Can't Recruit, Can't Manage, Can't Retain
Distributors Lack Talent
Recently, in conversations with several distributor friends, I noticed a common pain point: distributors generally lack talent. Without a steady influx of talent, it's hard for distributors to do well in business. But the reality is that most distributors find recruiting, managing, and retaining people to be a headache.
First, "recruiting is hard."
A distributor with annual sales of 30 million yuan, Mr. Liu, admitted that his company's per-capita efficiency is low, and he is deeply mired in daily affairs. He longs to hire a young professional manager to share the operational load, so he can free himself to learn about new trends and new models.
But during the recruitment process, he found that candidates either lacked practical experience or were close to retirement age. He sighed helplessly: "It's not that I'm unwilling to delegate; it's that I simply can't find someone who can take over the 'whole plate.'"
Second, "managing is hard."
In many second-generation family trading companies, the team seems stable, but it's actually hard to motivate. A second-generation distributor reported that over 80% of employees are "old-timers" who have worked with their fathers for over a decade or even two decades, and many have watched him grow up. These "veterans" are highly loyal but lack drive, and their execution is weakening.
"Can't manage them, and can't fire them" is his current real dilemma. In this situation, any attempt at organizational upgrades often has to first navigate a layer of "internal soft resistance."
Finally, "retaining is hard."
Sales positions remain the most prone to turnover in trading companies. Heavy responsibilities, high pressure, and low short-term returns cause many young people to leave within three months, wasting the training and resources invested upfront.
The "high turnover, low retention" employment model leaves companies without stable talent accumulation and makes it hard to build real combat effectiveness.
But during our visits, we also saw some good cases. These distributors have established complete talent development mechanisms, and in some offices, 80% of the staff are young people born in the 90s or 2000s.
We have sorted and summarized these good cases and found some commonalities in talent management:
Distribute money well to motivate employees;
Clarify job responsibilities and promotion mechanisms so employees know how to work;
Provide continuous training and empowerment so employees feel their abilities improving;
Organize more team collaboration activities to give employees a sense of belonging and honor.
Start with Distributing Money Well
First, Activate People
Although "people" are the core asset of a trading company, not many can truly lead a team effectively. At the root, money distribution is the main reason. Traditional distributor compensation structures tend to be "old," with base salary plus simple commission, lacking flexibility and long-term incentives, leading to low employee motivation and team vitality.
But we also see that some distributors have begun to make effective explorations in compensation and performance, using more flexible and targeted mechanisms to "activate" people.
1. Multiple tiered compensation plans to suit employees at different stages
A trading company in Chongqing has implemented a "phased" compensation system, continuously innovating based on different assessment items: for new salespeople, they offer a salary plan with a guaranteed base to help them through the initial adaptation period; for mature employees willing to push for performance, they can choose a model with no base salary but high commission, fully stimulating initiative.
The benefit is avoiding a "one-size-fits-all" approach. Employees can freely choose based on their abilities and development pace, preserving the "security" for newcomers and giving mature employees enough "drive."
2. Performance shifts from "sales-oriented" to "profit-oriented"
Another distributor adjusted his performance evaluation logic. He upgraded the simple "sales commission" to a profit-centric incentive model, while proactively disclosing some profit data to employees, deepening the team's understanding of the essence of product promotion.
For example, high-margin products offer more incentives, so employees are more willing to spend effort promoting profitable products rather than just chasing volume. The sales team shifted from "selling more" to "selling value," and the company's gross margin structure became healthier.
More importantly, the team's trust in the company is increasing. When employees know the company is making money and they can earn more, they naturally invest more.
Building a "Self-Driven Team":
Clear Responsibilities, Clear Promotion Paths
In the frontline market, we often see chaotic scenes: employees take orders during the day, move goods in the afternoon, transform into temporary promoters during events, and then rush to make reports and check inventory at night.
Everyone has "no job boundaries," appearing busy but inefficient, and it's hard for employees to develop a long-term professional identity with such work.
1. Clear responsibilities improve efficiency
When visiting a distributor in Yunnan, I saw his "Employee Handbook," which is over twenty pages long, clearly defining the responsibilities and reward/punishment standards for each position. This way, employees know what to do, how to do it, and what level is considered "qualified," reducing internal buck-passing and redundant work.
More importantly, this standardized management approach also enhances employees' trust and sense of belonging—the company has rules, systems, and standards, not where the loudest voice does less or those with good relationships have it easy.
2. Promotion mechanisms let employees see the future
"No one wants to stay a small soldier forever." Without promotion mechanisms, many salespeople will just go through the motions. A distributor told us that over 80% of his employees are "veterans" who have been with him for over 10 years, but he also continuously brings in new people, keeping the team dynamic.
The secret behind this is letting employees always see "where they can go next," rather than "it's the end after a few years." For every position, there is a clear growth ladder, with specific assessment criteria at each step.
In the FMCG industry, which relies heavily on execution, a stable and driven team is more valuable than anything else.
Personal Ability Growth
Also Matters to Employees
When the company's division of responsibilities and promotion paths become clear, many employees start to feel that this job has prospects and is worth long-term investment. But gradually, after employees "earn money," they inevitably begin to think about one question—how to earn money more decently?
The "decency" here is not about superficial show, but about wanting the job to be more professional, with development and growth.
In exchanges with some distributor teams, I indeed feel that employee growth is increasingly valued, and distributors' investment in "employee empowerment" is continuously increasing.
For example, one trading company spends hundreds of thousands of yuan each year to send salespeople to professional training, covering everything from data analysis to customer operations, from community management to event planning, almost covering the entire service chain. The core is no longer just teaching "how to sell more," but focusing on "how to serve customers well," becoming operational consultants for store owners.
Another distributor boss simply renamed all his salespeople "marketing personnel" and personally led teaching on how to use marketing logic to create plans and how to develop strategies based on store types. Once employees understand, they can apply it broadly, generating more good promotional ideas. They also regularly hold internal sharing sessions for case reviews and mutual empowerment.
One of his employees said it plainly: "Now it's not just about selling the goods; it's about truly helping the store sell better."
Employees' roles gradually change, not just in ability improvement, but more in reshaping their sense of value: no longer just ordinary salespeople, but professionals who can solve problems for customers.
Stable Core:
Enhance Employee Belonging
In the extremely competitive FMCG industry, talking about "belonging" seems somewhat "luxurious." In reality, most companies focus more on sales, profit, and per-capita efficiency, rarely caring whether an ordinary employee feels a sense of belonging.
However, we found that those trading companies that truly achieve long-term competitiveness share a common trait: while emphasizing systems, they also value human relationships; while discussing profits, they also talk about values.
The establishment of belonging first comes from alignment of values. A distributor mentioned that he regularly conducts one-on-one communication with employees to understand their views on the company's future and to hear their genuine suggestions on business and management. He said: "It's not that I hired a group of workers; it's that we are striving together."
This communication, built on trust, makes employees feel not just "working" but "being part of the company." This emotional value transfer sometimes enhances team cohesion even more than a simple pay raise.
Some trading companies, on top of material benefits, are beginning to create spiritual empowerment experiences for employees.
For example, a distributor in Yunnan organizes annual team outings for learning and travel. She said that many employees experienced their first flight and first time seeing the sea through the company. These experiences may not directly reflect in KPIs, but they greatly enhance employees' sense of belonging and honor.
"The company is not just a place to make money; it's a platform for them to see the outside world," she said.
Final Thoughts
How far a company can go depends not only on its sales and profit statements but also on whether it can plant seeds of trust and belonging in employees' hearts.
From compensation reform, standardized management, and clear responsibilities to a sense of belonging, the process of distributor organizational upgrading is essentially a profound transformation from "passive employment" to "people willing to stay."
Companies that can survive cycles in the future will be those that make "making money" both professional, decent, and humane.