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High Turnover Rate in Sales Organizations: Problem and Solutions

High Turnover Rate in Sales Organizations: Problem and Solutions

High turnover rate in sales organizations is a huge problem in most countries. The high pressure and fast-paced nature of the job can be tough for even the most experienced salespeople. Add to the fact that sales jobs often are commission-based, and it’s no wonder that turnover rates are so high. In fact, according to a study by the Harvard Business Review, the turnover rate for salespeople is nearly doubled, compared to other workers.

There’s a number of factors that contribute to sales employee turnover rate. Work environment and poor leadership are among the problems. However, there are steps that can be taken to improve the situation. We will explore these steps in more detail below.

Why is turnover so high in sales? 

Let’s take a closer look at the general reasons of high turnover rate in sales organizations. Management plays a key role in why employees leave their organizations. This is because poor leadership often results in a negative work environment where employees feel like they are constantly under pressure. This can lead to burnout, and when that happens, turnover is often the result.

It is a known fact that commission-based sales people can be difficult to motivate. When they don’t make any sales, they don’t earn any money. Lack of income can lead to above average turnover. There are no easy solutions here. But make sure that your team has the necessary skills and resilience to stay in the game.

The negative perceptions of the sales industry can also be a factor leading to higher turnover rates because many people who work in sales have a negative view of a possible future in the industry. This can make it difficult to stay motivated. That is why it is important that employees feel they have opportunities for advancement of learning in the sales organization. If they feel like they are stuck in a dead-end job with no opportunity for growth, the chances are they will start looking for other opportunities. At least I would.

What can be done to reduce turnover rates in sales organizations?

Based on the reasons for high turnover rates, there must be some improvements managers can do to reduce them in their organization. Leaders will have to create a positive work environment where employees feel valued and appreciated. This can be done by providing regular feedback, setting clear expectations and giving employees the opportunity to grow and develop within the company. If you are curious on how to avoid common leadership mistakes, feel free to read our blog post about it here.

A recent research into organizational culture found that feeling respected at work is without doubt the most powerful factor for job satisfaction. That, in our opinion, is a very clear signal of how essential it is to have established a workplace culture which emphasizes the right values.

To succeed in a commission-based role the rep will require a set of basic sales skills to get started. Few succeed on their own and a good onboarding process is crucial to provide salespeople with the training they need to be successful. Both basic and advanced training is necessary. Basic training should cover topics such as product knowledge and communication skills. While advanced training should cover topics such as objection handling and closing sales.


In this post we have discussed the turnover rates in sales organizations and some of the reasons behind it. We have also looked at a few steps that can be taken to reduce turnover rates. Implementing these steps will require a commitment from leaders, but is an important investment if you want to improve the performance of your sales organization and keep your best employees.

We also have a blogpost about onboarding in sales organizations here!

In Future Ready, we believe that everyone deserves a chance to succeed. With smart technology, we make learning an integrated part of the everyday workflow. We can help your company future-proof its workforce by providing employees with the opportunity to learn new skills on their own time, without disrupting their day-to-day routine. Want to see how Future Ready can benefit your business? Contact us for a free demo! Our team is excited to show you how our innovative platform can help your employees stay ahead of the curve and improve your bottom line. Thanks for reading!

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