Money talks in curbing employee turnover and inspiring loyalty

Employee loyalty and staff turnover continues to be a topic of interest in the wake of the great resignation.

According to the Blackhawk Network (BHN) Bridge the Gap report, sales representatives are looking to leave their roles at an alarming rate, with 70 per cent of respondents reporting an increase in employee turnover. Sales reps are wading through new challenges, an increased workload, and more pressure with fewer resources to get the job done. Coupled with the performance-driven nature of the role leading to high rates of burnout, sales reps are looking for new opportunities.

Without alignment between what employees want and what employers think they want, we will continue to see talent walk off the job. So, what’s the solution?

Below are some considerations to keep sales teams intact, engaged and motivated during a talent crisis.

The right recognition matters

Sales reps have spoken, and (no surprises here) money talks with the majority (66 per cent) motivated by monetary incentives.

The research proves that recognition doesn’t just feel good – it impacts the bottom line. The hiring process is costly, not just financially, but it increases the workload on your team and drives down sales performance.

The recent BHN study of HR leaders and sales employees across Australia, the U.S., Canada, and the U.K. shows that leadership is out of sync with what employees want when it comes to monetary incentives.

When it comes to rewards, the top three activities for which employees are looking for monetary incentives are:

1. Achieving specific targets during specific time periods (81 per cent)
2. Achievements above and beyond a goal (80 per cent)
3. Tenure (78 per cent)

But it seems employers and leadership aren’t listening. When it comes to what sales reps are receiving, it’s clear there’s been a miscommunication. When it comes to rewarding loyalty and tenure, only 58 per cent of employees are seeing incentives.

Don’t leave it too late

Time is of the essence when it comes to recognising and rewarding sales reps for the hard work they put in. Again, it’s clear there is a significant gap between reps and leadership when it comes to expectations on the frequency of rewards and recognitions.

Leadership should be looking to reward performance as reps develop on their way to reaching their goals, not just when they hit the milestone. When it comes to giving incentives for effort, even to average performers, it can increase sales results by 6–9 per cent.

Reward flexibility

Another significant misalignment arises between what companies offer as incentives and what their reps want. In this cost-of-living crisis, reps are looking for flexibility when it comes to spending their hard-earned rewards and incentives.

Gift cards offer a great incentive, and Mastercard and Visa prepaid cards and multi-brand gift cards are what 76 per cent of reps are looking for.

But research shows it’s not what they’re getting.

Only 45 per cent of sales representatives are receiving these prepaid cards, an astounding misalignment. On the flipside, 59 per cent are receiving single-brand gift cards as incentives or rewards, but only 44 per cent are looking for them.

In a time of increasing financial pressures and a cost-of-living crisis, rewarding employees with flexible gift cards can help ease inflation money woes with 63 per cent of people using prepaid and gift cards to spend on what they need.

The solution

Check in with your team and align rewards and recognitions with their expectations. Reducing the gap can help HR and your sales teams reduce turnover, increase employee satisfaction and engagement, and ultimately improve your bottom line.

By Will Feutrill, BHN RVP of Incentives AU.