Our Belief That Any Organization’s
Most Valuable Asset - Is Its People
Has Led Us To Conduct
Extensive Research & Testing
Into Improving The Processes Used To Hire Outbound B2B Telephone Sales Representatives
The Goal Of The Hiring Process Is To
Attract Sales Candidates That Have The Greatest Probability Of Uncovering And Profitably Meeting Target Customer Needs
Based On Their Knowledge, Skills & Abilities
And The Sales Organization's:
- Compensation & Incentives
- Goals & Objectives
- Culture & Management Style
- Ability To Develop The New Hires
To Achieve Maximum Productivity, Performance & Profitability.
For Over 10 Years, Sales Leaders From Outbound Sales Organizations Throughout North America Have Rated "Hiring" As The Most Important Decision Their Sales Organization Makes
The Reason Is That Hiring Decisions
Have The Greatest Impact On Sales Success.
- Behavioral / Aptitude Testing
- Prospecting / Sales Exercises
- Analyzing & Auditing Resume
- Verifying References
- Previous Job Related Experience
2 Most Effective Sources Of New Hires
The First Step In Developing A More Profitable Recruiting Strategy Is To Understand The Recruiting Sources That Provide The Greatest Return On Your Recruiting Investment Dollar:
Referrals = 44%
Search Firms = 33%
It Seems That It Is Too Often The Case
That Outbound B2B Telephone Sales Organizations
Are Not Meeting Their Projected Net Hire Goals
Which Creates An Increasing Urgency
To Hire New Salespeople
As Soon As Humanly Possible
Resulting In Outbound Sales Organizations
Filled With Moderately Productive and
Minimally Profitable Sales Representatives
Take The Time Needed To Hire Right
As The Cost Of Hiring The Wrong Salespeople
Will Far Outweigh The Cost Of Time Spent
Finding The Right Ones
The Cost Of Bad Hiring Decisions
- Lowers Morale
- Increases Turnover
- Absorb And Waste Resources
- Lowers Leadership Credibility
- Deteriorates Positive Sales Culture
- Decrease Customer Retention Rates
- Costs On Average Of 2.5x
The New Hire's
Annual Compensation
- Frustrates Experienced Salespeople
- They Make Up For The
Quota Of Terminated Reps
6 Common Hiring Mistakes
1) Hiring Based On Results Of Internal Interviews
- Historical Accuracy 15.2%
2) Rush To Hire Syndrome
- Rush To Replace An Unexpected Termination
- Rush To Increase Headcount To Make Quota
3) Being Sold By Salespeople
- Sales Managers Often Do & Should Play
A Key Role In Hiring New Sales People
- However, The Easiest Person To Sell
Is Another Sales Or Ex-Salesperson
Note: The Vast Majority Of Sales Managers
Are Ex-Sales Representatives
4) Hiring Without Following
A Formalized Hiring Process
- Behavioral Profiles
-
Testing
- Ride-A-Longs With Existing Reps
5) Not Terminating Bad Hires In Training
- Make Hiring Decisions Contingent
On Passing Training
6) Not Having Candidates "Try Before They Buy"
- Have Candiates Spend A 1/2 Day Observing
- Have Candidates Ride With 2-3 Reps
- Allow The Candidate To Ask Any Questions
- Allow Reps To Answer Openly & Honestly
- Have The Reps Question The Candidates
- Obtain Input From All Reps
Refuse To Hire Sales Candidates That Don’t Meet Your Hiring System Requirements
You're Hiring Experienced Salespeople
It's Their Job To Sell
And Many Sales Candidates
Can Sell Themselves In An Interview
Far Better Than They Could Ever Sell
Your Company’s Products & Services
Implement The Following Processes
To Your Existing Hiring Strategy:
- Ideal Candidate Profiling
- Hire In Targeted Groups
- All Experienced
- All Inexperienced
- Knowledge + Skills + Abilities Assessments
- Use Our "Prospecting Exercise"
- Character Confirmation Checks
- Self Motivation Assessments
- Drug Testing & Background Checks
- Behavioral Interviewing Questioning Format
- Conduct Standardized Exit Interviews
Ideal Sales Candidate Profiling
- Assertive
- Persuasive
- Extraverted
- Competitive
- Self Confident
- Strong Ethical Values
- Corporate Culture Fit
- Desire To Serve Others
- Ability To Put Others At Ease
- Dedicated To Self Improvement
- Effective Communication Skills
- Desire & Willingness To Listen
- Ability To Analyze & Understand
Key Customer Information
- Good Time / Task Management Skills
- Highly Motivated / Strong Work Ethic
There Are Effective Assessment Tools That Can Accurately Measure The Level Of Each Of These Traits That Exist In A New Hire Sales Candidate.
We Believe Our Ideal Sales Candidate Profiler
Is The Most Accurate, Effective &
Profitable
Process On The Market
For Identifying Sales Candidates
With The Highest Probability For Achieving & Maintaining Continuous Profitable Sales
& Customer Growth Performance.
- Hire Inexperienced Salespeople
- Hire Experienced Salespeople
- Just Fill The Seats
Our "System" Will Take Care Of The Rest
To These Companies,
Their Training Programs
Are Strategic Advantages
Over Their Competitors.
Advantages
- Easier To Manage
- More Eager To Learn
- Lower Overall Sales Costs
- Fewer Bad Habits To Break
- Better Long Term Investment
- Better Molded To Company Culture
- Commitment Is Rewarded With Loyalty
Disadvantages
- Often Less Disciplined
- Higher Training Costs
- Slower "Speed To Profitability"
- Lack Of Skills And Experience
- Higher Risks To Turnover Customers
- May Be Using Opportunity
As A Stepping Stone
To These Companies,
Speed To Contribution
Is Their Primary Objective
Advantages
- Established Selling Skills
- Quicker Speed To Profitability
- More Realistic Job Expectations
- Possible Product / Market Experience
- Possible Existing Customer Relationships
Disadvantages
- Higher Overall Sales Costs
- Harder To Break Bad Habits
- Less Willingness To Conform
- Greater Challenge To Manage
- Possible Loyalty / Instability Traits
- Ability To Hide Flaws In Hiring Proces
These Companies Believe Their "System"
Will Make The New Hires Successful.
- Highly Unprofitable Approach
A Key Question That Often Arises When Outbound Sales Organizations Seek To Recruit And Hire New Salespeople Is Whether To Hire Candidates That Are New To The Sales Industry Or Whether To Hire Experienced Salespeople.
1.) Which Type Of Person Is The Compensation Plan Designed To Attract & Retain?
2.) Does The Compensation System Allow For Compensation Exceptions?
3.) Is There Adequate Time To Recruit &
Hire Experienced Salespeople?
4.) Is There A Budget For A Search Firm's Fees?
5.) Are There Adequate Processes In Place
To Access Knowledge & Skill Levels?
6.) Is The Sales Training Program Designed
For Tactical Or Strategic Selling?
7.) Are New Salespeople Being Hired
To Meet Short Term Or Long Term Objectives?
8.) Is The Goal To Attract New Customers
Or Expand Existing Customers?
9.) Are New Salespeople Being Hired To Develop A New Market Or Sell A New Product?
10.) Would Previous Product / Market Experience Increase Profitable Sales Growth?
11.) Would Experienced Reps. Be Able To Leverage Existing Customer Relationships?
12.) What Is The Current Sales Culture & How Would Each Type Fit The Current Culture?
13.) How Would Experienced Reps React To A Rep Hired With A Compensation Exception?
14.) Would It Be Disruptive To Add Reps
That Are Set In Their Ways & Resistance To Change?
15.) Would The Sales Organization Benefit More From Energy Or Experience?
16.) Could Internal Reps Be Developed Vs Hiring New Experienced Reps?
17.) What Level & Type Of Sales Management Support Will Develop The New Hires?
18.) Is The Sales Management Team Experienced Enough To Develop & Manage Experienced Reps?
19.) Which Would Be A Better Fit For The New Hires Assigned Market & Customer Segment?
20.) Is It A Transaction Sale Or Relationship Sale?
21.) Do Your Target Customers Require / Expect A High Level Of Technical Knowledge?
The Majority Of Valid Data By Which
You Can Predict A Sales Candidate’s Success,
Is Associated With The Sales Candidate’s
Knowledge, Skills and Abilities
To Measure A Candidate’s Knowledge & Skills
Conduct Pre-Hire Selling Skills Testing
Break Up The Elements Of A Tactical Sale
And Develop 5 Questions For Each Element
To Rate A Sales Candidate’s Abilities
Develop A Prospecting Exercise
An Effective Prospecting Exercise
Will Measure Abilities, Desire & Work Ethic
Have Each New Hire Sales Candidate
Write The Names Of 3 Current Or Most Recent
Top Buying Accounts
Then Have Them Provide You With The Following “Non Confidential” Information On Each Account:
- What Is Their Annual Sales Volume
- Is This Company The Parent
- What Are Their Key Subsidiary Companies
- What Is Their Major Line Of Business
- Name 3 Of Their Products Or Services
- Are They A Public Or Private Company
- Identify Two Of Their Major News Releases Made Within The Past Year
Verifiable Facts Are The Most Reliable Data
For Testing A Sales Candidate’s Character
Customer’s Base Their Buying Decisions
Partially On A Provider’s Credibility & Trust
We Would Make Wiser Hiring Decisions
If We Made Our Decisions Based On Verifiable Facts That Confirm The Character Of Our New Hire Candidates
Before Hiring Any Sales Candidate
Identify Their Level Of Dedicated Commitment
To Personal & Professional Improvement.
- Ask About Their Favorite Sales Books
- Find Out Their Favorite Motivational Speakers
- Ask What Seminars Have They Attended
In The Past Year
Unmotivated Salespeople Equals
Unproductive & Unprofitable Salespeople
Ask For Details About Employment History
And Listen For Ambiguous Phrases & Voids
Which Are Often Used To Hide Unstable
Work Histories
Phrases Such As
“Better Opportunity Elsewhere”
Are Often Used To Divert An Interviewer’s Attention
From Unsuccessful Selling Experiences
- Require All Applicants To Pass A Drug Test As A Contingency For Employment.
- Drug Tests Are Administered By An External Source And Results Are Usually Available Within 48 Hours.
- Utilize An Outside Firm To Conduct Background Checks On Applicants.
- Results May Take Three To Five Days For Applicants With Diverse Histories Including Out Of State Employment Or Education
12 Tips For Conducting
Effective Sales Interviews
-
Be Courteous
- Ask Prepared Questions
- Set Aside At Least 45 Minutes
- Conduct Panel Interviews
- Panel members should consist of personnel new hire would regularly interact with
- Have each panel member ask a different section of questions
- Have the same panel member ask each candidate the same set of questions
- Start By Establishing Mutual Respect
- Talk Time: 80% Candidate / 20% Interviewer
- Ask Broad Open-Ended Questions & Probe
-
Use A Behavioral Style Questioning Format
- Ask How The Applicant Feels About People
- Question Job Objectives & Probe Deeply Here
- Ask How The Applicants Views Themselves
- Give Applicant An Opportunity To Elaborate
The Best Indicator Of What A Salesperson Will Do For You Is What The Salesperson Has Done In Previous Sales Opportunities
And One Of The Most Effective Methods For Accurately Identifying What A Sales Candidates Has Done Successfully In The Past Is Through
Behavioral Interview Questions
In Order To Obtain The Necessary Information
That Will Allow You To Accurately Analyze
A Sales Candidates Knowledge, Skills & Abilities
Each Candidate Should Be Asked Questions From Each Of The Following Categories:
- Thoughts About Their Job
- Thoughts About Other People
- Genuine Job Objectives
- Regard Of Self
- Selling Skills
- Ability To Respond Under Pressure
-
Tell Me About Your Last Job?
- What Were Some Things You Liked?
- What Were Some Of The Minuses?
- Were You Able To Maximize Your Abilities?
- Rank This Job With Others You Have Held?
- What Are Your Reasons For Ranking It So?
- How Many Hours Should A Person Work?
- What Is A Satisfactory Attendance Record?
-
What Were Your Supervisor’s Strengths?
- What Were Your Supervisor’s Weaknesses?
- How Were You Treated By Other Managers?
- How Would Your Manager Rate Your Skills?
- What Did She Feel You Did Particularly Well?
- What Were Her Criticisms Of Your Work?
- How Do You Feel About Those Criticisms?
- What Kind Of People Do You Enjoy Most?
- What Kind Of People Are Difficult To Work With?
- What Do You Find Most Satisfying In A Job?
- What Things Do You Try To Avoid In A Job?
- What Was Missing From Your Last Job?
- What Is Your Overall Career Objective?
- What Position Will You Hold In 5 Years?
- What Are Your Current Salary Expectations?
- How Have You Arrived At This Figure?
- How Would You Describe Yourself?
- What Characteristics Make You Successful?
- What Traits Would You Like To Overcome?
- What Skills Are You Most Confident With?
- What Skills Would You Like To Improve?
- What 4 Things Motivate You Most In Life?
What Would You Say If A Prospect Said:
- What Are You Selling
- Your Price Is Too High
- I Am Satisfied With My Present Supplier
- Just Send Me Some Information
- I’m Not Interested
Test Each Sales Candidate Ability
To Respond Under Pressure
Ask The Sales Candidate This Question:
“Tell Me About The Biggest Sale You Ever Made”
Keep Asking More Questions
Keep Pushing For More Information
Act Like You’re Not Satisfied With An Answer
Keep Asking “Why?”
Sit & Stare
Schedule Interruptions
Make The Applicants Squirm A Bit
See How They Handle It!
Within Your Hiring Strategy
Lies A Hidden Component
That Has Great Power & Control
Over The Effectiveness & Profitability
Of Your Sales Organization.
This Hidden Component:
- Although Not Directly Related To The Hiring Process, Has Complete Dictatorship Over It
- It Holds The Power Within Itself Alone To Determine Whether Or Not Entire Corporations Meet Their Annual Sales, Profit & Customer Growth Goals
- This Component Has Been Studied And Developed In Thousands Of Companies For Over A Decade
- Yet Over 90% Of The Outbound B2B Telephone Sales Organizations In America Do Not Have A Formal Documented Process In Their Sales Strategy To:
- Analyze It
- Research It
- Develop It
This Hidden Component Is
How To Accurately Size
Your Sales Organization
1. Identify Your Target Market Segments
2. Identify Your Target Customer Profile
For Each Target Market Segment
3. Identify The # Of Target Companies
In Each Target Market Segment
4. Analyze Existing Buying Customers
To Determine The # Of Buying Companies
In Each Target Market Segment
5. Calculate Your Current Marketshare
In Each Target Market Segment
6. Calculate The Average # Of Accounts
Managed By The Average Rep
In Each Market Segment
7. Calculate The Range Of Contacts
Needed To Qualify Or Disqualify
Each Account (E.G. 3-8)
8. Calculate The # Of Sales Representatives
Needed To Effectively Contact & Manage
Each Segment Of Target Accounts
9. Prioritize Segments In Order Of
Desired Market Expansion
10. Size Sales Force Accordingly
Note: You Will Be Surprised To Discover
That On Average, Over 50% Of Your
Target Market Segments Are "Mis-Sized"
1. Increased Profits Require
An Increased Sales Cost Ratio
2. Contiuous Profitable Sales & Cost Containment Are Historically Not Compatible
3. Once Sales Sizing Is Determined
Hire And Train All At Once
4. If Reducing Sales Headcount
Do It All At Once & As Soon As Possible
5. Use "Industry Benchmarks"
To Calculate ROI On New Hires
Average New Hire 1st Year Sales = 135% Of Break Even Sales
In A Well Developed And Balanced Sales System
6. A Key Element In Maximizing 1st Year Growth
Is Proper Customer / Market Assignment
7. Once A Sales Organization Is Sized Properly
And Is Well Balanced
Productivity Improvements Will Provide
2.5 Times The Profit Improvement
Of Adding Additional Headcount
8. New Major Product Releases
Will Cut Sales Efforts In Selling
The Standard Product Line By 35 - 50%
Don't Assume You Can Launch
A Major New Product Line & Hit High
Growth Goals Without Adding Headcount
9. Consider Hiring Temporary / Contract Sales People For Major Launch Efforts
10. Consider Market Changes,
Competitive Strategies & Sales Force Sizing
When Projecting Sales Headcount
2 Biggest Mistakes Made
In Sizing An Outbound B2B Sales Force
In Turbulent Economic Times
It Is Common To Look At Ways
To Justify A Reduction In The Size
Of The Outbound Sales Force
It Is Common To Hear Organization's
Speak Of How Upgrades Or Improvements
In IT Programs Or Support Is Going To
Increase Productivity By 10%+
Therefore Enabling The Enterprise
To Reduce The Size Of The Sales Organization
The Reasoning Goes
That The Reduction In Size
Will Be Made Up- By The
Productivity Improvements
By The New (Fill In The Blank) Process.
Many Times We Have Seen Companies
Plan For A Reduction In Headcount
Based On A "Productivity Improvement Program"
That Hasn't Even Been Finalized
And The Reduction In Headcount Is Based On
A Projected Improvement That Is Not Supported By Actual Testing Or Scientific Data.
Another Common Sales Force Sizing Decision
That Historically Provides An Adverse Effect
Is The Decision To Base The Sizing Of The Sales Force On A Sales / Sales Cost Ratio.
The Process Of Using A Sales Cost Ratio
To Determine Sales Force Sizing
Is A Cost Conservative Approach
To Improving Profitable Sales Growth
And Only In The Rarest Of Instances
Does It Result In Long Term Profitable
Sales Growth Performance.
In The Vast Majority Of Cases
Sales Force Sizing Based On A Sales Cost Ratio
Is Associated With Organizations That Have
Short Term Perspectives And Histories Of
"Spike & Decline" Performance.
On Average, Outbound Sales Organizations
That Achieve & Maintain Continuous Profitable Sales & Customer Growth
Are 20% Larger & 50% Better Allocated
Than Companies With Historical
"Spike & Decline" Sales, Profit & Customer
Growth Performance.
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