Reward and Recognition Platforms: An Essential Tool in the Sales and Recruitment Industries

Employee turnover can be at a higher rate in the Sales and Recruitment industries; therefore, staff retention is challenging but more important than ever (1). Coming out of the pandemic and into the cost of living crisis, many people were either looking for a change in their professional life or launched into unemployment as businesses found ways to cut costs in the devastating economic climate.

Working in the Sales and Recruitment industries can take a toll on employees' mental wellbeing due to the repetitive nature of the job and potentially frequent rejections. This can also significantly impact staff retention as people are not willing to stay in a position they find mentally overwhelming. 

Not to mention employees' physical wellbeing; looking at screens and sitting down for long periods of time can cause eye strain and back pain.

Whereas some people may thrive in a competitive environment with an incentive of commission or hitting targets, others could struggle with the pressure or worry about underperforming.

There are many reasons staff retention can be affected in the sales and recruitment industries, so it's about time more businesses consider implementing a reward and recognition scheme to tackle this.

Sales

Sales employees found it much more challenging to pursue leads due to the cost of living crisis, with many people and businesses unable to afford what they were selling. Cold calling, for example, has a current average success rate of 2% which can be increased slightly by certain tactics such as asking how they have been, talking about a common LinkedIn group, and stating your reason for calling (2).

The frequent rejections potentially left the employees feeling uninspired and unmotivated, causing staff retention to be a rising problem for businesses within the sales industry.

People who work in sales are generally very driven, highly motivated and enjoy a challenge when a reward is at stake. However, while working towards targets and maintaining KPIs, sales staff can feel a high level of pressure that could often be overlooked. 

Rewarding and recognising sales staff is incredibly important and effective in improving staff retention, as it shows that you genuinely value them and their work. Regular recognition could boost their motivation to keep going and put the most effort into their next call or meeting. Not to mention, it can create a positive work environment in an area that deals with a lot of rejection.

Recruitment

The recruitment industry is known for offering placements to a large number of temporary workers, meaning the rate of employee turnover is much higher than most other industries, at around 430% (3). The turnover rate for permanent employees, however, is roughly 25% (3) which is still considerably high and highlights a glaring issue with staff retention. 

People who work in recruitment face a similar level of rejection as sales employees, generally due to more businesses opting to hire internally rather than outsourcing or going through the interview process. This could be for various reasons, primarily finances and the significantly cheaper option of hiring internally to avoid onboarding and training costs.

Temporary workers are generally hired to fulfil a specific role that requires certain skills, not just junior roles (4). Hiring temporary workers can be a fantastic benefit to a business as they will bring a fresh view, energy, and focus to the team. 

However, there is still a need to maintain a high level of recognition and appreciation for all employees, temporary or permanent. 

Particularly within the recruitment industry, frequently hiring temporary staff could make permanent employees feel disposable or left behind. This is why it is essential to regularly reward and recognise employees to show your appreciation and improve staff retention.

Building a sense of community and trust is extremely important in the recruitment industry. It allows employees to feel like they belong and are valued in an environment where turnover is considerably high, and teams change frequently.

Why Do I Need A Reward and Recognition Scheme?

Reward and recognition schemes are incredibly beneficial in improving staff retention, productivity, and morale. Regular recognition via 'thank you' Ecards and rewards through employee vouchers help to create a positive working environment built on appreciation.

By choosing the right scheme for your company, you can positively impact the mental, physical and financial wellbeing of your employees. 

It is essential to consider the different ways in which employees like to be recognised as there is no 'one size fits all' in individual rewarding. For example, some people may like to receive verbal praise and physical rewards as they can add a personal touch to the recognition. Others may prefer to receive recognition digitally via a personalised 'thank you' Ecard or Evoucher for accessibility and ease of use.

Some employees may feel more valued by receiving support with their financial situation or mental health.

When employees receive regular recognition from their managers or colleagues, their motivation to improve their performance increases and creates a more positive outlook towards their work. This is crucial for producing high-quality results and influencing personal and business achievements.

Each Person presents an ultimate 'feel-good' package, offering support with mental health via an EAP and financial guidance through the cost of living crisis with exclusive deals and discounts. All while tackling climate change through our partnership with Carbon Footprint, providing the opportunity to contribute to eco-projects worldwide.

Shown to improve staff retention, Each Person provides peer-to-peer and manager-to-peer recognition through 'thank you' Ecards, Epoints, and personalised rewards. Show your people that you care by learning more about how Each Person can benefit your business.

Reach out to us at support@eachperson.com to learn more about how we can help you reward and recognise your people in a way that matters to them.

Sources:

1. Michael Page - Four tips for motivation and retention of your top sales talent https://www.michaelpage.ie/our-expertise/sales/four-tips-for-motivation-and-retention-of-your-top-sales-talent
2. Cognism - The Top Cold Calling Success Rates for 2023 Explained https://www.cognism.com/blog/cold-calling-success-rates#:~:text=The%20average%20cold%20calling%20success%20rate%20is%202%25.&text=According%20to%20Gong%2C%20all%20you,securing%20a%20meeting%20by%2070%25.
3. Timerack - What is a Good Employee Turnover Rate for Staffing Agencies? https://timerack.com/blog/employee-turnover-metrics/
4. SiliconeRepublic - Hiring temporary tech workers is becoming the norm - here’s why https://www.siliconrepublic.com/careers/temporary-workers-tech

Written by Alex Crump, published June 2023