| In business, there are a lot of "re-dos" because | | | | business, it makes sense to use projected |
| behaviors are inconsistent with the strategic goals | | | | scenarios to understand the impact of a negative |
| of the organization. If the goal is to increase sales, | | | | return on investment. |
| then usually the human resource department is | | | | Company A has 10 salespersons with an average |
| responsible for correcting these performance | | | | individual salary (without benefits) of $40,000 or |
| gaps or sometimes the manager of the | | | | $400,000 total salary compensation. Employees |
| department. Sometimes the learning is done | | | | are required to have 20 hours of training between |
| internally and at other times contracted out. The | | | | "onboarding" (hiring in) to sales training to |
| problem is the "re-dos" continue and this drains | | | | compliance training such as safety, diversity, etc. |
| the profitability for any organization while making | | | | This amounts to $3,846 with a negative loss to |
| management very unhappy. | | | | the business of $3,462 for the employees' time |
| One of the challenges for any organization is that | | | | only (based on 10% ROI) and does not include all |
| everyone is in sales from the clerk to the actual | | | | associated costs such as purchasing the training |
| "salesperson." Unfortunately, some employees fail | | | | material, delivering and assessing the training. This |
| to understand that they represent the company | | | | amount may not seem like a lot, but remember it |
| and are "selling" as they receive money for | | | | is all profits. Sales Training Coaching Tip: Where |
| exchanged goods or services. One local grocery | | | | else could your business benefit from an extra |
| store I have frequented had cashiers who | | | | $3,462? |
| chewed their gum like cows chewing their cud. | | | | Company B has 40 individuals who are engaged in |
| Later I learned that such behaviors were deemed | | | | selling with an average salary (without benefits) of |
| unacceptable between the employees' handbook | | | | $50,000. Again 20 hours of training per employee |
| and the union contract. Yet, the behaviors | | | | generates a $17,308 loss to the bottom line |
| continued because the cashiers believed | | | | (based upon a 10% ROI). Sales Training Coaching |
| something else. | | | | Tip: Usually learning is given on an annual basis and |
| Until beliefs are addressed behaviors will not | | | | this only compounds the lost profits. |
| change. Going back to the grocery store where | | | | When the additional costs are included, it is quite |
| gum chewing is still happening minus wide open | | | | reasonable to double these costs. For many |
| mouths (during a recent short visit), the beliefs by | | | | organizations, the rule of thumb is $50 per hour |
| the employees that chewing gum is "Okay" is | | | | per employee for all training costs. If you deliver |
| driving the behaviors. Even though these | | | | an hour of sales training to 40 employees, the |
| employees have signed employee handbooks | | | | total cost is $2,000 and again anywhere from |
| forbidding the chewing of gum while on the floor | | | | $1,000 to $1,900 are loss profits (50% to 5% |
| and have a copy of a union contract that also | | | | ROI). |
| forbids gum chewing, the behavior is still going on | | | | Of course some will say, a company is mandated |
| because the beliefs have not been acknowledged | | | | for much of this ongoing learning to stay |
| and changed. Sales Training Coaching Tip: What | | | | competitive in the marketplace and yes that is |
| selling belief is keeping you from achieving your | | | | true. However, how long has diversity workshops |
| sales goals? | | | | been happening in this country? The majority of |
| Most sales training fails to address beliefs and I | | | | the U.S. workforce (over 50%) have been |
| believe this accounts for less than a 10% return | | | | through at least one if not multiple sessions on |
| on investment for the majority of training and | | | | diversity. Yet, complaints are still filed and |
| development programs within the workplace. | | | | employees still complain about being disrespected |
| Training and development research from | | | | in the workplace. This failure is not an issue of a |
| organizations such as American Society for | | | | lack of knowledge, but a belief or attitude issue. |
| Training and Development (ASTD) has suggested | | | | Why would sales training be any different? |
| a 5%-2% actual return on investment. | | | | Unless beliefs are addressed within the learning |
| What this means is for every dollar invested to | | | | event, the impact will still be a negative one to |
| improve the on the job performance, ninety | | | | the bottom line because training dollars are |
| cents is not recovered and this creates the | | | | redirected profits. With the current economy and |
| demand for a another "re-do." Even if the return | | | | dollars being stretched, now is the time to review |
| on investment is 50%, this equates to fifty cents | | | | your sales training and include beliefs. Remember |
| being lost for every dollar in training. | | | | the question to be asked is not "Do my |
| Sometimes to understand percentages in | | | | employees know it," but "Do they want to do it? |