3 Hiring Filters Sales Leaders Use to Beat the 1-in-5 Mis-Hire Rate and Lift Team Profitability by 30%
Gallup says companies that pick top employees lift profitability by 30%. The Corporate Executive Board survey on hiring executives says one out of five hires is a mistake.
One in five. 20%.Â
If you mis-hire after you’ve earned credibility as a sales leader, you’ll survive it.
But if you’re new on the job and your first sales hire goes sideways, you’ve started on the wrong foot. That’s hard to overcome early in your tenure. Make one too many bad picks and you’ll be updating your own resume.
Volumes have been written on hiring strategies, interview questions, and predictive sales tests. Every year there’s a new book, a new magic list of questions, or a new test that promises 80% accuracy on whether your next hire will “make it.”
After 12,500 interviews and 25 years of recruiting, here’s what 550 successful hires have taught me. Whether you run a startup or a publicly traded company, three filters will cut your bad-hire rate.
Filter 1: Top Sales Talent Must Be Pursued
My old boss, the president of a multi-billion-dollar executive search firm, used to say, “You don’t miss what you don’t see.”
Arthur Rock, the venture capitalist behind Intel, Apple, and Teledyne, put it this way: “I invest in people, not ideas. Hard to find? Absolutely. Worth the effort? You bet.”
If you never meet the top 10%, you won’t know what you’re missing. When you decide to fill a sales role, hunt for star talent. Never settle for what comes to you. Reactive hiring rarely produces excellence.
When you want the best, select from a pool of high-caliber candidates. Build the talent pool first. That takes digging, persistence, the right tools, and steady effort. You may need a specialized software sales recruiter to help.
Here’s the strategy. Define and engage a group of top sales talent. Interview four or five hand-picked salespeople for the role. When you’re ready to decide, you’ll know the best in the market made it into your final round.
Avoid hiring based only on candidates who come to you. Engage the ones you have to work hard to attract. Two things happen when you do.
First, you get exposed to top talent. You learn how they behave, what interests them, and how to recruit them.
Second, you sharpen your employer value proposition. Not your product’s value proposition — your employer’s. Once you can state what your company offers prospective employees, you’ll get better at attracting top sales talent.
Filter 2: Define Your Hiring Metrics
If you’re still pulling the trigger because you “like the guy or gal,” you’ll get low turnover and mediocre performance. You’ll keep salespeople who don’t produce because you enjoy having them around.
They’re fun teammates. They’re also middle-of-the-road players.
Build your sales team on performance statistics, hiring indicators, and key differentiators. Gut instincts can produce horrific outcomes. Performance data can save you from poor hires.
This data has to be mined and customized by someone who knows the sales cycle, the customers, and the organization. Customize it for each role, each department, and each product line. Get specific about the experience and skills you need before the first interview.
Filter 3: Think Beyond the Sales Interview
Interviews show you presentation skills, confidence, likeability, professionalism, and executive presence.
The more we see those traits, the more we assume the candidate can sell. Those skills matter. They don’t predict sales performance.
What interviews miss: motivation, initiative, persistence, grit, closing ability, and the drive to win. Don’t lean on the interview as your key indicator. Combine it with other ways to evaluate sales talent.
Four Ways to Evaluate Sales Talent Beyond the Interview
1. Track Record of Sales Success. It’s all in the history. Look for salespeople who win, hit quota, and exceed expectations. Overachievers have a pattern of high performance.
2. Similar Sales Cycle and Prospects. A rep who calls on mid-market companies isn’t your first pick for an enterprise cycle. They’ll get frustrated working across departments. If you need someone to find $1M in new clients this year, don’t recruit an account manager and assume the skills transfer.
3. Cultural Match. Never underestimate culture. The term sounds vague, but it isn’t. The best sales performer in the world won’t last if they hate meetings and your client mandates them. If they need hands-on management and your client runs hands-off, they’ll quit. Cultural match drives tenure.
4. Goal Alignment. The candidate’s career and personal goals have to match the role. On-target earnings need to match income goals. If the candidate doesn’t want to travel and your team requires in-person meetings, walk away. If they want work-life balance and your CEO answers email seven days a week, rethink the hire.
When your reputation is on the line, look beyond your past hiring playbook. What worked last year may not solve this year’s hiring problems.
Recruiting evolves like technology. Keeping up with sourcing, data, hiring metrics, and new tools is a full-time job.
Broaden the talent pool. Get clear on what you’re hiring for. Evaluate candidates beyond the interview. Do those three things and you’ll build a winning sales team.
Action Questions
What makes a top salesperson on your team today?
How can you use what you know about your top reps to inform your next hire?
What advance planning will keep you from hiring the most “likable” candidate?