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Recruit and RetainSuperstars in SalesIlona Jerabek, PhDPsychTests AIM Inc.                      1
Reasons for recruiting salespeople Growth in primary business 84% Expanding into new markets 28% Expanding into new lin...
In-house sales team or alternatives? In-house sales team Outsourcing Resellers Distribution channels Independent reps...
Reality checkIn a survey of 23,000 employees at more than fifty-five   companies, they found that: Only 36% of those surv...
In other words …If these same statistics had to do with a football team    then: Only 4 of the 11 players would know whic...
Common challenges   Hiring the right people      Personality suited for sales      Personality suited for the particula...
Common challenges   Behavior issues     Big egos and Prima Donnas     Backstabbing – taking competitiveness to the extr...
Turnover – Howmuch does it cost?                 8
Pop quiz According to McDonalds, the turnover cost of    losing an entry-level employee earning    $12,500 per year is ___...
Pop quiz According to McDonalds, the turnover cost of    losing an entry-level employee earning    $12,500 per year is ___...
Pop quiz The turnover cost of losing a sales    representative earning $75,000 per    year is ____.   1.   $48,000   2.   ...
Pop quiz The turnover cost of losing a sales    representative earning $75,000 per    year is ____.   1.   $48,000   2.   ...
Turnover cost summary                                                               TURNOVER COST                         ...
NOTE:  Percents are rounded to reflect the general range of costs from studies  Costs are fully loaded to include all of...
Who are the right   people?                15
Climbing the performance pyramid                            GAP                                   16
Marker traits of star salespeople   Intrapreneurial characteristics   Business sense and instincts        Sales knowled...
Marker traits of star salespeople   Drive and ambition      Goal-orientation      Competitiveness      Initiative     ...
Marker traits of star salespeople   Self-assuredness        Self-confidence        Assertiveness        Comfort with r...
Intrapreneurship   An intrapreneur is someone who     Comes   up with new ideas     Develops them conceptually     Ens...
Characteristics in an intrapreneur   business insight   understanding of the market   environmental awareness   streng...
Different jobs, different profiles   Similar traits, different mix      High-tech sales vs. car sales vs. retail      S...
Sales personality test factors   Comfort with public speaking          Goal orientation   Comfort with risk-taking     ...
How to find the right     people?                   24
How to recognize talent “Hire for attitudes, train for skills” Screening process Interview Assessment Decision tools...
If you can’t measure it, you can’t control it …                        Bottom Line:                        People who perf...
“Assess and conquer” Define the job Assess the incumbent Assess the candidate Perform gap analysis Assess and manage ...
Assess the job   Task analysis     Taskdescription     Shadowing   Job analysis   Job description   Personality prof...
Assess the incumbent   Strengths     What  traits and attitudes contribute to good      performance?     What are the d...
Assess the candidate Select and hire effective employees Find people with the right profile for the  position Recognize...
Assess the candidate Prescreening Interview Personality assessment Assessment of work environment  preferences Skill ...
Prescreening   Screen for deal-breakers     From company’s perspective     From candidate’s perspective Evaluate key a...
Interview pitfalls – The candidate   Candidates well-trained in interviewing skills       Rehearsed responses       Spi...
Interview pitfalls – Interviewer bias   First impression      It takes seven seconds to make a first impression      50...
Interview – Probing for revealing info   Situational/behavioral questions     Gut  responses     Attitudes     Reasoni...
Interview – Down the memory lane   Past behaviors are the best predictors of future    behaviors     Did you experience ...
Interview – Show me what you’ve got   Initiative and resourcefulness     What  do you know about our company?     Why d...
Interview evaluation   Decision tools     Objective criteria     Weighting system     Decision grid Quantify qualitat...
Perform gap analysis   Measure the difference between the candidate    and the requirements of the position   Identify s...
Keeping the bestand getting the best    out of them                   40
Retain the good ones   Training and professional development   Personal development   Empowerment   Engagement   Alig...
Retention drivers … times are changing                                 DISCONNECTING DRIVERS OF RETENTION                 ...
Manage what matters   Management by objectives   Management style     Transform the management style according to what ...
Motivating your sales force   Set clear goals and expectations       When they know what they’re aiming for, they will m...
Training and development   Offer training possibilities     About what they sell     How they sell it     Career devel...
Pop quizWhat is greater?   ROI generated from Training &    Development   ROI generated from the acquisition of    capit...
Pop quizWhat is greater?   ROI generated from Training &    Development   ROI generated from the acquisition of    capit...
ROI from trainingACTUAL BUSINESS RESULTS FROM TRAINING & DEVELOPMENTSETTING                     TARGET GROUP              ...
Sales contests   A little friendly competition goes a long way:     Hold sales contests with non-cash awards (winning a ...
Building trust and engagement   Align goals      Explain what the company goals are and how the individual sales represe...
“Show me the money!” … and alittle pat on the back will help too   Monetary compensation is important      Decent base  ...
Big egos and Prima DonnasTo get the most out of them: Make them feel important Make them feel appreciated Figure out th...
Big egos and Prima DonnasTo mitigate the down side: Don’t give in to unreasonable demands Try to keep them grounded Cul...
Other factors   Age     Positivelyrelated to commitment     Negatively related to turnover   Personal needs     Work/...
Retention – what to watch out for   Compensation      Gross revenue vs. Gross margin      Commission caps      Expense...
Retain your best people   Motivate, develop and retain your employees   Improve coaching and development sessions   Add...
Are you the “Employer of Choice”?Do you…   Align benefits & workplace attributes to create a dynamic work    environment?...
Ilona Jerabek, PhD9001 blvd. de l’Acadie, Suite 802    Montreal, Qc H4N 3H5      ilona@psychtests.comDirect line: 514-745-...
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Recruit And Retain Superstars In Sales

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  1. 1. Recruit and RetainSuperstars in SalesIlona Jerabek, PhDPsychTests AIM Inc. 1
  2. 2. Reasons for recruiting salespeople Growth in primary business 84% Expanding into new markets 28% Expanding into new lines of business 12% Replacing agents leaving firm 37% Other 4%Source: National Association of REALTORS® 2
  3. 3. In-house sales team or alternatives? In-house sales team Outsourcing Resellers Distribution channels Independent reps 3
  4. 4. Reality checkIn a survey of 23,000 employees at more than fifty-five companies, they found that: Only 36% of those surveyed clearly understood the corporate or organizational goals, what the organization was trying to achieve and why Only 20% of those surveyed understood clearly the link between their jobs and the organization’s goals Only 15% felt fully enabled to achieve their goals Only 20% fully trusted the organization they work for 4
  5. 5. In other words …If these same statistics had to do with a football team then: Only 4 of the 11 players would know which goal was theirs Only 2 of 11 would care Only 2 of 11 would know what position they played and the expectations of their positions All BUT 2 players would consider competing against their own teamIf this were your team, how long would you keep the coach? 5
  6. 6. Common challenges Hiring the right people  Personality suited for sales  Personality suited for the particular position  80% of your company’s sales volume comes from the top 20% of your sales people => Why pay 80% of sales force to bring in only 20% of the revenue? Turnover  Greener pastures (flocking to employers of choice)  Gen X and Y – the job-hopper cohorts  Leaving bad managers  Turnover is very, VERY costly Marketing vs. sales divide 6
  7. 7. Common challenges Behavior issues  Big egos and Prima Donnas  Backstabbing – taking competitiveness to the extreme  Dishonesty  Absenteeism Motivation  Unclear vision  Disengagement issues  Commission structure  Personal vs. organization’s goals divide Loyalty 7
  8. 8. Turnover – Howmuch does it cost? 8
  9. 9. Pop quiz According to McDonalds, the turnover cost of losing an entry-level employee earning $12,500 per year is ____. 1. Less than $2,500 2. $2,500 3. $5,000 4. $7,500 5. $10,000 9
  10. 10. Pop quiz According to McDonalds, the turnover cost of losing an entry-level employee earning $12,500 per year is ____. 1. Less than $2,500 2. $2,500 3. $5,000 4. $7,500 5. $10,000 10
  11. 11. Pop quiz The turnover cost of losing a sales representative earning $75,000 per year is ____. 1. $48,000 2. $67,550 3. $93,750 4. $110,500 5. $125,000 11
  12. 12. Pop quiz The turnover cost of losing a sales representative earning $75,000 per year is ____. 1. $48,000 2. $67,550 3. $93,750 4. $110,500 5. $125,000 12
  13. 13. Turnover cost summary TURNOVER COST as a % of JOB TYPE/ CATEGORY annual salary Entry Level – Hourly , Non Skilled (e.g. Fast Food Worker) 30 – 50% Service/ Production Workers – Hourly (e.g. Courier) 40 – 70% Skilled Hourly (e.g. Machinist) 75 – 100% Clerical/ Administrative (e.g. Scheduler) 50 - 80% Professional ( e.g. Sales Representative, Nurse, Accountant) 75 – 125% Technical (e.g. Computer Technician) 100 – 150% Engineers (e.g. Chemical Engineer) 200 – 300% Specialists (e.g. Computer Software Designer) 200 – 400% Supervisors / Team Leaders (e.g. Section Supervisor) 100 – 150% Middle Managers (e.g. Department Managers) 125 – 200% 13
  14. 14. NOTE: Percents are rounded to reflect the general range of costs from studies Costs are fully loaded to include all of the costs of replacing an employee and bringing him/her to the level of productivity and efficiency of the former employee. The turnover included in studies is usually unexpected and unwanted. The following costs categories are usually included:  Exit cost of previous employee  Recruiting cost  Employee cost  Orientation cost  Training cost  Wages and salaries while training Turnover costs are usually calculated when excessive turnover is an issue and turnover costs are high. The actual costs of turnover for a specific job in an organization may vary considerably. The above ranges are intended to reflect what has been generally reported in the literature when turnover costs are analyzed.Sources of Data: Industry and trade magazines have reported the cost of turnover for a specific job within an industry. The Saratoga Institute Independent studies have been conducted by various organizations and compiled by the Jack Phillips Center for Research. The Jack Phillips Center for Research is a Division of Franklin Covey. 14
  15. 15. Who are the right people? 15
  16. 16. Climbing the performance pyramid GAP 16
  17. 17. Marker traits of star salespeople Intrapreneurial characteristics Business sense and instincts  Sales knowledge  Prospecting  Qualifying leads  Gathering info  Presenting  Resolving objections  Closing  Getting referrals  Strategizing and positioning  Resourcefulness  Mental speed  Negotiation skills  Research skills  Problem-solving skills  Relationship building skills  Memory for names, faces, personal information 17
  18. 18. Marker traits of star salespeople Drive and ambition  Goal-orientation  Competitiveness  Initiative  Energy Social skills  Listening skills  Questioning skills  Communication skills  Sociability  Networking skills  Empathy and recognition of other people’s emotions  Persuasiveness  Helpfulness 18
  19. 19. Marker traits of star salespeople Self-assuredness  Self-confidence  Assertiveness  Comfort with rejection  Comfort with decision-making  Comfort with public speaking Organizational skills  Neatness  Record keeping  Time management  Meticulousness Coping skills  Tolerance for failure – thick skin  Comfort with rejection and criticism  Emotional control  Adaptability Honesty 19
  20. 20. Intrapreneurship An intrapreneur is someone who  Comes up with new ideas  Develops them conceptually  Ensures buy-in from stakeholders  Mobilizes the necessary forces  Implements  Personally assumes risks 20
  21. 21. Characteristics in an intrapreneur business insight understanding of the market environmental awareness strength of character persistence, stamina and determination innovative and creative problem-solving ability to manage change capacity for analysis, organization and control of activities ability to inspire people at all levels, to engage their interest and ensure they are effective and successful loyalty 21
  22. 22. Different jobs, different profiles Similar traits, different mix  High-tech sales vs. car sales vs. retail  Sales style:  Pioneers  Hunters  Farmers  Sales approach:  Improvisers  Chameleons  Planners  Hawkers  Persuaders ⇒ Hire people with the right profile for the job Hire people whom you can keep satisfied  Take into account organization’s policies  Keep it real – don’t hire people who are motivated by things your company cannot offer  Be aware of trade-offs 22
  23. 23. Sales personality test factors Comfort with public speaking  Goal orientation Comfort with risk-taking  Initiative Comfort with decision-making  Energy Comfort with rejection/criticism  Neatness Sales knowledge  Time management Self-confidence  Meticulousness Recognition of other’s  Listening Skills emotions  Integrity Adaptability Assertiveness  Helpfulness Persuasiveness  Emotional control Communication skills  Mental speed Networking skills  Research skills Competitiveness  Problem-solving skills 23
  24. 24. How to find the right people? 24
  25. 25. How to recognize talent “Hire for attitudes, train for skills” Screening process Interview Assessment Decision tools Assessing impact of trade-offs 25
  26. 26. If you can’t measure it, you can’t control it … Bottom Line: People who perform well have:  Increased self-awareness  Improved morale  Increased retention  Increased engagement  Enhanced productivity  Better job satisfaction . . . profits surge! 26
  27. 27. “Assess and conquer” Define the job Assess the incumbent Assess the candidate Perform gap analysis Assess and manage performance Assess and manage promotions Retain your best people 27
  28. 28. Assess the job Task analysis  Taskdescription  Shadowing Job analysis Job description Personality profile of the ideal candidate Key characteristics and attitudes Behavioral benchmarks for the position Reach consensus among the stakeholders 28
  29. 29. Assess the incumbent Strengths  What traits and attitudes contribute to good performance?  What are the downsides? Challenges  What are the traits and attitudes that hinder performance?  What do you wish you could change in the incumbent? 29
  30. 30. Assess the candidate Select and hire effective employees Find people with the right profile for the position Recognize team players Accurately predict successful performance 30
  31. 31. Assess the candidate Prescreening Interview Personality assessment Assessment of work environment preferences Skill assessment Attitudes and values 31
  32. 32. Prescreening Screen for deal-breakers  From company’s perspective  From candidate’s perspective Evaluate key attributes Knock-out questions Assess essential skills 32
  33. 33. Interview pitfalls – The candidate Candidates well-trained in interviewing skills  Rehearsed responses  Spinning  Outright cheating ⇒ Read between the lines ⇒ Ask unusual questions ⇒ Ask situational questions Good candidates inexperienced in interviewing process  Disadvantaged – have to think about answers on the spot  Can miss diamonds in the rough 33
  34. 34. Interview pitfalls – Interviewer bias First impression  It takes seven seconds to make a first impression  50% of it is based on the person’s appearance  First opinions are formed in the first 12 minutes of an interview Halo effect  strength (or weakness) in one area is generalized to other areas Primacy and recency effects:  The interviews we remember most are the first and the last of the group  We tend to remember the beginning and the end of individual interviews Rationalization of negative aspects if we like the candidate Looking for someone similar to self Self-fulfilling prophecy:  First impression of someone (from a first meeting or from their resume) will subconsciously influence questions resulting in confirmation of said first impression 34
  35. 35. Interview – Probing for revealing info Situational/behavioral questions  Gut responses  Attitudes  Reasoning Strengths and weaknesses Ambitions Motivators 35
  36. 36. Interview – Down the memory lane Past behaviors are the best predictors of future behaviors  Did you experience conflicts or major differences in opinion with co-workers or management?  How did you resolve them?  What did your past employers value most about you?  What did they suggest you improve/work on?  What’s the most common misconception about you? 36
  37. 37. Interview – Show me what you’ve got Initiative and resourcefulness  What do you know about our company?  Why do you want to work here?  What can you contribute to our company?  What do you think our company can bring you?  In 3 sentences, why should we hire you rather than somebody else? (elevator pitch) 37
  38. 38. Interview evaluation Decision tools  Objective criteria  Weighting system  Decision grid Quantify qualitative information Multi-rater evaluation 38
  39. 39. Perform gap analysis Measure the difference between the candidate and the requirements of the position Identify significant gaps – changes in behavior and playing a role of the “job persona” are required to close the gap Determine the actions that support these required changes/behaviors Predict the energy requirements to make these changes and the resulting frustrations 39
  40. 40. Keeping the bestand getting the best out of them 40
  41. 41. Retain the good ones Training and professional development Personal development Empowerment Engagement Alignment of goals Growth potential (career and earnings) Organizational culture Management climate Working hours and flexibility 41
  42. 42. Retention drivers … times are changing DISCONNECTING DRIVERS OF RETENTION EMPLOYERS’ VIEW EMPLOYEES’ VIEW1. Management Climate 1. Benefits2. Supervisor Relationship 2. Compensation3. Culture & Work Environment 3. Growth & Earnings Potential4. Benefits 4. Management Climate5. Growth & Earnings Potential 5. Time & Flexibility6. Training & Development 6. Culture & Work Environment7. Compensation 7. Supervisor Relationship8. Time & Flexibility 8. Training & Development 42
  43. 43. Manage what matters Management by objectives Management style  Transform the management style according to what works for the person  Micromanagement – avoid or use it sparsely and for specific purposes  If possible, adjust the job to the person Manage expectations  What’s expected of employees  What the employees can expect  Resist pipe dreams Keep employees in the loop  Decisions  Results Align personal goals with company’s goals 43
  44. 44. Motivating your sales force Set clear goals and expectations  When they know what they’re aiming for, they will make more efforts to get there Hold team meetings  Discuss strategies and ideas  Every member of the team can contribute to the discussion Team building  Organize periodic team building activities  Make a point of celebrating birthdays and anniversaries  Celebrate new hires  Celebrate successes 44
  45. 45. Training and development Offer training possibilities  About what they sell  How they sell it  Career development  Personal growth  Mentoring and coaching 45
  46. 46. Pop quizWhat is greater? ROI generated from Training & Development ROI generated from the acquisition of capital improvements 46
  47. 47. Pop quizWhat is greater? ROI generated from Training & Development ROI generated from the acquisition of capital improvements 47
  48. 48. ROI from trainingACTUAL BUSINESS RESULTS FROM TRAINING & DEVELOPMENTSETTING TARGET GROUP DESCRIPTION METHOD RESULTSCoca Cola First level supervisors 8 ½ day workshops Action planning 1447% ROI covering supervisor roles, Follow-up session Benefit/cost goal setting and team building Performance monitoring Ratio 15:1HMO All Managers and employees Organizational Development Performance Monitoring 20,700 New members (team building Management 1270% ROI building, group meetings Estimation BCR 13.7:1 Customer service trainingDirect Sales All employees in the 20 hr. program spread over Action planning Payback of program Financial Services Division 60 days focusing on investment in 1 yr total quality mgmtYellow Managers Redesigned interviews Follow-up interviews 1115% ROIFreight Performance appraisal BCR 12:1Systems appraisal with training Performance monitoring interpersonal skillsFederal Government New Supervisors 5-day intro to Follow-up questionnaire 150% ROI supv. course BCR 12:1 covering eight key competenciesBakery Multi-Marques, Inc Supv./ Admin 15 hrs of supervisory Action Planning 215% ROI skills training (Work process Including the analysis), role of training Performance Monitoring 48
  49. 49. Sales contests A little friendly competition goes a long way:  Hold sales contests with non-cash awards (winning a fun night out enriches the winner’s life and creates enjoyment, a cash award has to be substantially larger to make a difference)  Keep the contests about short-term goals (long-term goals foster procrastination)  Use largest percentage increase as a goal rather than highest number of sales to give everyone a chance of winning  Make the contest periods and types unpredictable: When you become predictable, it is easy to hold off big sales for a little while to have them count in the upcoming contest. 49
  50. 50. Building trust and engagement Align goals  Explain what the company goals are and how the individual sales representative affects those goals  Make their contribution personal Provide comparison tools  Share financial information  Show them how they compare to their colleagues Provide coaching and mentoring  Coach them periodically  We tend to forget key concepts when we get rolling  We all need to be reminded what we do well and what we need to improve from time to time Keep the atmosphere positive  Encourage rather than threaten  Reward improved performance rather than demoting and decreasing bonuses 50
  51. 51. “Show me the money!” … and alittle pat on the back will help too Monetary compensation is important  Decent base  Commissions  Bonuses Be creative with incentives  Offer original non-monetary rewards  Tailor rewards to the recipient Create social reinforcement opportunities  Public praise is much more powerful than doing the same in private Pay particular attention to reward improvement in the bottom-tier sales staff’s performance  Rewarding the top performer is expected, but the sales representatives that don’t do so well need to be rewarded even more 51
  52. 52. Big egos and Prima DonnasTo get the most out of them: Make them feel important Make them feel appreciated Figure out their needs and play into them Instill upon them the vision and mission of the company Communicate how theyre an integral part of the team Praise them for a job well done Give them perks 52
  53. 53. Big egos and Prima DonnasTo mitigate the down side: Don’t give in to unreasonable demands Try to keep them grounded Cultivate humbleness Boost the team spirit Talk good traits into existence Throw them a challenge Reward team players Be diplomatic but candid with negative feedback 53
  54. 54. Other factors Age  Positivelyrelated to commitment  Negatively related to turnover Personal needs  Work/family balance  Personal situation (attitude to travel, furthering one’s education, commuting, hobbies)  Flex time  Virtual office 54
  55. 55. Retention – what to watch out for Compensation  Gross revenue vs. Gross margin  Commission caps  Expense accounts  Other perks Control of factors affecting performance  Budget control after closing (if commission based on gross margin)  Availability of supporting materials  Turnaround of feedback from others Quotas  Focus on the top line  Take into account the sales cycle 55
  56. 56. Retain your best people Motivate, develop and retain your employees Improve coaching and development sessions Add objectivity to the promotion and review process Predict how a transfer or promotion will impact performance 56
  57. 57. Are you the “Employer of Choice”?Do you… Align benefits & workplace attributes to create a dynamic work environment? => EMPLOYEE ENGAGEMENT Use tools to measure performance of exceptional workers? => BEHAVIORAL & LEADERSHIP 360 ASSESSMENTS Build career growth and development from the inside out? => BEHAVIORAL & LEADERSHIP 360 ASSESSMENTS Reward employees for driving organizational flexibility (adaptation to change)? => EMPLOYEE ENGAGEMENT 57
  58. 58. Ilona Jerabek, PhD9001 blvd. de l’Acadie, Suite 802 Montreal, Qc H4N 3H5 ilona@psychtests.comDirect line: 514-745-3189, ext 112 Fax: 514-745-6242 http://archprofile.com http://www.psychtests.com 58
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