How to Predict Turnover on Your Sales Team

Companies worry about employee attrition in every department, but it’s especially costly in one function: sales. Estimates of annual turnover among U.S. salespeople run as high as 27%—twice the rate in the overall labor force. In many industries, the average tenure is less than two years. While some attrition is desirable, such as when poor performers quit or are terminated, much of it isn’t—and every time a solid performer leaves, his or her company faces a number of direct and indirect costs. U.S. firms spend $15 billion a year training salespeople and another $800 billion on incentives, and attrition reduces the return on those investments. Turnover also hurts sales: Positions may sit empty while companies recruit replacements, and the new employees must learn the ropes and rebuild client relationships. If managers could identify good salespeople who are at risk of quitting and take steps to retain them, their companies could realize substantial savings.