How to Hire Great Salespeople
Last time, we talked about the qualities great salespeople have. This time, we’ll talk about how to hire people with those qualities.
Great salespeople perform well when their skills mesh well with both the results they’re expected to deliver and the environment they’re working in.
There are three parts to this, from a hiring perspective:
1. Define what success would look like for the person you hire, one year from now
2. Define the constraints you’re under, and those the person you hire would be under
3. Define the type of person most likely to be successful working within those constraints
1. Define Success
This is the most straightforward part of the three-part process. You will need to figure out:
? Revenue: How much, and from which sources?
? Profit: How much, and from which sources?
? Sales to new customers: Which products and which customers?
? New product sales: Which new products, where and at what prices?
2. Define Constraints
This may be the most important step in terms of finding a fit. Here’s a story that will help illustrate why it matters so much.
Years ago, I had breakfast with the CEO of an analytical lab company to discuss a VP Sales position. I had helped Applied Materials and Lam Research profitably grow a number of businesses, and he was interested in potentially having me work for him.
I asked him two questions that immediately indicated to me that we wouldn’t be a good fit:
1. What kind of decisions would I be able to make on my own, and when would I need your approval?
2. How often would we communicate with each other, and what would we discuss when we did?
His answer to the first question was something like, “If it involves money, people, or these particular customers, I want you to come to me first.”
In short, nearly everything.
I had previously worked in jobs where I could hire the people I wanted to hire, organize the group in the way I felt was best, and spend up to $100,000 without anyone else’s approval. This first constraint would have been enormously frustrating for me.
His answer to the second question was, “We would talk every day.” He said he wanted to know what was going on and would have things he’d give me to do.
Again, I was used to making my own decisions, and speaking with my boss only about once a week.
It was clear to me that I would never have been successful (or happy) working for this person, and it was far better for both of us to find that out sooner rather than later.
Here are some other common—and deadly—constraint mismatches:
Administrative Tasks
Requiring a high performer (like Fred who I introduced in my last two blogs) to be great at reporting and such is a recipe for failure. Fred was one of the single best salespeople I have ever worked with, but he was not a superstar—and this is putting it mildly—when it came to consistent communication, attending meetings, or writing reports. I didn’t care; Fred was hired to sell, and he did that exceptionally well.
If you’re hiring someone to sell but still want the person to spend a fair amount of time in internal meetings or generating reports, you have to take this into consideration and make it known during the interview process. (You might also want to take a hard look at what your goals for this person are. Great salespeople need to be free to sell.)
Authority and Autonomy
A person who is used to making his or her own decisions will not fit or last long in an organization that requires multiple approvals to get simple, low-risk things done. These types of hurdles destroy trust and motivation, and you will drive them away quickly.
Compensation
Of course you want the best person out there, but can you realistically afford the best? People used to earning an above-average living and having a degree of control over what they earn are generally not happy with average salaries or the inability to boost their bottom line through their own hustle and talents.
I once consulted for a $5M company where the CEO told me he wanted his company to “be like Google” but paid far below average, offered no equity, and made his top salesperson (an excellent producer by anyone’s standards) jump through hoops every time he had to pay commission.
If you truly want the best, you have to make it worth their while—in real life as well as on paper. A job that pays a base salary of $150,000 and a target bonus of $50,000 isn’t a $200,000 job if the bonus can’t realistically be achieved or is paid more than a year after the person starts.
Internal Support
Salespeople from large, established companies who are used to having extensive support teams to handle every detail tend to struggle in positions where they have to do everything themselves.
3. Define the Person
The third and final step is about defining the kind of person who can best deliver the results you want within your specific circumstances and constraints.
You really have only two choices here: You need a person who has thrived previously under similar circumstances, or someone who has the potential to thrive with proper coaching and training.
Note that if you choose the latter, you must actually provide the proper coaching and training; this requires planning and follow-through and is sometimes easier said than done.
A Final Consideration: What’s In It For Them?
It’s easy to think about what you want from your salesperson and much less common to look at things from their perspective—but this is essential if you want someone who can truly succeed at your company.
Think about the kind of person who could not only deliver results within your specific sales environment, but who would also consider your job a “step up” in terms of career advancement, compensation, recognition, and significance. You’ll have a much easier time hiring the right person if you do.