The Key to Retaining Sales Talent

Written by Ray Silverstein

Your salespeople are some of your most valuable investments. You recruit them, train them and trust them with your valued customers. You depend on them to keep your business growing.

So what happens if they leave? Even worse, what if they're lured away by one of your competitors, along with your accounts? That would be a real blow to your business. That's why it's smart to bind them to you financially.

There are several ways to do this. One solution is the non-compete contract, which we discussed in last month's column. The problem with non-competes is that they're essentially negative in nature. They're also penalty-driven, and no one likes the prospect of punishment.

The Solution

Golden handcuffs offer a more positive alternative. Instead of a financial penalty, they represent a potential financial reward. If salespeople leave the company prematurely, they lose their chance to reap the reward.

The best golden handcuffs are custom-fitted. In other words, you need to find -- and hit -- your salesperson's personal hot button for the handcuffs to really hold.

The solution can be simple or complex. A simple plan, for example, would be to lease a car for your salesperson. The trick is, you place the lease in his or her name. You make the monthly payment, but he or she has the legal obligation. If the employee leaves the company, your payments cease. At that point, the monthly payment -- or the disposal of the vehicle -- becomes his or her problem and responsibility.

What if cars aren't your salesperson's thing? You can do the same thing with tuition reimbursement.