Sales Recruiting Today

Sales Force Retention is a Myth

Turnover is a sign of a deeper problem

By: Jeremy Miller

Employee retention is a top-of-mind management topic today. As it should be! With the boomers leaving the market and an already overheated job market, companies need to hold onto their top performers. A fully trained, engaged and productive sales person is a huge asset, and is potentially crippling to lose. But the real question is not, "How do we retain our top performers?" Rather sales managers need to look deeper to identify, "Why do I have a retention problem?"

A revolving door of sales talent is a symptom of a much deeper problem. Sales people don't leave jobs when their products are in demand, leads are plentiful and sales performance exceeds quota. They leave when the wheels are falling off the bus. When management starts talking about "improving retention," take a deep look at the sales environment.

1. What is happening to your market?

Coal miners used to take canaries into the mines to detect harmful gases. It was pretty grim. If the canary died, the miners knew they were in danger and to take action. When sales people start leaving, they can be your canaries – an early warning system of problems happening in your market.

When a market begins to consolidate or a product becomes dated, the sales cycle becomes even more difficult. It is harder to find leads. Customers stop investing the time they used to with the sales people and closing ratios decline. A shifting customer base can be a very demoralizing sales environment. Sales management tries to stay on top of the sales people to achieve their numbers, but the customers just aren't buying. It is a lose-lose situation for the sales people.

All is not lost. If management recognizes the changes in their market soon enough, they can adjust. At this stage it is key to recognize the problem is not the sales reps; rather it is a corporate, product development or marketing problem. Sales is being directly impacted today, but with the right product and marketing mix the sales team can return to a fun and rewarding environment.

2. What is their manager doing?

"People don't leave companies, they leave managers." This is a hackneyed phrase, but it speaks the truth. The front line sales managers are the most important people in a sales organization. They are responsible for acquiring, coaching, motivating and retaining the sales reps. When you have a bad sales manager, the damage can be deep and pervasive.

It does not matter how good the product is, how fast the company is growing or how much money the sales people are making. If the manager is making the reps' lives hell, they will leave. No money is worth the hassle.

Identifying bad managers is easier said then done. Often you don't find out until it is too late, but you can implement early warning systems. Tracking and analyzing sales metrics are a good starting point. Metrics provide the data to identify trends and problems. Is the manager achieving her sales targets? What is the employee turnover in the group? How does the team relate to the other territories? Sales departments are very accustomed to being managed to the numbers. By including retention and employee performance metrics, the executive team can manage beyond hard revenue goals.

Tom Peter's coined the term, "Management by Wandering Around" in his book In Search of Excellence. The philosophy is very applicable in a sales department. Executives and Sales VPs should make time to constantly meet with the sales people one-on-one. If the reps are facing a management problem, they will tell the senior management. It may not be overt, but if you are paying attention you will see the signs in a one-on-one session. They will articulate issues such as morale, micro-management, politics and other non-sales related problems. Do not overlook these comments; it may come to haunt you later.

3. Would you sell for your company?

Too often sales is boiled down to a numbers game. Management will say, "For every 'no' you hear, you are that much closer to hearing 'yes.'" Bull! Cold calling is the most inefficient lead development tool out there. Sales people can make calls until they are blue in the face, and still not have a qualified prospect. A "learn to love no" sales culture is no joy to work in. It is filled with rejection.

When an organization does not value sales people, the compensation plan shows it. The sales people are often paid 100% commission or an extremely low base salary. Management wants the sales people to be hungry. As the saying goes, "If you pay peanuts, you get monkeys." It is very hard to attract and keep highly talented sales people when the company has no skin in the game. The compensation plan must be tuned to the market value of the sales people, and adequately compensate the reps for the value they bring to the business.

People may take a low paying sales job to start their career or when they are desperate. Yet when they find their feet, you can bet they are going to look for something better: a product that is easier to sell, better pay or a more professional work environment. In this labor market there are plenty of choices available to all levels of sales people.

Can turnover be eliminated?

Sales people go through a natural cycle in any job. The first year is typically a build year. This is an exciting time for a new sales rep as he learns the product, the market and how to sell it. In the second year the sales person finds his legs. He is achieving quota and reaping some of the rewards from the hard work he has done to date. The third year is a quota buster. At this point the sales person has mastered the product, the market and can easily exceed quota. It is a great time, but is also a turning point.

By the time sales people reach their fourth and fifth year in a role they begin to plateau. In this phase, they have mastered the job and complacency can kick in. The money might be great, but they could be bored and looking for the next challenge. At this point the organization should be looking to promote sales people, adjust their position or give opportunities for growth. Otherwise the sales people could leave. This might not be bad turnover and can be accounted for in the workforce plan.

On the other hand, if sales people are leaving in the first 24 months, this is a sign of a retention problem. Now it is time to look at your customers, look at your managers and look at your sales organization to determine if you have a much larger problem. Sales people don't leave great jobs; they leave crumbling ones.

Jeremy Miller (Jeremy.Miller@LEAPJob.com) is a Partner with LEAPJob (www.LEAPJob.com). LEAPJob is a sales recruiting and sales consulting firm that helps companies achieve their growth targets by building top performing sales organizations. You can reach Jeremy at 905.281.3090, Ext. 22.

The Problem With Sales Training

By: Drew Stevens

A recent report by Selling Power indicates that corporations spend over seven billion dollars per year on sales training. The vital issue, with an investment this large many companies do not provide a means to understand whether it leads to a return on investment. And, many sales representatives do not adopt the sales methodology! In present economic times, the cost of capital is to high not to have measures.

Our firm has spent over 25 years in the field and we have seen this trend too often repeated. There is simply no reason to measure productivity, manufacturing and talent management, and not measure training return on investment. 

When the concern is for both sales and growth there is a vital need to form a link. We have found that there are several issues that break the connectivity:
     •    The sole metric used is new sales or new clients. 
     •    While many companies conduct sales training, it is event based.
     •    Many selling representatives do not adopt the prescribed methodology.
     •    “Eighty seven percent of training is lost within one month.”
     •    Training is not tied to the corporate business strategy.
     •    Executive buy-in is narcissistic.

The sole metric used is new sales or new clients. 
Differentiation is the key to all business and industry. However, many do not have proper metrics to understand the impact of new and decreased sales. If a firm is engaged in an established selling program then it’s vital to work toward a return on investment. Talent is measured, manufacturing production is measured, and customer service is measured, then why not sales? More importantly, new sales cannot be the only metric used to denote if sales training works. Selling does not work in a silo. Clearly, customer service, closing efficiency, handling objections and demonstration of product and service are required. The metric used must integrate with all operational departments effected by sales and more importantly the linkage to the overall corporate strategy.

Sales Training cannot be event based.
A chronic misunderstanding about training is the issue of changing habits. Habits are formed from years of influences and behaviors. These behaviors have cultivated through many years of constant repetition. Enculturation is manifestation of behaviors.  These behaviors do not change in a seven-hour program. It is counter productive to believe that a billion dollar firm will obtain double digit production after a seven-hour event. Results come from repetition. When was the last time other than starvation that you lost weight in a day or increased muscularity without exercise?  Ask your selling professionals, “can you do the job if you life depended on it?” Deter shortcuts and train staff periodically for best results! Treat them as elite athletes.

Many selling representatives do not adopt the prescribed methodology.
The worst travesty for any training program is a sheer lack of accountability. There are countless anecdotes of participants sent into training for hours and days at a time, returning to work no better than before training. Workers return to past habits having forgotten educational practicum. This illustrates a complete disregard for the return on investment. The only mechanism for success is the establishment of new habits. What gets remembered gets repeated and it is imperative for individuals to constantly repeat new processes to change old habits.

Second, review your talent pool. Research proves that certain behaviors cannot be taught. Organizations can hire for physical ability and even certain skills but talent is innate. Your talent does or does not have it. When the methodology is not used, search your talent pool.

“Eighty seven percent of training is lost within one month.”
Training for training sake does not work. While short-term productivity occurs, training is a longer-term process. Selling requires a series of programs that instill motivation, memorization and practicum. Short-term production might help monthly revenue gain, however, quarterly and annual are the proper success metrics. What might your feelings be if you discovered your physician only went to medical school for two years or only assisted a half dozen patients per year? How about an attorney that only litigated four cases per year? Selling is a profession. 

We work in a multigenerational, multi-gendered and multicultural workforce. This potpourri requires changes in learning accommodation. Today’s learner desires 1) to be involved in the learning process, they like interaction and adverse to simple lecture and 2) desire different modalities of learning. The proliferation of consumer electronics, the Internet and personal computing allows learners to devour content wherever, however and whenever they desire.  Use a blended approach but ensure learning continues and does not hit obstacles.

Training is not tied to the corporate business strategy.
Tactical sales forces do not work in today’s complex and connected world. Sales representatives are myopic to the needs of the organization focusing only on the “product/service” of the day. It is imperative to denote for all staff the motives for the business. Sales staff must be aligned toward the core values. This provides vision and purpose. Exemplars such as FedEx illustrate this model as all work toward guaranteed overnight delivery.  

Executive buy-in is narcissistic.
The worst travesty for any training program is a sheer lack of accountability. Exectives state the important of training yet THEY do not participate in programs and worse, do not follow up with required accountable. Stop the narcissism. Hold all individuals accountable to ALL training program essentials. Participants learn from true leaders and they follow them. People believe what they see and leadership must serve as exemplars. 

Conventional wisdom says people change jobs for pay and morale, but lack of training leaves a chasm of frustration. The sales department is the most important asset of any organization. Executives are unpaid, vendors are unpaid, products are not developed until something is sold. End the training gap and begin to invest in the most vital asset of any organization- selling!


©2008 Drew Stevens Ph.D. All Rights Reserved.

Drew is Known as The Sales Strategist. He has 25 years of domestic and international sales and marketing experience. In addition, he is the author of seven books including Split Second Selling, Split Second Customer Service and Little Book of Hope. Visit Drew's website at http://www.drewstevensconsulting.com/

How to Motivate your Slacking Sales Team

By: Paul Cherry

Her name was Cindy, but around the office, she was better known as “Solitaire Cindy.” Whenever I walked by her desk, the Solitaire screen on her PC was running. Frankly, it bugged me. Why should Solitaire Cindy game her day away while I busted my hump in my job, along with my fellow employees? I asked her manager how she felt about that. She sighed, “For what we pay Cindy, she does a decent job, so she’s earned the right to futz around.”

I even talked with Cindy myself, hoping to encourage her. But, she shrugged as she flipped a card with a click of her mouse.

Cindy wasn’t motivated. But I blame management. They neither confronted her nor gave her any motivation. Like so many managers, they took the path of least resistance. People would prefer to put up with mediocrity than make waves with employees.

You Have Choices on How to Address Mediocrity in Your Sales and Marketing Organization.

For instance, would you:

• Disconnect Cindy’s Solitaire software to force her to step up to the plate?
• Confront her, running the risk of annoying her and losing her (and finding her replacement)?
• Ignore Cindy’s overall mediocre performance because of the things she does do well, risking a ripple effect on the other employees who work hard while Cindy follows her own path of least resistance?
• Initiate a meaningful dialogue with her to find out why she’d rather play computer Solitaire than be a proactive worker in your sales organization?

If you were like some of my large business-to-business sales organization clients, you probably think installing programs to monitor and restrict employees’ Internet access is the answer. But that only treats the symptom, not the disease.

If you were like most misguided managers then you feel it’s not your job to inspire excellence. You would choose to ignore Cindy’s overall mediocre performance. I’m sorry but chances are your sales team will not magically motivate themselves. You must address mediocrity issues ASAP so they don’t snowballs into a major problem.

An effective sales team leader would:

• Initiate a meaningful dialogue with their sales team
• Remember all members of their sale team are individuals with motivations as different as their work styles
• Respect and respond to those differences so their sales team performs above and beyond expectations
• Understand their employees like they understand their customers
• Find out what their sales team truly values

You risk losing your best workers if you don’t discover ways for them to feel successful and accomplished in their positions. And, the only way to understand what people value is to engage. That’s why I strongly suggest that you talk with your sales team. Really listen to what success means to them!

8 Questions You Must Ask Your Sales Team So You Can Take Them to the Next Level

Armed with the answers to these 8 questions, you can implement meaningful reward systems, programs, and promotions that’ll turn mediocre employees into happy and productive sales performers.

1. What do you feel is going well for you at our company?
2. What have you accomplished so far that you’re really proud of?
3. What else besides a bigger paycheck would make you feel more successful at work? In life?
4. What would you have to accomplish in order to feel successful five years from now in your sales career?
5. What do you enjoy most about your sales job?
6. What two things would you most like to achieve in the next six months?
7. In order to make your sales career more interesting, what would you like to do more of? Less of?”
8. How do you define success?

Get Your Sales Team Motivated

If you want your sales team to feel successful and triumphant in their jobs, you must make them feel valued. I can’t even begin to count the number of times clients have called asking to help them motivate their employees. Over and over, they tell me their business would improve if only Joe or Jenny Worker would “step up to the plate” or “put in that extra effort.” But all they have to do is ask their employees what motivates them, and how they want to be motivated!

Remember, motivated employees have the drive to succeed. So start asking questions and motivate your sales team today, so you can grow your business tomorrow!

Paul Cherry has 20 years experience as a sales training consultant with an emphasis placed on sales training, leadership development, sales coaching and leadership coaching. To date, Paul Cherry has trained and coached over 1,200 organizations in every major industry ranging from family-owned small businesses to leading Fortune 500 companies. As a leading sales training consultant, Paul Cherry has written over 150 articles in leading sales publications and he is the author of the top-selling book, Questions That Sell and the soon-to-be-released Questions That Lead. Take a look at his company's website PB Results. 

Use a Cross-Functional Perspective to Implement a Just-in-Time Sourcing Strategy

By: Lou Alder

Progressive companies are now implementing Just-in-Time (JIT) sourcing programs to ensure they have a ready pipeline of top talent once the economy recovers. This will provide early adopters a significant competitive advantage and an increased share of the best talent.

In fact, these are the same companies that everyone else will be benchmarking in 2010 and beyond. So if you’d rather be the presenter at ERE Expo instead of sitting in the audience hearing about what you should have done, here are some things to consider as you begin implementing a JIT sourcing program.

Back in the late 1970s and 1980s, supply chains became very sophisticated with concepts like material requirements planning, demand-pull procurement, Kanban, and just-in-time sourcing becoming commonplace. Recruiting is now starting to apply these same supply-chain ideas to improve the quality and timing of hiring efforts. This parallels the increased application of advanced consumer marketing and advertising concepts to recruitment advertising. It is the adoption of techniques from these two fields that makes JIT sourcing possible.

The basic concept behind JIT sourcing is the development of a dynamic candidate database of resumes and prospects. On top of this is a drip marketing program nurturing and engaging with this database on an ongoing basis.

When jobs become available, appropriate candidates in the database are notified and invited to evaluate them. As long as the database is filled with enough high-quality candidates and if primed properly, enough people should raise their hands for consideration. This means that jobs could be available for interviews within hours after a req is formally opened.

Even better, a recruiter could query the database ahead of time to determine whether there are enough candidates available to meet upcoming hiring needs. If not, sourcing programs can be accelerated to meet future supply needs.

Obviously, this state of bliss doesn’t come about without some important processes in place. Here are the big ones:

1. Getting enough high-quality prospects into the database. This is where aggressive consumer marketing concepts need to be implemented. Much of this involves Web 2.0; targeting behavioral marketing; proactive employee referral programs; highly networked recruiters; pushed advertising to blogs, social networks and niche sites; and the development of candidate personas. (Check out our free resource library if you’d like to understand these concepts in more detail.) If you don’t have good people to start with, JIT sourcing will just enable you to hire average people very quickly.
2. A CRM technology that automates the nurturing process. Most CRM (candidate or client relationship management) systems require heavy involvement by the recruiter to send out a series of compelling sourcing messages on a regular basis. Making matters more difficult is the need to send out targeted messages rather than all-purpose generic messages. So without the right nurturing technology the drip marketing program becomes difficult to manage. We’re now exploring automated CRM system that eliminate this burden. Email me (lou@adlerconcepts.com) if you’d like to participate in some beta evaluations of these systems and find out what types of compelling messages you need to use to maintain and attract your prospects’ attention.
3. A short- and long-term forecast of hiring needs. The idea of workforce planning still seems to be anathema to most recruiting departments, yet this is what drives the CRM/db engine. Knowing who you’re going to be hiring 6-12 months out allows you to implement the recruitment advertising programs necessary to fill the database. While rough estimates allow the process to work at a fundamental level, knowing who, when, and where provides the raw material to keep the process running smoothly on an ongoing basis.
4. Targeted and sophisticated messaging. If you want to fill your prospect database with top performers, don’t use traditional skills and experience-based job descriptions as the basis for your ads or drip marketing emails. Traditional job descriptions filled with generic boilerplate will preclude the best from even considering being a prospect. As important, the nurturing messages need to consider your target demographic. This requires some market research up-front to get the complete series of messages done right. For example, a job appealing to a college grad would not highlight the same things as a working parent, a committed up-and-comer, or a baby-boomer looking for a healthcare plan. For an example, here’s our outrageous ad contest winner for last year, which emphasizes the culture and type of work, rather than the skills required to do the work. (Make sure you enter this year’s contest for most effective ad to get some practice with this new form of advertising.)
5. Strong metrics and reporting. Just like any business process, JIT sourcing requires constant monitoring and updating. Ongoing monitoring of factors like quantity and quality by class of candidate, the effectiveness of different sourcing programs, the productivity of each recruiter, and candidate response rates to different messages, among others, are the drivers for ensuring the program quickly delivers the best candidates when needed.
6. Implement a “just looking” mentality and eliminate the idea of “buy now.” Forcing people to apply to even talk to someone requires too big a commitment for those on the margin or just starting their job-hunting process. This blockade-mentality precludes the best from even becoming a prospect. For example, most company career sites make it difficult to find a job, or chat with a recruiter to get more information. Worse, most hiring managers are equally unwilling to just talk with a prospect on an exploratory basis. They typically want the candidate highly committed and interested before the first interview. The problem here is that the best people are generally open to talk even if they’re not looking, and many are willing to become prospects if it doesn’t require too much of a commitment. To build a big hot prospect database of high performers, companies need to eliminate every possible barrier to entry.

Even if you don’t achieve a complete JIT demand-pull sourcing program right away, proactive recruitment advertising designed to fill your prospect database will provide a significant competitive advantage. Getting prospects into the database is a science in-and-of-itself, and a good place to start.

The best way to do this for high-volume jobs (developers, sales reps, customer service, engineers, etc.) is to develop a series of talent hubs by job class. These 2-3 page microsites offer prospects an introduction to the job class (e.g., power engineers) providing information about the company, the types of jobs available, typical projects, learning opportunities, and a means to connect with the company, all without applying for a specific job.

You can add Web 2.0 interactive features to this microsite, including chat, RSS feeds, video podcasts, and a means to be first to learn about upcoming opportunities. As part of the talent hub design, make sure it can be found first by those Googling for jobs or pushing the link to appropriate blogs, networks, and social sites.

This is where search engine marketing becomes critical. Jobs2Web and Shaker Recruitment Advertising are leading the effort on creating these prospect portals.

It’s difficult to imagine the idea of advanced consumer marketing combined with state-of-the-art supply chain management as being the foundation for the future of recruiting.

Despite the non-HR emphasis, the most progressive companies are already moving in this direction with great success. Who knows? We may be able to win the war for talent after all with some true cross-functional thinking.

Lou Alder is the president of The Adler Group, a training and consulting firm helping companies find and hire top talent using Performance-based Hiring(sm). He is the Amazon best-seller author of Hire With Your Head (John Wiley & Sons, 3rd Edition, 2007) and the new Nightingale-Conant audio program Talent Rules! Using Performance-based Hiring to Hire Top Talent (2007).