Background
Company A suffered high turnover of sales teams throughout its multiple UK sites. Turnover rate was running at in excess of 100% per annum. Between 75 and 100 new sales people were hired annually with the majority leaving within the year. Loss rate within the first 4 weeks of start date was dramatic. Hiring, Training and continuity disruption were a drain on financial resource and had a negative impact upon a generally loyal customer base. Davidson Consulting undertook investigations to establish the root cause of the problem and arrived at the following conclusions:
- Hiring managers were untrained in interview and selection techniques resulting in ‘wrong’ hires
- Candidates were given an inaccurate view of the job role and company expectations
- No formal induction process or initial training was undertaken
- Little Company or on site managerial support during the first crucial weeks resulted in new starters being left to fend for themselves
- A remuneration structure focussed entirely on individual performance resulted in existing sales people viewing newcomers as a threat
Findings were fed back to the Board and an action plan agreed to address the issues raised:
- A standardised, competency based interview process was introduced
- All hiring managers were trained in interview techniques and received company accreditation
- The interview process included an introduction to the role and company values via presentation and specially commissioned video
- A 30 day induction programme was designed and implemented with key areas identified and completed
- A support programme was implemented and delivered with managerial input giving feedback to new starters and managers via 360 style ‘mini’ appraisal
- Whilst the commission structure was not altered form an individual basis greater teamwork and colleague support was fostered via training sessions
Results
With the implementation of the above interventions several positive results were recorded. Significantly turnover was reduced to 35% over a 2 year period. Research and results analysis demonstrated new starters became more productive producing typically 15% more net business in their first year of employment. Managers were given increased mentoring and coaching skills and benefited from the interview training. A greater sense of teamwork was fostered resulting in increased cooperation between individuals and departments.