Beth Sunshine, on February 12, 2018
Beth Sunshine, on January 25, 2018
Here it is, the beginning of another new year and the perfect time to make sure you are setting yourself up for success in 2018. If you manage people, one of the best ways you can do this is to ensure that you have a strong talent bank — even if you do not plan on making a single hire.
A strong talent bank allows you to set the bar high for your team, hold people accountable to meeting expectations, and move forward without missing a beat if one of your people chooses to leave.
Simple life lesson: One of the best ways to find exactly what you need is to know exactly what you’re looking for.
We regularly work with hiring managers and recruiters to clearly define the role they are working to fill so they know exactly what they need for superstar performance. This morning I received an email from a sales manager asking which talents he should look for to hire a strong sales hunter. Great question! So good, in fact, I thought I’d share my response with you.
Emily Estey, on November 9, 2017
I was on the phone with a client the other day who was really struggling with many open seats across his sales teams. He mentioned that his company had tried many different things to entice potential employees, but nothing seemed to be working.
I asked how full the talent bank was and he said, "running on empty." I suggested that he think of recruiting just like prospecting. It’s something that has to constantly be done, time dedicated each week. We tell our salespeople all the time that prospecting for clients is the only way to garner new business.
The same goes for managers. Prospecting for employees is also vital to new business development.
Jim Hopes, on November 2, 2017
Just like “sales” and “marketing” are not the same, “recruitment” and “selection” are fundamentally different as well. But I often hear managers use them interchangeably—an indication of a fundamental and expensive flaw in their approach to maintaining a talented sales force.
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.
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!
$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.
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:
Beth Sunshine, on August 24, 2017
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:
Tirzah Thornburg, on July 31, 2017
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.