Carl Henry’s Success Tips Newsletter Readers
June 2010 Issue #6 Volume 10
Congratulations! Because of our past relationship you are receiving my monthly newsletter…at no cost to you. If this is your first issue, then welcome. We appreciate the opportunity to share best practices in sales, sales management, customer service and leadership.
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How a Better Economy Can Kill Your Sales Department
At the time of this writing, the American economy seems to be slowly recovering, at least numerically, from a particularly nasty recession. This news doesn’t just have statisticians and fund managers excited; business owners and sales directors are looking forward to the new clients, bigger orders, and stronger profits they saw in earlier years. As natural as those sentiments are, leaders and executives would do well to tread carefully. There are a lot of steps involved in making your company “recovery ready,” but there’s one to be especially concerned about: hiring new sales staff.
Because your recruiting efforts can leave your business swimming in profits or drowning under the tide of missed opportunities, it’s not something you want to rush into. And yet, that’s exactly what thousands of companies will do at the first sign of a bump in demand. Eager to put new faces in the field, they’ll bring in as many fresh bodies as they can and hope that a few work out. They would like to have only the strongest candidates, of course, but they can’t afford to hold off on adding new reps… can they?
After more than two decades of experience in this sales and management consulting, I can tell you that having the wrong person is often worse than having no one at all. That’s because a poor sales candidate won’t just fail to hit his or her numbers, they’ll drag down your bottom line with salary and benefits, sour prospects who might have otherwise bought from your company, and could even decrease the morale in your office.
With that in mind, here are a few tips for finding new producers. None of them will greatly extend the amount of time you need for your search, but they just might make an enormous difference in your future profitability:
#1. Start in the right places. Rather than turning to the Internet or classified ads for new salespeople, start by asking your best producers for referrals. It’s likely that they’ll know other high-energy men and women who would be a good fit for your opening.
#2. Look under the hood. It amazes me, in this day and age, how many companies fail to perform personality assessments on the people they interview. While they aren’t fail proof, they can give you an overwhelming strong idea of how well a candidate is likely to perform in the field. For a process that costs little, takes only a few minutes, and offers so much insight, it’s a no brainer.
#3. Investigate history. People enter and exit the sales profession for any number of reasons, but take a close look at a candidate’s previous production. Most truly great producers are motivated by money; consequently, they make more money selling than they could in any other profession that isn’t likely to end in jail time. The point is that not many good salespeople leave, and even fewer are let go by their employers. Hiring an experienced vet can be a great move, just be sure you know why they’re making a move.
#4. Don’t rush training. The impression that new salespeople are needed right away to keep up with demand can lead managers to cut back on their normal preparation time. A salesperson that doesn’t know how to prospect, qualify, or close, however, isn’t ultimately going to be that useful. An improving economy means it’s more important – not less – send your producers out prepared to find new business.
#5. Don’t get too attached. Sadly, even if you follow all the advice given here, there are going to be new hires that aren’t going to work out. For whatever reason, they won’t have the willpower, temperament, or skills to make it sales. The key to dealing with this situation is to stop it from compounding; if you’ve made a bad hire, let them go before they can do too much damage.
Only you know how much time it should take to get your feet wet in an industry, but be sure to set clear expectations for new hires, and then hold them to those expectations. Except in very rare cases, the person who starts off slowly or just isn’t working out will never turn out to be a top performer. And if they aren’t going to make money – for themselves or the company – what sense does it make to keep them hanging on month after month? Letting newer salespeople go is one of a manager’s toughest tasks… and one of the most important.
Key Management Point
As the eco
nomy continues to look up, and buyers come back out from the shadows, lots of sales managers and business owners are going to be feeling the pressure to add new staff. Some will feel that their territories aren’t being covered thoroughly enough, some will want to keep up with competitors, and others will get pressure to act from executives higher up the chain of command. Regardless of the reason, though, don’t rush your hiring process; an extra week or two finding the right team member could save you tens of thousands later.
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Sales Quote of The Month:
“Big sales are great, but don’t forget the little ones that keep that cash register ringing daily.” Carl Henry
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7 Ways Carl Henry Can Help Your Business This Year
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How To Contact Carl
703-847-7390
chenry@carlhenry.com
Carl Henry’s Success Tips – Copyright – Carl Henry – June 2010 – 704-847-7390
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