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Get Home Building Sales Employees Hooked
Here's what sales professionals and hiring consultants say you need to know to keep your best employees on the line
By Craig Guillot, Contributing Editor
August 1, 2007
GIANTS
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In today's world of job-hopping, downsizing, mergers and layoffs, the days of working for a company for 30 years are gone. On average, most people now change jobs every five years. And with a tight labor market, instant access to job information, light-speed transmission of resumes and cell phones, a dissatisfied employee can land a new job before you're even aware that he or she was looking at the door. Why are people leaving? The 2006 General Social Survey by the National Opinion Research Center at the University of Chicago found that of 27,000 respondents across all occupations, only 47 percent of those surveyed were happy with their current jobs.
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We've asked leaders from the medical, automotive and software industries about their sales retention strategies and found that whether one is selling homes or software solutions, salespeople generally seek the same qualities: adequate compensation, a supportive manager and, above all, an accommodating and caring culture.
Compensation Only A Small Factor in RetentionContrary to the stereotype, salespeople are not entirely motivated by money. With all compensation plans equal — or within 10 percent of one another — salespeople will drift to companies that have a solid supportive and appreciative culture. It may sound simple, but most companies fail to foster cultures that encourage loyalty and retention, with management often thinking it only takes an annual raise to keep an employee happy. Derrick Barton, chief talent leader and CEO for the Center for Talent Retention, says that many organizations go wrong from the beginning by seeing their sales positions as simply a job to fill.
"You have to look at employees and people within your organization as talent, and you have to invest in and make time to grow and leverage that," says Barton. "When a person sees it as just a job, it's just that much easier to leave."
For a salesperson, compensation is not a simple number; it involves how realistic and attainable that financial or sales goal really is. Salespeople need to have support systems and resources in place and have a clear line of sight to what their real income can and will be. Some employers try to keep their sales reps around by telling them they "can" make $100,000 per year when 90 percent of the people are making $60,000 a year.
Training and SupportDon McNamara, president of Heritage Associates, a California-based management consulting and training firm, says that retention starts with hiring the right people. He says managers in all industries often pick the wrong people for sales positions. Companies that already have high turnover rates are usually eager just to fill positions with warm bodies. This is especially true with auto dealerships and home builders and only continues the cycle of turnover and low retention.
McNamara says that one of the most common reasons for sales turnover in any field is unsupportive and ineffective front-line sales managers.
"The sales manager needs to be a proactive individual, not one who just sits behind a desk and shouts orders. I've seen many companies lose their sales force because the sales manager is not working with the salespeople or doing anything for them," says McNamara.
A good sales manager works to understand what motivates each of the salespeople, works to help them become more successful, and rewards them with compensation and further training and responsibilities. In large companies, retention strategies are often left to the human resources department, but it is front-line managers who have the real effect on employee satisfaction.
Finding the Sweet SpotSales managers must discover what motivates their top producers, and in many cases, that can include non-traditional incentives and accolades. No two salespeople are alike, and each may be motivated by different factors that can range from money to recognition to time off.
Some top producers need nothing more than a handshake and a sincere expression of appreciation while others need tangible bonuses. Motivation can also vary by age and demographics. While a mere two weeks of vacation may be the norm for many Americans, many 20- and 30-somethings are looking toward more time off as an incentive. Vacations and time off reenergize, invigorate and add quality to employees' lives.
An employer that offers its salespeople a little more flexibility and freedom in their personal lives can offer benefits that money can't buy. Flex time allows people to hit the gym, pick their children up from school in the afternoons and indulge in more personal pleasures.
And although flex time and telecommuting may not be as practical for home builders looking to staff model homes, the reality is these options may further entice salespeople into other industries; it's an important concept to note.
"People aren't looking to come and go as they please, but they're looking for flexibility to help them balance their work and personal life. [Companies] that allow people to meet both their personal needs and the business' needs have a competitive edge in the talent marketplace," says Barton.
Mike Dwight, executive vice president of Southern California home builder Frontier Homes (ranked No. 88 on the 2007 Professional Builder Giant 400), says that along with adequate compensation and independence, salespeople can be heavily motivated by simple recognition.
He says that home builders tend to be "hammers and nails guys" who don't deal well with the subjective and often emotional side of high-maintenance salespeople. Dwight offers his salespeople independence in virtually managing their own stores, the freedom to generate their own marketing ideas and discretion on incentives. Above all, he focuses on recognition for those who perform.
Says Dwight: "[Salespeople] are certainly looking for recognition. Like any other business, nothing happens here until someone sells something. You have to remember that they're the ones that keep your business running."
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| Author Information |
| Craig Guillot is a New Orleans-based freelance writer. His work has appeared in such publications as the Washington Post, San Francisco Chronicle, Bankrate.com and Nationalgeographic.com. |
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© 2008, Reed Business Information, a division of Reed Elsevier Inc. All Rights Reserved.


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