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ENGAGE TREND REPORT 06.29.09
Sales Forces Stay Strong
Despite the economic downturn, companies are not reducing the size of sales forces in 2009, according to a new study. In fact, many are ramping up recruiting, retention, and sales training programs to ensure that the sales team is well-prepared for the economy's inevitable upswing.
Only 2 in 10 companies plan to reduce sales headcount this year. The February Watson Wyatt survey of sales and HR executives also found a similar decline in those planning to lower sales goals and quotas, or modify sales professionals' territories. The survey was based on responses from 91 large US companies.
"This economic downturn has taken its toll on most sales forces," said John Bremen, global director of sales effectiveness and compensation consulting at Watson Wyatt. "In preparation for the economy's eventual recovery, companies are winding down short-term cost control initiatives and beginning to focus on sales productivity and growth."
Retention remains a factor in a somewhat frozen labor market - 2 out of 3 of employers are strengthening their recruiting and retention efforts in preparation for an economic recovery. Especially for supporting Gen Y sales reps - 1/3 are adding or modifying their sales training and rewards programs.
"Business conditions will remain challenging throughout 2009, yet many companies realize the real path out of the recession is to grow revenues. Having focused and motivated sales forces will be essential," said Bremen.
It's the same as it ever was: The benefit of productive human capital supersedes even the worst of economic cycles.
Copies of the survey, "Strategies to Manage Sales Force Investments in the Global Recession, Update: April 2009," are available at watsonwyatt.com.
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