Research: Rocky Economic Terrain Deeply Impacting the Sales Industry via Burnout, Changing Roles and Turnover

New study also found sizeable gap between sales team members’ reward and recognition preferences and what they are actually offered by sales and HR managers—and monetary rewards are most highly valued to help offset economic challenges

Many organizations are keenly aware of tightening budgets and resources in response to ongoing economic challenges—as are employed Americans who are facing an onslaught of professional challenges ranging from burnout to quiet promotions to layoffs. Blackhawk Network (BHN^®) research¹ recently uncovered a sobering snapshot of the current US work landscape, where about three quarters of employed respondents are seeking new employment—and nearly 90% reported concerns about their employment. The respondents also shared that they were suffering from burnout, worried about having to do more without an increase in pay and unhappy in their current roles.

While organizations rely on an ecosystem of talent across divisions, tough economic times put added pressure on those who are expected to generate revenue for companies to help alleviate financial strain: sales representatives, who play a critical role in sustaining a company’s bottom line and revenue stream.

Creating a high-powered sales team is a challenge in the best of times, but current economic conditions up the ante considerably. We want to help sales and HR managers better understand how to attract, engage and retain top sales talent at a time when sales are critical. To do this, we conducted two multinational surveys²: one that gained insights directly from HR and sales leaders, and one that polled sales employees directly.

The results found that overwhelmingly, sales reps and their leaders are up against significant pressure to perform with fewer resources and while constantly adjusting to workplace changes. Among sales team respondents, 84% reported their roles have changed over the past few years, and the nature of their work has changed via increased competition in their field and reduced budgets. Additionally, sales leaders are combatting the costs of rep turnover (which includes the cost of recruiting, onboarding and filling positions in addition to potential lost sales) which is compounding their long list of challenges ahead.

Other topline findings include:

• Good talent is hard to come by. 70% of sales and HR leaders report increased rep turnover and attrition, and 82% report that the talent market has impacted sales rep recruiting and retention efforts.
• Turnover is incredibly expensive—and not just financially. Sales leaders report that rep attrition is leading to increased workloads for those who stay with the company (38%), increased hiring costs (32%), increased training costs (26%) and decreased sales performance (24%).

• Divergent priorities and perspectives are creating pain points. Sales and HR leaders and sales reps all agree work challenges are increasing—particularly high-pressure situations and burnout. But we found that while reps are primarily concerned with issues that enhance their quality of life like salary increases and burnout, leaders are concerned about issues like sales team turnover and sales cycle times.
• Sales reps overwhelmingly want recognition. Our new study confirmed findings from our previous research that found recognition is important to 90% of sales reps; 83% reported that receiving rewards and recognition positively impacts their productivity and loyalty. More than a third of respondents want to work for a company that provides better rewards and recognition. The top scenarios sales reps want to earn rewards include achieving a goal, hitting specific targets during specific time periods and for achievements above and beyond a goal.

• Different types of recognition are being used to recognize different accomplishments:
  • Monetary rewards are heavily associated with achieving goals and securing referrals.
  • Non-monetary rewards are most often given for work on specific projects, new product launches, learning new skills or knowledge, and tenure.
  • Public recognition is often given for awards and as a thanks and for achievements beyond a sales rep’s goals.
  
• When offered, rewards can be often mis-aligned. Not surprisingly, monetary rewards are the most preferred reward among sales reps no matter the situation. But sales and HR leaders don’t always dole them out. Some common situations include when specific targets are achieved during specified time periods (81% of sales reps want a monetary incentive but only 72% receive them), achievements exceed goals (80% want money but only 67% get it), tenure (78% want it but only 58% get it) and when goals are met (75% want it and only 65% get it).
• Winning cultures win over sales reps. While monetary rewards are the top choice reward among sales reps, the group also reported the following company culture characteristics would motivate them: clear goals and targets (59%), a positive work environment (58%), recognition and praise (53%) and opportunities for advancement (50%).
• Successful reward and recognition programs aren’t just measured by sales. Although 57% of HR and sales leaders measure reward and recognition program success by overall sales performance, many also place a heavy emphasis on whether the program drives employee engagement and satisfaction (45%), customer satisfaction (42%) and employee retention (40%).
• Monetary rewards are doled out in different forms—and all are appreciated. HR and sales managers reported giving out bonuses (77%), commissions (54%) and prepaid and/or gift card incentives (49%).
• Incentives can turn “good” into “great.” HR and sales leaders reported the following impacts incentives had on their sales results:

To read the research, download the full report: The Sales Incentives Playbook: 2023 Incentives Trends to Attract & Motivate Epic Sales Teams.

Talk to a BHN expert at 866.353.4877 and we can help bridge the gap with your sales team.

¹ "Employee Appreciation 2.0" is an internet-based survey conducted by Survey Monkey on behalf of Blackhawk Network (BHN) between March 1 and 2, 2023. The sample size included 1,143 U.S. Employees respondents ages 18+.

² “Sales Incentives & Rewards Best Practices 2023” is a two-part study conducted by Leger on behalf of Blackhawk Network (BHN) in April 2023. The HR and sales leaders sample size included 1,602 respondents ages 18+ and the sales employees sample size included 1,053 respondents ages 18+ living in the US, UK, Canada and Australia.

³ “Workplace Arrangements, Rewards, and Engagement Survey” is an internet-based survey conducted by Survey Monkey on behalf of Blackhawk Network between February 25, 2022 and March 1, 2022. The sample size included 3,278 U.S. respondents ages 18+.