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Sales Team Scaling: Building the Team You Need to Hit Your Targets

Correctly sizing and structuring a sales team is a high-stakes challenge. It can significantly contribute to a company’s growth—or irreversibly hinder it. 

An undersized sales force with overstretched reps, whether across the entire company or in a specific territory, can cause a business to grow less effectively than its competitors and fail to serve customers well. Conversely, if a team is too large, the costs of maintaining salaries and supporting the team can eat into profits and resources.

Sales leaders whose targets feel out of reach—or who are expanding into new markets or launching new products—should consider resizing or restructuring their sales force. This can help to bring the right amount of coverage to each customer segment and maximize returns on their salespeoples’ work. A right-sizing project includes understanding the shortcomings of a current team’s size and coverage, then identifying opportunities for increasing, reducing, or shifting resources.

Unfortunately, many companies use management’s “gut feeling” to determine the size of a sales team, or how many reps to assign to a territory. Wisdom and experience certainly come into play when right-sizing, but relying solely on the intuition of a few people is unwise when their decisions are so central to a business’s growth and profits.

Instead, leaders can use data-driven methods. We will review several frameworks,  caution against common mistakes and share pointers to ensure that new hires are successful . . . because hiring poorly often costs more than hiring right the first time.

Frameworks help companies avoid “paying as they go” or staying too small

For companies in a young growth stage, or in a rapidly growing market, we caution against keeping a sales team too small or using budget as a sole basis for restructuring decisions. It is what sales consulting firm ZS Associates calls a “pay as you go strategy,” or a “budget approach”: sales force size is predicated on budget, and only as many salespeople as can be afforded at a given moment are hired. The main priority is to limit headcount costs and only grow the sales force when profits increase—sales is not seen as an investment, but as a cost center alone. 

For companies in a growth environment, this puts market share at risk. It anchors a sales force to the previous year’s budget and limits growth, while competitors may invest in their own sales force earlier and capture more market share. 

Research from ZS Associates supports this idea. Its studies suggest that an understaffed sales force limits both short-term and long-term revenue. They have found that

“the sales force size that maximizes companies’ three-year profits is 18 percent larger, on average, than the size that maximizes one-year profits.” 

Growing a sales force may not be right for every team at every time. But these findings challenge the idea that a “pay-as-you-go strategy” is a wise choice, especially for growth startups.

Rather than making sizing decisions based on an inflexible budget, or the intuition of a few managers, companies should use frameworks and data to help them become more objective about their investments in a sales force.

The data-driven approach to right-sizing

Right-sizing frameworks take into account the needs of customers, their sales potential, and resourcing costs. They create various scenarios that balance profit and customer coverage, allowing sales leaders to choose—and test—the optimal setup.

There are several methods and models to try, but here is a broad-strokes approach:

  1. Segment prospects and existing customers into meaningful groups.
  2. Calculate the sales potential of each segment.
  3. Estimate the minimum sales coverage required to meet the needs of each segment (for example, in hours).
  4. Estimate the average selling capacity (hours) of each sales rep.
  5. Calculate the number of salespeople needed to meet the coverage in step #3.
  6. Determine the fully-loaded cost of a salesperson, and calculate the cost of the entire sales force counted in step #5.
  7. Estimate the expected deal size and annual revenue for each customer segment. Expert judgment and intuition can be helpful here to adjust historical deal size data if a market is changing.
  8. Use the costs in step #6 and the revenues in step #7 to estimate profit.
  9. Tinker with this formula by increasing or decreasing coverage in different customer segments, shifting resources from one to the other and observing how profits change.

  10. Test a scenario and monitor data over time to adjust and iterate on the model.

Two data-driven frameworks, the Return on Sales optimization method and Efficient Frontier Benchmarking, provide detailed formulas for right-sizing.

Return on Sales optimization (ROS) 

ROS is a simple yet powerful calculation that optimizes profits. It compares the increase in profit that comes with each salesperson to the incremental cost of employing each of those salespeople. When the marginal profit equals the marginal cost, the total profit is maximized.

Efficient Frontier Benchmarking (EFB)

EFB is a detailed formula that helps leaders calculate the ideal size for sales teams in specific districts or regions, taking into account local salary and differences in regional market potential and performance. It uses linear regression to find the ideal resource split across an entire team. EFB needs around 10 or more distinct districts, as well as other data, to be effective. 

Making right-sizing work

Before restructuring or resizing a sales team, leaders can take steps to ensure all hires are productive and stay around for the long term.

Understand where a company is in the business cycle

Is a company in a Growth stage, Maturity stage, or on a Decline? Companies in growth should be careful not to under-size their sales force (and it’s worth noting that very young startups should have a solid go-to-market and sales strategy in place before scaling up). Companies at the peak of their business cycle, on the other hand, must be sure not to overestimate market potential and hire too many salespeople, because they risk the need to fire the same salespeople soon after. This is a pricey mistake.

Reduce risk by transitioning gradually into a new sales force size and allocation

We advocate for data-driven right-sizing methods, but, of course, data is not perfect. For this reason, companies should be careful not to quickly and blindly follow a model’s recommendation to downsize or scale up all at once. Rather, they should collect data as they change their sales team structure and feed it back into the model. This can support previous calculations, or prompt leaders to shift strategy if needed.

Invest in sales support

Calculations of the total cost of a sales rep must include managers, sales technology, administrative support, coaches, and more. Sales support must also increase as a company scales up its sales team. Even the best sales hires are much more effective with the right support; this ratio can differ from industry to industry.

Invest in good hires the first time around

For many companies, right-sizing means that more hiring is around the corner. It’s imperative to learn how to hire well because an underperforming sales hire is extremely costly. Our back-of-the-envelope calculation puts the price of a poor hire at about $700k in lost cash cost, not to mention reputational damage with customers and the negative impacts on morale and team culture.

Companies should invest in a solid sales hiring process to ensure that they attract A-players from the start. Top talent will support each other and improve the entire team’s performance through a better culture and the referral of other top performing hires.

Like Goldilocks, get the sales force size just right

Right-sizing a sales force, and allocating it well across customer segments, is critical for a company’s profit potential. Sales leaders can take a more objective approach to these decisions by relying on data-driven frameworks. Data isn’t perfect, so companies can increase the accuracy of these models over time by incorporating new information as a team grows, shrinks, or shifts. With enough iterations, it will soon be just right.

Want to learn more about B2B sales team structures? Visit our article here. 

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The State of Sales Staffing in 2020:Hiring, Training, and Retention

Sales talent has always been hard to find and keep, but now it’s tougher than ever. Sales reps are the second most in-demand candidates across all job functions globally, according to The Manpower Group. LinkedIn names “Enterprise Account Executive” as its second-most-recruited role in all industries, and in the tech industry, it has even ousted engineers for the #1 spot, with “SDR” at #3. 

This sales talent shortage will only get worse in the coming years, as the US labor market tightens and the growing tech industry gobbles up all the great salespeople from traditional industries like manufacturing. However, there are several effective hiring, retention, and succession planning strategies that companies can adopt to withstand the challenging sales staffing climate in 2020.

At our sales recruiting firm, we work with companies searching for salespeople, while evaluating thousands of candidates and what they’re looking for in an employer. We’ve seen that sales positions are remaining vacant for longer while the cost of sales talent continues to rise; companies are lowering the experience bar to boost their headcount, only to struggle with churn a few months later. We also see competitors poach sales talent from one another, which increases the cost of each hire.

But before discussing the protective measures companies can take, let’s examine the broader issues that are making 2020 a candidate’s market. 

The tightest labor market Alan Greenspan has ever seen

Salespeople may be some of the most difficult people to hire right now, but it’s no cakewalk to hire for most positions.

For context, the US unemployment rate officially hit a 50-year low of 3.5% in September 2019, and at the end of 2018, the unemployment rate for white-collar workers—those with a bachelor’s degree or above—

stood at 2.1%. Former Federal Reserve Chairman Alan Greenspan has noted that this is the tightest labor market he’s ever seen.

Unfortunately, the labor force currently isn’t growing quickly enough to keep up with demand;  it is predicted to grow by just 0.4% per year through 2020 and level off in the long term. Compare this to the annual growth of 2.6% seen in the 1970s. 

Furthermore, a generation of sales professionals is preparing for retirement. Baby Boomers began retiring in 2011, and for the following 19 years, 10,000 Baby Boomers will retire each day. Companies need to prepare for retirement events in their sales force and key sales leadership roles.

The forecast is even harsher for sales hiring

In this context, sales positions are difficult to fill. But to understand the full challenge that employers face, it’s also important to note that retention in sales is difficult as well. 

In 2018, the average tenure of an SDR at a B2B company was just 1.5 years, which is half of what it was in 2010, according to a Bridge Group study of 434 B2B companies. These companies saw a 39% attrition rate among their SDRs. One-third of that turnover was voluntary but two-thirds was involuntary (for example, via termination).

This data suggests that junior B2B sales roles experience significant turmoil and team attrition, possibly due to underperformance, which is expensive for companies to manage and backfill. Additionally, the Bridge Group study found that companies seem to be hiring increasingly inexperienced SDRs—the average required experience was just 1.4 years, a 45% fall since 2010. Companies may be lowering their bar in response to the demands of scaling and the restricted supply of talent, but the study suggests that more churn can result.

Regardless, we’ve noted that sales professionals tend to switch jobs every few years, with salary increase being a top driver. Studies show that:

The average job-switch salary increase is between 10% and 20%—significantly above the annual US median base salary increase of 3%.

Compensation in general is an important factor in the recruitment and retention of salespeople. We surveyed over 1,000 sales professionals from across North America and found that 38% of respondents felt that their compensation was below their industry average. Such poor perceptions doesn’t support retention, and when we zeroed in on the top performers—salespeople who met or exceeded their quota in recent quarters—we found that 29% were not satisfied with their current compensation and 54% were dissatisfied with their employer overall. Companies need to address these perceptions if they want to retain their best salespeople.

How to prepare for sales hiring in 2020 and beyond

Luckily, companies can buffer against sales talent shortage with a few strategic shifts in their hiring, retention, and succession planning.

These are particularly important for traditional industries like manufacturing and industrial businesses, which need to make their workplaces appealing for a whole new generation of talent as Baby Boomers retire and tech companies create attractive working environments with high compensation. 

Craft strategy around top performers

It may be tempting to quickly staff up a sales force by lowering the bar to entry. But we’ve seen that it’s more lucrative in the long term when companies set their sights on A-players and adapt their recruiting and compensation strategies to the requirements of top performers. Unsurprisingly, for each additional year of a salesperson’s experience, their on-target earnings increase (Bridge Group), and companies that hire less-experienced reps are more likely to see higher turnover.

Recruit passive candidates

To craft a strategy around top performers, companies need to recruit passive candidates—salespeople who aren’t actively job-hunting because they are already busy meeting their quotas. Simply posting a job opening and waiting for candidates to apply is no longer enough, because top performers won’t be the ones engaging. Companies need to assume an active role and go after top talent directly.

Create a candidate pipeline

The best approach for directly seeking top talent is to design and fill a candidate pipeline. This is similar to a customer funnel—prospects are found and nurtured as they move through the funnel, eventually becoming buyers. It’s the same for hiring. Companies must fill a pipeline and give candidates a long runway, because it can take months or years to woo a top performer away from their current job. 

The candidate funnel should include an initial sourcing or “prospect identification” stage, then have regular touchpoints of online or in-person communications, to familiarize a candidate with the company, convey the employer brand, and build a trusting relationship over time. Notice again how this is different from the old paradigm of posting a job and waiting for responses. Instead, it takes advance work and planning so that when a position becomes available, good candidates have already been primed.

Improve compensation packages

It is imperative that compensation is slightly above industry standards to successfully attract top-performing candidates. Companies should use compensation studies to benchmark their base salary and OTE (2019 Sales Compensation Report). It’s also about the broader package, such as sales incentives (like bonuses and no-cap commission) and workplace perks. Employer branding is part of the non-monetary benefits and companies should review their online presence to see if it appeals to top performers—does it reflect a positive work environment, a culture of success, and showcase opportunities for long-term career growth?

 

Consider recruiting from adjacent industries

If a company is experiencing a severe shortage of qualified talent in their own industry, one tactic we successfully use in our recruiting work is to explore similar industries. Companies in unrelated industries may share aspects of their business models. So we have found it is less important that a sales candidate has industry-specific experience, and much more important that they have the specific skills and aptitudes needed to succeed in a certain function. These skills tend to generalize, and they are more valuable than if a hire were to enter a new job with a Rolodex of contacts from the same industry.

Make use of recruitment process outsourcing (RPO) 

If a company is struggling with a talent shortage, they can transfer their sales recruiting efforts to RPOs. This is different than hiring traditional recruiters, because RPOs specifically take ownership of the design of the entire recruiting process, tracking metrics and taking responsibility for the results. These services can include unique candidate sourcing methodologies, such as sourcing through social media, and introducing quantitative applicant screening through aptitude tests. This can assist companies when they begin to search for sales talent in adjacent industries, because good RPOs will have a birds-eye view of candidates in many firms and verticals.

Gear up more training for an existing sales force

We see many companies that are overdue on providing sales training. Such training should be ongoing as a company grows and adapts to new challenges. We also see opportunities to introduce leadership training programs, coaching, and mentorship. Investing in an existing sales force not only uplevels their skills, it also helps with retention by demonstrating the potential for career growth with their current employer—reducing the need to move jobs for that growth.

Make a rigorous sales succession plan

Companies need to consider their sales leadership as well. Are they ready to fill executive positions quickly after a retirement or other succession event? Many of the companies we work with have an inadequate plan and plenty don’t have one at all. Succession plans are most effective when they are formal. They should use frameworks to evaluate current employees for their management potential, then provide adequate training, development, and mentorship when a transition takes place. 

A critical part of a succession plan is the tracking of key metrics, such as:

  • The number of executive-level sales positions that will need to be filled by succession candidates
  • The number of candidates identified for succession
  • The number of candidates being actively developed for succession
  • The number of executive-level positions that have been successfully filled 
  • The percentage of positions that were filled with internal promotions over external candidates
  • The percentage of promotions that came from the high-potential succession pool

Monitoring these metrics helps companies understand the scope of their succession needs and recognize whether they are prepared.

Looking ahead to 2020

In 2020, North American companies will likely experience a talent shortage, simply due to economic growth and a slowing supply of labor. But it will be all the more difficult if those companies require sales talent.

Experienced salespeople are in high demand, and the best candidates are not typically looking for new jobs.

This is why businesses must revisit their sales hiring strategies and ask whether they fit the 2020 hiring paradigm: companies now need to go after top talent directly, instead of waiting for applicants to come to them. They need to nurture passive candidates over months or even years, building trust in their employer brand, as well as offering competitive compensation and demonstrating opportunities for career growth. 

They must also empower their current sales staff. Are they investing in training, development, and competitive compensation? Do they have a formal succession plan in place to backfill sales leadership? These retention activities are just as important as hiring strategies, because if companies want to fuel their growth with sales in the next decade, they need to hang on to every salesperson they’ve got.

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How do you achieve the perfect sales climate?

Energy management system innovator Pelican Wireless Systems discusses the formula for success

Can climate and temperature be life-changing to your work day? If you ask the nationwide customers of Pelican Wireless Systems, yes. And that’s the response you would expect as Pelican sets the highest bar for design, innovation, and service for its energy management systems (EMS) products. Powered by scalable and secure wireless technology, Pelican EMS products put customers fully in control of their workplace climate and energy usage.

As Mark Willens of the business development team explains, “We are literally changing lives through climate control, enabling people to be comfortable in their work environment. Customers call us and are amazed at the results as they had never thought about climate and its impact inside offices and facilities. It’s very satisfying to see the results of your work having a real impact on lives.”

Mark joined Pelican Wireless Systems nine years ago, and says, “We are really an engineering company that is taking commercial climate management to another level with technologies that add advanced logic, new capabilities, and better information and control for clients at a fraction of the cost of traditional companies.”

Teams with Peak to find unique talent for key territories

Two years ago, Mark turned to Peak Sales Recruiting with a goal of growing Pelican’s direct involvement in its Midwest, Southeast, and Southern California territories by adding business development talent. 

As Mark explains, Pelican is focused on managing growth and the bottom line carefully. “As a private company, we need to be smart about how we spend our money and grow at a rate that keeps us profitable. At the same time, our culture is very empowering here. We have open communication throughout the company and move forward and get things done without office politics getting in the way,” says Mark.

Serving every type of commercial market across the U.S., major corporations across America use Pelican EMS products to control their climates every day.  Offering the first true wireless zone control solution for these markets, Pelican’s advanced analytics, intuitive scheduling, simple design, and anywhere mobile access are just a few features that put its customers firmly in control of their company’s climate and even the way energy is consumed. 

“We weren’t looking for traditional sales people roles or customer relationship people. We needed specific skills with the ability to think on both a business and a sales level and be just as involved in the strategy behind how the company moves into territories as how we sell and generate demand,” he says. “It’s a challenging candidate profile and on top of this, there are technical aspects about the products and our markets that candidates need to come up to speed on.”

Three reasons for choosing Peak

Mark chose to work with Peak for three key reasons — proven process, enthusiasm, and commitment to understanding Pelican’s business.

“Number one, when I first spoke to the Peak team, they discussed their hiring recruitment process with me in detail. I was immediately interested. Peak’s services go beyond recruitment, they are not just recruiters, they want you to have a better hiring process,” he shares. “The Peak team also took a genuine interest in our business. They wanted to thoroughly understand the complexities of our market and were focused on taking the right steps to find the best fit.” 

Known for its structured talent acquisition process, Peak relies on an approach with a 4-step sales recruiting methodology that determines corporate objectives, identifies the profile of an ideal candidate, uses targeted headhunting to find the top candidates, and adds scientific assessment.

“I have worked with multiple recruiters and can tell you that Peak’s hiring process ensures the fit is right and saves me considerable time, Mark adds.

Peak’s enthusiasm was the second factor. “I actually talked to the owner of Peak Sales Recruiting and realized this was coming from the top down and it was similar to the empowerment and motivation we foster at Pelican. Peak’s owner was excited about our unique hiring needs and the challenge. There was no hesitation about the goal, just confidence.”

And last on Mark’s list, Peak was committed to do the work required.  Mark says, “Peak was willing to dig into what we do and why we do it, and learn about our culture. The team explained exactly how they will tap into this and bring me people that align and fit with our culture.  That was a dramatic difference in contrast to the past recruitment firms I have worked with.” 

One hire leads to three

Training and shaping a sales hire to adapt to a new selling environment and achieve results quarter after quarter is the ultimate challenge. Yet Pelican and Peak make it look easy — today, three hires were made by Peak and each team member is contributing at a high level at Pelican. 

Also important for Mark, the hires were very positive about their experience working with Peak.  “Peak was able to articulate our vision to these candidates and the uniqueness about our company and the advantages of working here,” he says. 

After hiring Daniel Diaz in early 2017, Mark worked with Peak again in the last quarter of 2017 and Colleen Nolan joined the Pelican team. The third and newest hire, Jamie Gorbenko, joined Pelican in late 2018. 

Pelican’s approach isn’t focused on growth in numbers and setting and meeting quotas. Instead the team looks at factors like how they can generate demand and how this contributes to business growth. “These team members have enabled us to enter and succeed in our U.S. markets and far outdo what has been done. They all bring unique and compelling skills and that’s what our company looks for — positive, diverse views and ways of doing things.  Every team member has continually exceeded its goals in their territories — all have been great additions to our company,” Mark adds.

“When it comes time to recruit new business development team members, there is never a discussion about who we will partner with. We continually turn to Peak and they have always done a great job of finding the candidates we should be talking to,” he explains.   “At Pelican, when we hire new team members, we have very specific criteria and standards and expect a lot from our recruiting partner. That’s why we continue to work with Peak.”

Are you ready to take your talent acquisition to the next level? Learn more about Peak’s services or contact us today to recruit top sales talent.

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New York Sales Salaries: Benchmarks for Sales Reps, Managers, and VPs

To attract—and retain—top sales talent, sales leaders must develop a competitive compensation strategy. We surveyed sales reps, managers, and VPs across industries to understand the sales landscape in the New York area and to provide benchmarks for salary and OTE, as well as insights about compensation plan structure and incentives.

For a deeper look at sales compensation insights across the United States and Canada, visit our 2019 Sales Compensation Study.

Why sales compensation matters

Compensation is the top driver in attracting sales employees (Gartner 2019), and high performing salespeople are paid above the market average. 

Companies can easily disqualify themselves as desirable employers of high-performing salespeople if they don’t provide a competitive compensation package, and such a lack can also negatively impact retention. In a survey of top performers, 79% said that compensation was very or extremely important in their decision to stay with an employer, yet 43% of them also believed their current salary to be below market average.

43% of top performing respondents believe their compensation plan is below the industry average.

Employee perception of compensation plans is a key lever of employee satisfaction and employers should investigate the issue thoroughly—the average cost of turnover per sales rep is $97,690 (DePaul University), and it can be higher for managers and sales executives. Benchmarks can be used to understand what a competitive salary looks like, but it is also important to discuss other factors that sales professionals care about, such as quota structure and incentives.

New York Sales Salaries

About the survey participants

Sales professionals in the New York area

Roles

  • 67% quota-carrying sales professionals
  • 22% front-line managers
  • 11% Vice President of Sales.

Gender

  • 82% male 
  • 18% female

Industries 

  • Respondents came from the Software, Industrial or Manufacturing, Professional Services, Information & Technology, Healthcare, and Other industries.

Base Salary and OTE

When compared with other states in the US, New York’s sales professionals reported the fourth-highest average base salary and third-highest OTE. These are the high-level compensation numbers across all roles—reps, managers, and executives. Role-specific figures are discussed separately. 

For all respondents across sales roles (reps, managers, VPs), New York:

Average Base Salary: $93,000

Average OTE: $150,000

When the responses for only the highest performers—defined as salespeople who have exceeded their quotas—were examined, a modest lift in base salary and OTE was observed.

For high performers across sales roles (reps, managers, VPs), New York:

Average Base Salary: $97,000

Average OTE: $155,600

Base salary and OTE of all respondents

Base salary and OTE of top performers

Separated by role, the average base salary and OTE are as follows. 

Quota-carrying sales reps:

Average Base Salary: $84,000 

Average OTE: $133,000

Front line manager: 

Average Base Salary: $110,000  

Average OTE: $171,000

Vice President of Sales: 

Average Base Salary: $130,000  

Average OTE: $216,000

Average OTE by role

Average base salary by role

The highest-paying industry is Professional Services, with the others ranked as follows:

  1. Professional Services
  2. Software
  3. “Other” industries
  4. Industrial or Manufacturing
  5. Information Technology & Services
  6. Healthcare

Compensation split

The split between base salary and quota is another important factor in attracting and retaining the right talent, yet over half (53%) of respondents said they didn’t have their ideal compensation split. 

The ideal balance depends on the company’s strategy and individual responsibilities. The respondents surveyed showed a wide range of splits, but base salary typically formed the larger portion of their total compensation package. 

50% base / 50% commission:

25% of respondents

80% base / 20% commission:

25% of respondents

60% base / 40% commission:

24% of respondents

100% base salary:

18% of respondents

0-40% base salary (commission-heavy):

8% of respondents

Respondents’ compensation split between base salary and commission

Incentives

In examining the incentives included in respondents’ compensation packages, it was found that 82% had uncapped commission, letting them earn in a way that reflected the value they brought to a company. In addition, 53% had accelerators, and some respondents enjoyed team bonuses and recognition programs. Only 16% of respondents were compensated with equity.

Incentives in respondents’ compensation packages

Compensation’s role in retention

Competitive compensation is a major factor in retention, and 79% of respondents said it was very or extremely important when deciding whether or not to stay with their current employer.

43% of high performers believed their compensation plan was below industry average, while another 43% believed it was at industry average; only 14% believed it to be above average.

In order to lower turnover rates, employers should have annual compensation plan reviews to bring more of their top performers into the group who believe they are being paid competitively—and above the average.

Top areas for improvement

Survey respondents reported their top concerns about their total compensation package and sales support structures.

The main concerns reported were:

      • Having a fair and achievable quota
      • Improving incentives
      • Having an easy-to-understand compensation plan

Not only do employers need to pay a competitive base salary, they also need to consider the design of their plans, to make them easily understandable and clear on how success and increased earnings can be achieved.

Other factors that can be examined and improved upon include: 

  • providing better sales support 
  • designing territories effectively 
  • paying in a timely matter
  • improving the companywide sales strategy, to instill confidence in the sales force 
  • providing non-monetary benefits (typically vacation, healthcare, work-from-home time, mentorship, and perks)

Respondents cited a number of concerns about their current compensation packages and the support provided for their sales role

Developing a competitive sales compensation plan

Compensation is a key driver of quality hiring and retention, yet top performers may not perceive their packages as properly reflecting the value they bring to their teams. This jeopardizes their relationship with their employer, and turnover is costly to a company’s revenue, brand, and morale. 

Leaders should use industry benchmarks to ensure above-average compensation for sales professionals and to develop a well-rounded package that not only reflects the right numbers, but is also structured in a clear way with advantageous quota splits and incentives.

For more information about sales compensation, including additional data from sales professionals across the US and Canada, download the Peak Sales 2019 Sales Compensation Study.

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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How to Hire A Salesperson Who Truly Delivers

Hire A Salesperson

Making a bad hire is a huge cost to a company. How can teams ensure they’ll attract and filter the right candidates for a sales role? (10 minute read).

One of the hardest roles to fill is that of the sales rep. Today, sales professionals hold the #1 most in-demand role out of all job functions, surpassing even engineers (according to LinkedIn research; Manpower Group ranks them as #2). Overall talent shortages are at their highest since 2006, which is a dire situation for employers.

Not only is it difficult to get salespeople in the door, but their success isn’t guaranteed. Nearly 50% of sales reps don’t meet quota, and a bad hire can be extremely costly in terms of lost revenue opportunity, external brand damage, and the negative effects on team morale. 

This is why it is so important for companies to learn how to attract top salespeople, and to design an appropriate hiring process to do so. In this article, we will share insights about how to find higher-quality candidates and vet them in a way that increases their chances of sustained success. 

A real hiring process includes much more than a simple job posting and interview. There’s much behind-the-scenes preparation that hiring managers can undertake to increase the chances of success before a candidate even comes in for a conversation. We’ll cover:

  1. Preparing for the hire: Gathering resources for compensation and support
  2. Defining the ideal hire and writing the job description
  3. Building a candidate pipeline
  4. Interviewing with a guide and rubric
  5. Beyond the offer letter

Sales hiring requires a unique approach and we will offer sales-specific insights into the hiring processes we’ve helped to build at hundreds of companies across North America, with thousands of candidates evaluated.

Preparing for the hire: Gathering resources for compensation and support

There’s more to employing a successful salesperson than just the hire itself; salespeople also need the right environment and support systems to deliver on their goals. Before creating a job description or speaking with candidates, the company—and the existing sales team— must be ready to receive them. This means ensuring that such executives as the CFO, Head of HR, CMO, and CEO (the key players for scaling a sales team) are all on board, to allocate the necessary resources: sales operations support, technologies, training, and compensation.

Allocate competitive compensation 

Top performers are not easy to find, nor are they easy to attract; typically, they are already gainfully employed and delivering results in their current role. But they are worth the effort and the budget, because they are much more likely to deliver on revenue goals, to inspire customer confidence and brand appreciation, and to contribute significantly to positive team culture.

An attractive compensation package can help bring in this top talent. It can also increase retention and incentivize desired behaviors. Companies need to understand the compensation package required to attract top candidates and to make sure the team has budgeted accordingly; this means knowing the current market base salary and on-target earning (OTE) rates, as well as bonuses and accelerators. It also means considering which non-monetary benefits can be offered, including vacation, flex time, training, mentorship, and prospects for career advancement. 

In our 2019 Sales Compensation Study, we have found that 29% of top sales performers are not satisfied with their current compensation, and 54% are dissatisfied with their employer. Among all respondents—not just the top performers—38% felt that their compensation was below the industry average.

This gives employers an opportunity to differentiate themselves, and suggests that compensation should be thought of as not just a standalone financial incentive, but as leverage for a broader initiative to increase employee satisfaction and retention. It is a strategic lever that should be considered at the beginning of the hiring process, budgeting appropriately and allocating resources before setting out to interview candidates.

Prepare sales process documentation and operational support 

When a top candidate comes in for an interview, they will be evaluating a new workplace for indicators that it will support their ongoing success. 

Consequently, a sales team should check for the following things, which a candidate will also be looking for:

  • Are there onboarding processes, playbooks, and documentation set up and ready for the candidate to ramp up? 
  • Is the sales process itself well documented and successful? Top candidates will often look at a new employer’s sales process as a key indicator of whether to take the sales organization seriously. A properly implemented sales process can improve win rates by 24%, reduce sales cycle length, and increase average sale price. 
  • Is the sales and marketing automation technology up to date? 
  • What systems are in place to minimize administrative and customer support work that is beyond the scope of the job role?
  • How many people are dedicated to sales support functions, including territory creation, forecasting, funnel management, coaching, admin work, technology management, and culture building? (Research suggests that to optimize sales team ROI, 50%–60% of sales employees should be dedicated to support functions.)

If the proper sales process, training, and onboarding resources are unavailable, consider adjusting the hiring timeline.

Defining the ideal hire and writing the job description

The next step is to define exactly what type of hire is needed, and to establish the evaluation methodologies that will screen the right people in or out. 

Understanding why a new hire is necessary helps pinpoint the exact characteristics and experience the ideal candidate should have; brainstorming sessions with the team can help clarify the intrinsic characteristics required for the job. Does the team need someone to generate new business, or upsell existing customers? Is the business looking to enter a new market this year, or perhaps a new market segment that requires a focused and dedicated salesperson? Is the business rolling out new products or services?

If possible, conversations with customers can also be helpful. Understanding the successful and unsuccessful relationships that customers have had with salespeople can give valuable insights into specific requirements and expectations for the job description. What has helped customers make a decision to buy? What has resonated? What was the frequency and nature of the communication? 

Teams should look for candidates that possess the general traits we call Sales DNA. These are the typical characteristics that drive high-achieving salespeople and are excellent predictors of success. They include ambition, competitiveness, a sense of urgency, confidence, perseverance, optimism, resilience, ability, and the desire to influence others. 

Sales DNA traits, as well as team-specific traits, tend to predict success much more reliably than “gut feel” or even a candidate’s resume. (We have seen that Sales DNA beats the resume.) 

Take an example from one of the most noteworthy contemporary sales leaders in tech, who uses quantitative measures to predict performance and hire accordingly. Mark Roberge scaled his sales team at HubSpot by running a regression analysis. He found the candidate traits that correlated with sales success at his company, based on 500 interviews and 12 hires over a year. By pinpointing these characteristics and creating a quantitative hiring process around them, Roberge was able to predictably hire the same (successful) salesperson over and over. 

“Gut feelings” tend to be poor predictors of long-term sales performance and are vulnerable to unconscious bias. For this reason, sales hiring should be objective and quantitative wherever possible. Codify your requirements into scoring rubrics to make interviews structured and objective (rather than open-ended). Seek out quantitative psychometric tests and assessments which identify a candidate’s aptitudes, key motivators, and behavioral skill sets, and which help a team home in on the true predictors of success.

Companies that use hiring tools to assess candidates have a higher percentage of reps that meet quota, have more confidence in their sales organization, and show higher rates of retention, according to research by CSI Insights. In fact, research shows that unstructured hiring methods are so poor at delivering high-caliber salespeople that companies may be better off selecting candidates at random. 

Once the specific needs for the position are identified, it’s time to write the job description. 

Writing the job description

The job description should give a sense of the culture and values of the business and sales team, integrating the brand voice and tone rather than being just a cut and dried list of responsibilities. 

It should include a comprehensive list of perks and benefits to provide an idea of the company’s environment, values, and positive attitude toward employees. This is part of the jobs’ non-monetary offering; top performers want to be in a positive environment surrounded by excellence and opportunities for advancement, and the job description is a good way to show this off.

See an example of an Account Executive job description.

Specificity is key. Instead of stating that a team seeks an “energetic” candidate—a term that really is just filler material—the exact responsibilities, duties, and expectations in a typical sales cycle should be addressed. Will the sales rep be tasked with generating new business and hitting a quota of new sales? Are their core success metrics centered around client retention or upselling existing clients? How many calls or site visits does the role require?

And, of course, the description should be free from grammatical errors.

Once the job requirements are created, it’s time to hunt for great candidates.

Building a candidate pipeline

The trick to great sales hiring is to start early and nurture candidates over months or years—just like a salesperson might nurture a customer. If a company uses a sales funnel for customers, it should use a recruiting funnel for candidates. A recruiting funnel allows teams to systematically find leads and build relationships until they’re ready for an interview. 

This is the best way to attract top performers, who usually are not searching job boards for open positions because they’re busy performing well in their current job. This is why companies who want A-player talent must hunt them proactively and take time to nurture them over the long term, engaging them with events, content marketing, and one-on-one outreach over time. 

If this nurturing is done correctly, top candidates will be ready for more serious conversations when a job position opens, avoiding a last-minute scramble for B- or C-grade performers. It’s similar to a soccer coach who has great players on the bench, ready to jump into a game when they’re needed. 

Companies can search for candidates on alternative channels such as social networks like LinkedIn, conferences, and industry events. (Here’s a guide to using online social networks to find top talent.) 

Teams should also mine their own networks for referrals, which are the #1 source of high-quality hires. In particular, the current top performers at a company tend to have deep networks of other excellent salespeople. Companies can also extend their reach with recruiting firms.

Hiring managers should use an applicant tracking system (ATS) or even a simple Google spreadsheet tracker as a CRM, to keep tabs on candidates and the outreach they have received. They can refer to it periodically and reach out at regular intervals to nurture relationships.

Part of the nurture process is the slow task of communicating the benefits and selling points of the team to a candidate. In other words, it can require content marketing and employer branding. 

To improve employer branding, a company can think about candidate touchpoints—like the hiring pages on their website—and update them to highlight a desirable work-life balance, the benefits of the working environment, the company vision, and the opportunities for a candidate to contribute to a growth story.

New touchpoints can be added as well, such as an email newsletter specifically for candidates, retargeting ads, and in-person events.

Content marketing for candidates can include:

  • Job opportunity alerts for candidates who subscribe to them
  • Newsletters aimed at candidates or interested followers
  • Stories that profile outstanding employees at the company
  • Stories about culture and team events
  • Glassdoor ratings
  • Invitations to in-person events
  • Industry news
  • News about a company’s high-visibility partnerships and customers

This type of content can educate a candidate about team culture, build interest and trust, and keep a company at the top of their mind over the long term. 

If done correctly, the recruiting funnel will produce prospective candidates that are ready to become interviewees as positions open.

Interviewing with a guide and rubric

The interview stage is the final filter for candidates. 

Create an interview guide and rubric 

As previously mentioned, it’s important to keep interviews as objective and structured as possible, with the same set of criteria used in the evaluation of all candidates. 

A set of interview questions should be developed in advance and the core set of questions maintained for each candidate, no matter who the interviewers are. Role-playing can be used to test a candidate’s responses to objections, their needs-finding abilities, and their customer empathy.

A rubric can be used to score the answers. For a sample rubric and interview template, as well as a list of core questions, legal guidelines, and common pitfalls, see our guide to conducting successful sales interviews. Psychometric assessments can be used to test for Sales DNA and other required traits, and a search firm can assist with setting them up.

Ultimately, a salesperson is being hired to sell products and services that will solve client problems, so the interviewer should notice how the candidate seeks to understand the business problems facing the hiring company and its competitors, and the skills they can bring to solve them. If the candidate is simply listing out their skills and past performance metrics, that’s a red flag. Candidates should know their business impact and numbers cold, but they must also have outstanding storytelling skills to sell themselves and be able to relate their experience to the company’s position in the marketplace.

Meanwhile, interviewers and the hiring manager should be selling the company, the team, and its values to the candidate. Star sales reps are likely to have multiple offers, and they will be using the interview as an opportunity to determine which company is the right fit for them.

Beyond the offer letter

If a candidate makes it through the interviews and scores well on the assessment rubrics, it’s time to make an offer. Ideally, a competitive compensation package is ready to go.

Hiring managers should ensure that an effective onboarding process is in place to get the new salesperson up to speed and delivering value quickly. Onboarding plans should map out a new hire’s first 90 days, with 30-, 60-, and 90-day goals that use metrics to define what success looks like at each milestone. (For guidance on what to include in a sales onboarding plan, read more at Faster, Better Sales Onboarding and The Six Elements of an Effective Sales Onboarding Program.)

It can be tempting for hiring managers to jump into interviews as soon as a job position opens, but they should first take the time to prepare an end-to-end recruiting process. This upfront work includes:

  • Gaining organizational alignment
  • Understanding and securing appropriate compensation for a top performer
  • Identifying specific requirements for the position as opposed to casting a wide net
  • Creating a rigorous, codified, structured candidate evaluation system for interviews and other assessments
  • Building a recruiting funnel with a great employer brand 
  • Nurturing top-performing candidates over the long term until they are ready for an interview.

A well thought out process attracts higher-quality candidates who will be more likely to succeed over the long term. When a top-performing candidate steps into a company’s universe—whether for an interview or simply to visit the company website—they will scrutinize it carefully. And the sales team should be ready. 

With these preparatory steps, hiring managers can avoid spinning their wheels and losing time, or worse, attracting costly, poor performers. Sales talent is costly either way, so it’s worth concentrating only on the top-drawer variety.

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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How do you double growth in the competitive cybersecurity market?

Cybersecurity Sales Rivial

For Rivial Security, the secret is the right recruiting partner

Randy Lindberg started Rivial Security in 2008 with a focus on helping banks and credit unions comply with annual IT and security audits. Today, the Cheney, Washington-based company in Spokane County is one of the only providers to offer complete security programs that include the tools and technologies to monitor, assess, advise, and improve the security of financial services operations.

“We are unique in the financial services market sector because we offer the industry’s first continuous compliance and risk management solutions. Rather than engaging with customers at one point in time because the industry requires it, we work with clients throughout the year monitoring their network and advising on the best security practices,” Randy explains.

As Randy explains, his team’s proactive approach takes the pain out of annual audits and reduces anxiety. “We are providing peace of mind by helping clients understand the risks to their networks and actions they can take to avoid stressful surprises when it’s audit time.”

In the competitive cybersecurity market, this strategy has paid off for Rivial Security with customer referrals and steady growth.

Wanted: Sales pro with security and tech background

Wearing multiple hats since the company’s inception, Randy had been handling aspects of the sales function by himself. He says, “I didn’t realize we were lacking a sales leader but without a sales background, I was unaware of how the function could be structured and elevated. One of our business partners suggested it may be time to hire a sales VP. I remember thinking this may be too senior a role at our stage, but I agreed it was time to evaluate the talent market.”

The business partner also suggested hiring Peak Sales Recruiting. “We were referred to Peak with glowing reviews and after the first meeting, we understood why,” says Randy.

After evaluating Rivial Security’s business needs, operating structure, and culture, the Peak team recommended an individual contributor for the sales role. Shares Randy, “In contrast to hiring a Sales VP, Peak recommended finding a candidate who was experienced in security software sales who could hit the ground running, generate sales, and quickly move into a senior leadership role. I liked this approach.”

Adds Randy, “The Peak process is built to make sure the right person gets hired. From day one, it was clear that Peak brought not only expertise in B2B tech sales recruiting, but also in-depth knowledge of all aspects of the sales function.”

For Randy, the counsel and education offered by Peak were invaluable.  “Working with Peak’s client manager, I not only learned fundamentals about the sales function but also a better understanding of the recruiting process for software technology sales and how to evaluate the right sales professional. All of this helped me better understand how to elevate our sales structure and find the best fit.”

Security software sales pro joins the team

After working with Randy to identify candidates, Peak began screening and evaluating candidates through its 4-step sales recruiting methodology – a process that includes behavior-based interviews and role playing, psychometric profiling, and benchmarking.

After unanimous agreement, Robb Nielsen was hired as senior account executive.  According to Randy, Robb proved to be an ideal personality and cultural fit. He brought a solid background in cybersecurity and experience selling IT risk management services for a competitive provider and was also looking for more challenge and a growth path to senior sales management.

“The decision to hire Robb was never a question in my mind,” shares Randy. “I felt like I have known Robb for five years. He brings confidence and experience to the role and we trust him without hesitation. He makes everyone feel very comfortable, including clients and prospects.”

What’s in store for Rivial Security this year?

With Rivial Security’s 6-12 month sales lead time, Robb is putting the right pieces of the process in place. He is building a sales pipeline, recrafting the CRM and Hubspot systems, and managing account executive and VP level responsibilities.

As Randy shares, Robb is doing all the right things. “This has been a perfect fit for the organization and a milestone in terms of taking the next step in our company’s development. We have the elements in place now for a repeatable and measurable sales process and by next year, we will double revenues and size of our operations. You could say we were shooting for the moon and we hit the stars.”

Will Randy work with Peak again to support his projected growth?  “Absolutely,” says Randy.

Ready to take your talent acquisition to the next level?  Learn more about Peak’s services or contact us today to recruit top sales talent.

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Sales Salaries 2019 [Infographic]

Sales Compensation Report 2019

We surveyed over 1,000 sales professionals from across North America. From our 30 questions, we set out to discover what sales salaries and compensation they are receiving in 2019, what salaries and on-target earnings were prevalent in the industry, and the rate of growth from last year.

Covering all major regions, and industries including software, IT services, and manufacturing, we’ve compiled the results from our survey, analyzed the data, and packaged our findings into our 27 page Sales Compensation Report 2019. In addition to the above, we were able to find a number of insights.

Inside our report you’ll find:

  • Base Salary and On-Target-Earnings averages by industry and region;
  • Salary growth by industry and region since last year;
  • Common splits and incentives available to sales professionals;
  • How compensation and incentives impact sales performance;
  • How perception plays a role in compensation satisfaction; and
  • How sales leadership is one of the most important non-monetary incentives sales professionals wish to see

For those looking for a less-detailed presentation of our findings in a format that’s more easily digestible, we’ve put together the following infographic to help inform your future compensation and budgeting considerations!

Sales Comp 2019 Infographic

 

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

Connect:

Latest posts by Eliot Burdett (see all)

PIPS in Sales: Everything You Need To Know

What is a Sales PIP?

A Sales PIP —(otherwise known as) a Sales Performance Improvement Plan—outlines the steps an employee can take to obtain high levels of performance. 

Sales PIPs use very clear metrics to define success within a predetermined time frame. PIPs are not intended to fix behavioral issues like inappropriate actions or attitude. Sales PIPs address chronic performance problems such as poor quality of work, missed targets, or a general failure to execute. 

When a PIP is executed, it removes any element of surprise should a termination, demotion, or lateral move prove necessary. However, if executed properly, a sales PIP can increase employee productivity and performance.

Not all PIPs are created equal, so this article will examine some of the ways that managers can set them up for success. After all, a well-developed and executed PIP can save a business money and keep morale high.

Benefits of an Effective Sales PIP

When sales representatives consistently underperform, the quickest fix might be termination and a fast replacement. But putting them on a sales PIP is an important intervention that should come first.

So, for managers who want to do as much as they can to improve performance before replacing an underperformer, a PIP is a helpful tool. Here are some benefits:

 1. The improvement of an employee’s performance. Subsequently, an improved performance could lead to increased productivity, revenue, and overall morale.

2. Transparency. A sales PIP, if done properly, will ensure that the employee and manager are on the same page and will hopefully result in improved performance. When the PIP’s timeline ends, the manager and employee must assess whether the specific success metrics have been met. If they have not, the manager has two options.

a) Either they can formally close the PIP and enact a termination, demotion, lateral move, or whichever other consequences were decided upon. Since such eventualities were clearly laid out during the PIP’s development phase, the outcome should not come as a surprise to the employee. 

b) Or, if the employee seems to be making excellent progress despite missing overall milestones, the manager might choose to extend the PIP’s timeline. 

3. Investment from the manager in the employee. Managers must ask themselves whether they are truly invested in an employee’s success, otherwise the PIP may be ineffective from the start. There’s a risk that the employee may conclude that the manager has already decided on termination, and that the PIP is the first step in the process, so they’ll begin looking for other jobs. The PIP is a team effort, so managers also need to put in effort to ensure its successful completion.

Note that misconduct, inappropriate behavior, and poor attitude are not what PIPs address. These issues should be corrected via other avenues, such as disciplinary action or termination.

It is important to fire salespeople with a record of underperforming, to safeguard the overall health of an organization, protect the brand, and limit revenue loss. But it’s important to balance the need for termination with opportunities for improving performance. Especially if the employee is eager to do so.

What Makes a Good Sales PIP

At a high level, sales PIPs must have clear metrics for success and include a timeline. A good starting point for managers is to consider the reasons for an employee’s underperformance. Thinking through the possible issues will help in understanding the employee’s potential, and guide what metrics should be used for the PIP. Once a PIP is signed, both the manager and the employee must work together to execute it. They should have regular meetings to discuss progress, monitor performance, and provide a chance for the employee to request support.

The employee’s role in the success of a PIP includes:

  • Working to deliver on the PIP goals.
  • Taking the lead to schedule progress meetings with the manager.
  • Providing insights on the reason for poor performance, which may suggest the type of managerial support required for successful completion of the PIP.

The manager’s role includes:

  • Understanding and addressing the root cause of poor performance. For example, if a decline in performance stems from lack of training, managers can investigate the possibility of providing official training opportunities as part of the PIP, or assigning a mentor to the employee. If unclear commission and/or bonus structure—or insufficient compensation—are at the heart of the problem, a manager should also investigate this, because it may have implications for the larger team.
  • Keeping morale high. No one enjoys being put on a PIP. The manager should understand that the employee’s morale may suffer, and therefore managers should provide the necessary encouragement. Confidentiality is also critical and the employee must trust the manager to keep the process between just the two of them.

Beyond manager and employee teamwork, PIPS must be S.M.A.R.T: specific, measurable, achievable, relevant, and time-based. An effective sales PIP will be a detailed sales PIP and S.M.A.R.T goals will help you achieve that. 

How to Write/Create a Sales PIP

When an employee has been identified as underperforming, you can begin creating your sales PIP. Before any writing occurs, it is best practice to give your employee a verbal warning. 

Verbal Warning

Schedule a meeting to discuss the nature of the performance issues. Managers should provide specific examples of when the issues occurred and the actions needed to improve performance. In the spirit of working together, the employee should be given an opportunity to respond and provide additional information they believe relevant to help explain the issues. Perhaps the employee is having a personal crisis leading to their underperformance. Any employee information should be taken into consideration. Verbal warnings will be documented together with the employee’s input and kept in the employment file. 

Written Warning

If performance does not improve or is not sustained after the verbal warning, employees will be given a written warning. This will reiterate and specify the nature of the issues, the actions necessary to improve the issues, the timeline to correct the issues and potential consequences if no improvement is achieved.

Written warnings may be of a 30, 60 or 90 day duration depending on the nature of the issues. A copy of the written warning will be maintained in the employment file. Employees should not be eligible for position transfers, promotions or compensation changes while under a written warning.

All written warnings will follow a standard template and be prepared or reviewed by HR before being communicated with an employee.

Sales PIP

The sales PIP will be a formal written document that will be approved by the manager, employee, and HR. The sales PIP can be delivered alongside the written warning, or after depending on the previous employee/manager discussions. The sales PIP should reference the original job description and company quotas and KPIs. No new goals should be introduced on the sales PIP with the exception of any training metrics which will be discussed during the verbal/written warning stages. 

Some important sections to include on your sales PIP include:

  • Role expectations: what is the expected performance of an individual in this role?
  • Areas of concern: in what areas has the employee not met expectations and what is the root cause of the issue?
  • Improvement goals: include a clear description of the goal and what the milestone will look like when achieved.

You can check out a detailed example here. One of the most important parts of a sales PIP is that you assign a timeline. Don’t be vague, “late next week” is not good enough, set an actual date. Be transparent about the repercussions if the goals of the sales PIP are not achieved. 

Templates and Example

Download your sales PIP template here: https://efg78aingat.exactdn.com/wp-content/uploads/2019/08/Sales-PIP-Template.pdf

Conclusion

PIPs work well for sales teams because sales as a function is highly measurable and has clear targets. This leaves little room for surprise in perceived performance and helps in the development of milestones and sub-milestones for an employee who wishes to improve their results.

Still, PIPs are a team effort. Sales leaders should be invested in the employee’s success and investigate ways to support them.

Firing an employee can be difficult, but when all other avenues are exhausted, managers may need to seek a replacement. Managers can also take the opportunity to reexamine their hiring process, which led to the poor hire in the first place. While the cost of training an employee can be cheaper than replacing one, the most cost-effective course of action is getting the hire right the first time.

Sales PIP Performance Improvement Plan

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Firm Keytree Taps Senior Sales Leader for North America Expansion

Keytree Office

Keytree Partners with Peak to Strengthen SAP Toronto Partnership & Drive Sales

For award-winning SAP consultancy firm Keytree, successfully implementing market-leading SAP solutions doesn’t always happen overnight. Sales cycles can be long with the work required to help enterprises simplify and transform complex business processes. It also demands strategy, innovation, and expert client and project management. Yet Keytree, renowned for its SAP innovation, makes the process look easy. 

With headquarters in London and offices in Australia, Spain, Wales, and India, Keytree is the largest independently-owned SAP partner in the UK. Its team of SAP experts around the globe has driven business and digital transformation across a range of SAP solutions for clients that include BP, Barclaycard, Jaguar Land Rover, Heineken, and more.

As Keytree’s Operations Director Carl Walsh explains, the company is now setting its sights on North America to expand its SAP partnerships and drive new business.

“Our immediate focus is maximizing our presence in Canada.” Carl explains. “We see a lot of potential working with SAP Toronto to identify new business and expand our reach across the SAP product stack through successful implementation projects. Our challenge is we don’t have the established SAP relationships in Canada that we have in other parts of EMEA and APAC. We need an experienced SAP sales professional on the ground in Toronto where conversations about new SAP software and re-licensing are happening.”

Partners with Peak to build SAP network in Canada

Without a track record recruiting in Canada, Keytree partnered with Peak Sales Recruiting to hire a Toronto-based sales leader for Keytree’s North America operations.  Says Carl, “We needed a sales leader who not only understands the complexities of the SAP selling environment but can showcase our capabilities across the SAP product stack and drive business in new markets.”

Peak Sales Recruiting got started right away, meeting with the Keytree team to understand the selling environment and the criteria for a successful candidate. To identify top sales leaders, Peak began screening and evaluating candidates through its 4-step sales recruiting methodology – a process that includes behavior-based interviews and role playing, psychometric profiling, and benchmarking.

 In just a few weeks, Carl had top candidates to choose from. “The speed and quality of Peak’s process were very good. Deadlines were always met,” says Carl. “I wasn’t sure if I had provided the right information to the team and in the right way, but I soon realized, Peak understood and delivered exactly what we needed.”

“The key success working with Peak was the team’s fast delivery of thoroughly screened, excellent candidates – each of the top three candidates could have exceled at the job. We had some difficult choices to make,” Carl adds.

After reviewing and discussing Peak’s analysis and evaluating all candidates, Nadim Shamoun was hired as Vice President of Sales.

Canada sales pipeline grows

According to Carl, Nadim was engaged in the business from day one, leading the operations, pre-sales, and sales elements of Keytree’s expansion effort with his sights on building a pipeline of activity to capitalize on.

“We made the right decision, Nadim is the right man for us,” says Carl. “With the nature of our business, it is a long pipeline build and we don’t sell overnight, but Nadim is already actively managing the first phase of our plan. He is on the ground at SAP Toronto, identifying the opportunities, and ensuring the SAP team and the Canadian market are aware of our business and why we are unique.”

Once client conversations progress to deals, Nadim will add a pre-sales role and then business development roles after that. Keytree also has plans to open an office near Union Square, close to SAP Toronto and client prospects.

“We are in the early stages but are making significant progress,” he shares. “We are projecting up to three significant projects this year and will build a team in Toronto of 6-7 people. It always depends on the nature of the project and what we sell – if we sell one big project, it may require 30 people and we would need to ramp up quickly.”

Keytree will turn to Peak again later this year to help hire business development roles. Says Carl, “Through our partnership with Peak, we can execute our business development plans smoothly in Canada and continue to expand across the board in all areas of the SAP business. With Nadim’s hire, we can bring SAP software to life in Canada and the U.S.” 

Are you ready to take your talent acquisition to the next level?  Learn more about Peak’s services or contact us today to recruit top sales talent.

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High-Touch is the Competitive Differentiator, Says Auxillium’s New Executive Director

Auxillium Hires New Executive Director

Peak Candidate Promoted to C-Level Role, Transforms Call Center Ops for Midsize Companies

The days of personalized customer service may be something in the past, but that’s not the case at Auxillium. With a company name meaning “anecdote or aid,” Auxillium’s dedication to helping businesses create exceptional customer interactions through dynamic call center environments is core to its culture.

A subsidiary of Project Resources Group (PRG), Auxillium operates in the global business process outsourcing (BPO) sector – a market projected to exceed $400 billion by next year. The company is executing an impressive growth plan focused on maximizing its competitive edge: dedicated, high-touch service to small and mid-markets.

If you ask Auxillium’s new Executive Director Randy Arellano, the team is already ahead of plan.

Hired through Peak Sales Recruiting, Randy joined eight months ago as Auxillium’s Head of Sales and Marketing. Flash to 2019 and Randy is now in a C-level role running Auxillium’s entire operations.

Randy Hired Through Peak & PRG Teamwork

For the team at PRG and Auxillium, Randy’s move from Sales Executive to C-Level is no surprise. With a goal last year of recruiting a top sales executive to jump start Auxillium’s sales and marketing, the company needed a seasoned pro. The ideal leader would bring deep experience across multiple operational functions to position Auxillium for success in the highly-competitive, rapidly-changing BPO market.

Steve Wychulis, Director of HR for PRG, discusses the talent acquisition search that led to finding Randy, “There were significant expectations for this role. It was critical for us to find an experienced sales executive with in-depth experience in the call center and BPO space as well as someone who understood how to execute our vision as we build our business and leadership team.”

After researching top recruitment firms, Steve chose to partner with Peak Sales Recruiting. “I researched the competitive options in the market very thoroughly,” says Steve. “Peak stood out among the rest for its structured process and methodologies, and its strong track record recruiting successful B2B sales leaders.”

Using a talent acquisition process that includes a 4-step sales recruiting methodology, the Peak team worked quickly to identify, screen, evaluate and present top candidates.  Peak’s methodology determines corporate objectives, identifies the profile of an ideal candidate, and targets headhunting to find the top candidates. For the final step in its methodology, Peak adds scientific assessment – its proprietary P95 assessment method – taking the process one step deeper. Its P95 assessment evaluates candidates’ selling behaviors through three phases of advanced assessment that are critical in determining whether candidates have the sales DNA to perform in a client’s selling environment.

60 days later, Randy was hired as Auxillium’s first sales executive.

“We are extremely pleased to have Randy on board and I’m confident we made the right choice partnering with Peak,” says Steve. “Working with the Peak team was a fantastic experience and exactly what I expected from my research. There was also a lot of great education gained. It was more of a partnership than a vendor relationship.”

New Auxillium Executive Director Puts Plan into Action

Soon after his hire, Randy was promoted to Executive Director, a C-Level role leading Auxillium’s operations.  Steve explains the vision behind the promotion, “Randy’s move to Executive Director of Auxillium was a natural step and this role showcases his deep experience across all operations management functions in the call center and BPO outsourcing space.”

A seasoned and dynamic management leader, Randy has spent more than thirty-five years in the financial services, insurance, call center and BPO industries combined. In the past 25 years, he has helped many of the largest companies in the Call Center and BPO sector develop new business units, build new service offerings, and expand into new markets by leading and directing teams to a high level of success.

“We have an exciting path ahead of us,” says Randy. “I’m honored to step up to the challenge and drive success for our customers, Auxillium team, and our parent company.”

Through Randy’s leadership and strategic focus on the midmarket, Auxillium already has a full pipeline of new opportunities.  “As the BPO market continues to consolidate and automate service delivery, smaller operations have a hard time finding the support they need for their projects. We also know there is a need in the market for customized, high-touch service and that’s where our team shines,” explains Randy. “Our competitive edge is the ability to support smaller call center projects. We are the only call center and BPO solutions provider in our market that can effectively respond to any size project.”

Auxillium provides operational support, management, documentation and consultative processes, working with companies across a range of verticals to design, implement, manage and enhance their customer interaction and data handling environment. The company’s proprietary, structured coaching and techniques process ensures exceptional performance at a smaller scale.

The result? Auxillium helps clients raise their level of operational effectiveness, lower operating costs, enhance the customer experience, and build powerful brands.

As Auxillium executes its growth plan, Randy and Steve plan to work with Peak again. “Working with exceptional business partners like Peak are enabling us to leap ahead of the competition, build our business, and continue to provide the highest level of service to our customers,” adds Randy. “We will definitely partner with Peak again as we grow our operations.”

Are you ready to take your talent acquisition to the next level?  Learn more about Peak’s services or contact us today to recruit top sales talent.

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Eliot Burdett

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