Get sales hiring right and your business will flourish. Get it wrong and you may struggle to not only hit revenue goals but could end up in a “Hire > Ramp-up > Fire” cycle.
Let’s say an average senior salesperson has a target of $2m per annum. For simplicity, let’s assume an ‘A Player’ candidate is likely to achieve $2.5m, a ‘B player’ $1.5m and ‘C player’ is likely to be released in the first year.
Against a $2 Million annual revenue target, the difference of hiring person ‘A’ to hire person ‘C’ is $2.5 Million in revenue.
Adjusting your view on recruiting sales talent
If you had to adjust your cost per hire from $20k to $30k, to allow for a more rigorous interview and assessment process, and spend a little more time to sign up the A player talent would you do it?
Too many companies look at the cost per hire in a tactical sense. They look at the average cost of the hiring process and looking at ways to reduce this. In reality, this is a fraction of the cost of hiring the right people and often isn’t the key to driving their business forward. The real focus could be on increasing the average revenue per sales hire by hiring more “A player” talent and retaining them.
Interviewing is not a strong predictor of success in isolation for a whole host of reasons because people tend to hire people like themselves and demonstrate subconscious bias, partly because candidates can ‘be on their best behaviour’ during an interview to say what people want to hear and a whole host of other reasons.
We will post more detail on how to avoid making the wrong hiring decisions in a later post.
Some important steps you can take now
- Alongside your leadership team, clearly define each sales position, geography, role responsibility, to develop a stand-out job description. Get in touch with Ben Brook or Chris Danks and we will be more than happy to review your job description (for free) and offer advice on building a stand out job description to compete against the other 10,000 identical job adverts.
- Develop a candidate benchmarking strategy. Looking at the best sales performers, their personality, motivations, skill-level, people skills, commercial acumen. At Launch Global, we use science-led psychometrics and conduct assessments with your top sales performers, to gather the above benchmarking data.
- Effectively plan and execute efficient offer management and onboarding with your recruitment team/provider to make ensure you are engaging your sales candidates throughout the full process and quickly transition your candidate to sales effectiveness as quickly as possible. This is something that we help businesses achieve and start onboarding throughout the interview process to maximise efficiency.
Invest in your hiring process to attract, assess and hire the best people quickly. By doing this, you will increase the quality of hire, reduce attrition which in turn reduces the cost of replacing people and ultimately accelerating revenue and growth.