1 year ago
January 5, 2023

4 Telltale Signs You’re Underpaying Your Sales Employees

Compensation has been a hot-button topic in recruitment circles in recent years. The pandemic, inflation, and now a recession have all had an impact on how companies are approaching managing…

Claire McConnachie Recruiter
Claire McConnachie

Compensation has been a hot-button topic in recruitment circles in recent years. The pandemic, inflation, and now a recession have all had an impact on how companies are approaching managing their budgets. Many companies are operating on a tighter-than-normal budget. For some, this may mean a hiring freeze or pause. For other companies, it may be trying to lure talent with lower compensation offers. In terms of retention, it may also mean cutting back on bonuses, sales commissions, and raises. 

It’s a fine balancing act. Then there are also companies that have traditionally underpaid their employees or have failed to keep up with the industry average. Are you underpaying your salespeople? Not sure? Below are some telltale signs you are underpaying your sales employees:

1. You have staff turnover issues

If you have good employees exiting your company on a regular basis and you can’t seem to stop the vicious cycle of hiring only to have people stay short-term, then you likely have a compensation issue. People are not going to stick around if you don’t show that you value them – including paying them a competitive wage. 

2. You’ve developed a poor employer brand reputation

The result of developing a poor employer brand reputation will be seen in the quality of candidates who apply to work for your company. If you have a reputation for not paying well, people are not going to apply. 

boss thinking about his sales employees

3. Your people are not willing to go above and beyond

If someone feels as though they are not being compensated enough for the job they do, they are not going to go out of their way to do extra. They will do what is required of them and that is all. They won’t stay late, pick up the slack for others, or be willing to take on additional responsibilities.

4. The numbers don’t lie

All it takes is a quick search online to see the average salaries for sales professionals in your area. The chances are that if you can quickly find this information, so are people who are considering applying for jobs with your company. A quick comparison with other employers will show how you measure up. If you are underpaying, you can expect fewer people to apply to open positions. 

Failing to pay your employees what the market says they are worth can have negative repercussions. You could have issues with recruitment, retention, and your sales performance can suffer. If you suspect you may be underpaying your team, take action now before you lose more invaluable sales talent. 

More Sales Recruiting Advice

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6 Ways to Spot Red Flags in Sales Candidates

SalesForce Search is a sales recruitment agency that specializes in hiring sales rockstars. Hiring top salespeople is tough. Only 55% meet their quota. Our proactive approach recruits talented salespeople before they hit the market. As North America’s leading sales headhunter we recruit salespeople in every sector of the economy including, software, manufacturing, financial services and medical devices. To find your next sales rockstar, start your search here.

Claire McConnachie Recruiter

Claire McConnachie

Claire has 4+ years of experience in sales and recruitment. As a Director of Client Services, her main objective is to connect great people to great companies by building strong relationships with both top clients and candidates in the sales industry. She specializes in sales roles of all seniority levels for both enterprise and start-up clients North American wide. When Claire isn't networking with top talent, she enjoys being outdoors, traveling and spending time with friends & family.