High turnover is not uncommon in small business, but it is expensive. Most small businesses cannot afford to constantly hire and let go of employees. Having a dedicated staff is one aspect of a successful company that should not be overlooked.
One way to grow your business, apart from having a great product or service, is to have employees who love working for you. While you might not be able to offer the same benefits package as most large corporations, there are more slick ways you can go about seeking your employees’ favor without breaking into the budget.
As you have experienced, it is very difficult for startup and other small businesses without predictable sales and/or with limited capital resources to attract and retain skilled sales staff on a 100% commission pay structure. While you may be able to recruit sales staff in this high unemployment environment, you will have difficulty retaining 100% commissioned employees unless they can quickly generate sales and commission income.
Performance reviews should be an opportunity for both you and your employees to improve. You should get a measurable description of employee performance, and employees should get a clearer vision of your expectations. It’s a problem solving process, not a fault finding expedition.