Generally speaking, the ramp-up period for a new sales professional equals the length of the sales cycle, plus 90 days. It’s a simplistic, but also very telling formula. Consider this: If your payroll software or service firm’s typical sales cycle is three months, that additional 90 days of training and acclimation means that it can take upward of six months for a recent hire to reach the point of performing at plan. Now, consider that sales professionals remain in a job position for an average of less than two years. Together, these statistics can mean a meager, sometimes even negative return in investment in less-than-stellar or poorly trained hires.
To assure that your payroll firm realizes a positive ROI on new sales hires, a comprehensive onboarding program that includes a training program is a must. Here’s why:
- Effective payroll sales training allows time to more fully assess a new employee’s skill, readiness and potential. It’s been said that you never truly know someone until you’ve traveled with them. An active and involved sales training program can be likened to that road trip in that you’ll get to know your new hire beyond the interview and initial assessment. It affords the opportunity to recognize and correct any shortcomings early on, long before they have chance to make mistakes on a phone call or in a meeting with a prospective client. An early assessment also allows the company to cut losses quicker if a sales trainee is not making training progress.
- There’s a proven, direct correlation – positive and negative – between training and revenues. A recent study by Sales Readiness Group showed that, on average, companies with great sales training programs had new salespeople who met quota up to seven weeks faster than companies with less effective sales training. That’s critical when you consider the average amount of revenue lost due to lackluster training. The revenue opportunity lost is the sales quota each month. Companies with programs rated as “usually effective” spent an average 26 weeks on training and experienced some $19,230 in training-related revenue loss per new hire. Those with programs deemed “ineffective” spent 31 weeks training and lost a whopping $67,305 per employee. And, according to HR Magazine, companies that invest $1,500 on training per employee can see an average of 24 percent more profit than companies who invest less.
- Great training means happy employees. And happy employees are less likely to jump ship for your competition or seek out better earning opportunities. Results of a 2018 study published in Employee Benefit News show that it costs an employer an average 33 percent of a worker’s annual salary to hire a replacement. In dollar figures, that estimate equates to $15,000 per person for an employee earning a median salary of $45,000 a year.
Apex HCM offers a full range of customizable software and cloud solutions developed specifically for payroll, human resources and time and attendance functions – as well as extensive training to help assure that your payroll firm staff and clients understand how to best make those solutions work for you. Call 877-750-2739 or request a demo online.