a great article from Profitguide.com The Costliest Hiring Mistake You Can Make
Hiring the wrong salesperson could cost your company way more than you had ever imagined. Just do the math
Matthew Cook || June 01, 2012
Most salespeople need constant coaching and feedback to be successful and, unfortunately, sales managers tend to spend more time with their weak performers than their stars. Imagine how much more productive you and your sales managers could be if you were supporting top performers and innovating rather than spending time hand-holding your weaker reps through their daily tasks.
Many SME business owners have good personal relationships with most of their accounts; and build their companies on the foundation of these relationships. If a bad salesperson damages those relationships with their poor or unprofessional service, everything you have worked to build could be hurt, sometimes irreparably. While old relationships can be assuaged with your personal touch, your company’s image will have taken a hit.
You are also missing out on new business and new relationships, as your bad rep mishandles cold calls and, inadvertently, turns new leads away from your company.
Many business owners believe that their severance obligations are limited to a formula, or that a clause in an employment agreement protects them from paying large severance packages. This is not the case. Courts consider a wide range of factors in determining a reasonable amount of severance based on how long it should take for your fired employee to find a new position.
All of the costs listed above can be quantified, if with some difficulty. The most important factor isn’t so easy to put a dollar figure to: time. Releasing a bad salesperson 12 months into their tenure means you are no further ahead today than you were one year ago. You must restart your hiring and on-boarding cycle, accept lower ramp-up quotas and be prepared for the inevitable pitfalls as your replacement hire gets the hang of the job. At the same time, you are losing the potential deals that could be closing had you made the right decision in the first place.
What this all adds up to is a huge cost to your company. You can prevent it by spending more time on your hiring and on-boarding process and having the patience to leave a seat empty until you can find the right person to fill it.
Matthew Cook has 17 years of sales and sales management experience, primarily in the financial services and staffing industries. He is founder of SalesForce Search Ltd., which was No. 4 on the PROFIT HOT 50 ranking of Canada’s Top New Growth Companies in 2010, and No. 19 in 2011.
September 20, 2012 / blairpatton / 0