I never thought I would ever write a public service announcement, but that is exactly what this post is going to become. STOP the CHURN! I aim this message at companies that are sacrificing long-term talent for short-term gain. Whether you are a newcomer to my web site or follow me with regularity, you know I mostly aim for the sales side of the audience; but not this time. I point my finger in absolute disgust at companies that are using talented workers as throw-away pawns in an effort to forge some semblance of profitability.
My routine is to regularly “stalk” websites, postings, and even job listings in order to stay abreast of changes in sales and the competition. I am seeing something I find unsettling. A trend among companies to hire hastily and hope for the best. Are they expecting exceptional talent at low-ball prices? What is the reasoning? The fiduciary 
responsibility of any company’s executive leadership is to the stakeholders, whether those stakeholders own part of the company or not. This responsibility is being ignored. I often use the phrase, “Churn-n-burn” when I talk of a salesperson’s desire to sell and get out quick. Well, it is apropos when it applies to those that are sacrificing bottom-line dollars to make themselves look good.
I will give you two examples I have personally observed without revealing the names of the innocent.
FIRST: I have followed this particular company over the past 18 months and have seen advertised an opening for a account manager/sales representative listed 6 times for the same area! You do not have to have higher math skills to understand the people have only lasted three months! More likely 45-60 days since there will be some time period necessary to fill the position.
SECOND: Another company decided they would branch out from their inside-based verticalized sales model for a sales model based on territory. This is a model I embrace, so it is one I fully understand and believe in when a company’s strategy is to go to the next level of revenue. They brought in sales management to execute this strategy, which they in turn brought in territory-based sales people. For those not familiar, this type of change takes time–a long time to see end results. So what was the outcome? Within 4 months the senior VP was let go and within 5 months the personnel he brought in was gone; some sales people with as short tenure as 45 days. Seeing a pattern here?? The second example is pretty extreme, but none the less true.
This is costing companies thousands of $$, let alone the cost in terms of brand damage. Think I’m wrong? Ask any reputable company what a revolving door of personnel does for company reputation. I wrote an article, “Hiring the Right Salesperson” where I mentioned the cost associated with hiring the wrong person. Think about how costly it is to the company in both tangible and intangible elements. Hire for the long-term. Hire and treat employees as you do your product. Use “Life Cycle Management” theory and apply it to the employees. If, as a company, you continue to go through not only sales people, but any employee you must understand your variable costs are going to be skewed. Is that the overall intent, screw with the variable costs at the right time to make the contribution margins look better? Let it be understood that this will catch-up on the backside–BIG TIME! 
Show this to your company’s executives. See their reaction. Was it snuffed? I’ll let you decide.
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Happy Selling!
Ed Warner
You can have some experience, but only to a point, but certainly not experts. Those proclaiming themselves as experts are grabbing from their legacy marketing experience and throwing the social media cover over your eyes. “Buyer Tread with Caution”.
Bigger industries have the stamina for the long-term. Let me stop here and explain something. Social media is not the same as social networking; either for business or pleasure. Social media is an evolving source of communication. I am not saying there is 
or the lack of a long-term vision, rather because of a simply task, Execution.
cover the humdrum details of account management. Many a salesperson has made the mistake of believing they can do these at their leisure. and the customer will be happy! Nothing could be further from the truth. I am a relationship sell kind of person, therefore I believe in cultivating relationships for the long-term. I do not believe in the churn-n-burn mentality. If that’s your nature and it suits your job description, then more power to you. But if your goal is to keep the customer in hopes of selling to them again, there are continuous must-do’s you have to perform.
This excuse is the biggest reason for not doing anything; the illusions of time dwindle. You actually have more time than you realize and here is how you dispel the myth and reclaim the edge.
Failure to win this battle will guarantee you lose the war! This is a priority so treat it as such. Do what is necessary to cultivate the relationships
You have two candidates interviewing for the same position, and their performance at their last position employer was 80% and 140% respectfully. Which one do you hire? Managers with myopic vision hire the over-quota performer and six months later, you find this person truly is a rock star, but with one BIG drawback. He/she does not follow the rules, disrupts team continuity and has undermined your team allowing resentment to set in which is allowing total sales to drastically fall. WOW! Not the result you had in mind when you hired this cannon is it?
I do caution companies and managers to think sensibly when analyzing the results. These are simply another tool to use in evaluating talent. If you perceive these as the deciding factor, then maybe hiring isn’t your biggest problem.