SalesForceXP: March/April 2009 Coverstory: Keep your best people

COVERSTORY

SalesForceXP March/April 2009 Cover Keep your best people

by Paul Nolan

If you believe the quality of your salespeople is central to building value, you'd better reconsider your "they have no place to go" retention strategy

For sales managers who don't have enough to keep them awake at night, we share this story: A young married couple that had carved out successful careers in the same Houston brokerage office were offered - and accepted - substantial stay-put bonuses earlier this year. Less than a month later, however, both of them left for an equally notable broker who covered their bonuses and added more on top of it.

With waves of layoffs continuing to dominate the headlines, keeping the people who help keep you business wouldn't seem to be a challenge right now. But good salespeople are always in demand, and, as the manager of the married brokers who jumped ship learned the hard way, there usually is a competitor with deeper pockets.

It's counterintuitive that economic downturns produce significant turnover for companies. Small and medium-size businesses are particularly vulnerable, as many sales professionals are tempted by the stability of a larger company on their next step up.

For those companies that believe the quality of their people is central to building value, it's time to reconsider the "they have no place to go" strategy of employee retention.

During the economic downturn in 2001, "we saw that people became disengaged and were busy updating their resumes," warns Sharon Jordan-Evans, an executive coach (www.jeg.org) and co-author of Love 'Em or Lose 'Em: Getting Good People to Stay (4th Edition Berrett-Koehler, 2008). "The minute the economic lights went on, people went wild. We found that 80 percent of people looked elsewhere."

What's A Poor Manager To Do?

Leaders who can provide meaningful and fulfilling work experiences for their teams are more likely to win loyalty and retention.

Trust, goals and professional development are among the top qualities that U.S. employees cited as "key drivers of loyalty," according to a nationwide survey released last fall by IMR Research Group (see IMR survey summary).

The best way to begin is by opening up the lines of communication.

"In tough times as well as good, nothing trumps communication for keeping employees engaged," says Candace Walters, president and CEO of HR Works, Inc., an outsourcing and consulting firm. "In every organization, the managers must communicate candidly with employees about how the business is doing. As Carl Jung observed, 'When facts are few, opinions loom large.' "

If they haven't already, sales managers need to ask their team what they want next in their career. The answers may surprise you because more often than not, it's not about the money.

"You can build employee loyalty if you have ongoing conversations about how they are doing and how you are doing," Jordan-Evans says. "People are willing to pull together if they feel loyalty for the boss and the work at hand."

Savvy leaders also realize that employees can be rich sources of ideas for withstanding the downturn. Some companies encourage - and reward - employees to submit cost-saving suggestions. Employees who feel involved in helping the company survive will not only identify and trim waste, but also are more likely to step up their own performance.