Recruitment and Retention in Sales Are Challenging for Media Companies: Explore How Compensation Impacts Hiring Strategies

So what are your options to help build your workforce for today and tomorrowWhat the Data Tells Us About Hiring and RetentionTo determine where you need to make adjustments in compensation you39ll want to look at the current workforce trends First the job market is very tight Each month in 2023 has seen job creation growth and low unemployment Salespeople are in high demand according to data from LinkedInBecause sales is a universal role that any business needs qualified applicants are sought after by many From veterans to new workers entering the market candidates have choices which means your positions must be attractive regarding compensation culture opportunity and moreEven after hiring a candidate your organization must continue to be appealing because sales turnover is much higher than for other roles It39s always been a highturnover career averaging 35 annually Thus over a third of your team will require replacement each yearFilling roles due to turnover is expensive It can cost onehalf to two times the employee39s salary So when you hire someone you want it to be for the long term with such a substantial investmentFor HR professionals these facts put additional pressure on competitiveness but what does that meanWhat Does It Mean to Be quotCompetitivequot in the MarketThe answer to this question has several layers The foundation is providing competitive pay Most media companies still have a structure of salary plus commission With commission in the picture sellers will earn varying amounts so you39ll need to start with the base payWhat to Consider for Offering a Competitive SalaryIn determining what you can offer you39ll need to considerCurrent rates for salespeople across the organizationThe cost of living in your citySalary benchmarks based on role experience and locationYour local economyWhat you can affordThe second part of the equation is the commission modelCompetitive and Incentivizing Commission OptionsThere are many different commission models to consider Each has pros and cons and there39s no standard We know from industry data that 51 of media companies pay on the net amount of digital sales Another 33 use commission on gross with the remaining 16 using a mix of net and gross or another optionSince a number of publicly traded broadcast companies have recently reported yearoveryear declines in core advertising revenue now39s the time to take a closer look at the financial upside of offering digital media to your customers Yes there39s an expense associated with digital growth Nonetheless the fact that digital advertising has a higher cost of goods than linear and OampampO owned and operated also makes it imperative that you find the right mix of incentives and accountability to grow your digital revenue streamsYour role is to collaborate with sales leadership to narrow in on the best commission approach and apply that consistently It39s also an area you39ll refresh at least annually Here are some of the most common models and what to discuss regarding pros and consCommission on net sales This model accounts for retail costs so margins are healthy but lower rates may leave some sellers unsatisfiedCommission on gross sales This model promotes solution selling vs margin selling but your margins might be lessCommission per tactic gross or net Margins are consistent in this model and can prompt salespeople to recommend more tactics but they may only suggest tactics that pay them the most It can also be hard to track and manageAd hoc models This is when you mix up how you pay commission which could include different rates for renewals new business or introductory periods It can ensure salespeople give equal weight to new and existing business but it39s hard to scaleTiered commissions In this option commission depends upon a salesperson hitting a specific number of orders or winning new customers It39s a good motivator and focuses on hitting numbers but payouts fluctuate which could impact cash flowBeyond Compensation What Else Can Make Your Station an Attractive Place to WorkWe all work for a paycheck but there39s much more to someone taking a job and staying there beyond the money According to a Gallup survey income and benefits topped what employees want Thus the benefits you offer are just as important as the salary People expect a quotgoodquot job to have things like health insurance paid time off and a 401k at a minimumNext was better worklife balance and personal wellbeing meaning employees want flexibility and autonomy Other desires of the current working world includeMeaningful work They want to do what they do best in this case that39s building relationships and helping local businesses thrive Salespeople often spend too much time on manual processes and admin work which they likely detestStability and job security People don39t want to worry constantly about their job As an HR professional you can help with this by being transparent and communicativeDiverse and inclusive workplaces Many in the survey agreed that this was important to themThese last desires have a lot to do with culture If you have a healthy one that values feedback and honesty you39re less likely to see high turnover Most people don39t quit a job solely due to compensation much of the time it has more to do with culture and leadership You have a lot of sway in this arena so asking what people want and need is something you should do often to ensure your organization isn39t defined as toxicBe a Champion for Employees with Transparency and Continued ReassessmentYou are a champion for your employees and potential ones Taking steps to ensure compensation is competitive and transparent is a good way to demonstrate this Play the role of counselor to your sales leadership about what they must prioritize in recruitment and retention They39ll appreciate your knowledge and expertise so you can build a strong workforce and hiring pipelineFor more great tips on digital sales compensation and commission check out our new page The Ultimate Guide to Digital Sales Compensation for Media Companies Learn more about compensation models and try out our commission calculatorThis article was written by Jeff Ulrich Director of Sales Enablement Services MarketronClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillageorgMyersBizNet

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Recruitment and Retention in Sales Are Challenging for Media Companies: Explore How Compensation Impacts Hiring Strategies

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Recruitment and Retention in Sales Are Challenging for Media Companies: Explore How Compensation Impacts Hiring Strategies

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