Is Low Attrition Costing You Money?

Is Low Attrition Costing You Money?

When most leaders think about attrition, it’s framed as a problem—one that drains resources, disrupts teams, and increases hiring costs. But what if low attrition is the real issue? Many organizations pride themselves on retaining talent, yet they overlook the hidden costs of holding on to underperforming salespeople. In reality, low attrition can quietly erode profitability and stall growth.

Is Low Attrition Costing You MoneyLow-performing sales reps often fail to meet quota, generating far less revenue than their average or top-performing peers. When attrition is low, these underperformers stay longer, pulling down team productivity and leaving untapped revenue on the table. If you’re paying competitive salaries while getting subpar results, you’re not just losing potential sales—you’re making a poor return on your payroll investment.

The financial impact compounds when you consider opportunity cost. Every sales seat occupied by a low performer is a missed opportunity for a high performer to deliver greater results. For example, a high-performing rep may deliver three times the revenue of a low-performing one. Retaining underperformers means leaving that delta unrealized year after year, all while paying the same fixed costs in salary, benefits, and overhead.

One key driver of low attrition among underperformers is often compensation structure. If too much of a sales rep’s pay is guaranteed, there’s little motivation to improve—or move on. A well-designed variable compensation plan, with accelerators for overachievement and minimal rewards for low performance, naturally incentivizes strong performance and creates healthy attrition rates. This isn’t about penalizing your team; it’s about aligning incentives with outcomes.

Is Low Attrition Costing You MoneyThe solution is twofold: design a compensation model that rewards results and implement a performance management strategy that encourages natural attrition for low performers. Regularly evaluate your team’s quota attainment and productivity, and don’t hesitate to invest in training or make tough decisions when necessary. These steps ensure that your salesforce becomes a growth engine rather than a cost center.

As counterintuitive as it might seem, a healthy level of attrition is a good thing. It frees up resources, creates room for stronger talent, and drives revenue growth. Low attrition might sound like a badge of honor, but if it’s shielding underperformance, it’s likely costing you far more than you realize.

Inside Sales Enterprise Growth

SalesGlobe is a leading sales effectiveness and data-driven creative problem-solving firm. We specialize in helping Global 1000 companies solve their toughest growth challenges and helping them think in new ways to develop more effective solutions in the areas of sales strategy, sales organization, sales process, sales compensation, and quotas. We wrote the books on sales innovation with The Innovative Sale, What Your CEO Needs to Know About Sales Compensation, and Quotas! Design Thinking to Solve Your Biggest Sales Challenge.

Inside Sales Enterprise Growth

SalesGlobe On-Demand Insights provides relevant, timely, impactful information that informs incentive compensation. For more information contact us at insights@salesglobe.com.