Over the years, much focus has been placed on the importance of cultivating top-notch sales representatives. As the Great Resignation has rumbled across the American business landscape, dealers have mobilized to ensure the conditions created by COVID have not cracked open the door for them to slip out to competitors or other industries.
It’s no longer all about the compensation plan. How can dealers pay them on the sale of hardware equipment when said gear may not be available for months? It’s an industry epidemic; many dealers have wistfully considered the profit revenues of would-be hardware sales that languish in cargo holds or foreign warehouses. Regardless of where the kink in the supply chain exists, the bottom line remains that many OEMs and their reseller partners find themselves in a holding pattern without concrete information as to a shipping date. With fall right around the corner, many have suggested this phenomenon will also be 2023’s problem to bear.
While boxes aren’t the end-all, be-all element in a dealer’s arsenal, they’re still pretty damn vital. As the waiting game continues, so does the pressure of keeping sales stalwarts engaged, hungry and (most importantly) loyal to their organization. As we continue this month’s State of the Industry report on hiring and retention during the Great Resignation period, our dealer panel shares its enticement tactics.
While wandering eyes exist across all positions within an organization, the desire to hit the reset button can in itself be a deterrent for sales reps to start anew. Joe Blatchford, CEO of Image 2000 in Valencia, California, believes it’s one element that keeps many salespeople from straying.
“Very few reps want to have to rebuild their book of business from scratch; that’s why it can be challenging to recruit successful salespeople away from their current positions,” he said. “It’s also one of the reasons we’ve retained our most successful sales representatives. That, along with competitive quotas and regularly evaluating feedback from our managers and their teams, have allowed us to keep turnover very low amongst our most successful reps.”
Think Big
It’s important to cultivate an environment where the focus is not limited to just office equipment or managed services, notes Chelsey Bode, CEO of Pearson-Kelly Technology in Springfield, Missouri. Being able to collaborate with specialized team members, she believes, can be parlayed into lucrative earnings.
“It opens the door to potential opportunities in all things business technology, and align that opportunity with one of our subject-matter experts,” she said. “It’s allowed green and veteran reps to make pretty good money, even in year one.”
Having strong leadership at the vice president of sales helm can go a long way toward fostering long-term engagements with the top-selling performers, and that is the case for Wisconsin Document Imaging of Green Bay. President Cory Spice credits partner/sales leader Brian Titulaer with maintaining strong relationships and accessibility, while avoiding the pitfalls that accompany being an overly controlling manager.
“Brian talks to all of them several times a week, and based on that connection, we don’t micro-manage our reps with tracking volumes of calls and meetings, which I know has become normal in many industries, including ours,” Spice said. “We stay in touch with the reps, and their sales results speak for themselves, as we know they have activity.
“Our reps appreciate not having busy work or being micromanaged. And they are a group that collaborates well, shares best practices with one another, and will go out of their way to help a teammate, even if there isn’t anything it for them.”
The numbers back the methods of Houston-based Stargel Office Solutions, which sees 60% of its sales staff boasting an average of 12 years of service with the organization. TJ DeBello, vice president of sales, notes the company’s “extremely aggressive” comp plans pay an average of 45% of gross profit on deals. Stargel is constantly adding incentives for its reps to hit, and DeBello points out that the core plan has been consistent for more than 10 years.
“Consistency in our comp plan is the biggest enticement,” he said. “This industry has a reputation for changing comp plans frequently, which can be one reason reps leave. Our reps know what it takes to make more money every year with a consistent and aggressive comp plan. We also pay out a 2-5% yearly bonus based on their performance.”
Recognizing Greatness
Brad Cates, president and CEO of Cincinnati-based Prosource, believes a consistent recognition program beyond monetary compensation can go a long way toward securing valued personnel. Sales reps love to win and be celebrated for their takedowns, and Prosource ensures their efforts do not go unnoticed—one of the key reasons the dealer hasn’t endured high turnover.
“We’ve focused on making sure that we’re showing our gratitude for the sales reps who continue to get it done for us, even in the toughest of times,” Cates said. “We do that through celebrations and recognition, as well as through incentives. And if we get those three things right, we create an environment where they can be successful and feel like they have control over their success.”
With travel restrictions a thing of the past (although flight cancellations are now a constant concern) traditional incentives such as president’s club trips go a long way toward fostering camaraderie and loyalty among the sales ranks. Robert Woodhull, sales supervisor and marketing director for Woodhull LLC of Springboro, Ohio, believes the best approach is to monitor rep feedback, invest in their development via training and provide an infrastructure that supports their continuous growth.
“It’s amazing what acknowledgment can do rather than just throwing dollar signs at them,” Woodhull said. “It’s all about constantly taking the temperature of your people. We need to support them to go above and beyond.”
