Key Strategies To Hire The Best Sales People
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http://www.simberry.com How to improve your sales hiring process so you can get better results. Learn the key strategies you need to hire superstar sales people. For a full recording of the webinar go to http://www.simbery.com/qjumperswebinar/
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Key Strategies To Hire The Best Sales People
- 1. KEY STRATEGIES TO HIRE THE BEST SALES PEOPLE
- 2. FULL WEBINAR RECORDING AT WWW.SIMBERRY.COM/QJUMPERSWEBINAR/
- 5. TEARS
- 6. 80% OF NEW SALES HIRES DON’T HIT TARGET OR LEAVE WITHIN 2 YEARS ESR Research TEARS
- 7. 40% OF SALES HIRES FAIL “Topgrading for Sales: World-Class Methods to Interview, Hire, and Coach Top SalesRepresentatives” 80% NEW SALES HIRES DON’T HIT TARGET OR LEAVE WITHIN 2 YEARS ESR Research TEARS OF
- 8. 40% OF SALES HIRES FAIL “Topgrading for Sales: World-Class Methods to Interview, Hire, and Coach Top SalesRepresentatives” 80% NEW SALES HIRES DON’T HIT TARGET OR LEAVE WITHIN 2 YEARS ESR Research TEARS OF 70% OF COMPANIES TAKE LONGER THAN 7 MONTHS TO RAMP UP NEW SALES HIRES CSO Insights
- 14. #1 CRUCIAL QUESTION 4 BIGGEST MISTAKES
- 15. #1 CRUCIAL QUESTION 4 BIGGEST MISTAKES 3 KEY METRICS
- 16. #1 CRUCIAL QUESTION 4 BIGGEST MISTAKES 3 KEY METRICS 2 INTERVIEWING TECHNIQUES
- 17. #1 CRUCIAL QUESTION 4 BIGGEST MISTAKES 3 KEY METRICS 2 INTERVIEWING TECHNIQUES FREE OFFER
- 20. “You can’t teach height” Red Auerbach
- 23. MISTAKE #2 HIRING FOR THE MIDDLE
- 28. MISTAKE #4 BEING FOOLED BY DELUSION
- 29. 94% of university professors think they are better at their jobs than their colleagues.
- 30. 94% of university professors think they are better at their jobs than their colleagues. 25% of college students believe they are in the top 1% in terms of their ability to get along with others.
- 31. 94% of university professors think they are better at their jobs than their colleagues. 25% of college students believe they are in the top 1% in terms of their ability to get along with others. 75% of college students think they are above average in leadership ability. Only 2% think they are below average.
- 32. 3 KEY METRICS
- 36. $ time
- 37. $ cost time
- 45. 4 BIGGEST MISTAKES 3 KEY METRICS 2 INTERVIEWING TECHNIQUES
- 46. #1 CRUCIAL QUESTION 4 BIGGEST MISTAKES 3 KEY METRICS 2 INTERVIEWING TECHNIQUES FREE OFFER
- 47. #1 CRUCIAL QUESTION Our biggest sales problem right now is (insert problem here). How would you solve this?
- 49. www.simberry.com
- 50. EASY SET-UP, READY TO GO IN JUST 5 MINUTES WE DO ALL THE WORK: SET-UP, RUN, RECORD & ASSESS YOU GET TO SEE & HEAR CANDIDATES SELLING
- 51. www.simberry.com
Hinweis der Redaktion
- Hello and welcome to today's webinar key strategies to hire the best sales people
- My name is Alistair McMahon, I’m the co-founder of SimBerry and I’ll be presenting the webinar today. The webinar is brought to you by Qjumpers, right now I’m in the Qjumpers office in Tauranga with the General Manager Simon Oldham. Simon is also on this webinar and he’ll be making some comments a bit later on. The main content of this webinar will take about 30 minutes and then we’ll have 10 minutes at the end for any questions you might have. If a question comes up through the webinar just type it in the message tab.
- But before we get into the content of the webinar, it’s time for a pop quiz. Don’t panic this pop quiz is very short. Its got only one question in it.
- What do peeling onions, watching the movie titanic and hiring sales people all have in common?Know the answer or give up?
- The answer is tears, you see for many managers hiring sales people is one of the most difficult and error ridden hiring assignments you can get
- According to some recent research by ESR 80 % of sales hires don’t hit their targets or leave the company within 2 years
- The authors of a book about hiring sales people called Topgrading for sales show that 40% of sales hire fail
- A survey by CSO Insights showed that 70% of companies take longer than 7 months to ramp up sales hires Tear inducing data
- So, there are lots of research findings showing the failure rate of hiring salespeople to be really high
- And to make matters worse the direct impact onrevenue that sales people have is very highSalespeople have sales targets to achieve They are responsible for converting leads And directly responsible for revenue generating
- Underlining how critical it is to get the hiring process right
- So hiring sales people is dangerous and often ends in disaster or disappointment. So what are we going to do? That's what this webinar is all about - how you can improve the ways you hire sales peopleWe are going to cover...
- The number # crucial question you absolutely need to ask every single candidate
- The 4 biggest and common mistakes that people make when hiring sales people
- The 3 key metrics you need to be monitoring and measuring in order to improve your sales hiring
- 2 unusualbut highly effective interviewing techniques
- And for everyone on the webinar we’ve got an exclusive offer courtesy of qjumpers, we’ll talk more about at the end of the webinar
- So lets get straight into it, what are the 4 biggest and really common mistakes that people make when hiring sales people?
- Most people when they’re hiring have a pretty good idea of the types of people they want to hirePeople might have a psychometric test profile Combined with a job profile Skills, traits, experience, behaviours all combine to form a shopping list of requirementsThe problem is that the criteria gets too long, And once it gets too long conflicting requirements can result in compromisesThe challenge form a hiring point of view is the looser or more sloppy a profile gets the easier it for more people to fit itA tighter profile will identify the right fit candidates more accuratelyThe question is how to you define the most important selection criteria
- There’s a famous basketball saying credited to Red Auerbach “you can’t teach height” The lesson here for hiring sales people is separate the teachable from the non-teachableThen you can focus on finding and evaluating for these criteria You might say we need people who are inquisitive, high iq, competitive, know xyz industry and know sales techniques Some of that is teachable (xyz industry, sales techniques) some of it is not teachable (high iq) or really hard to teach (maybe impossible) competitive, inquisitiveHiring managers might have a level of understanding about the non-teachable criteria – such as being competitive, having drive, collaborative, having empathy. But its rare for hiring managers to specify a level of these traits. For instance you might need your sales people to demonstrate empathy. The challenge is people with too high a level of empathy might fear rejection too much or sacrifice too much in order to please customers, or handle conflict (both internal and external) poorly. Or alternatively you might need people that are competitive. But if they’re too competitive it could be at the determent of collaboration or teamwork. So its your job to define the non-teachable criteria and set the required level
- And once you’ve defined the criteria you can develop a visual scoring displaySteal someone else's idea for visualising data – the book Blue ocean strategy W. Chan Kim and Renée Mauborgne is a great place to startThe basis of this idea is for analysing competitive marketplaces, but it can easilybe adapted for assessing candidates. The criteria runs across the horizontal axisAnd the level from low to high runs on the vertical axis You then plot your candidates against each criteria. Along with your desired or ideal state levelIt makes it easy to compare strengths and weakness of various candidates
- Or you can use a spider graph, again an easy way to view data. Both of these graphical methods are very good at displaying data visually and also comparing multiple data sets to an expected level
- Hiring new salespeople is a great way (maybe even the best way) of improving the quality of your sales team
- Imagine this is the quality or performance levels of your sales team Stars on the rightLow performers on the left And the majority in the middleThe problem is most people recruit for the middle Leading to more average performersMost people are happy to hire candidates that are in the top half. Unfortunately this hiring practice won’t move the needle when it comes to improving your sales teamIf you want to improve the quality of your sales team you need to benchmark candidates against the top 10-15% of the curve not the middle
- Think about this for a momentWhat does more damage?A bad hire or An empty seat Which takes longer to fix?A bad hire or An empty seatIf your candidates aren’t stacking up favourable against your top 10-15% of your existing sales team then you should review your sourcing strategy. Ask yourself how can you improve the quality of candidates? Change your remuneration model, change your marketing, change your sourcing channels? Don’t settle, it won’t improve the quality of your sales team.
- Do extroverts make the best sales people? Prepare to be surprised.According to Daniel H. Pink, author of the new book To Sell Is Human, the very nature of sales and persuasion is changing, and extroversion and pushiness aren’t part of the future. The book is packed with facts, insight, research and stories. To me one of the most fascinating sections is where Dan Pink looks at answering this question...What kind of personality makes the best salesperson? Most people would say extroverts, gregarious types who are at ease in social settings. They know how to start conversations and are good at making requests. The view that extroverts make the best salespeople is so universally accepted that we seemed to have overlooked one small flaw: There’s almost no evidence it’s actually true.Some new research conducted by Adam Grant from the Wharton School of Management collected data from sales representatives at a software company. He began by giving reps a common personality assessment that plots people on a scale of 1 (introverts) to 7 (extroverts). Next he tracked their performance over the next 90 days. The introverts fared worst; they earned average revenue of only $120 per hour. The extroverts performed only slightly better, collecting $125 per hour. But neither did nearly as well as a third group: the ambiverts. Ambiverts is a term thought up by social scientists in the 1920s. They are people who are neither extremely introverted nor extremely extroverted. On the 1-to-7 scale that Grant used, ambiverts aren’t 1s or 2s, but they’re not 6s or 7s either. They are 3s, 4s and 5s. They know how to assert themselves, but they’re not pushy. They’re not quiet, but they’re not loud.In this study, ambiverts earned average hourly revenues of $155, beating the extrovert group by a significant 24%. Even more interesting is that the salespeople who did the best overall (earning an average of $208 per hour), had scores of 4.0, right in the middle of the introversion-extroversion scale.
- When Grant plotted total sales revenue against the scale, he found that revenue peaked in the centre and fell off considerably as personality moved toward either the introverted or extroverted poles. Those high in extroversion fared scarcely better than those high in introversion, and both lagged far behind their counterparts in the moderate middle.Extroverts can talk too much and listen too little. They can overwhelm others with the force of their personalities. Sometimes they care too deeply about being liked and not enough about getting decision made.The best sales people can talk smoothly but also listen attentively, knowing when to use charm and assertiveness but with the introvert’s quiet confidence.In sales ambiverts have the advantage. You should review your hiring bias towards candidates with high extroversion scores
- Most people have very, very poor self awareness. And salespeople can be the biggest culprits of all.In the book How We Know What Isn't So, Thomas Gilovich share's some interesting research;
- Self-deception is the way we justify false beliefs about ourselves to ourselves. It is the process of misleading ourselves to accept claims about ourselves as true when they are false. When salespeople say self-deceptive things about themselves they are not outright lies. The salesperson genuinely believes them to be true. That's what makes hiring or developing salespeople so tough. They perpetuate as a belief due to lack of ability to evaluate evidence properly.In How We Know What Isn't So, Thomas Gilovich describes many studies that make it clear we must be on guard against a tendency to;Misinterpret random data and see patterns where there are none.Give extra attention to data that confirms what we believe without seeking out dis confirmatory data.Make biased evaluations of inconsistent data, tending to be uncritical of supportive data and very critical of unsupportive data.The self-deceptive nature of people makes it extremely difficult when hiring. Most hiring processes are heavily biased towards the responses of the candidates. Whether it's in an interview or doing some sort of psychometric assessment, self-deception impacts the responses that people provide.Self-deception is also a hazard for developing people. If salespeople perceive they are in he top percentiles for achievement or skills they are far less likely to be prepared to change behavior to get better results. This is a self-limiting factor in personal development programs.Simulations can be a very reliable way to assess salespeople totally independent of their own opinions or perceptions. Whether or not somebody perceives they are good at something, a real-life simulated assessment will be a much clearer indication of their capabilities. That's one of the reasons that simulations are being increasingly used in hiring and developing salespeople.
- Most people think they are doing just fine on sales hiring. “We’re able to find everyone we need.”… “I get what I need from HR.”…”Most of my reps are on plan.”That may be true, but tracking three simple performance metrics will give you much better visibility into what you are doing well and what areas you can improve.Most people overestimate the performance they have and no matter what’s gets measured it usually worse than they think it is. For example is you ask someone how many calories they eat a day they give you a figure, for most people if they measure it, they are consuming more calories. Or ask someone how much time they spend on facebook every week, they’ll give you a time, measure it and it will usually be more. The same holds true for measuring hiring success, it might seem OK, but once you start measuring your success its probably worse than you think. From a sales perspective, this is critical. The quality of your hiring effort has a direct impact on your companies ability to achieve sales goals.Turnover percentages and engagement scores are valuable people metrics to measure and report on. But from a sales perspective these three metrics can be used to build and operate successful sales teams:
- KEY METRIC # 1 – SALES HIRING SUCCESS RATEThe idea here is define the one single metric that determines a success rate for new hireswith a binary outcome – Yes or noSuch as...What percentage of incoming reps are achieving a set criteria within a certain time frame. It might be what % achieve their quota or targets by 12 months and are performing for at least 24 months in the role? Or what % achieve a first sale inside 90 days Industry averages suggests when these types of metrics get measured that well under 50% is the norm. In fact, some researchers have argued that for many companies flipping a coin would produce better results around hiring.
- KEY METRIC #2 – BOUNCE RATEBounce rate represents voluntary and involuntary turnover within six months (12 months, for complex offerings with a long sales cycle) from the hire date. Near to zero is ideal, but a high bounce rate (>15% overall) may highlight any number of issues: where candidates are sourced from, what expectations are set in the hiring process, how salespeople are screened, and what kind of on-boarding is in place, to name a few. These are all fixable for any company.Any time a new hires leave within 6 months there is something wrong. Remember we said that 70% of companies take more than 7 months to ramp up new hires. So a new hire leaving inside 6 months is almost all sunk cost.
- METRIC #3 – RAMP-UPTIME or ROIAgain, the formula is simple. Add up the total costs of the new hire (including salary, benefits, hiring, training and managementtime); when the new hire has delivered enough revenue to cover these costs, that is the point ROI is achieved, and that is the rep’s ramp time. The right length of ramp time will vary from company to company, and from business unit to business unit, and is partly a factor of the complexity of the offering. In general companies should be striving to speed the ramp-up time through more effective hiring that is integrated with sales planning and proper on-boarding.
- This graph will demonstrate the ramp up time calculationThe horizontal axis is time and the vertical axis is money
- The hiring costs are incurred at the start and the costs of a new hire reduce over time with less management costs as the new hire ramps up
- The revenue slowly ramps up as the new hire develops a sales pipeline and increases competency and familiarly with the sales process
- The intersection of these two is the ramp up time
- If the revenue achieved ramps up faster then the ramp up time shortensWhich is a positive result
- Or in the case of very poor performers they might fail to achieve a positive return on investment
- Now we are going to discuss a couple of underutilised but highly effective Interviewing techniques when hiring sales people
- Sales candidates are used to being in interview situation, its very comfortable and familiar for them. Even bad sales people can interview quite well when compared with a technical role such as an engineer, accountant or ops manager. They are familiar with the usual hiring questions and techniques, they are pretty comfortable talking about them solves and so the job interview is a safe place for them. What you need is a way to disrupt or interrupt the pattern. At sometime during the recruitment process, ask the candidate to write down 35 reasons why they want to be a salesperson within your company. Allow up to 15 minutes for this process alone.I’ve conducted this exercise with lots of sales people. A common theme is that by the time they reach around the 15th reason they get stuck. Why? Because the first 15 reasons are typically high level and relatively easy to communicate.By contrast, the final 20 are the core motivators for why the candidate wants this position. Including this exercise in your interview process could produce several results:1) Non completion: The salesperson fails to come up with the 35 reasons. Any time this happens alarm bells should start ringing. I’ve never hired someone who fails to complete his or her reasons. Simply put: if they can’t find enough reasons for wanting the role, they don’t want it badly enough.2) Repeats: You’ll also get a lot of people who repeat their answers. They’re simply trying to cheat. And you know what they say: Once a cheater, always a cheater.3) Wrong Motivation: This occurs in approximately 20% of cases. Some salespeople have the wrong motivation for wanting the job. They say things like: ‘I want the job so I can get out of debt’; ‘So that I can pay the bills’; or ‘So that I can get some experience in the work place’. Stay away from salespeople like this; they tend to crumble under pressure and leave if the going gets tough.4) Completion: When you get the form back and see that the candidate has completed it while avoiding the above pit falls, you’re onto a winner. Do everything you can to ensure they’re hired and managed properly to stay long term.Columbo’s famous line “Just one more thing” is a great example of the pattern interrupt technique. After he would say good bye and move toward the door to leave, the suspect would breathe a sigh of relief. Just then, Columbo would come out with just one more question. Most candidates can see traditional interviewing techniques from a mile away.Anther pattern interrupt technique is to treat candidates more like salespeople. They are used to interviews being typical softer than most sales calls. Hiring managers want candidates to have a good hiring experience and be open to accepting a future potential job offer. There’s too much softening of the candidates experience. I’m not suggesting you bully the candidates or treat them badly. But try and balance the interview so it more accurately reflects the selling environment they are going to encounter if you hire them. Make them wait in reception, tell them you have less time than you originally planned, make them wait in your office, pause the interview half way through and then continue.
- Multitasking is a great way to check how your candidates perform under pressure. Trying to do multiple things at once is a common business occurrence It’s very rare anyone gets dedicated, focussed time on any one particular task. And sales roles are no exception, there are constantly competing demands to juggleSo why not see how your candidates perform on doing more that one thing at a time. For instance; get them to fill out a form with a set time limited or that requires some level of concentration and ask them questions at the same time Or take them on a descriptive tour of the office and continue to ask the candidates questionsManaging multiple tasks takes an enormous amount of effortIt’s very difficult for candidates to concentrate on more than one task fullySo you’ll get more open, honest responses
- So far we’re talked about 4 biggest and common mistakes that people make when hiring sales peopleNo profile Hiring for the middle Hiring extrovertsFooled by delusion 3 key metrics you need to start measuringSuccess rateBounce rateRamp up timeAnd 2 underutilized interviewing techniquesPattern interruptMulti-tasking
- And the final part was the #1 crucial questionAnd then we’ve got a free offer from Qjumpers for you too
- Sales is basically a game of solving problems.Mid way through the interview explain your biggest current sales problem to your candidate and ask them how they’d solve it. You can tell an enormous amount from how they respond...Do they dig for more detail by asking questions?Do they jump straight to a solution?Do they not have a clue?Are they crazily creative or extremely practical? Do they come up with a range of solutions or just one?Does their thought process make sense?Do they panic?You will get so much insight from such a simple question and all very aligned to their job as a sales person. Solving problems.
- For people watching this webinar today here is an exclusive offer thanks to Qjumpers
- If you’ve ever wanted to see and hear your candidates selling to real people as part of your hiring process then SimBerry is going to make you very happy. SimBerry provides a game changing assessment for sales hiring. You will reduce the guesswork when hiring salespeople by making it possible for you to see and hear your sales candidates selling to real people before you hire them.
- SimBerry has made conducting job tryouts really easy
- Imagine being able to see and hear your candidates selling to real people via a secure dashboard
- Right now you can contact Gretchen via email or call 0800 758 673 and set up your free trial. It’s that simpleNow I’m gong to hand over to Simon Oldham, General Manager of Qjumpers and then we’ll answer any of the questions that you have.