If you can't pay employees enough to retain them, the root cause is likely a flawed sales process, not a hiring issue. A weak sales motion prevents price increases, which suppresses profit margins and ultimately limits what you can afford to pay your team.
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Founders often feel guilty about raising prices. Reframe this: sustainable profit margins are what allow your business to survive and continue serving customers. Without profitability, the business fails and everyone loses. It's a matter of ensuring longevity, not greed.
When a company consistently misses sales goals, the root cause may not be the sales strategy but a failure in the hiring pipeline. A high employee churn rate combined with an inefficient screening process starves the sales team of the necessary manpower to hit its targets.
Many companies mistakenly hire salespeople and then define their job and compensation. The correct sequence is to first determine the business need, then construct the specific job role to address it, and finally design a compensation plan that incentivizes the required activities before ever posting the job.
Don't hire more reps until your current team hits its productivity target (e.g., generating 3x their OTE). Scaling headcount before proving the unit economics of your sales motion is a recipe for inefficient growth, missed forecasts, and a bloated cost structure.
Many businesses over-index on marketing to drive growth. However, strategic price increases and achieving operational excellence (improving conversion rates, average tickets) are equally powerful, and often overlooked, levers for increasing revenue.
Sales leaders wrongly assume compensation is the universal motivator. However, assessment data shows money is the primary driver for only about 55% of salespeople. To create effective incentives, leaders must uncover individual motives, which may include free time, recognition, or charitable giving.
Salespeople's biggest frustration with comp plans is being held accountable for outcomes they can't directly influence. This perceived unfairness is a primary driver of attrition, making it critical to align incentives strictly with a seller's direct responsibilities and control.
When sales teams hit quotas but customer churn rises, the root cause is a disconnect between sales promises and operational reality. The fix requires aligning sales, marketing, and customer service around a single, unified strategy for the entire customer journey.
Employee retention now requires a customized approach beyond generic financial incentives. Effective managers must identify whether an individual is driven by work-life balance, ego-gratifying titles, or money, and then transparently tailor their role and its associated trade-offs to that primary motivator.
The strategy of eliminating the "worst 20%" applies across the business. Beyond firing unprofitable customers, analyze your product lines and even your team. Discontinuing low-margin, high-hassle products or removing toxic employees can free up immense resources and improve overall business health just as effectively.
