Wednesday, January 10, 2007

Top Three Challenges Facing Sales Leaders Today - Part Three

The third and final challenge sales leaders across the country identified in the Miller Heiman study was "Lack of an effective process for recruiting and hiring qualified salespeople."

First and foremost, the word "effective" is HUGE. Of course anything you do should get you results, but don't take this word for granted in this third and final challenge. I have created a recruiting and hiring program. I've done recruiting and hiring and I've managed a recruiting and hiring director. Let me make this statement... "having a process for recruiting and hiring qualified salespeople is no insurance that you will HAVE qualified salespeople OR any salespeople.

So effective is not a "given" and it takes time to create a results oriented process. In the Miller Heiman study, "only 28% of sales leaders believe they have an effective process... compared to 32% in 2003." That's trending in the wrong direction. Demand results - not just a stream of people coming through the door.

Recruiting is the second most important thing a sales leader can be doing after inspiring and monitoring current sales team members. Thus recruiting is not something you do when someone quits or management decides it's time to grow - recruiting is something you do ALL THE TIME.

When you don't make recruiting a constant priority, you may have a challenge like this sales manager from the MH study:

"... the hiring [actually referring to recruiting] process can be a frustrating experience. He [the manager being interviewed] has pursued many avenues to find the right people including college recruiting, job fairs, the military and even headhunters. 'It's hard and it costs money,' he said. "... Developing people takes time and money, which are both in short supply.'"

Sound familiar?

So the answer I provide for developing an effective recruiting process - do it all the time. If you're not thinking of recruiting top people into your company each week, your going to fall behind. So where do you look? Here's my top three suggestions:

1. Your Competition. If you can find people who already know your industry and your product you've cut out a huge chunk of the training process. (Note of caution - don't hire just anyone just because they know your industry. Some of the worst people I've ever recruited and eventually hired were people that knew the training industry.)

2. The Internet. A few years ago I could throw this suggestion out and managers would be interested in learning all about how to recruit on the Internet... well its caught on hasn't it. It's effective and depending on the position, can provide advantages other sources can't match. Monster.com is the biggest and most well known Internet job posting site. Cities across the country usually have sites that are equally effective. In Phoenix for example, we have Jobing.com which I have used with some success.

3. Employee Referrals. If you've got good people, who don't have scarcity mentalities, then they will be the third and final resource I would recommend. The only thing that would make my job (or your job) better, would be for me to pick one of my best friends and have him come to work with me each day. Someone I'd be proud to join my company and someone who would make me look good to management and my peers. Make sense?

I suggest you offer incentives for your current team members to make referrals. After experimenting with a number of rewards (including cash) and ways to pay them, out I suggest using gift cards. I suggest something in the range of $500 and I suggest it be broken into two segments. One payment provided upon hiring and one payment provided at the 90 day mark. The 90 day mark is key. As a sales management professional, you better be able to determine if a new hire has the mojo to be successful with your organization by the end of 90 days.

I also suggest using a gift card that will really motivate the person making the referral. To do this I would create a menu of choices that cover a range of interests. I always include a card that would benefit my organization too. Men's Warehouse and Nordstrom's gift cards are my favorites because I know I'll see a new suit, slacks, shoes etc. These items not only were a reward for the team member, but proved to be a "walking billboard" for my incentive program.

Let's face it, if you recruit the right people the hiring challenge is easy to solve, but before you hire, drug test and profile. Drug test because it's the right thing to do and profile because you must have a starting point of measuring the skills of your new recruit and next hire.

These two steps actually add to the "effectiveness" of your process, and actually help make your efforts a "process." If you tell someone they must undergo a drug test and they don't come back (and you really liked them), then you most likely were being impressed with a drug-addict. If the candidate just wanted to make a statement - "that they don't have to be subjected to such procedures" good for him or her and BETTER for you. That same person would be "making statements" by disregarding other policies and procedures of your organization for years to come - and taking others with them on their journey.

Profiling let's candidates know that "there is a hiring process" and not anyone who shows up at the door is hired. Something else about profiles... THEY WORK. I've never taken one that has not pegged me PERFECTLY. If you need help finding the right profile - email me at tomk@closemoresales.com.

Finally, have a plan and have it detailed for all new hires when they arrive in your office for DAY ONE. When someone arrives for their first day - that should be a sales managers number one priority (and remain that way until the person leaves training and begins selling.) Sticking someone in a cubicle and having them read a manual is not a good plan and I would say not an "effective process." Everything should be done to impress the new hire just as you were trying to impress the same person when they were a recruit. Here's seven quick ideas:

1. Again, be ready and waiting day one. Don't make them wait in the lobby for you or some other person and stay with them that ENTIRE first day.
2. Lay out the entire first day in detail and an overview of the orientation and training period.
3. Introduce them to everyone in your office - EVERYONE.
4. Show them (again) exactly how they'll make money with your company.
5. Have Human Resources review benefits and payroll procedures.
6. Have an in-house lunch (the first day if possible) and focus ALL the attention on that person.
7. Assign them a RESPONSIBLE mentor for the first 90 days. Someone they can trust and count on for guidance when you are not available.

The need for competent sales managers has never been greater. I'll leave you with this final bit of information from the Miller Heiman study...

"Only 35% of sales leaders quickly identify and move out poor sales performers." That means 65% of the sales managers in this study were continuing to employ poor performers. I would bet this is happening all over the country. So creating an effective process for recruiting and hiring can help sales leaders fix this challenge.

It's critical that we do all that we can to increase the number of successful sales people because successful sales people are usually professional sales people. All of our reputations are enhanced when we raise the professionalism of selling.

Thanks Miller Heiman for being a leader in the sales training industry!

TK

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