Are you hiring top performers, or does your sales force fall into the 80/20 rule? You know the rule. It says that 80 percent of a companys sales comes from 20 percent of its sales force. Theres little doubt that top performers outsell poor producers. The question is, by how much?
Evidence shows a top producer will generate five to six times the sales of a bottom producer. In a recent study of more than 100 businesses of various sizes and types, for example, the top producer outsold the same companys bottom producer by an average of 5.7 to 1.(And to think the bottom producer still held his or her job!) Actually, the study revealed a 3:1 to 9:1 range. But do the math using the lowly 3:1 differential as in the chart below, and you'll quickly realize how important successful salespeople are to any business. And now think of businesses with only one or two salespeople. It's even more critical that these positions be filled with top producers.
Effects of top producers #1 produces $750,000 - #1 produces $750,000 #2 produces $525,000 - #2 produces $525,000 #3 produces $330,000 - #3 produces $330,000 #4 produces $275,000 - #4 produces $275,000 #5 produces $250,000 #5 produces $750,000 Total Sales = $2,130,000 Total Sales = $2,630,000 An extra $500,000!
Whopping 75 percent of sales job candidates are unsuitable. Looking at the above table, wouldn't we all like to have a sales force made up only of top producers? Unfortunately, few companies, if any, do. Worse, for many, three out of four sales hires fail to work out at all. A new salesperson has only a 25 percent chance of seeing his first anniversary on the job. Of those who stay, only one in 10 becomes a true top producer within three years. Sales managers tell many horror stories about costs related to unsuitable salespeople:
- Connecting the salesperson with a potential buyer only to lose the opportunity.
- Overcoming negative word of mouth.
- Paying a person who just "takes up space."
- Training costs.
- More than half of those working in sales should not be in sales at all because they lack the basic characteristics of good sales people.
- Of the remaining 45 percent, half are selling the wrong thing in the wrong place for the wrong managers. This leaves about 20 percent to produce most sales.
- Lazy
- Lacking in intelligence
- Opportunistic
- Overpaid
- Unethical
- Pushy (uses high pressure sales tactics)
- Backslappers and BSers
- Interested only in money
- They are listeners, not talkers. Successful selling requires knowing a customers needs. Great salespeople encourage customers to talk about their needs. They then listen carefully so they can connect their products benefits to those needs.
- They possess a strong work ethic. Successful salespeople work hard and sales superstars know there is no substitute for this. They prospect more often, make more calls, talk to more people and make more sales presentations than their coworkers.
- They are exceptionally honest. Because many customers think a sales person is a backslapper, even unethical, they look for dishonesty in every sales situation. One whiff of it, and they dismiss the company and its products. Above all else, successful salespeople maintain their integrity.
- They are self-confident. Rejection is more common in sales than success. The best salespeople are able to set rejection aside and move on. They are persistent. They look for new solutions. They refuse to give up.
- They are enthusiastic and passionate. Always in a positive mood, super sellers choose to focus on the positive rather than drag themselves down with the negative. Whats more, they are genuinely excited about their company and about selling its products and services. Wow! You can see why recruiting an effective sales force is so challenging. Quite clearly, finding people with these characteristicsthose that will become your top performersrequires a lot of attention.
- Use hiring assessment tools to measure:
How candidates think, learn and act at work.
What careers truly interest candidates.
Other characteristics critical to sales performance.
- Measure top performance job by job using assessments to determine what is top performance in your workplace and in this job.
- Hire for fit. The better your candidate matches measured dimensions, the more likely he or she will become a top performer.
- Build a pool of potential. Find top performers now; don't wait until you need another salesperson. Continuously improve your sales force by replacing bottom feeders with people who fit your good jobs .
Mary Gorski has more than 15 years of corporate human resource management and assessment experience. She has worked with many levels of leadership and understands the needs of a well-run, efficient business. At the same time she understands the human factor and what motivates people to maximum performance and efficiency. Mary is president and owner of MG Assessments(http://www.mgassessments.com)
Using her experience and tools from Profiles International, Mary works with business owners to identify their people talent and help them understand how their workers drive results. She begins with diagnosis, and then designs a plan for improving workforce effectiveness. As a result of her assistance, businesses profit from a more motivated, engaged and productive workforce.
Prajna
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