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The Center for Sales Strategy Blog

How to Recruit a Millennial

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Considering that Millennials make up the largest percentage of the workforce, it's likely you will be hiring one, if not now, in the near future. Understanding what makes a Millennial happy in the workplace gives you clues about the best way to recruit one.

Topics: hiring salespeople Talent Sales

The High Cost of Turnover [Infographic]

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Turnover is a costly problem for sales organizations. On average, companies experience a 17.8% turnover each year, and the average cost to replace an employee is 1.5 - double the employee's annual salary. (And it's even higher for high-level employees like managers and those with specialized skills.)

Take a look at the high cost of turnover in the infographic below. What you find may surprise you!

Topics: hiring salespeople Talent

112,500 Reasons Why Turnover is Bad

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$112,500 is in flames every single time that you lose a salesperson and have to hire a new one! 

Yes, over $112K! 

How do you figure that dollar amount? Easy. The average cost of turnover for an employee is 1.5 times annual compensation. So, if your salesperson is earning $75,000 per year when they leave, it will cost your organization $112,500.  

So, what if your top salesperson is making $150,000 per year? Then the cost of losing that sales rep and replacing them will cost your business $225,000! So, what is your turnover ratio? 10%, 25%, 50% per year? Then start adding up the cost of your turnover. 

How does that affect your EBITA? Cash Flow? Net Profit? 

A recent study from Bersin by Deloitte estimates the cost of turnover from 1.5 - 2.0 an employee's annual compensation. And a report from Maia Josebachvili, VP of People at Greenhouse, argued that retaining a salesperson for three years instead of two, along with better onboarding and management practices, yields a difference of $1.3 million in net value to the company over a three year period. 

$1.3 Million?!?! 

Yes, turnover is a big deal for your organization. A really big deal. 

So, how do you "fix" turnover? Well, it's simple, but not easy. It's a process that can take months and in some cases even years to slow your rate of turnover in your sales organization, but here are 5 ways that you can reduce turnover:

Topics: hiring salespeople sales management Talent

What to Do When Your Favorite Candidate is Not Recommended by Your Trusted Talent Assessment

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You know it’s important to hire highly talented people because they have the innate capacity to achieve excellence and grow your organization faster than those who don’t.

Hopefully your sales organization understands this as well and has invested in a strong talent assessment to guide you as you make these critical selection decisions. Most assessments out there are descriptive — reporting the candidate’s thoughts, feelings, and behaviors. The very best assessments on the market can do much more than that, though! They are predictive in nature, which means they can accurately predict success in your candidates, regardless of their level of experience. When you use a predictive instrument, your candidate will either be "Recommended" or "Not Recommended" to move forward in your selection process, based on their innate behaviors in the key themes that separate the best from the rest.

So, what do you do when your favorite candidate is not recommended to move forward?  

That can be crushing!

If you are using one of the Talent Plus assessments that we offer (the Sales Talent Interview, Online Sales Talent Interview, or the Profit Center Manager Interview), this is what I recommend:

Topics: hiring salespeople Talent

Why The Talent of Problem Solving is Essential for Sales Performance

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You have a salesperson who has a great, positive attitude. The clients love this salesperson, and he or she does a great job at getting that first appointment and building a relationship with clients.  BUT when clients or coworkers come to this person with an issue, it ruins his or her day — it gets them completely off track and the salesperson just can’t seem to find the way back. What’s the problem?!  Is the individual's positivity not as high as it should be? Is discipline the issue? Actually, what you are seeing may all come back to their problem solving ability.

Topics: hiring salespeople Talent coaching

Personality Traits of Top Sales Performers

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Reading the Harvard Business Review just makes you feel smarter, and you are because of the insights you’ve gleaned. An article written by Steve W. Martin, called “The 7 Key Personality Traits of Top Salespeople,” was published on June 28, 2011. 2011 seems like a lifetime ago, and many studies have been done since then on the subject of talent themes of of top performers. The results seem to be similar and timeless.

When a successful salesperson is questioned on what makes them stand out above the rest, most don’t have specific answers. The reason seems to be because these high performers are doing what comes naturally to them. These are not skills that can be taught or learned. It’s about behaviors that “fire naturally” in client-facing sales situations.

Specific traits are sales accelerators. Mr. Martin gave 1,000 uber-successful salespeople a personality assessment. The purpose was to measure five traits:

Topics: hiring salespeople sales performance

Don’t Jump to the Finish Line When Hiring

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When you have openings on your staff, it's easy to get enamored with a candidate and jump to the finish line. That will always cost you in the long run. Every organization I know takes longer than they should to remove non-performing salespeople. It's just a fact. So you need to hire tough, so you can manage easy. If you hire easy, then you have to manage tough (threaten, push, and poke to get them to do what they should be doing).

Topics: hiring salespeople sales management Talent

To Keep New Hires Happy That They Chose Your Company, Have a Plan for Day 1

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We have all been there. You walk into your new office. You’re excited, maybe a little nervous, but ready to take on this new challenge. And…no one is expecting you. The receptionist says, “Oh, was that today?? No one told me. I’m not sure where to have you start…” Bad first impression, sure, but what’s the big deal?

The big deal is that in today’s market, qualified job seekers have choices. Chances are that from the time you agree to hire them to the time they walk in your door, they have had multiple other requests for interviews and maybe job offers. You spent time finding and qualifying just the right person for this position. Do you want your new employee to walk away on that first day, thinking about finding a better job?

Topics: hiring salespeople sales management Talent

Improving Sales Performance… It Starts with Recruiting!

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Many sales organizations miss revenue goals because they are understaffed and have open sales positions. This silent killer of productivity is a problem for many reasons: 

Topics: hiring salespeople sales performance Talent

3 Ways to Reduce Your Sales Staff Turnover

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Sales staff turnover may be the most expensive and frustrating thing a sales manager has to deal with these days. You know the cost of making the wrong hire extends far beyond their salary and commissions, but did you know that their compensation probably only accounts for about 28% of your total loss? A recent study determined that managers waste about 150 hours of time on each wrong hire on top of the additional costs from soured client relationships, additional disruptions, and opportunity costs. Your mis-hire could cost you as much as 15 times their annual income!

Topics: hiring salespeople Management Talent