey they’ve done since 1998 are:

1. interesting, challenging work

2. a chance to learn and grow

3. great people to work with

Perfect Storm Front Coming

So, before you break your bank to offer up a huge base salary, take a look at what other opportunities you can create to make your company an "employer of choice".

5 Things To Consider When Hiring A Sales Manager

Sometimes the best Sales Manager isn't someone who was a Rainmaker in sales themselves. There are many things that the Sales Manager has to be able to do that a Rainmaker may not be so good at. According to a recent article from Dr. Wendell Williams, these are 5 of the abilities you should look for when hiring a Sales Manager:

Empathize with others and understand the problems they face

Stay abreast of market trends and environmental factors

Analyze an individual salesperson's strengths and weaknesses

Be comfortable with working through others instead of being a "doer"

Know how to develop strong, trustworthy relationships with both clients and team members

Read Dr. Williams' article Do Great Salespeople Make Good Sales Managers? for more things to look for when hiring a Sales Manager.