Attribution: Forbes.com | Joe DiDonato | Forbes Council Member | BCI Chief of Staff
Imagine going to see a doctor, 50 years ago. Your conversation might have gone something like this one.
“Doc, after me and the missus went out for some dinner tonight, I started getting some pains in my chest. I had me one of those big ol’ porterhouse steaks at Jack’s – just like always. I wouldn’t have chased ya’ down, ‘cept I’ve been feeling nauseous and dizzy ever since.”
“Well, seems to me you’ve just been overindulging a bit. Why don’t you head on home and grab some of that Pepto-Bismol stuff from Bill’s pharmacy before he closes up for the night? If you’re still feeling the same after a couple of days, give me a shout and we’ll try some leeches.”
Although you’re laughing about the leeches, in 2004 the U.S. Food and Drug Administration approved the use of leeches for localized venous congestion after surgery. They are recognized as living, breathing medical devices. The treatment is called hirudotherapy. (Not for me, thanks!)
But that’s not the point of the story. We know today that the symptoms discussed above could have just as easily been attributed to the early stages of a heart attack.
So, ask yourself, with all the diagnostic equipment and lab tests we have out there, how comfortable would you be taking the advice of a doctor who based his or her opinion solely on an anecdotal conversation?
Unfortunately, you’ve just described our hiring process in the world of sales. We talk to some people (who typically have some great interpersonal skills), pass them around to a few others, and then hire them before we lose the slot. Sound familiar?
So how are we doing?
In a recent article in Forbes on this topic, I gave you these facts: The average turnover rate for salespeople is 34%, and that nearly two-thirds of that churn is a result of “involuntary turnover.” That same research suggested that 1 in 10 companies has a sales turnover rate above 55%. And lastly, that compares to the turnover of all jobs at 17.8%.
Who are we to blame?
If you look at the data, the top reasons salespeople are leaving are because of deficient compensation; lack of connection with leadership; incompetence of leadership; and concerns about the company’s ability to meet market needs. If you’re like me, you’re going to have a hard time believing those statistics are the real reasons. If that were the case, then why are those company’s top sales reps staying?
The facts are that we all have salespeople who won’t take responsibility for their own actions. Unfortunately, they are the (tainted) source for this data. It’s always someone else’s fault.
Well, in this case, they were right. It wasn’t their fault. It’s the fault of the hiring process we’re using. We didn’t order any lab work. There’s no MRI. No X-ray. Just opinion.
The case for using data science to hire right and train smart
The evidence that we’re not doing a good job is overwhelming: 34% to 55% turnover rates. Approximately the same odds as a flip of the coin, possibly tempered only by a few questions that sorted out the person’s experience and past performance.
To make an informed decision on an individual – that’s also devoid of any unintentional personal biases – there are 3 typical categories of competencies that need to be analyzed in depth. The first category includes the Selling Competencies. These are the sales techniques and tools a person uses on the job. Of the three categories, only Selling Competencies are readily trainable.
The two other categories require coaching to remedy or could even be reasons for not hiring a candidate. Those latter two categories are called a salesperson’s Sales DNA, and their Will to Sell. Below are the competencies to evaluate, sorted by categories:
| Selling Competencies | Sales DNA | The Will to Sell |
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The need for data science is strong here, as evidenced by our high turnover rates. How can you rationally cover all these areas in a sales interview? The simple answer is that you can’t do it without using seller assessments. Those assessments are what’s going to help you reduce your turnover rate.
Best Practices
Most successful sales executives follow a well-defined path for hiring. After an initial phone screening, the very first step before needlessly wasting people’s time for interviews, is to ask the candidate to complete a sales-specific assessment. Make sure it’s been tuned by job role and industry. These assessments are going to be the best predictors of a person’s performance in a specific job role, in a specific industry. Not personality tests.
The next step is to take those people who received a “Consider for Hire” or “Hire” recommendation and then run them through some of the questions that these assessments tell you to ask during the interview, to validate findings.
After you’ve picked the ones to hire, the next step is onboarding. It’ll be here where you get more dividends from using the data included in these predictive sales assessments. You now know a person’s strengths and weaknesses. For each gap, map either a training or a coaching solution, but don’t waste their time in weeklong courses. Just focus on their specific needs in a subject area. If you can’t find a learning solution, use mentoring or coaching. This will move them to their peak performance much faster than other methods.
The time-lapse from role vacancy through hiring and training, to account introductions and transition, can average 6.2 months – within a range from 5.8 to 7.8 – according to a DePaul University report.
Let’s permanently fix our hiring process and get our sellers into the field selling. Didn’t someone once say, “time is money?” Today, it’s “data is money.”
Attribution: Forbes.com | Joe DiDonato | Forbes Council Member | BCI Chief of Staff
