Groupon salespeople disgruntled, ready to jump ship, report says
According to a new report, "hundreds" of Groupon sales representatives have been offering up their resumes in hopes of finding a new gig.
Daily-deals provider Groupon is having a tough time keeping its salespeople happy, according to a new report.
The Wall Street Journal, citing sources, has reported that increasing numbers of Groupon salespeople are looking for new jobs after becoming disgruntled with the way they're treated by their employer. The Journal sat down with Mike Silagadze, CEO of software firm Top Hat Monocle, who revealed that he has received "hundreds of resumes" from Groupon salespeople.
According to the Journal, the daily-deals provider has made it too difficult for its sales force, which accounts for nearly half of its more than 12,000 employees, to generate significant compensation. Groupon has also placed stricter demands on its salespeople. Years ago, Groupon made it easy for salespeople to generate six-figure incomes, the Journal's sources say, but now, they earn little until they hit monthly profit targets. Some folks have taken pay cuts amounting to thousands of dollars because of the changes, according to the Journal.
. Since the beginning of the year, the company's shares have plummeted 63 percent to hover at around $7.57. That drop has come despite encouraging financials that saw Groupon generate $559.3 million in revenue during the first quarter and lose $4.5 million. During the same period last year, Groupon generated only $295.5 million in revenue and lost a whopping $102.7 million.
Given that, it would seem that the company's sales force is actually doing its job. But improving morale and appreciation among employees is integral to maintaining a strong sales force. And according to the Journal's sources, Groupon is having trouble with both.
For its part, Groupon has stayed mum on its reported sales force troubles, and a company spokesperson declined CNET's request for comment.