Hiring poor and underperforming salespeople comes with a costly consequence. Mis-hires account for the vast majority of turnover rates (nearly 80%), have a lasting impact on sales team morale, and can cost businesses >$690,000 per hire, including wasted leads and lost customers. For sales executives with aggressive growth targets, failing to hire great salespeople will ultimately determine whether or not these targets are hit on a consistent basis.
The unfortunate reality for business leaders alike is that the majority of managers suck at hiring salespeople. The Corporate Executive Board found that managers think that one in five hires are “bad” or “regrettable”. In fact, a recent survey from DePaul University revealed that 33% of new sales recruits didn’t make it past their first year of employment with a new firm. So why are hiring managers having such a difficult time recruiting and hiring the elite salespeople?
Here’s the 10 reasons your sales hiring sucks and how to fix it:
1. You don’t fully understand the role
Many hiring managers mistakenly assume that every sales role is the same and that any sales person could be successful in that role. They fail to identify the behaviors and selling activities required for a new hire to be successful in the role.
Solution: Map out and list the key selling activities and behaviors required to be successful in the role. For many hiring managers, this means determining whether the ideal candidate needs to be a farmer, someone who can manage and upsell to an existing client base, or a hunter, someone who can actively acquire net new business. Farmer and hunter roles require separate skills sets, experiences, and sales DNA to be successful. Using these 5 interviewing secrets to identify Sales Hunter DNA, a hiring manager can effectively spot a hunter during the interview process.
2. You’re not looking in the right places
Hiring managers and recruiters often begin their search for a new salesperson by posting job advertisements on popular job search websites such as Monster or LinkedIn. This approach is bound to fail since the best salespeople are those who are currently gainfully employed and not surfing job sites. With some exceptions, the vast majority of salespeople who are actively reviewing job boards are likely either poor performers who are not focused on hitting or exceeding their sales targets, or are unemployed because they consistently failed to reach quota. These are not the types of candidates world-class companies hire.
Solution: Headhunt employed salespeople who have reached or exceeded sales targets for the past 5+ years in selling environments similar to yours. Hiring or assigning specialized sales recruiters to develop and execute a comprehensive search that only targets and delivers great salespeople will reduce time-to-hire, accelerate ramp-up time, and mitigate your hiring risk.
3. You aren’t listening in interviews
Since great salespeople only make up a small percentage of the 20 million candidate pool, hiring managers often make the fatal mistake of only selling job opportunities to “A” players, rather than questioning and evaluating the candidate’s competencies and fit in the organization. Particularly with small businesses, hiring managers desperate to hire a salesperson often turn the interview into a sales pitch, where they do all the talking instead of listening and making an objective assessment on the candidate’s skills, experience and DNA.
Solution: Sell the job opportunity during the telephone interview to establish interest among candidates and entice them to continue with the interview process. By choosing to continue with the interview process, they are demonstrating a genuine interest in your company. During in-person interviews, sit back, listen and let the candidate do the talking.
4. You’re hiring who’s available and not who you really need
In a day and age where great salespeople only make up between 10-15% of the total sales population, many hiring leaders are realizing that attracting and hiring the best salespeople takes tremendous time, effort, and resources. Unfortunately, instead of taking time to hire the right sales person, they are exposing themselves and their company to risk by simply trying to fill a seat. When hiring managers are desperate to make a hire, they see what they want to see in candidates and do not look at them objectively – virtually guarantying that they are going to hire the wrong person.
Solution: Develop and implement a talent acquisition strategy that is built upon the principle of “always be recruiting”.
5. You’re not conducting thorough reference checks
The majority of salespeople are expert interviewees since they have to sell themselves to prospects every day. As a result, inexperienced hiring managers are often tricked into thinking that that they are hiring a great salesperson, and that checking that candidate’s references is a waste of time.
Solution: World-class hiring managers know that a reference can, in many cases, be as important as the interview itself. Embrace a reference check process that is scripted and structured and allow for the questions to reveal information that can be put into quantifiable data for a better assessment. The best references an employer can contact are those who were in a management position, equipped with the ability to comment on a candidate’s work habits and selling success, and those not necessarily provided by the candidate.
6. You have too much trust in your gut
The saying “go with your gut” shouldn’t be embraced by hiring managers, but it frequently is. The gut is a non-objective, emotional response to external stimuli that often causes hiring managers to fall to the recruiting ‘halo effect’.
Solution: Use a structured and rigorous sales hiring process that includes a standardized interview process comprised of all the hiring stakeholders. A great sales interview process should contain, at a minimum, three stages:
1st Interview – High Level Qualification: Short interview focusing on the core elements of your hiring criteria. I.e. are the activities performed by the candidate in their current and past positions in line with the role and corporate sales objectives? Are they a hunter or a farmer? What compensation package would the candidate require in order to accept the role?
2nd Interview – Skills and Experience Screening: Lengthy interview focusing on the candidate’s specific skills and experience as it matches against your organization’s needs. I.e. What market segments have they sold to? Have they navigated through a complex, multi-stakeholder sale? What is the average deal size they have sold over the past 5 years? Do they abide by a specific selling methodology?
3rd Interview – Behavioral Interview: Lengthy interview that focuses on developing an understanding of how the candidate acts in a given situation by asking about past examples. I.e. What sacrifices have you made to achieve your sales objectives?
7. You don’t have an effective on-boarding program
Contrary to popular belief, the recruiting process does not end after the offer is signed. If a new hire walks in on their first day to chaos and disorganization, it creates a poor first impression and frustration. Without the implementation of an effective on-boarding program, you can expect the new hire to resign quickly or accept another offer from a competitor.
Solution: A hiring manager must ensure that the new hire’s integration into the company is planned, organized and seamless. An effective on-boarding program, leverages key tools and includes: A welcome plan, training details, and standardized progress measurements. It is built around the following tenants: orientation and training, coaching to success, action plans, and accountability.
For more details on how to implement a successful orientation plan and get your sales reps to start producing results quickly, download the free e-book: The First 90 Days.
8. You have a bad online reputation
Often, the first exposure a candidate will have with your company is online. Hiring managers often neglect the fact that if their organization isn’t known as a marquee brand or their company doesn’t have a professional and attractive online presence, that they can forget attracting “A” level talent. Moreover, if their company has a poor reputation on employer ranking sites such as Glassdoor, they should be prepared for the best candidates to pass on the opportunity, regardless of the compensation or future growth prospects offered.
Solution: Work with the marketing department to establish an online presence that promotes your organization as an ‘employer of choice’. An attractive website that has a dedicated page which communicates your organization’s functions, achievements and growth goals is an easy to way to reinforce the message your company is committed to greatness. Monitoring online reviews from current and past employees, and developing a plan to showcase positive reviews and manage and address poor reviews is another way to demonstrate your company’s commitment to excellence.
9. Your compensation plan sucks
Compensation plays a huge role in enticing already successful salespeople to make a career change and join your company. In fact, most salespeople rank it at the top of their list as the most important factor when debating whether or not to consider an employment opportunity. Too often, compensations plans are too flat, handcuffing top performers and their employers from reaping rewards derived from the right selling behaviors and activities.
Solution: Offer a compensation plan that is at or above market and abides by the following 3 principles:
Simplicity – Simple compensation plans align sales rep efforts with company goals. Complex plans detailing different rates and bonuses for various types of sales activities can cause candidates to be confused as to whether or not they will be set up to succeed.
Short waiting period between activity and reward – Since salespeople are motivated by immediate rewards for behavior, the compensation plan should avoid long wait times between secured sales and commission payouts.
Stability– Many compensation plans are regularly altered by managers in order to generate higher outputs and lower costs of sale. However, it is frustrating for sales reps, in particular, to continually reevaluate how these changes affect their effort and reward quotient. Simply put, successful sales comp plans are stable.
10. You’re not evaluating their DNA
Many hiring managers make their hiring decision based off of experience first and sales skills second, with little to no formal evaluation on the candidate’s personality traits or ‘Sales DNA’. However, different selling environments require salespeople with unique characteristics or ‘sales DNA’, which is one of the most important elements a hiring manager needs to consider, yet the hardest to evaluate.
Solution: Look for key indicators of Sales DNA in your interviews or use third-party psychometric assessments. DNA consists of the sum of the key traits great salespeople possess either through genetics, education and learning, or successful job experience.
To meet aggressive sales targets, your organization requires great sales people. If you find yourself engaging in any of these hiring mal-practices, take a step back and consider the solutions proposed or risk high costs and lost sales opportunities.
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Fans of college sports are no doubt familiar with the Raleigh, N.C. area. The University of North Carolina Tar Heels in Chapel Hill, the Duke Blue Devils in Durham and the North Carolina State Wolfpack are perennial competitors in the NCAA men’s and women’s college basketball tournaments.
And those in the tech community know that Raleigh is part of a world-renowned tech and bio-tech hub called the Research Triangle where leading organization’s like Cisco, IBM, and Glaxo-Smith-Kline have established significant operations.
But, there is more to Raleigh than tech and college sports – much more!
The city and its surrounding areas boast rich cultural opportunities, state-of-the-art research and development facilities, leading academic institutions and state and local government determined to attract businesses to the area.
With all the elements necessary to support a thriving business community, Raleigh has become one of the most desired places for CEOs and VPs of Sales to build their sales team and for salespeople to look for new career opportunities.
This has created a sales hiring and recruiting landscape that is changing at a rapid pace, with competition over top performing salespeople heating to levels not experienced since the late 1990s.
The Raleigh Landscape – An Overview:
Equal parts college town, state capital, economic engine, and R&D hub for many industries, Raleigh fulfills all those roles with ease. However, it is difficult to talk about Raleigh alone.
The city is part of the famous Research Triangle, so named decades ago to reflect the research prowess of the region’s three major universities – North Carolina State University, Duke University, and the University of North Carolina.
The building of the Research Triangle Park (RTP) in the 1950s cemented the area’s reputation and led to the rapid growth of another city in the area, Cary, N.C., which is close to RTP.
Today, the Research Triangle remains a key driver of economic growth for the region as one of the most successful hubs for research supporting new technologies and biotechnology. It is arguably the reason why North Carolina is named #2 out of 50 on Forbes’ list of Best States for Business.
That fact alone would be enough to generate strong growth in sales jobs, but other industries are also drawn to the region. Newsmax indicated that the top 5 industries in North Carolina in 2015 included aerospace and aviation, automotive, biotech and pharmaceuticals, energy, information and communications technology. This diverse business mix is generating attractive opportunities for sales professionals.
Finally, the area is also a hotbed of entrepreneurial activity for sales professionals interested in working for small, but high growth companies.
Not surprisingly, the Research Triangle attracts some of the best and brightest talent from throughout the U.S. and around the world. This a key reason why companies of all sizes, both new and established, are drawn to the region.
As a result, the city and surrounding areas boast strong salary levels and increasing competition for the best sales talent. For example, Peak’s requests for senior salespeople from technology and professional service organizations in Raleigh has exponentially increased over the past five years.
“Raleigh is one of the nation’s best places to start a business because of the wealth of intellectual capital, low cost of doing business and the incredible lifestyle the area has to offer,” said Jesse Lipson, vice president and general manager of workflow and workspace clouds for Citrix Systems, which has significant operations in the area.
In Raleigh, sales opportunities are abound. The city and Research Triangle are home to the headquarters of two of this year’s Fortune 500 companies (Quintiles Transnational Holdings in Durham and The Pantry in Cary, which has since been acquired). In addition, the privately held SAS Institute, with 5,200 employees, has been an anchor of RTP for many years.
Global companies looking for an ideal site for their U.S. headquarters also frequently turn to the area. As a result, companies that include GlaxoSmithKline, Syngenta, Bayer Crop Science, ABB, BASF, and Novozymes all have their U.S. headquarters in the area. CBC Americas and Merz Pharma Group are among the latest companies to decide to move their headquarters to the region.
Other major companies, like IBM and Citrix Systems, also have a significant presence in the area. “One of the great things about our Research Triangle Park campus is that every single unit of IBM has a presence here,” said Fran O’Sullivan, general manager for IBM systems strategy and operations. “When our clients are using Watson (artificial intelligence computer system) in the cloud, it’s right here in RTP.”
Mid-size companies, including technology company Red Hat Inc., also have their headquarters in Raleigh. North Carolina has “world class infrastructure, world class research and good leadership,” said Mark Yusko, founder and CEO of Morgan Creek Capital Management. It has “all the makings of a great tech scene, but it is still emerging.”
The lifestyle is another plus that resonates with many companies and their executives. The area offers plenty of cultural events— from the North Carolina State Fair in autumn, to concerts and music festivals year round.
In addition, the North Carolina Museum of Art anchors a strong line up of museums in the region. “It’s a dense and growing area with lots of alternative music, lots of alternative lifestyles and that tends to breed a pretty high-tech culture, a designed-focused culture, which is what we look for in our team.” says Tobias Dengel, CEO of app developer Willow Tree which recently opened an office in the area.
Put all this together and it is no wonder that Raleigh has been a mainstay on the “best” lists for more than a decade.
Most recently, Glassdoor ranks Raleigh as the best city for jobs with more than 24,000 job openings and a median salary of more than $50,000. Numbers like these underscore the various opportunities for sales professionals looking for a career in Raleigh.
Moreover, Forbes magazine rates the city as the second best place for business and careers in the country, which further demonstrates the city’s viability as a top business hub for organizations today and into the future.
What is Driving Growth?
Raleigh’s success has not been an accident. State and local governments have worked to nurture a business-friendly climate. The state provides incentives to attract companies to the area and for companies already in the area to expand existing operations.
For example, Evalueserve, a research and analytics company, recently received incentives from the state’s Job Development Investment Grant program to create 400 new jobs in Wake County by the end of 2017. Such programs are one reason why Chief Executive magazine rates North Carolina third out of the 50 states for business.
As for future growth, researchers point to three major industries—health care, professional services and construction—as the drivers of job growth and these projections are showing signs of coming true.
NC State’s employments statistics revealed that the top industries their MBA graduates begin their career in included consumer products, technology, consulting, and pharmaceuticals, biotech and healthcare.
The latest data from the U.S. Bureau of Labor Statistics also shows employment growth in these industries in the Raleigh/Cary area, while mining and manufacturing contract. For sales professionals working in/or targeting those industries, opportunities are plentiful and likely to remain so for the foreseeable future.
Meanwhile, a study of technology job growth puts Raleigh in second place in the number of technology jobs (38,853) created between 2004 and 2014, a growth rate of 62.3 percent. STEM job growth increased 39 percent over the same time period to create 49,593 of these jobs.
Bayer Crop Science is just one example of a company expanding in the area. “We’ve spent about $78 million over the last couple of years and more than doubled the size of our footprint,” says Jim Blome, the company’s CEO.
This expansion includes a $33 million headquarters renovation and a $27 million state-of-the-art greenhouse to support the company’s research and development efforts. The company is also developing a strong sales force. For example, Bayer Crop Science’s 12-month Commercial Excellence Leadership Program is available to promising new employees in sales, marketing and general management.
Start-ups
Entrepreneurial activity is also strong in Raleigh and its surrounding areas. Raleigh and the Research Triangle area routinely land on the top 20 lists for attracting venture capital.
A recent report from the region’s Council for Entrepreneurial Development found that the Research Triangle attracts the vast majority of venture capital in the state of North Carolina. Of the 90 venture capital deals completed in the state during the first half of 2015, 74 involved companies in the Research Triangle area—24 deals in Raleigh, 21 in Durham and 14 for companies based in Research Triangle Park.
Since many sales professionals enjoy the challenge of meeting competitive quotas in a start-up environment, the strong entrepreneurial activity in Raleigh will attract those seeking careers in non-corporate environments. In fact, late stage start-ups looking to recruit senior sales professionals with experience in entrepreneurial environments has doubled in Raleigh over the past two years.
Overall, the state attracted more than $426 million in venture capital during the first half of 2015 for life sciences ($268 million for 26 deals), technology ($114 million for 48 deals), advanced manufacturing and materials ($34 million for ten deals) and clean tech ($9.7 million for six deals). This represents a 70 percent increase in venture capital secured compared to 2014.
There are other types of investments occurring as well.
In the RTP, the Alexandria Center for Science, Technology and Agriculture is about to launch the first phase of its development. This includes the MedBlue Incubator, which focuses on investing in and developing the science and technology from the departments of surgery, pathology and anesthesiology at Duke University Medical Center.
There will also be an accelerator called LaunchLabs that is currently nurturing nine start-ups. This facility joins more mature venture capital firms, accelerators and other entrepreneurial infrastructure in the region.
Google Fiber’s investment in ultra-high-speed fiber optic network in the Raleigh-Durham area is another sign of the area’s importance. “It’s huge,” said Chris Heivly, co-founder of The Startup Factory in Durham. “It is another big validation of everything that is going on in the Triangle. Google obviously sees what we see: a vibrant and intellectually curious community poised for great things.”
Others agree that Google Fiber represents “a new frontier for innovation in the Triangle” said Adam Klein, chief strategy officer for American Underground. “There are industries, companies and jobs that will be founded on this infrastructure that don’t exist today – much the same [as] when the smartphone was created.”
All of this activity is beneficial to entrepreneurs, however challenges remain.
According to research from North Carolina State University’s Entrepreneurship Clinic, talent acquisition is one of their top challenges, along with gaining access to capital, dealing with competition and finding new customers. Even so, they remain optimistic with 81.1 percent anticipating an increase in sales and 56.7 percent expecting to add to their workforces.
Raleigh’s Challenges:
Like any city, Raleigh is not without its challenges. Given its growth prospects, there are concerns that the flow of qualified new graduates will not be sufficient to meet future hiring needs. (For more on how hiring managers can attract millennials to join their sales team, read this Forbes article).
More specifically, with growth in well-paying technology and STEM jobs projected for the area over the next several years, there is concern about whether the region will offer enough qualified candidates to fill those jobs.
To address this for the future, the state has developed a “STEMAccelerator” program.
“High quality STEM education is critical to North Carolina’s future prosperity,” says Gov. Pat McCrory. “To address the gap in education and workforce needs, we must provide resources and support for teachers’ professional growth – especially in the critical areas of science and mathematics.”
There is also concern about graduation rates at the Research Triangle’s key universities. “If native North Carolinians are going to be competitive for future jobs in our state, our universities must not just successfully enroll students, it must successfully matriculate and ultimately graduate them” noted the Predicting North Carolina’s Job Market in 2020 report.
For example, graduation rates after four and six years need to improve across the board. The report noted that the University of North Carolina at Chapel Hill, which offers a Bachelor of Business with a major in sales, is one of two of the only public universities that graduate more than 50 percent of their first-time, full-time freshmen in four years.
UNC-Chapel Hill and North Carolina State University, which offers an undergraduate and graduate degree in Business Administration, are the only public universities to graduate more than 70 percent of their first-time, full-time freshmen in six years.
“This failure represents not only an expense to the state’s taxpayers, but also lost opportunities for these students to compete for employment in the job market with more educated in-migrants,” the report concluded.
However, there is opportunity for sales leaders looking to recruit junior salespeople in Raleigh. There are several sales specific programs offered in the city’s central and surrounding areas that allow students to build sales specific skill sets.
For instance, 28 and 75 miles from Raleigh are the University of North Carolina: Kenan-Flagler Business School and North Carolina A&T State University. Both institutions were ranked among the top universities for professional sales education in 2013. In fact, NC A&T State’s School of Business offers a marketing program with a concentration option in sales for marketing students looking to enhance their sales acumen.
Impact on Sales Salaries and Compensation in Raleigh
If jobs in Raleigh are all about skills, employers have to be willing to pay for those skills. Unemployment in the Raleigh (4.7 percent) and Durham (4.9 percent) areas has remained steady over the past year and now stands just below the national rate.
Still, Raleigh led the state in job creation in September 2015 with 3,000 new jobs. This recent growth in jobs represents a window of opportunity for sales professionals and employers interested in relocating to a growing region with a great deal of opportunities.
Looking more closely at wage data provided by the U.S Bureau of Labor Statistics, employers can get a more nuanced view of the occupation as whole in the city.
Looking Ahead
As long as technology continues to drive growth in the U.S. and broader global economy, Raleigh and its surrounding area will continue to flourish. Even as companies expand and contract or become part of a larger organization through a merger or acquisition, chances are excellent that a new, growing organization will take its place in the area.
If there is anything that might stand in the way of Raleigh’s continued success, it would be the region’s ability to keep up with the demand for top talent and specialized skills required to sustain the growth of Raleigh’s employers.
Attracting and retaining a strong workforce, including key sales positions, could require greater effort for companies in this region. However, Raleigh has proven that it is a magnet for migrants moving in from other states and countries. That, along with the excellent array of colleges and universities in the area, makes Raleigh a good bet for continued success.
There are many sales books that help develop selling skills and provide inspiration. Few, however, focus entirely on sales management and Mike Weinberg’s latest book, Sales Management. Simplified., does just that.
Packed with actionable advice and hard-earned sales wisdom, the book reminds its readers to go back to the basics of sales management and focus on what really matters – leadership. Ultimately, the book is a common sense prescription for building and managing high performance sales teams, with no silver bullets, short-cuts, or fads – it’s blunt and reinforces the idea that less is more.
Peak Sales Recruiting’s CEO and Co-founder Eliot Burdett caught up with Mike to discuss what effective sales leadership means, causes of sales team underperformance, sales compensation as a motivational tool, and, of course, sales recruiting.
Mike, what was your inspiration for writing Sales Management. Simplified.?
I did not want to write this book, I felt compelled to write it. I was tired of being called into companies by senior executives to fix their “sales problems”, only to discover that it was a leadership problem. It was out of utter exasperation and frustration with senior executives, who don’t understand sales management or bury sales managers in all kinds of crap, that I felt like I had to write this book. I was compelled by the various messes sales managers and executives often found themselves in.
When I first got into consulting, I was young and naive and thought if I coached everyone to sell like me that I could transform sales performance and change companies, but, I was wrong. I learned the hard way that you do not transform sales organizations from the bottom by training and coaching enough sales people; you have to deal with leadership and culture. If you do not deal with these two things then you do not transform anything. As a result, I felt like I had to get my frustrations off my chest and write this book.
Eliot: I always joke that when I was younger I made every mistake in the book and then some. If most people who read your book are like me, it will take them back to their early years and cause laughter and probably some cringing. I love the stories you go through including the different influential people you’ve met and the experiences you’ve been in. I liked your saying “as goes the leader so goes the organization”, the level of a sales team rarely ever exceeds the level of the sales leader. It really is a powerful quote.
I was mentored by some really great people, and one of the favourite expressions I came across was: “If it’s broken at the top then it’s broken and the team will never do better than the leader.” As most sales leaders spend their time living in reactive mode, cleaning up messes, sitting in corporate meetings, and doing everything but high value activities, they ultimately model that same behavior for their sales people. People ignore the fact that sales managers or executives of small companies are key leverage points for growing sales. Too often, time and money is spent training salespeople but none is spent on upgrading the sales leader – no wonder why executives are routinely frustrated with the sales team.
“If it’s broken at the top then it’s broken and the team will never do better than the leader.”
The book is a model for how organizations can overachieve and drive continual sales performance. What would you say are the top causes of inferior sales performance and team under performance?
My first book has a chapter dedicated to the ‘not-so-sweet’ 16 reasons salespeople underperform: they can’t tell the story, they live in reactive mode, they babysit their existing customers, they don’t run good sales calls and, they don’t know the customer’s calendars.
Due to the popularity of that chapter, I decided to dedicate the entirety of Part One of Sales Management. Simplified. to laying out the leadership reasons that sales teams underperform. That’s why Part One is so brutal; it’s very transparent about the challenges sales leaders are facing today.
It’s packed with stories about real executives, managers, and companies who have been struggling to drive revenue. Now, there are a ton of reasons as to why sales teams underperform, but, if I had to give you a couple, I’ll start with the big ones: 1) The one size fits all approach to sales talent management and sales compensation. 2) The reality that sales managers across verticals are being distracted and diverted from their primary job because the company buries them with the wrong activities and does not truly understand what the sales leader should be doing.
Sales compensation is a huge issue, and as you can imagine it plays a large role in enticing people to make a career change. In spite of some of the popular research that would argue otherwise, our experience tells us that great sales people rank it right up at the top of their list when deciding whether or not to listen to a new opportunity. So let’s start there – what are the top issues with sales comp plans today?
I think there are a couple of big issues. Generally, these issues arise because the compensation plan does not drive the desired behaviors and results that executives want them to. It boils down to the two big compensation plans sins: 1) The plan is too flat, meaning there is very little difference from what top and bottom producers earn. 2) Compensation plans are not structured correctly to motivate reps to perform the right activities and behaviors that drive sales results.
Let’s start with the first issue – comp plans being too flat. Unfortunately, plans like these accomplish the exact opposite of what compensation plans should. Executives and senior sales leaders should be overcompensating their best people – this is assuming that their behavior drives results and not just care-taking a territory that was going to produce whether they got up in the morning or not. And since there is such a shortage of “A” players, the last thing sales leaders want to do is have one of their top producers question whether they are appreciated; so the goal should always be to overpay top people for what they produce, and create a discomfort for those who are underperforming because they should be hungry, uncomfortable, and embarrassed. The goal shouldn’t be for underperforming salespeople to live on what they’re taking home if they are not producing – the compensation plan should be structured to force a change in behavior to drive better results, or force the rep to quit and go fail somewhere else.
So when there is not a big enough earning delta between the top and bottom, you cause the best people to think about leaving which is the last thing sales leaders want.
“the goal should always be to overpay top people for what they produce, and create a discomfort for those who are underperforming”
Eliot: Do you think that some of these compensation plans are an intentional effort to create equity across the sales team?
That’s a brilliant question but I really don’t know. I think that there are some politically correct, egalitarian people designing comp plans that prefer when everything is the same because they don’t understand sales. The unfortunate reality is that not enough thinking goes into how the plan is designed, and how powerful it can be.
I see a lot of plans that don’t move ‘the needle’. Plans should incent the rep to behave a certain way and a lot of plans fail to do that. For example, let’s look at commission. Commission is only commission when it is earned and, unfortunately, a lot of times commission is in name only.
A few years back I had a client where a big part of their revenue was a consumable product. New reps would only have to do the hard work to find a large buyer of the consumable, then for years and years rely entirely on the revenue derived from this customer to hit their sales number. The truth is that if the customer was having a great year and production levels were good, whether that salesperson did anything or not, he or she was going to earn a fat commission check since that company kept buying the consumables. A compensation plan like this creates a big disincentive to sell; it gives the sales rep no reason to move ‘the needle’ if they can get away with doing nothing but babysit customers.
The second point that needs to be made about effective sales compensation is that a dollar is not a dollar when it comes to commission. I have no idea why so many companies pay the same commission rate for a sale to a customer that was acquired years ago – which only requires salespeople to babysit that account – and the same rate to the salesperson who puts in the hard work to acquire a new customer. The logical question sales leaders need to ask themselves when structuring their commission plans is: Why would my rep go the distance to do the hard work of hunting, when they can babysit and get fat, dumb, and rich off their client base?
I’m not saying to not serve existing customers, but why would anyone want to do the hard work when it does not pay any more money? The challenge for sales leaders is to think of this problem at the simplest level: What would happen if they overpaid for new business and, over time, reduced the commission to provide incentive for reps to hunt so they could not reap the rewards off the new customer and be forced to go out and find new business?
Eliot: I couldn’t agree more. At Peak, we see a surprisingly high number of comp plans that are overly simplistic and appear to have been an afterthought in terms of their ability to drive sales results. Surprisingly, there are often eureka moments when we walk through comp plans with our customers and they realize that their comp plans don’t necessarily incent the desired results.
I tell this story in the book. I was getting ready to talk to a group of about 15 business owners that met once a month. I was putting a PowerPoint slide together about compensation and complacency and I typed in compensation and complacency into the slide and it hit me like a ton of bricks: they start with the same 4 letters! Nobody ever talks about that but if you have complacent sales people you should start to look at your compensation plan. This is as blatant of a tie-in as it gets, and yet so many executives don’t want to go there – they don’t want the hassle or HR risks.
Let’s talk about the one size fits all approach to sales recruiting and hiring:
We were all made differently; we all have different DNA – some of us are wired to kill, care, be detail oriented, problem solve, and/or manage. It is rare to find all those gifts and talents in one person, and yet at so many companies have oversimplified the sales role where one person does everything. My argument is that this approach creates a very miserable average.
The best story I can give you is from my own career. I was the #1 person selling 3-4 more times than what other salespeople were because my manager looked at me and said, “you’re a good hunter but you’re pretty awful at this whole project management thing. You’re one of the few guys that knows how to go out and actively acquire a new customer, so we’re going to put an incredible team of support people around you. These people will strictly manage the ongoing customer relationships so that you can spend 80% of your time hunting – not 20%.”
So, if sales leaders were to take a rep who’s wired like a hunter and quadruple the amount of time they could spend prospecting, making friends, getting on airplanes, doing inside or outbound sales, what do you think would happen to results? What would happen if the sales leader took the very few good hunters they had and freed them up to do what they’re best at?
Now everyone likes to talk about hunters and farmers, but I talk about hunters and zookeepers. You have people who are wired like zookeepers – they love to nurse the baby animal, pet them, feed them, clean the cage, and spend time nurturing the animals. What if you tell that person that they spend too much time with animals? What if you were to go on and ask them to go pick up a rock and go kill an animal out in the field? People with these instincts do not succeed at these tasks for a simple reason – they hate it. They are not wired like that. They hate the conflict, they hate the risk, and they don’t want to pick up a weapon and kill. They are nurturing, caring, supportive, and do an awesome job when you give them the opportunity to care for the animal.
So imagine if executives actually took the time to properly evaluate their sales team’s DNA and assigned people to tasks that they were gifted at. When that happens, everyone wins – the sales person wins and the company wins since they operate in their area strengths.
What would happen if the sales leader took the very few good hunters they had and freed them up to do what they’re best at?
Eliot: The majority of the projects that we would take on are for hunter roles. Companies come to us because it is very difficult to find individuals that possess that specific skill set AND have an incredible track record in selling. We are very familiar with the DNA of that person and how different it is from a farmer, or as you call it, a zookeeper. You don’t have to spend a long time in sales to be able to determine whose DNA is more for nurturing relationships, as opposed to the hunter who needs to kill to feel that adrenaline. Try putting the zookeeper at desk and ask them to make cold calls… it’s like they have broken arms – they just won’t do it. It’s something that we see a lot and is a huge challenge for companies and sales leaders with aggressive sales targets.
That’s why Peak Sales Recruiting is so important – recruiting great sales talent is no easy task and it takes specific expertise to recruit the best. In fact, I just finished with a local client and we needed a hunter to join the sales team. I told them that they needed a search firm. They/we needed a firm that was going to do the job right, because there are no unemployed good hunters – they are incredibly rare. My client needed someone who understands recruiting, and how to find and attract a candidate who is not actively looking for new opportunities. I’m a huge fan of search and recruiting when done properly because there is nothing more important than getting the right talent, particularly when the requirements are so specific.
While we are on this line, you said that there is a sales talent shortage and you talked about the ratio between ‘A players’ versus ‘non A players’ on a sales team. Can you speak about why great hunters are so rare?
I’m a little confused myself. My gut tells me that, for the most part, when you look at the last 25 years in business, we have mostly had good economies. If you take out the internet bubble burst in 2000 and 9/11, and the slow down as a result of that, we’ve had a great run through the 90’s and most of the early 2000’s (mostly fuelled by the housing bubble that didn’t burst till 2008). If you take those bubbles out (finance bubble, internet bubble), I think the economy has been strong. So many sales people benefited from being in a strong economy or working in a ‘hot’ industry, that you could be a zookeeper or a farmer and do really well because nobody needed you to hunt. So, nobody realized that you weren’t a salesperson; you were great at managing, or because you were relational, knew your industry, or product, you got by. And it wasn’t until the ‘tide’ went out and you were standing there naked and no one was calling you anymore to buy something, that sales leaders realized that these people weren’t going to hunt.
So maybe it’s always been a certain percentage of hunters that were always ‘on top’, but I don’t know that sales leaders really understood the difference between reps when things were good and everybody had enough business. So when things got bad, the smoke finally cleared and the contrast between the good, great, and bad sales people became blatantly obvious.
There is a lot of truth to what you are saying. So how can companies do a better job at attracting the right sales people?
When recruiting, you promote the fact that you have a healthy, pro-sales culture. You promote the fact that the company has a leader who wants each member of the sales team to be successful, and who is more interested in making others a hero instead of being ‘the’ hero. You also promote the fact that there is a great comp plan that is structured to reward people for great performance. I mean, let’s be honest, that’s the reason that most people leave their jobs: they don’t like the plan, manager, or culture. Culture is huge; you cannot overstate the power of a pro-sales culture versus an anti-sales culture.
Why is sales culture so powerful?
Because it is the ingrained behaviors and attitudes of the whole sales organization, it flows down from the top, and is almost impossible to change. Unless you change the people, you cannot change the culture.
In my early career, I only worked in healthy pro-sales cultures. I did not know there were things such as an anti-sales culture until I went to work at a little tech company and discovered that my life was very bad. They did not understand sales, the emotion of a salesperson, and the environments where salespeople work well and excel. It took a few consulting engagements on my own to realize that a healthy sales culture is more rare than I ever imagined. There are a couple different chapters in the book that unpack the elements of an unhealthy sales culture, and in one chapter in the second half of the book, I take the time to describe this one company that had the single most healthiest culture that I have ever seen.
So if i’m running my company or sales team and thinking that I have to make sure we have a pro-sales culture, what are the top 3 things I have to make sure I’m doing?
I think one of the biggest detractors in a sales culture is a high ego “sales expert senior executive” who is either the founder or really involved in the business at the “micro-manager, control-freak” level. This is the founder who has not let go, even though his company is still producing revenues in excess of $40M. He still wants to see call reports from all 15 sales people; not just sales reports, pipeline reports, but activity reports. Even if there is a vice president of sales, the owner or founder can’t or won’t let go. It is the same guy that comes to sales team meetings and pontificates and tells you what to do and how to do it, and this is the same high-ego idiot executive that comes into meetings with customers and brags about how smart he is and says stupid political things. This is the guy who tells you to ask a lot of good questions on sales calls but when you take him in front of a customer he’s talking 80% of time about benign or in appropriate things.
As sales people read this article or my book, they applaud because they are thankful that I would say this. So part of the sales culture problem is the guy at the top is clueless; he’s an ego manic and needs to let go. It is the biggest destroyer of sales morale you can imagine. So, the biggest factor in a great sales culture is having an executive that is pro sales and who is committed to helping the sales team. He or she needs to invest the time mentoring the sales manager to spend time on the right things. At the end of the day, it is the executive who changes everything!
“part of the sales culture problem is the guy at the top is clueless; he’s an ego manic and needs to let go.”
So how should the sales manager/leader spend his or her time to create the sales culture that everyone wants? I would argue that the 3 most powerful ways to create a pro-sales culture and a high performing sales team are 1) The manager needs to meet one-on-one with his or her people regularly. Accountability and coaching meetings are absolutely critical and it’s usually not happening enough! 2) Conduct productive sales team meetings. Too many meetings are about operations and have nothing to do with sales, and the sales people are often permitted to show up late and with bad attitudes. 3) The sales manager has to get out from behind their desk and stop living with their head buried in the CRM screen and in spreadsheets. They also need to stop managing people by email. They need to get out of their office and sit with the sales team, and spend time with their team on the front lines.
Effective sales managers debrief after visiting with prospects to discuss what the sales rep did well and what could be done differently to be more effective next time. The best sales managers focus on the results of their reps and ensure they hold them accountable. They are committed to coaching their reps on the skills required to penetrate accounts and close deals.
In your book, you outline the format for effective one-on-one meetings and sales team meetings. What are the elements sales leaders need to focus on?
Instead of talking about nonsense, leaders need to start with results – what was added to the pipeline and what was moved? Then, talk about activities if the results aren’t there. Sales leaders really have no choice but to ask about activities if their reps aren’t producing. And, I don’t take credit for this, but my old sales manager and my good friend, Donnie Williams, modeled that for me when I worked for him and it was the best thing that I have ever seen. He would come to my office, go through my sales results and ask why they weren’t better. And if they were not stellar then we would look at my pipeline and he would ask why I did not close certain prospects. He would ask targeted questions about my approach, and ask what I had in store for the upcoming month and remainder of the quarter. So, the formula for effective one-on-one sales meetings is simple: Focus on results, then pipeline, then activity. Nobody can accuse a manager of being a micromanager if you start with results, pipeline, and activity levels since nobody wants to be asked how they manage their time.
“the formula for effective one-on-one sales meetings is simple: Focus on results, then pipeline, then activity.”
You mention mentors and their impact on your selling career. Talk a bit about the importance of mentoring from a sales context.
I don’t know if I could put a quantitative value on how mentors have impacted my life. From my dad, to the CEO of Slim Fast, to my first sales manager; these guys invested in me, worked with me, talked business with me, modeled behavior and then held me accountable. We all need mentors, whether it’s in your personal, spiritual, or business life.
Imagine if a newly married couple had an older couple with a healthy marriage around. A couple that they could watch to see how they interacted with each other and how they live life. Imagine the benefits the couple would realize; it would be huge! It’s the same thing in business. What’s sad is in the name of being lean, so many companies have decided that everyone should do three jobs, which is why so many sales managers are dying. Companies today are making the sales manager do so many other things that have nothing to do with sales leadership, like conducting product reviews or being apart of meetings that sales really has no business participating in. At the end of the day, the sales leader can’t even breath – they have 250 emails to return and don’t have time to mentor anybody. But when they get yelled at for unreturned emails, what do you think they’re going to be spending their time doing?
One of the things you mentioned is that the best mentors hold their reps accountable. Do you come across organizations that tolerate perennial underperformance from their sales people? Why is that a problem?
Not a lot, but enough. If you let a rep who’s not delivering stay around for forever, then you’re missing out on results that someone else could be delivering. The other issue is that you damage the sales culture by communicating to everyone else on the team that it is okay to fail here.
Unfortunately, I’m often brought into companies that have ‘niceness’ issues – they’re a family business, they have no turnover, the ownership is generous… now don’t get me wrong, these are great aspects, however, sometimes the leaders of these companies act like more of a charity than a business. So when I have to get a point across to a president, I’ll ask how many months in a row they would you let their controller be late with financial statements and tolerate them being inaccurate. Everyone of them says “I need accurate financials every month. I’d have zero patience for this.” OK, so you have no tolerance for under performance from your accounting department, so how come these six sales people out of your 12 have never hit their goal and they still work here?! They aren’t on a plan and nobody’s coaching them up or out and the executive never has an answer for that. Why is it OK for your salespeople to fail and not the accountants?
The argument I would make is that everyone else’s livelihood in the company is dependent on very few salespeople doing their jobs because nobody else creates revenue. It is exactly the reason why companies need to only recruit top performers. I am the last guy that wants to fire people and I’ve lost sleep over it since letting people go is hard. But, if you are managing people like I talked about in the book, and you have one-on-one meetings, and you’re clear on goals and results, and you publish sales results for the entire team to see, the rep shouldn’t be surprised when they are called out for missing their number. The sales manager needs to frame that conversation in a certain way – something like: “Hey Joe, you know why we are having this conversation – your results are not acceptable. Right now I am going to help you put a plan together to change that. We have 60 days to turn this around and we cannot keep you here if this is the level you are going to produce.”
I talk in the book how to remediate and coach up/out an underperformer, that is, if you think that they’re a keeper. This requires a lot of energy from sales managers and, in fact, I have a client right now that I’m instructing on how to coach up a rep who has not been hitting targets. They’ll know in 60 days whether or not the rep is up to the task. Having this type of conversation with a rep is not an emotional kind of conversation, it is a legitimate business conversation. Unfortunately a lot of managers don’t want to deal with it and put it off until its too late, and then they have perennial failure.
There is a concept in your book about the professional vs amateur sales manager. What is the difference between the two?
Think about amateur salespeople. Amateur salespeople are not coached, so, the same logic applies to sales managers. You see a ton of new sales managers making it up as they go because they have no idea what good sales management looks like since they grew up in an era where nobody showed them. Once CRM systems and email became popular, a lot of sales management best practices were thrown out the window, which is why you could call this book ‘old school’. Once sales managers put the principles found in Sales Management Simplified into practice, they realize the benefits of sticking to the basics and keeping it ‘old school’.
Peak Sales Recruiting would like to formally thank Mike Weinberg for taking the time to share his unique insights on effective sales management. Click here to learn more about Sales Management. Simplified. or if you are interested in purchasing the book, and we recommend that all sales managers do, click here.
About Mike:
Mike Weinberg is a consultant, sales coach, speaker and author on a mission to simplify sales. His specialties are New Business Development and Sales Management, and his passion is helping companies and individuals acquire new clients. Prior to launching his own firm, Mike had been the top-producing salesperson is three organizations.
Forbes, OpenView and several other publications have named Mike a Top Sales Influencer.
Mike is also the author of two Amazon #1 Bestsellers. His first book, “New Sales. Simplified.” – The Essential Handbook for Prospecting and New Business Development, spent a full year as the Top-Rated book in its category. And his latest book, Sales Management. Simplified. is being called “arguably the greatest book ever written on sales management, and an unequaled blueprint for leading salespeople and building high-performance sales teams.”
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.
Peak conducts tens of thousands of sales interviews a year. The majority of candidates with whom our interview teams meet with are ambitious, capable, diligent, and accomplished professionals looking to advance their career. And quite simply, honesty is profitable. However, from time to time, we come across those candidates who are inclined to bend the truth about their career accomplishments.
Furthermore, some candidates are remarkably good at lying and if it weren’t for a series of useful tests and tricks we employ, they might slip through our process undetected. Luckily it is easy to spot most liars since they overconfidently assume they are smarter than the rest of us and that no one is on to them – arrogance is usually pretty easy to catch.
That’s why our assessment team offered to share the five most common lies they hear in interviews, what they actually mean, and how interviewers can extract the truth.
1. “I was laid off but it had nothing to do with my performance”.
Real meaning – My previous employer didn’t feel I performed well enough to keep me on the team, but was kind enough to lay me off rather than fire me. It is almost always about performance and employers rarely part with a performer without a fight. (Related lie – I was on contract and left because the contract ended.)
How to get the truth: Request the candidate’s performance metrics over the past 5+ years.
2. “I can’t use my previous manager as a reference because I am not sure where they are now.”
Real meaning – We didn’t have a strong relationship when we worked together and still don’t. Previous employers offer significant insight into what it is like to employ a candidate.
How to get the truth: Request the candidate to provide you permission to contact other members of their sales team to describe their experience with the manager.
3. “I wasn’t able to be successful at my last company because the company didn’t support the sales team.”
Real meaning – I need the sun, moon and stars to line up in order for me to make a sale. Top performers let nothing get in the way of closing business and don’t have time for excuses.
How to get the truth: Request that the candidate describe how they have successfully overcome challenges in their sales career. Be on the lookout for patterns in their ability to meet or exceed their sales targets in previous roles.
4. “My career is not about the money.”
Real meaning – I don’t know how to make money or how to negotiate a good compensation package. Businesses exist to make profits and people work for money. Anyone who says it isn’t about the money probably doesn’t have much. Except in rare instances, it is about the money.
How to get the truth:Ask why the candidate is in sales. Ask about their lifestyle outside of the office and if they would take a pay cut to join your company.
5. “I worked for my wife’s consulting business for a year and a half.”
Real meaning – I interviewed for a year and a half, but couldn’t find employment, so I have put my wife’s home business on my resume to fill the gap. This is not a lie if candidate successfully closed several thousand deals and made his wife a millionaire.
How to get the truth: Ask the candidate why they are still not interested in working for the business.
If you have other lies you have seen, please post them below and we will be happy to share them with our readers.
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.
We are living in a time of information overload. With no shortage of internal and external data, sales executives need to carefully choose the data and information they use to make sales management decisions and determine strategy. Otherwise, they risk getting overwhelmed with too many data points that could hinder a focus on what is truly important to success.
As every sales executive knows, a strong and effective sales force is a constant work in progress that must be carefully managed and monitored. Therefore, the data required to manage the sales force is likely to evolve with business needs and priorities. Moreover, the exact array of data that will be most helpful to sales executives is likely to vary depending on the situation and from business to business and from sales organization to sales organization.
Therefore, choosing data to track and analyze is not a one-time occurrence but something that, like the sales force itself, requires careful management. In general, this data will fall into two categories: (1) internal data gathered from new or existing data systems and (2) external data, including industry trends and economic data and statistics.
Finding the Right Data
When it comes to finding the right data with which to benchmark sales organization performance, there is plenty to be had. Some of it is free but more of it comes with a cost. For the purposes of this article, we will focus on free data and how sales executives can leverage that data in various ways.
Recruiting
Data derived from recruiting sales talent can be very useful and in some cases can not only shed light on recruiting problems but point to the root of bigger sales problems. For example, a report in the Wall Street Journal stating that, “Employers spent an average of 41 days trying to fill technical sales jobs, compared with an average of 33 days for all jobs,” can lead to a broader discussion of rebuilding so-called middle skills necessary for success in various jobs, including sales positions. For example, a recent report from Harvard Business School suggests that employers transfer supply chain concepts to finding talent:
Forecast, Planning, and Inventory Management involves identifying the skill and talent most important to strategic success, identifying potential skills gaps and planning for workforce needs.
Source and Procure requires cultivating a strong supply base for this talent.
Supplier Relationship Management means partnering with technical and community colleges to develop needed talent.
Make and Deliver focuses on the need for employers to invest in talent development instead of expecting talent to be developed elsewhere.
In other areas, specific data is not as meaningful and, instead, can provide what are essentially guidelines or ideas for managing different parts of the recruiting process. For example, when it comes to the right number of candidates to interview for a sales position, that number is often based on the hiring manager’s preference, talent pool, and design of the screening process. Some managers prefer to interview several candidates for a position to get a sense of who is available and what skills, talents and experience they bring to the table. Even if a strong candidate is not a good fit for a current sales role, there may be other available roles that are a good fit or the manager might want to keep that candidate in mind for future needs. However, other managers who are focused on making the hiring process as time and cost efficient as possible rely on a structured and rigorous screening processes that leverages email, and telephone interviews, in addition to third party psychometric assessments, to identify only the top three or four strongest candidates for deep, face-to-face interviews.
DePaul University’s Sales Leadership Center offers some basic benchmarking data on the recruiting process that can be useful for sales leaders. While some of this data is time sensitive and should be considered from that standpoint, much of the recruiting-related data is relatively timeless. For example, when gauging an appropriate number of interviews for new talent, the DePaul data found little change in company habits from earlier surveys. Three interviews (39 percent of companies) appears to be the “sweet spot” of not too much and not too little interaction with candidates. However, a significant number of companies limit interviews to two per hire (28 percent) or four interviews (16 percent). Our experience over the years tells us that three interviews, consisting of stakeholders from a variety of business units (marketing, HR, sales, and members of the C-suite) works best to mitigate hiring risk by reducing bias and eliminating the irrational gut instinct that often grips hiring managers.
The survey goes on to highlight the amount of time companies spend with candidates before extending an offer. Two to three hours is the most common amount of time (43 percent of companies), followed by four to five hours (26 percent). Interestingly, a significant number of companies (14 percent) spend less than an hour with candidates before hiring, while 12 percent spend six to seven hours with them and 5 percent spend more than eight hours with candidates.
Since sales people are expert interviewers, the time invested by hiring managers during the interview process should not be underestimated. With four out of ten reps missing sales targets every year, the necessity to make the right sales hire through a rigorous interview process that seeks proof of success in similar sales environments is what sets apart world-class hiring organizations from the rest. [Click here to view the ultimate list of sales interviewing questions]
Sales success
The DePaul University data also offers a good sanity check for sales managers concerned about particular problems with the performance of individual sales reps and the sales force as a whole. For example, a sales manager who wants to compare the percentage of sales reps who reach their quotas in a given year will find that the 600 companies surveyed said that 38 percent of their sales representatives were at quota, 33 percent above quota and 29 percent below quota. Other data includes percentage of sales as new business, profit/sales ratios by industry, and sales and profit per employee by industry.
Broad-based surveys like this have their drawbacks. Sales organizations in different companies and industries vary greatly. A 2013 sales survey published in the Harvard Business Review found significant differences in quota attainment by industry. Just over half of sales reps in software companies (52 percent) reached their quotas, while reps in computer hardware (60 percent), cloud/software-as-a-service (61 percent) and telecommunications (66 percent) companies performed much better.
Looking at sales data also provides some insight into which sales metrics companies tend to track. For example, the HBR survey focuses on and provides benchmarking data for what it considers the 12 most important sales metrics:
percent of organization achieving quota
quota attainment average
average annual quota for field salesperson
average annual quota for inside salesperson
average annual on target earnings
average new deal size
sales cycle length
vertical sales adoption
percentage of sales reps selling to small and medium-size businesses
Free basic sales compensation data is relatively easy to come by. However, the quality and utility of that data varies considerably.
Government sources. Perhaps the most useful free source of sales compensation data for companies with U.S. operations is the U.S. Bureau of Labor Statistics (BLS) Occupational Employment Statistics series. This survey provides a wealth of free and comprehensive pay data broken down into several categories:
national (U.S.)
state
metropolitan area
industry
ownership type
Sales executives can leverage these categories to create various subsets of data to meet their needs. While the job categories may be broader than most companies use, this data can be a good starting point for benchmarking pay levels. It is important to note, however, that BLS data is not broken out by type of compensation—i.e., how much of total pay is made up of base salary and incentives.
Online salary sites. While compensation data from free online services, like Salary.com, can be useful in some ways, sales executives should approach this data with extreme care. The key drawback of using this data is that it may be out of date and its accuracy cannot be verified. Much of the data is self reported, meaning that individuals provide the information on their own job position and compensation. Therefore, sales executives who want to use this type of compensation data should not rely on it alone. However, they can use it to supplement any other verified compensation data sources they are using.
Association surveys. Industry and professional associations are good sources of compensation data. Not only are these surveys targeted to specific professions or industries, these groups may also provide free or discounted survey reports to organizations that participate and provide data for these surveys. WorldatWork, a compensation trade association, provides a high-level report on its annual pay survey. The free data covers only four categories of workers—non management/non union hourly, non management salaried, management salaried, and officers/executives. However, the survey includes data from more than 5,500 organizations and it provides basic salary increase data from 19 countries.
Consulting firms. Various compensation consulting firms usually provide high-level results from their annual compensation surveys. This data , however, may not broken out by type of position (instead, it might use broad categories like pay for hourly employees, salaried positions and executives).
In some cases, these survey reports offer some sales-specific data. For example, Mercer’s 2014/2015 Compensation Planning Survey identified sales professionals as one of the positions for which it is most difficult to attract and retain talent. Another data nugget is the fact that both public and private companies offer target incentives for sales professionals equal to 20 percent of base salary. It is important to keep in mind the broad-based nature of these surveys. For example, our own data suggests that senior B2B reps compensation packages, regardless of industry, provide an even 50/50 split between base salary and commission incentives. The breakdown of these incentives in the Mercer survey is heavily weighted toward individual performance (about 50 percent), followed by organization, division and department metrics, which align with our internal data sets.
Consulting firms that specialize in sales compensation also provide high-level survey results that are obviously going to be more focused on sales. For example, The Alexander Group provides high-level reports on various aspects of sales compensation (registration required), including revenue growth expectations (average of 12.8 percent), incentive budgets (average of 4.9 percent) and base pay increases (average of 3.2 percent). Other firms offer industry specific survey reports, such as this one from ZS Associates and Reality Works on the high tech industry.
Industry and economic trends
Industry and macroeconomic data are also important elements of sales management. The obvious use of external data is to keep up with customers and the challenges they face, not to mention understanding how those challenges can impact customer budgets and purchasing behavior. However, industry and economic data also have important implications for companies recruiting sales talent.
The most logical use of economic indicators involves gauging the economic issues facing the sales force in different parts of the country and the world, which could significantly affect a company’s ability to acquire new customers and sell more products and services. From a recruiting standpoint, this data allows sales executives to present a stronger case for increasing sales force headcount, as well as obtaining additional resources or anything else for the sales organization, by showing how that spending will drive more revenue.
This is especially important when working with peers in finance, operations, marketing and even the CEO. By showing what this data and information mean to the business from a sales perspective, sales executives can demonstrate an understanding of the company’s and its industry’s business cycle and the underlying economics driving company performance.
Employment data on the local, state/regional and national levels can be useful when making hiring plans. If the company routinely looks nationally or internationally for talent, the data they track would naturally expand accordingly. The U.S. Department of Labor maintains a web page with a list of employment-related data sources. The BLS also has a comprehensive list of available data, tables and calculators by subject. The Conference Board is another source of broad employment-related data. For companies with operations in Europe, the European Commission maintains several data sources. Our sales hiring landscape series also provides employers a detailed overview of key markets such as Chicago and Boston.
Finally, sales executives might also want to track specific industries, including their own, to see how economic developments might help or hurt the company’s ability to hire sales professionals from companies in those industries. For example, if sales professionals from a particular industry are often a good fit for the company’s sales force, tracking the performance of those industries is critical. This way, if a certain industry is heading toward a slump, the company might have a better chance of recruiting some of the key sales talent from those companies. News about mergers and acquisitions in industries from which the company recruits sales talent is also useful. After all, these transactions create uncertainty and often make sales talent more open to new opportunities.
Choose Carefully
These free data sources are just the tip of the iceberg for sales executives. It is possible to track data and create metrics on just about anything these days. However, more data is not necessary better.
When looking for and tracking data, the key is to make sure that data is crucial to business and sales success. Otherwise, these efforts can become more of a confusing burden than an aid to better sales decision making.
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.
The interesting thing about management is that the role is commonly misunderstood.
Stop and think about what usually gets someone promoted to a management position. Typically, it’s the results he or she created in a previous position. In other words, people move up the corporate food chain based on knowledge, skill, or, most commonly, performance.
Especially salespeople. Typically, it is the top salesperson who is picked to become the next manager.
And, more often than not, the great salesperson struggles as a manager. Why? Because they are two different roles and require two completely different skills sets. And great players often make terrible coaches.
But companies make it worse. They typically require that sales managers focus on management tasks, like sales automation, CRM, proposals, slide decks, budgets, reports, policies and procedure, things like that. Which, at first blush, would seem to make sense since those things are important and necessary.
However, they pale in comparison to the effect your leadership skills will have on the performance of your sales team.
Think about all the things managers do that have NOT been mentioned: recruiting, hiring, performance management, coaching, creating a productive culture, communicating vision and purpose, and much, much more.
These are all leadership functions. And to call them critical is a serious understatement.
In the big picture, what we really need corporate managers to do – when it’s all said and done – is to identify, hire, and develop the potential of capable people, and to create a culture where that talent can thrive.
Everythingelseisjustsupport.
Which begs the following questions:
How many prospective managers are actually assessed for their ability to identify talent?
How many managers are trained to hire effectively?
How many managers would get strong marks for coaching and training?
The answer is very few.
Instead, we continue to promote top salespeople simply because they are great salespeople. But the reality is that selling is not the same as leading.
And it is the leadership side of the sales executive role that will ultimately make you or break you as an executive.
4 Keys to Success as a Sales Executive
When sales teams underperform, companies often struggle to find the root causes of the problem. So, in search of answers, pricing strategies are dissected. Marketing plans are scrutinized. Software is replaced.
In my experience, however, the problem is usually not price or product or marketing or tools. Sure, those things may need to be addressed, but the causes of underperformance are often systemic and/or structural.
And this is where sales leadership is extraordinarily important. Why? Because the leader is directly responsible for the systemic problems.
Worse, he or she is often the direct cause of the problem.
Let’s look at four leadership ‘secrets’ you need to address to be successful in the Sales Executive role.
1. Acquiring and developing talent is far and away the most critical element of your job.
Big secret, huh? Like you don’t know this already.
But, even recognizing the critical importance of identifying and recruiting top talent, how many organizations do it well? The answer is very, very few. Sales teams are rife with average players with loads of excuses.
Whose fault is that?
You hire reactively. You have no strategy for identifying and acquiring great players. Your on- boarding methodology is almost non-existent. You constantly complain that you don’t have time to train your people.
Bottom line, this is a leadership function. Which means if you don’t do it, nobody else will. So, if you want to jump to the top of the class, make this your most important priority and focus on it every single day.
[bctt tweet=”You don’t win championships with average talent. “]
And, not surprisingly, average leaders don’t develop great salespeople.
2.How you deal with sub-par performance will define you as an executive.
Since talent is so important to your success (see No. 1), the way in which you manage poor performance is critical.
But, since most sales managers are completely underwater with all the management tasks they are required to complete, their most common complaint is that they have little or no time to coach, train, and address performance.
And this is a HUGE mistake.
Where performance issues exist, managers – especially new or inexperienced managers – often struggle to address those issues. The conflict is very real, and most people don’t enjoy the confrontation that is necessary to talk candidly about sub-par performance.
So, they employ a number of non-confrontational approaches, including sticking their heads in the sand and hoping things will get better.
But allowing underperformers to remain on the sales team is damaging from a number of perspectives. Overall team performance suffers. Top performers resent it. And your leadership credibility suffers dramatically.
Remember this critical message: “A” players want to play on winning teams, and they won’t stick around very long with average leaders.
3. Creating a ‘no excuses’ culture is critical to success.
If you’ve been in sales management more than a few months, you’ve heard the excuses:
My territory (or market) is different.
The economy is killing me.
Our prices are too high.
The competition is giving it away.
I have to spend too much time with our CRM software.
Leadership is often about distinguishing between the very real obstacles that impact success, and those excuses that serve only to mask poor performance.
It is critical to understand that allowing salespeople to use excuses and blame circumstances for their failures will quickly define your sales culture. And excuses make it almost impossible to identify and address the actual issues that impact sales performance.
Having been in sales for more than three decades, I know that there are any number of factors that can adversely impact results. No question. But the primary difference between top performers and pretenders are how they respond to those factors.
Great players find ways to win. They refuse to be deterred by anything. They take personal responsibility for their own success.
And great sales executives make that trait a non-negotiable part of their sales culture.
4. Creating competition is critical; creating silos will crush you.
There seems to be a significant trend towards not posting sales numbers or even publicly recognizing top performers. Which is, as plainly as I can put it, ridiculous.
If that is your practice as a sales executive, you can rest assured that “competitors” – people who are motivated to compete and win – will work somewhere else.
Sales is, by definition, a competition. When your team wins, everyone else loses. And when your competition wins, there is no consolation prize for second place.
Creating a team that competes is absolutely critical. Salespeople need to be willing to do whatever it takes – legally, ethically, and morally. They need to be willing to work whatever hours are necessary and improve their knowledge and skills as circumstances demand.
They need to be driven to compete and win.
However, allowing that competition to create organizational silos will quickly result in enormous problems. Competition needs to external, not internal.
If you are not aware of the tendencies of salespeople to do horde resources, monopolize assets, and create internal conflicts in an attempt to get ahead, you haven’t been managing long.
As a leader, you should create a culture that recognizes and rewards individuals who play to win. Post your numbers. Celebrate wins. Give most of your attention to the players on your team who have a burning desire to be at the top of the charts.
But don’t ever allow individual competition to create silos inside the company.
Making the wrong sales hiring decision has an enormous negative impact on a business’ finances. Often overlooked, but closely related, is the larger impact it has on a sales team’s morale.
The cost of a bad hire
SAP recently rounded up a series of statistics on the impact of a bad hire. Citing research from Mindflash and CareerBuilder, the articles show that 41% of survey respondents reported a bad hire cost them $25,000, while 25% said a bad hire in the previous year cost them $50,000.
Breaking down costs even further, Mariah Deleon, vice president of people at Glassdoor, notes in a recent Entrepreneur article that a bad hire costs employers dearly when it comes to productivity. Deleon shares a statistic from Robert Half International that shows 11% of companies reported a bad hire resulted in fewer sales.
Quantifying the cost of a bad hire in terms of time, the Robert Half study revealed that supervisors spend 17% of their time managing poorly performing employees.
In one of our previous articles, What is The Cost of a Bad Saes Hire, we calculated that a bad sales hire costs the typical sales department upwards of $690,000. Read the article to find out how we calculated this loss and you’ll get a better idea of the value of a good sales person and just how much a bad hire can detract from your year.
Measuring the cost of a bad hire in terms of time and money is one thing – but the ramifications of the bad hire extend much further…..the dark cloud that a bad employee brings into the office can impact the mood of the whole sales team. Deleon refers to the Robert Half study to note that 95% of financial executives surveyed “said that making a bad hire at least somewhat effects the morale of the team, and 35 percent said a poor hire greatly influences employee morale.”
Poor morale is an especially damaging drain on a sales team. It’s easy to see how a bad hire can creep into each aspect of your sales team and begin eroding team spirit – from a new sales manager who hosts horrible meetings, a top morale buster according to Soma, to a prima donna who arrives with the wrong set of expectations.
SAP points out that an underperforming employee places a burden on the remainder of the team, creating a situation where “good workers end up getting saddled with additional workload [which] eventually wears down the team spirit as the group is overburdened carrying a non-contributing member.” Underperforming sales team members are burning more than time – they’re also churning through good leads, converting far fewer than they should, and alienating potential customers. If other sales team members are burdened with trying to compensate for their underperforming team member, you’re creating even more potential loss.
Losing time and money is a bad situation, but gaining a cadre of now-unhappy sales team members is even worse. It’s natural to want to foster a bad hire into a better performer, and while there is such a thing as a rocky start, sometimes you just have to admit that the hire wasn’t a good one.
“Hire slowly, fire fast”
How to handle a bad decision
There are red flags to look for in a bad hire both in terms of results and attitude. Consistent inability to hunt and close new business, inconsistent use of your CRM, not giving the required hours or activity levels, poor planning, tardiness, no sense of urgency, not optimistic, lacking resilience after losing deals, interaction issues with other staff, and failure to embrace the sales strategy despite undergoing standardized training, all signal that a hire doesn’t belong on your sales team. Within 3 months you should know you hired the wrong person, and it’s important to remove them from your team before all of these bad qualities start taking a toll on other team members.
Fast action is warranted when you consider the ripple effect a bad employee can have on your sales team as well as your customer and vendor relationships. Consider indirect costs incurred by lost sales, or compensating for errors the employee made. In the worst-case scenario, there could be litigation costs initiated by the employee or by customers or vendors who interacted with the employee. As these problems multiply, the entire team – including management – feels the impact.
Making a better hire the next time
A structured and rigorous interview and assessment process mitigates hiring risk. A consistent hiring process for each and every candidate offers an “apples to apples” comparison, and allows you to determine with the highest degree of certitude who the best hire is. Multiple interviews involving all stakeholders in the hiring decision, combined with third-party psychometric and behavorial testing, and extensive background research should be used for each candidate.
Careful planning, strategic thinking, and adopting a disciplined sales hiring process can help you make better decisions in the long run and avoid the pitfalls that a bad sales hire can have on your team’s morale.
For more comprehensive insights on how to make the right sales hiring decision for your organization, get instant access to our eBook “Make the Right Sales Hire Every Time.”
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.
Typically, they are words of encouragement. Joyful, even enthusiastic. Designed to leave someone with pleasant feelings about the future.
They are NOT, however, designed to be the two words that describe the sum total of a company’s training program.
Really.
Back when I started as a sales representative for a west coast medical company, I went out to corporate headquarters for a 2-day, new-hire training session. Or so I thought.
My first day on the job, I went on a couple of sales calls with a sales manager. We said hello, picked up a couple of small orders (literally, we picked them up, they were written on a piece of paper and left for us), and headed back to the office. After lunch, someone spent some time showing me some of the company’s products and where to find them in a catalog. They were just showing me the products — not explaining or doing anything, you know, instructional.
Then we had a three-day national sales meeting. And I headed back home. “Good luck,” the boss said.
I’m gonna need it, I thought to myself. Training? You can’t be serious. It wasn’t training, it was a disaster. Disorganized. Disjointed. Dis-aster.
One week in and I’m thinking the decision I made to join the company was exactly that – a disaster.
What Does YOUR Training Look Like?
People often ask about sales leadership roles (National Sales Manager or VP Sales or something similar) and ask what it takes to be successful at that level. While there are a number of critical pieces in that puzzle, few, if any, are as important as a comprehensive training and development plan.
But I never cease to be amazed at companies that provide little or no training (initially or ongoing) for their salespeople or their sales management team — outside of product-related training.
Worse, they can’t understand why employee commitment and performance are lacking.
But when a company fails to provide comprehensive and ongoing training and development a couple of things happen, neither of which is good for the company.
First, employees that aren’t well-trained rarely perform up to their potential.
Why would they? Even elite athletes, singers, and stage performers train and train and train. In fact, research clearly indicates that the very best performers get that way through focused, purposeful, long-term training. They are constantly learning, and consistently honing their skills.
Remember, there is a world of difference between twenty years of experience and one year of experience twenty times.
Second, when a company doesn’t invest in training, it sacrifices employee engagement, which, in turn, translates directly in to increased employee turnover, less productivity, and declining morale.
Employees make the direct connection: you don’t want to invest in my training and development, but you do consistently ask me to improve my performance.
No contradictions there!
Recent research indicates that companies who ignore the development of employees at all levels do so to their own detriment. In Profit at the Bottom of the Ladder: Creating Value by Investing in Your Workforce, researchers found that “offering training and career tracks to line workers led to lower turnover and easier recruitment, and served to make employees more efficient while they were with the company.”
Translation: investing in training saves you lots of money.
But We DO Train Our Salespeople
Many sales leaders get a little testy at this point. “We DO train our salespeople,” they say. Maybe they do; maybe they don’t.
In my experience, most employee on-boarding processes are random, disorganized, or incomplete. How would you answer the following questions for your sales organization?
Do you have a script for the first 60 days for new salespeople? Does that script include milestones, minimum expectations, testing, ?
Do you require salespeople to test regularly in the first six months for core knowledge acquisition?
Do you require salespeople to demonstrate proficiency in specific product or service sets prior to releasing them to make calls?
Do you provide selling skills training and test for proficiency?
Do you have a process for putting new salespeople in the field with senior salespeople or managers during the on-boarding process? Does the “trainer” have a checklist of specific skills/topics to review/demonstrate during that time?
Do you even check to see if salespeople can complete an effective sales presentation?
Yes, most people hate “role play.” Many “experts” argue against doing role play. They say that people don’t like to role play, and the scenarios don’t play out like the real world and on and on.
But they don’t have a leg to stand on. Very few people LOVE to practice. Most would rather avoid the scrutiny of their peers or management staff. But the truth is that you are guilty of sales malpractice if let your salespeople practice on customers. Unless, of course, you are more than willing to lose that opportunity. In that case, knock yourself out. Live role-play is even better!
Here is what I see consistently:
Few companies have an intentional and measurable approach to on-boarding new employees.
Few companies have a set of milestones and minimum standards established for testing during the first 60 days of a new employee.
Few companies provide purposeful career-development programs for their sales teams (managers and salespeople).
Few companies provide training to develop critical selling skills. Their “training” regimen consists primarily of product orientation and sales administration (CRM, placing orders, budgets and reports).
And very few companies train their salespeople to develop a comprehensive sales plan for developing their business. CRM is one thing; a sales plan (a business plan) is quite another. The first is retrospective, the second is prospective. Big difference.
But all of these companies say exactly the same thing: ”We train our people.” Sure they do.
Hiring an exceptional sales team is not only difficult, but also extremely expensive. And while an investment in successful salespeople will deliver massive returns, the fact remains that a sales hiring budget requires large amounts of starting capital. After all, truly exceptional salespeople expect—and receive—exceptional salaries.
Unfortunately, many companies looking for great salespeople simply can’t compete with the Fortune 500s if the size of their sales budget is the only relevant consideration. Does this mean that sales hiring is a rigged game? Does it mean that growing B2B startups, for example, are doomed to lose to bigger-name companies with deeper pockets every time?
Following traditional hiring practices—where a candidate’s history of major sales and lasting buyer relationships in relevant markets is the hiring criterion—the answer is probably ‘yes.’ However, this doesn’t mean that smaller companies with smaller sales budgets should give up and accept mediocre hires!
Instead, companies that can’t compete on budget alone need to change the rules of the hiring game.
How to change the rules for successful sales hires:
Without a budget large enough to offer competitive compensation, top salespeople are not likely to leave their current jobs—especially for a high-risk position at a company without strong marketing, brand recognition, buyer trust, and a well-oiled sales apparatus. However, by changing tactics and focusing on a different set of hiring criterion, startups and high-growth companies can make smart hires and build high-achieving sales teams.
Though there are numerous ways to attract and develop talent through creative deployment of a smaller budget, effective sales recruiters focus on two of the most crucial considerations: finding candidates that have the potential toconsistently sell successfully year-over-year, and investing in these employees to expedite development and reduce turnover.
1. To find the right candidates, look beyond the résumé
It is tempting to think that the top candidate for a sales position is the candidate with the most impressive career selling products similar to yours for big-name companies within your target market(s). But while a candidate’s résumé illustrates, to a limited extent, how well that candidate can sell—perhaps under optimal conditions—it may or may not reflect how well that candidate will sell for your company.
In order to get a better sense of how well a candidate will do, several additional considerations must be taken into account during the hiring process. These include a candidate’s deep-seated personality traits (or “sales DNA”), those personal/professional features common across the most successful sales people, as well as details about your company culture and its selling environment.
Sales DNA
Truly successful salespeople share certain characteristics or personality traits—those traits that help them get ahead no matter the circumstances. Such traits include confidence, perseverance, ambition, competitiveness, resilience, optimism, situational intelligence, a sense of urgency, the desire and ability to influence others, and more.
If a candidate displays the right sales DNA—even if that candidate has little sales experience, or has only worked in unrelated markets or on different types of sales cycles—that candidate has a real opportunity to outperform a candidate who has more experience but lacks some essential traits. This means that a potential hire with the right DNA (combined with the right sales environment and support) will quickly build an impressive track record—at a lower starting salary.
Company selling environment
Though top salespeople share many similar traits, they are not a completely homogeneous group: individuals have different selling strengths and weaknesses, different working styles and preferences, and different experiences across markets, sales cycles, buyer groups, etc. As a result, a quota-busting top performer at a Fortune 100 corporation, for example, might fail to convert a single lead for your early-stage startup—and vice versa.
In many cases, a candidate with less sector experience might be a better performer than the candidate who has spent the majority of their career in your organization’s sector—if that candidate has more experience working in sales environments similar to yours. Once again, by broadening hiring criteria to include candidates that aren’t established in your particular sector, your organization is presented an additional opportunity to stay within budget and also make a better hiring decision overall.
Thus, in order to optimize budget and hire salespeople who will drive sales, it is essential to thoroughly understand the myriad characteristics that make up your company’s selling environment. These include company culture and offerings, market and competition, average deal size and sales cycle length, available sales infrastructure, etc. With a complete understanding of your selling environment, it is easier to identify candidates who are most likely to succeed—even if they come with less overall experience and a lower salary.
2. To build a top-notch sales team, invest in your salespeople
When recruiting on a budget, world class hiring organizations understand the importance of spending more—wherenecessary. Candidates who have the right sales DNA, mesh with your company’s selling environment, and require lower starting salaries are ideal. However, making a mediocre hire rather than an exceptional one in order to cut costs is one of the most expensive mistakes an employer can make.
Invest in training and development
Along similar lines—and especially with a hiring strategy focused on less experienced sales employees—it is essential to invest heavily in a sales team’s training and development. As we’ve said before, “Self-managing sales people and teams are as rare as purple unicorns.” Keeping top performers performing while transforming high potential into selling machines requires exceptional leadership, training, and support. And exceptional sales infrastructure requires money.
A young company with a relatively young or inexperienced sales team depends on strong leadership: after all, only through smart management and training will new employees reach the sales potential they initially displayed during the hiring process. Again, when hiring a sales leader, successful sales recruiters examine personality traits and company fit alongside the candidate’s history of developing new teams into seasoned sales machines.
The necessity to invest in training time for new sales hires cannot be overstated. Even though weeks spent learning company and market best practices, for example, are weeks during which no sales are made, that investment will yield high returns when new employees do start selling. At the same time, a skilled sales leader will conduct rigorous monitoring and focus on accountability, helping to transform raw potential into ROI.
Invest in work environment
Salary is always important, especially in the highly competitive world of sales. However, numerous studies have shown that work environment plays a larger role in employee satisfaction than salary. Developing an environment where employees feel personally valued and highly motivated (rather than afraid) both increases current salespeople’s performance and attracts top sales talent.
An exceptional work environment comprises multiple aspects of interpersonal communication and interaction, employee recognition and commendation, effective management practices, and more. Salespeople who feel that their actions have a direct impact on their company and that they are developing their own opportunity for growth exhibit higher motivation than salespeople driven by the fear of missing an impossible quota. Thus, top companies encourage programs that highlight and emphasize the value their salespeople bring to the organization, that prioritize internal talent when filling leadership positions, and so on.
It is no coincidence that today’s massively successful corporations—Google, Apple, etc.—devote significant attention to employee happiness. For the same reason, many new startups are emphasizing company culture: from organizing weekly team events and setting up gaming tables in the break room, to allowing flexible work schedules and implementing personal employee-employer communication. Such benefits play a significant role in a startup’s ability to attract top talent at a lower price tag.
3. Keep an eye on budget—but beware becoming stingy
It’s an unavoidable part of the sales hiring game that startups and smaller companies must make do with smaller recruiting budgets than the Fortune 500s of the world. And while focus on budget is essential when working with limited starting capital, it is equally essential not to forget the reality that newly trained salespeople will have the opportunity to flee for higher salaries!
Investing to expand salespeople’s skill sets, actively building company loyalty, and rewarding top performers with commensurate commissions all mitigate hiring and costly turnover risk. After all, the better and more experienced a new sales team becomes, the more attractive your sales employees look to competitors: your employees are no longer the overlooked and under-resumed.
At the same time, though: the better and more experienced a new sales team becomes, the more they earn for the company—and it’s far cheaper to invest those earnings back into a winning team than it is to start again from scratch.
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.
The sales engineer plays a vital role on a sales team. Not only do they help interpret a customer’s technical requirements and communicate product features, but they are also given a level of trust that is often not offered to salespeople and consequently, the sales engineer is in a unique position to promote a vendor’s key benefits and value proposition.
While there is no mistaking that the sales engineer contributes to a company’s sales mission, the role is to support and technical competence is paramount. Typically, sales engineers must possess a bachelor’s or master’s degree in engineering or a similar scientific area of study and work in fields such as software or manufacturing. Top performing sales engineers also have the communication and relationship skills to be able to work closely with team members and prospects to explain complex solutions and systems in easy-to-understand terms; the ability to alter their presentation style to meet the needs of their audience; and most importantly, build trust with prospects.
This expertise is rare, and it’s no easy task to recruit sales engineers that can connect with prospects while still being able to articulate their solution’s technical capabilities. Given the reality that the job description, or career opportunity as we call it, represents an important aspect in the recruiting process, world-class employers understand that a job description needs to succulently articulate the challenges that high achieving sales engineers crave, along with the right set of benefits that are attached to the opportunity. Sales engineers will be on the lookout for companies that foster the right culture, so incorporating an excellent description of your team, your corporate environment, and clear definitions for the sales engineer role will elevate your job description.
Overview Section
The best employers seize passive sales engineers’ attention with a brief but powerful overview of their company. They tailor the description of their company’s recent achievements, current growth structure, and corporate culture to a sales engineer’s interest in product excellence, highlighting technical achievement and recent innovations. Since high achieving sales engineers understand the potential they have in the marketplace, SE’s want to be assured of growth opportunities in a prospective company. Providing incentive and compensation information, including base salary and on-target expectations in the overview section provides prospective candidates with the ability to immediately recognize the opportunity’s value (note that a variable component to the compensation plan is common, but represents a much smaller portion of overall compensation than the typical compensation plan associated with a sales representative or executive role).
Goals
In order to give candidates an honest and accurate picture of what the expectations are for the role, hiring managers should provide a specific set of goals for the sales engineer position. Since SE’s are results-driven people, including plenty of information about how your company measures performance and the kind of challenges the candidate will face will help generate excitement in the opportunity while acting as an informal candidate filtering mechanism.
Leading employers state very specific numbers, percentages, and provide examples of the positions’ expectations in order to present the opportunity as honestly as possible.
Responsible for new business development of $___ per year.
Works with xx – xx number of clients each month to deliver sales presentations and close deals.
Responsible for increasing sales by ___% during the first year.
Responsibilities
Responsibilities are the elements that managers use to determine if a candidate can and will be successful in the role. Successful opportunity descriptions carefully outline the sales engineer’s responsibilities and take into consideration their everyday tasks as well as the relationship would have with the rest of the sales team.
Work with product and sales teams to interpret customer requirements and deliver solutions with the end-goal of sales in mind.
Demonstrate an understanding of what the customer will need in terms of on-going service, and manage expectations on the customer and sales side.
Develop and deliver product demonstrations and sales presentations that explain key technical aspects of solutions that will benefit customers and prospects.
Provide answers to client questions about our product, servicing, and other technical aspects of the product.
Successfully tailor demonstrations for customers, trade shows, and special events.
Work closely with the customer to set up and maintain a successful demo period, being available to answer questions and trouble-shoot as needed.
Be able to think critically and suggest improvements that might lead to cost savings or other client benefits.
Work with the client to problem-solve through every hurdle during the sales process.
Arrange and, in some cases, lead training for customers.
Work with compliance to ensure all legal requirements are met.
Research the industry on an on-going basis to know what changes may be on the horizon that will impact current and future sales.
Provide feedback to the team as well as R&D for process or product improvements as required.
Condense information into reports for a wide variety of uses from marketing and sales to engineering and R&D.
Provide clear and accurate responses for RFPs and/or contribute technical solutions directly to proposals.
Work in tandem with the sales team on presentations to ensure accuracy.
Willingness to travel and devote long hours to challenging sales projects.
Experience
Experience gives hiring managers a sense of a candidate’s ability to execute the activities required to drive sales. Companies seeking high achieving sales engineers focus on experience that is aligned with the desired selling tasks stated in the responsibility section of the job description.
Demonstrate a successful track record in the _______________ industry, (product/service or related product/service) to ______________ (group of buyers).
Background in supporting $___-figure deals.
Successful experience in working with sales and engineering staff to deliver high-quality presentations and information to clients.
Successful experience in developing and delivering persuasive presentations to audiences ranging from small groups of clients to large trade show audiences.
Fantastic written communication skills.
Successful experience in driving innovation as a way to increase sales.
Skills
Sales engineers possess a unique set of skills that require left- and right-brain expertise. Their ability to skilfully manage both will set them apart from the rest of the pack. Including details in the job description that articulate exactly what is required to be successful not only acts as a candidate filtration mechanism, but sets the foundation for hiring managers to assess if a candidate can fulfil these expectations during the interview process.
Strong ability to quickly comprehend and explain complex engineering concepts in simple, effective terms.
Ability to work in concert with team members to build the most effective presentations that blend technical facts with tangible benefits.
Proven sales skills with an eye for results.
Superlative communication skills with the ability to navigate a wide range of internal and external environments.
Coaching skills to help co-workers quickly understand and explain new and emerging technical concepts.
Strong networker who can reach out to customers and clients to offer support and assistance.
Industry insider who understands current trends and anticipates change.
Impeccable time management skills.
Ability to work in a wide range of software programs that support our business (Excel, SalesForce, PowerPoint/CAD, CSS, etc.)
DNA
There is a core group of traits that any salesperson has that will predict their success on the job. Incorporating these qualities into your job description enables experienced interviewers to determine if a candidate possesses these qualities:
Drive, energy, and ambition – the triumvirate personality traits that any successful sales professional should have.
A competitive nature.
Sense of urgency.
A sense of optimism, resilience, and perseverance.
Team player.
Solution-oriented.
Looking for an easy-to-use job description template? Get instant access by filling out the form below:
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.