What’s the Cost of NOT Training Your Salespeople?
Well, let’s just say it’s costing you a lot more by NOT training your sales team.
You’ve probably all seen the endless statistics and reports about employee disengagement, unemployment rates, and the seemingly unrectifiable skills gap. Maybe you yourself are feeling disengaged or seeing too much turnover and not enough qualified individuals to fill open positions.
Well, if you or your company have been putting off professional development and training for far too long, then it’s time for a change. Because realizing the importance of educating, coaching, and training employees and then actually implementing effective programs is the only way to achieve long term company success.
So why does your company need sales training? Consider asking these questions:
- If we raise the seller’s goals, do we expect them to hit their goals without improving skills, strategies, or tactics?
- If we haven’t hit the goals that our competitors have reached, what does that say about our previous forms of training?
- If your company invested in training last year but didn’t achieve the intended results, did anyone reinforce that training or was the expectation that the effect of training would be like a tattoo on each seller’s brain?
- If last year’s skills are the best we can hope for, what will that cost us this year?
While some sellers and managers may view sales training as “optional” or as a “luxury,” that thinking is short sighted and unrealistic. Simply “checking the box” on training won’t cut it anymore. If it actually worked, then everyone would do it that way.
Professional football teams would take the week off before a big game and then just sort of warm up before each game. Actors and actresses on Broadway would meet a few weeks before the show so the director could hand them the script and say “obviously you’re a professional, so you know how to perform the script. No need for rehearsal, see you opening night…”
But this doesn’t happen. And there’s a reason professionals make a habit of practicing and fine-tuning their skills.
When people are training all the time, they develop a "muscle memory" and get really good at processing information. They become accustomed to finding something that resonates and then they are able to apply it to their daily activities. But when people rarely attend training, their skills fade and they struggle process and apply the training information.
Okay, so now that we’ve covered a few key considerations and reasons why you should invest in sales training, let’s look at some of the benefits:
Employee education and training is designed to give your people the proficiency and tools they need to learn new skills and refresh old ones. It’s key in every industry to stay on top of new trends, timesaving technologies, and how to stay competitive. Providing training will make sure the entire team is fully competent and can help you set clear expectations with regards to new goals. Whether the company’s output is struggling or already doing a stellar job, training will only help to increase its performance further and deliver a great return on investment.
It’s no secret that unhappy, disengaged, and uninspired employees can eventually become less productive. Ensuring employee happiness with appropriate benefits and perks is only one part of the formula. Keeping them truly engaged by cultivating their specific skills further, as well as, providing education in the areas where they aim to improve, will increase their interest in their work and new projects.
Higher Retention Rates
Re-engaging employees through training and further education will improve their overall job performance and satisfaction. They’ll be less likely to let their eyes wander for other career opportunities since they’ve increased their skill level and hopefully intend to conquer new challenges. Investing in your company’s employees helps to show them their value, potential expertise, and the company’s focus on maintaining a long-term relationship with them. Having higher retention rates will decrease the huge costs often involved in employee turnover. Making the small additional effort to train your current employees will save your company the headache of later trying to replace them.
If your company has been expanding and adding to its staff then you’re probably already familiar with the difficult task of getting new members up to speed. If not done properly, you may later experience many unforeseen problems and confusion. Thinking ahead and providing onboarding training to your newest employees will help eliminate future turbulence due to unclear expectations and potentially unfamiliar methods. It will also convey the company’s desire to engage with and improve upon the skills new workers bring to the table.
Elimination of the Skills Gap
Some companies are having trouble finding the right people to fill open positions. Closing the skills gap is something that your company can do with training. Whether there’s a current employee who has shown incredible potential and just needs some more knowledge to transition into the open position, or a prospective hire that’s promising if it wasn’t for their minor lack in a certain area, why shouldn’t you just train them? It’s unrealistic to believe that if you’ve already been waiting for months, that if you just wait a little bit longer, the perfect, ideal, absolutely spectacular candidate will come along. That’s not to say you should lower your standards, but accepting that you will most likely have to teach anyone coming into the role a thing or two, why should you contribute to the growth of the skills gap if you could just rectify the situation and start training?
Reduction of Skill Fade
Do you remember everything you’ve ever learned? Of course not. Even the most dedicated and skilled employees will eventually start losing grasp of things they learned decades, years, months, weeks, or even days before. Having regular training sessions or better yet - ongoing training - will help reduce the previously inescapable skill fade-out phenomenon. Reinforcing previously learned material will ensure employees are always current with their knowledge and continue to increase their performance.
What it comes down to is that sales organizations must redefine what training and learning means to them. Success in sales means being prepared, nimble, and continuously developing the right skills that will have a positive impact on the entire business.
What is your company’s biggest excuse for not training their employees? Is it too expensive to train them? Or is it a bigger expense if you DON’T train them?
Editor’s Note: This post was originally published in January 2013 and has been updated for accuracy and comprehensiveness.
About Steve Bookbinder
Steve Bookbinder is the CEO and sales expert at DMTraining. He has delivered more than 5,000 workshops and speeches to clients all over the world and has trained, coached, and managed more than 50,000 salespeople and managers. Steve continuously refreshes his training content to reflect his latest first-hand observations of salespeople across industries and regions. Through him, participants in his workshops and coaching sessions learn the best practices of today’s most successful sellers and managers across industries. Steve understands that sales is a competitive game. To outperform competitors and our own personal best results, we need to out-prospect, out-qualify, out-present and out-negotiate everyone else, not merely know how to sell. Through his specialty programs in Pipeline Management, Personal Marketing, Great First Meetings, 2nd-level Questioning, Sales Negotiating, and Sales Coaching, Steve trains sales teams to master the skills they need to overcome the challenges they face in today’s world… and keep improving results year over year.