The great resignation?
Federal estimates say roughly 48 million Americans quit their jobs in 2021, and manufacturing has been one of the hardest-hit industries. What you might not be aware of is that your sales force was likely your Achilles heel, with turnover rates of 21% in 2021; an eye-popping numeric coincidence per Alexander Group’s research into top global manufacturers.
This talent churn, along with dramatic shifts in buyer behaviours, has impacted the way in which commercial organizations must rethink their talent strategy. If manufacturers are serious about winning the race on talent, they can no longer rely on old selling models and assumptions that sellers are “coin-operated,” where quick fixes like higher commission rates will solve the problem.
In today’s world, culture is king when trying to attract and retain top talent – especially for your commercial (marketing, sales and service) team. And those organizations that have an enduring culture based on collaboration, purpose and vision have not experienced these unstainable turnover rates.
It’s all about the experience
Harvard Business Review told us as far back as 1998 that we’re living in an experience economy. And if you’re still reading this, you probably intuitively know that your commercial team has an outsized effect on customer experience. If your customer-facing employees are unhappy, it shows up on the bottom line.
Alexander Group found that 89% of surveyed manufacturers report that higher employee experience (EX) translates to better customer experiences (CX). What is astonishing is that companies with high EX + CX grow almost twice as fast as those with low commercial team morale.
EX investments are measured in time, effort and money
Fatigue, limited flexibility, limited career path, inadequate coaching, and lack of a “north star” corporate vision all outpace poor compensation as reasons that drive commercial team attrition. In particular, sellers are increasingly sensitive to heightened or inconsistent workloads, unrealistic quotas built on lack of transparency, and resistance to flexible work models. We can confidently say that this potpourri of trouble has a different set of ingredients for those individuals who have decided to leave your organization. Therefore, organizations need multifaceted solutions to address these issues.
Fortunately, those aspiring to win the race for talent can look to those who’ve cracked the code. The employee experience equation is both simple and time tested:
- Clarify and Evangelize Your Vision – What makes your company valuable? To your customers, to your employees, to society? Tell that story.
- Understand Your Team – Your values can be completely unique if you embody them authentically. Know thyself and be true to them…don’t try to make your team something they are not.
- Set Expectations – Recognize that your customer-facing employee should not be Shakespeare; but rather a great Shakespearian actor – they need to know what a good play looks like and why.
- Drive Accountability & Evaluate Performance –One thing we’ve all learned from the next generation(s) of talent who have joined the workforce is that they crave feedback. Give it with timely coaching and constructive feedback. Your investment of time and effort is much more impactful than the trophies they’ve collected through the years.
- Recognize and Reward – Yes. Compensation still matters. Getting the most out of your compensation investment requires annual alignment (you read correctly, yearly evaluations) to ever-evolving strategies. Remember, commit to the dollars, but let your team their pay might change based on how customers evolve.
Engagement = Productivity
Alexander Group research shows that companies with more engaged employees are 43% more productive with 25% higher overall well-being and outperform the market 28%. By creating a sense of belonging and transparency with an appropriate dose of flexibility, your customer-facing teams will be great ambassadors to your customers, and you will know you’re winning the race for talent as your top and bottom line out-pace your competitors.
We’re not out of the woods yet
The Great Resignation rages on. However, manufacturers can take steps to mitigate losing the race for talent by recognizing that investments need to be more than financial incentives and flexible working conditions. The “the softer stuff” like company culture and sense of belonging is what drives an excellent employee experience and creates a loyal workforce.