Improving New Hire Performance and Reducing Turnover
"Will this training help reduce our 82% turnover rate?"
This telecommunications client had two kinds of employees: those experienced reps who had "made it" and would stay, and the new hires who would soon leave. More than half the new hires didn't survive the first three months. "They were starving," said the VP of Sales. Our measurement strategy compared a group of new hires to a group of experienced reps during the first three critical months.
What's the bottom line? As performance improved, turnover dropped. As a bonus, new hires using the new skills had higher margins (Graph 2).
Executive Summary
Business Goals: reduce turnover, increase sales volume and revenue per unit
Performance Challenges: 82% turnover, lack of consultative skills, long and uncertain new-hire ramp process, transactional mind set '
Business Results after Three Months
New hire group achieved 80% of veteran's performance level in first three months after training (Graph 1)
New hire group sold at 22% higher revenue per unit than did veteran group (Group 2)
Turnover dropped from 82% to 26% in six months (Graph 3)
New hires out-performed all veteran reps in several metropolitan areas
Graph 1: Monthly Volume
Graph 2: Revenue Per Unit
Graph 3: Turnover
A custom SmartTrac ™ type web survey were created to track both application and ability of new skills.
Training: a three-day consultative sales skills training program
Key measures: 12 skills, reinforcement activities, manager coaching, SmartTrac ™ Success Stories, and requests for support
The SmartMetric™ of performance was calculated using performance data supplied by the client.
Time frame: three months pre-training and three months post-training
Data source: volume, revenue per unit, and turnover provided by the client
Validation: all data and results reviewed and approved by the VP of Operations
