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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