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What is typical employee turnover rate (%/yr) for a discrete revenue generating Inside Sales team?
Too much is not good and not enough is not good either right? Expressed in "Percentage Turnover Per Year," what are some typical employee turnover rates for an Inside Sales team? Can any experts point me to some solid research on the topic?
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2 Answers
There are different types of Turnover within an Inside Sales Call Center environment.
There is ‘Good Turnover’ – such as an Internal Promotion or Department Transfer. ‘Good Turnover’ typically represents about 10% of an Inside Sales Call Center’s Annual Turnover Rate.
There is ‘Involuntary Turnover’ – such as Illness, Family Issues, and Relocation. ‘Involuntary Turnover’ also typically represents about 10% of an Inside Sales Call Center’s Annual Turnover Rate.
Then there is ‘Dysfunctional Turnover’ – represented by ‘Quick Quit’/’Fast Fire’ and ‘Bad Hire’ Turnover – and represents 80% of an Inside Sales Call Center’s Annual Turnover Rate.
Turnover within the first 6 months after employment is ‘Quick Quit’/’Fast Fire’ Turnover - whether that be your choice or the employee’s.
‘Bad Hire’ Turnover are the people who just don’t fit somehow – and who don’t deliver value when it comes to the kind of service your customers expect – or the level of sales results you demand. Sometimes they’re good people in the wrong job. ‘Bad Hires’ need extra coaching, training & supervision just to achieve below average results. Often they cause unnecessary conflict. ‘Bad Hires’ have the Lowest Training Pass Rates, Highest Levels of Absenteeism, Lowest Levels of Productivity & Sales and Poorest Performance & Customer Satisfaction Ratings. ‘Bad Hires’ generally have a Negative Impact on overall Inside Sales Team Morale. ‘Bad Hires’ represent the real problems in an Inside Sales Call Center workforce.
While ‘Quick Quit’/’Fast Fire’ and ‘Bad Hires’ may seem fully qualified at the Interview Stage – they’re a Poor Job Fit – the cost of hiring them is enormous – and is reflective of Poor Hiring Practices. ‘Quick Quit’/’Fast Fire’ and ‘Bad Hire’ Turnover provide little-to-no value add to an organization– and they have a significant negative impact on Costs, Service Levels, Customer Satisfaction, Sales Results and Brand Reputation.
Top performing Inside Sales/Telephone Sales Call Centers drive their Revenue & Performance through superior hiring tactics. We help employers gain better insight & more accurate predictions as to which applicants from a pool of Candidates would perform up to, or beyond their established standards. You can find out about a Free Trial of SPAS Call Center Agent Pre-Employment Screening Software at http://www.telesoftsystems.ca/64201.html
Why do you want to know the typical employee turnover rate? Seems to me we should want to know what the lowest rate is or what the best companies are achieving in employee retention or what turnover rate is higher than say the best 10%, i.e., the lowest rates are below 7% per year, for instance.
My advice to my clients is that other employers' turnover rates are irrelevant to them since their employees do not work for the other employers.
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