Your best sales rep just resigned! Now What??

Sales – How does Employee turnover impact your bottomline?

John Jones, a sales supervisor, who has been with your company for 15 years, walks into your office on Friday and hands you his letter of resignation. You are shocked, as you had no indication he was intending to leave.

Peter Smith, a Star sales rep who calls on the accounts in the upscale section of town, is offered a lucrative position in a new industry and is scheduled to start with this new company in 3 weeks.

Obviously these examples are fictional but not out of the realm of reality when you manage a business in today’s Beverage Industry.

What system do you have in place to address these issues?
Do you know the financial impact, on your company, of these situations?
What amount have you budgeted for “employee turnover” this year?

If the answer is zero, you are not alone; unfortunately you are also not being realistic in regards to your budgeting process.

To understand the financial impact of these situations, you first have to analyze the wide reaching impact of Employee turnover. There are significant costs involved in all of the following areas:
Interviewing, advertising and other costs associated with hiring, such as travel, meals, etc.
Training and retraining time
Lost customers, sales and opportunities
Unemployment lawsuits and other hiring or termination litigation
Potential loss of proprietary information to your competition
Reduced or lost productivity
Management time taken away from normal, essential job responsibilities
Various ripple effects in other areas of your business, depending upon the employee’s position.

Experts in the Human Resource industry estimate the cost of turnover ranges from 1.5 to 7 times the value of that employee’s annual compensation package. (The higher range pertains to costs associated with litigation, buy outs, contracts, etc.)
Now that your attention is focused on the significant costs associated with turnover, wouldn’t you want to reduce your financial exposure by improving your hiring practices?

Contact me and we can discuss how I can help you address these concerns.

Chris Zobel CMZ Associates 610-369-5067