SALARY TRAP AND ATTRITION

In every organization, revenue is generated by the most frontline Sales staff. Hence these soldiers of organizations are subjected to more stress and accountability than any other personnel’s in the entire organization. A level up and everything is an exercise in creative vocabulary. (Except in cases where managerial talent is well rounded)

In a recent article I read in economic time, it was mentioned that 90% of financial jobs are comprised of Sales function. We also see a very high attrition amongst the same group. Since demand exceeds supply for these jobs in financial sector, there has been an explosion in salary offered to the sales employees.

Here comes the interesting part. Being revenue generators, every sales staff has not only to justify his salary but also justify the salary of his seniors and higher ups. With rising salaries, there has been an exponential increase in targets set for this group. My take on retail sales is that there are limitations in the extent of target that can be achieved since the there is hardly any scope for innovation in sales function. It is an exercise in discipline rather than mental agility (such as creating new channels or product innovations leading to windfall earnings). The job of a frontline sales staff is to run and his running is limited by the time available to him. Since his targets are huge, he has to keep running till the time he is completely exhausted. Yet the salary offered is not justified. This leads to frustrations leading to these employees looking for change.

Of course the employee will change provide he gets a better package? Profile change is not that easy (90% jobs comprised of sales). Organisations are left with little choice but offer higher salaries or else struggle to cope with lack of personnel’s. Which means the cycle of higher salaries and proportionate targets for the personnel is again reinforced leading to same events being repeated. It appears a never ending cycle till industry stabilizes.