Sales Results Media
Take the PAIN out of hiring tip #2
So, here’s the dilemma… You’ve hired a number of salespeople over the past year or two and it’s caused you nothing but heartbreak. Maybe one lasted a week, another only six months. Meanwhile, you’ve had big plans to grow and develop your business and now you feel like you’re back to square one. What makes the circumstances sting even more is the fact that you’ve dumped a ton of money into a deep well that doesn’t allow you to draw up a return. The average loss on a new hire can be upwards of $100,000 to $250,000 for each poor hiring decision! It all adds up if you think about the salaries paid out, loss of invested time, new business that was never generated, and worst of all, the negative feelings of loss or betrayal.
My apologies if I have you sobbing into your keyboard. If you’ve been in this sticky predicament before, you understand it can be a bumpy ride. There may be one consolation I can give you though. You are not alone. In today’s marketplace, everyone from small business owners to Fortune 500 corporations find themselves riddled by the high rate of turnover in their sales forces. While it’s impossible for me to solve this conundrum in a short article, I would like to explain the main causes for hiring failures and a few thoughts on how to improve your chances the next time around.
Sales hires don’t work out because:
·No set process or plan – If you don’t have a written job description and hiring process you are behind in the hiring game. Winging it may work on a sales call, but not in the world of recruitment. The investment is way too high to not have these written plans in place
·No testing is being done – There are a variety of sales skills tests, behavioral tests and role play scenarios that allow you access into the psyche and abilities of your potential new hire. Trust me, you don’t want to find out their true sales skill level and abilities after they’ve been with you for 2 months
·Using the gut alone – If you believe that you are the best judge of a candidate, but have lost more than your share, maybe your gut needs a little help? You may want to consider asking a colleague or trusted friend to help you interview. Also, don’t forget the previous two points I just made about planning and testing to help put your gut at ease
·Expectations are NOT being set – Your new hire may be as excited as you are, but now what? Did you provide a clear understanding of what you will be expecting in his/her performance? Were SMART goals established? Specific, Measurable, Attainable, Realistic and Time bound. In addition, did you fully explain the behaviors and attitudes you expect out of them for the position?
·No initial or on-going training – What is your plan for helping your new hire become successful in your organization? Without upfront and continued training, are you really putting him on the right path to success? Having a relevant sales methodology is helpful in achieving results for a new sales hire. Additionally, a process for tracking strengths and weaknesses is beneficial in uncovering new hire problems early. Don’t wait 2-6 months before addressing one’s difficulties in selling your products or services.
Think about these items for a minute. If there are more than a few bullet points that hit home with you, it might be time for a change. What’s the flip side to this? I have known many business owners who have simply given up looking for their next sales person. “Burned too many times,” they would tell me. Unfortunately, those who choose this path of least resistance will find very little growth over time. Also, the overall value of their business will typically not increase enough to provide the ROI (return on investment) when it’s time to cash out.
Take the time and invest in your business. Set up the appropriate processes, hire the right people and invest in training your people properly. You will find great satisfaction and profit in building out your sales force, if done properly. If you have questions, seek professional help from your local sales coach.
© 2009 All Rights Reserved – Do not reproduce this document without written permission from Steve Fretzin at Sales Results, Inc.