Learn how to spot superstar sales people

1. Recruit and Retain
Superstars in Sales
Ilona Jerabek, PhD
PsychTests AIM Inc.
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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®
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3. In-house sales team or alternatives?
 In-house sales team
 Outsourcing
 Resellers
 Distribution channels
 Independent reps
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4. Reality check
In 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
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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 team
If this were your team, how long would you keep the
coach?
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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
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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
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8. Turnover – How
much does it cost?
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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
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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
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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
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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
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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%
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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.
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15. Who are the right
people?
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16. Climbing the performance pyramid
GAP
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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
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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
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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
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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
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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
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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
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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
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24. How to find the right
people?
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25. How to recognize talent
 “Hire for attitudes, train for skills”
 Screening process
 Interview
 Assessment
 Decision tools
 Assessing impact of trade-offs
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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!
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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
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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
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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?
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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
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31. Assess the candidate
 Prescreening
 Interview
 Personality assessment
 Assessment of work environment
preferences
 Skill assessment
 Attitudes and values
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32. Prescreening
 Screen for deal-breakers
 From company’s perspective
 From candidate’s perspective
 Evaluate key attributes
 Knock-out questions
 Assess essential skills
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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
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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
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35. Interview – Probing for revealing info
 Situational/behavioral questions
 Gut responses
 Attitudes
 Reasoning
 Strengths and weaknesses
 Ambitions
 Motivators
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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?
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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)
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38. Interview evaluation
 Decision tools
 Objective criteria
 Weighting system
 Decision grid
 Quantify qualitative information
 Multi-rater evaluation
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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
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40. Keeping the best
and getting the best
out of them
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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
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42. Retention drivers … times are changing
DISCONNECTING DRIVERS OF RETENTION
EMPLOYERS’ VIEW EMPLOYEES’ VIEW
1. Management Climate 1. Benefits
2. Supervisor Relationship 2. Compensation
3. Culture & Work Environment 3. Growth & Earnings Potential
4. Benefits 4. Management Climate
5. Growth & Earnings Potential 5. Time & Flexibility
6. Training & Development 6. Culture & Work Environment
7. Compensation 7. Supervisor Relationship
8. Time & Flexibility 8. Training & Development
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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
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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
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45. Training and development
 Offer training possibilities
 About what they sell
 How they sell it
 Career development
 Personal growth
 Mentoring and coaching
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46. Pop quiz
What is greater?
 ROI generated from Training &
Development
 ROI generated from the acquisition of
capital improvements
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47. Pop quiz
What is greater?
 ROI generated from Training &
Development
 ROI generated from the acquisition of
capital improvements
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48. ROI from training
ACTUAL BUSINESS RESULTS FROM TRAINING & DEVELOPMENT
SETTING TARGET GROUP DESCRIPTION METHOD RESULTS
Coca 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 15:1
HMO 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 training
Direct 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 mgmt
Yellow Managers Redesigned interviews Follow-up interviews 1115% ROI
Freight Performance appraisal BCR 12:1
Systems appraisal with training Performance monitoring
interpersonal skills
Federal Government New Supervisors 5-day intro to Follow-up questionnaire 150% ROI
supv. course BCR 12:1
covering eight
key competencies
Bakery 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
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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.
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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
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51. “Show me the money!” … and a
little 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
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52. Big egos and Prima Donnas
To 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 they're an integral part of the team
 Praise them for a job well done
 Give them perks
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53. Big egos and Prima Donnas
To 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
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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
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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
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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
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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
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58. Ilona Jerabek, PhD
9001 blvd. de l’Acadie, Suite 802
Montreal, Qc H4N 3H5
ilona@psychtests.com
Direct line: 514-745-3189, ext 112
Fax: 514-745-6242
http://archprofile.com
http://www.psychtests.com
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