The True Cost of Hiring, Training, and Developing Top Salespeople
The true cost of hiring, training, and developing top salespeople
Building a high-performing internal sales team comes with high costs for hiring, training, and development, as well as the risk of high turnover rates.
Hiring an internal sales team can be a really great route to take - if you can afford it. You have a direct and constant line of communication and full control of the hiring and training process. Some believe that working internally is the only viable way to do sales.
However, creating a high-performing sales team actually comes at a high cost to your company. You might have qualified business people within your company, but that does not mean that they make natural salespeople. Therefore, you will need to hire an experienced sales manager, as well as a fully-qualified sales team, to achieve success. This comes with all the associated costs of recruiting, training and supporting the sales team.
Source: Growth Stream
This diagram shows the typical costs that you can expect when building your own internal sales team. The estimated costs of even a small sales team can be as high as £18,000 per month! That’s a lot of money which could be spent on growing your business in other areas.
Recruitment and hiring
Finding the right candidates for your sales team will involve paying fees to recruiters, as well as paying for any advertising you do. This process can take time, as you want to be sure you are hiring the very best salespeople. Other costs include expenses given for interviews and time spent reviewing candidates by HR.
Once you’ve found candidates that you are interested in, you need to be able to offer an attractive salary and perks. Sales is a highly competitive market and experienced salespeople are constantly in demand. There’s a chance you could lose out on the candidate you want if they find a more attractive hiring package elsewhere.
Training is essential for any new employee, even those who are highly qualified in their industry. This is because every company does things differently and your new sales team will need to understand the way your company works, and the key protocols they have to follow. Costs include management, materials, and time spent.
Sales is a sector where employees will expect good rates of commission and bonuses based on their work. Therefore, in addition to the annual salary paid to your sales manager and sales team, you will need to account for bonuses and other financial incentives. Otherwise, your sales team will become bored and look elsewhere!
If you fail to offer good incentives to your employees on an ongoing basis, you may struggle to retain your best salespeople. This means that you will experience high turnover rates in your sales team, and the costs for recruiting, hiring and training will need to be repeated far more often than necessary. Generally speaking, the higher your turnover rate, the higher both your direct and indirect costs will be.
Even with all this financial input, there is still no guarantee that your sales team will deliver success. There are cases where internal sales can work, but the reality is that it’s extremely expensive and can be risky.
There is a different approach. More and more businesses are choosing to outsource their sales to an experienced sales team.
There are still risks associated with this option and you need to make sure that you are choosing an outsourced sales company with experience, energy, and drive.
Having said that, sales outsourcing offers plenty of benefits, including cutting the costs, time and energy spent on trying to develop a high-performing internal sales team. Working with outsourced sales teams, like our knowledgeable and enthusiastic Growth Stream team, can cut your spending by 30% and still achieve the results your business needs. It also gives you back valuable time which can be used to grow your business in other areas.