Measuring Marketing

Chapter 96 Turnover Rate

Measurement Need

To measure sales force turnover.

Solutioni

The turnover rate calculates the number of salesperson departures relative to the total sales force size, multiplied by 100 (to convert it to a percentage):

$TR=\frac{D}{F}\times 100$

Where

TR = turnover rate

D = number of departures annually

F = total sales force size (annual average)

If a company has 1,000 sales people worldwide and seventy-five depart, then the turnover rate is 7.5%:

$\begin{array}{l}TR=\frac{75}{1,000}\times 100\\ =7.5\%\end{array}$

Impact

Turnover is inevitable as organizations change. Departures of salespeople can be expensive since management invests time and money into recruiting, training, and retaining salespeople. When salespeople leave, especially top performers, ...