Sunday, March 22, 2009

My 6 points on sales burnout

Being the CEO of an outsourcing company has taught me two important things. Flattery will get you somewhere, but honesty will get you everywhere. Secondly, even the best employee, if not treated properly will burn out.

In my opinion sales might have the highest burnout rate of any profession. Burnout happens for different reasons. Some are avoidable and some are not.

Here are six reasons of how I have personally witnessed employee burnout in the outsourcing arena.

1. Long Sale - Short Sale
Certain sales people can only sell the short sale. I know that personally I have trouble with a long sell. There is a self rewarding feeling when closing short sale after short sale. In my experience even in the case where the commission payout is less, sales reps would rather close 10 sales in one week then 1 large sale. The adrenaline of closing helps employees over their next potential hurdle.

2. Too much stress
Sales managers often take the fun out of sales by putting unnecessary pressure on their sales team. While it is normal to have pressure in sales, too much will eventually breed resentment between sales reps and managers. Create realistic goals that can be achieved, otherwise goals will not be met.

3. Lack of recognition
Sales people need to be recognized for their sales successes. To this day I still feel energized by getting a sale and being acknowledged for it. While being rewarded financially is great, being recognized for a great achievement can mean even more. Simply writing an employees name on a white board because they reached a specific sales goal in most circumstances is not enough. Creating goals is important, but even more important is creating valuable recognition programs once those goals are reached. Additionally, I have found that the opportunity for advancement in a company is often times much more valuable than any possible bonus, raise, or prize.

4. Lack of Enthusiasm.
Selling the same thing over and over again without any change in product or responsibility can lead to burnout. As a general rule, people need to be challenged. Scripts need to be changed, and things need to be mixed up. Whether "mixing things up" means playing some music in the office, or even switching the seating arrangements, this kind of obvious refresher is mandatory. Doing exactly the same thing everyday can strip employees of their positive motivation. By creating program excitement you will at the same time be creating more potential sales.

5. Not Suited for the Sales Arena
Just because someone is good at sales does not mean they enjoy it. Many sales people are just in the wrong profession. Doing something that you dislike (even if you do it successfully) can lead to burnout. While selling can be the very nature of all business (a true salesmen can see sales everywhere, whether it's in a job interview, or bargaining for a car) not everyone is built to make a career out of it. Waking up everyday and heading off to the boiler room will inevitably break even the best of sales reps.

6. Respect
Getting back to my opening statement of this post, “Flattery will get you somewhere, but honesty will get you everywhere.” Sales reps are just as educated as any other professional. Everyone who is someone in sales knows which companies are paying their employees, and which companies have created pyramid schemes with hopes of striking it rich. Pay your employees on time and what they deserve. Do not forget that ultimately only your sales reps can bring success to your organization.