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Cost of Retaining A Poor Performing Sales Rep

The Cost of Holding on to Low-Level Performers


Mediocre levels of productivity become acceptable in the company


Managers attention is diverted to improve performance; sacrificing the encouragement of high

performers and diverting attention towards improving general performance standards


Training program cost will exceed output of employee


Management’s image is lowered for, either not seeing the lowered performance or not removing

the person from the company


Manager may need to be replaced and rehired due to low performance


Possible loss of customers and/or prospects


Negative impact upon the company’s performers


Estimated Cost: 150% of Performers Salary



Promoting an Individual without the “Right Stuff”


Possible loss of personnel, customers and/or prospects


Lack of respect from existing staff who may disagree with who was promoted


Damaged employee morale from other personnel not getting the promotion


Existing personnel may take additional time off to interview with competitors


Extended learning curve to train incorrect stuff causes lower productivity


Mediocre levels of performance become acceptable and becomes the new standard


Eventual replacement – starting the promotion process over again too soon

Estimated Cost: 230% of Performers Salary



Losing a High achiever


Loss of productivity that is significantly above acceptable standards


Loss of Intellectual Property that inevitably leaves with the individual


Training to bring average personnel up to high achievement standards


Recreating the quotas around the new highest performers accomplishments


More dififcult to attract high performing sales representatives


Negative morale – other performers may begin looking for other opportunities

Estimated Cost: 450% of Performers Salary



Losing a High Achiever can Cost Upwards of 450% of The Sales Persons Salary


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