Five Hiring Mistakes that Cost You Time and Money

Hire Based on Past Results Only. You may have heard that "past performance is no guarantee of future results". This principle applies especially to hiring salespeople. Rather than being swept away by their tales of past successes, investigate the following
  • Did they build their territory or inherit it?
  • Did they close the business or need extensive sales support you don't have?
  • Were they selling on price - and theirs was lower than yours?
  • Were they calling at the right level?
  • How much supervision did they have? How much do they require?
  • How many competitors did they have?

Hire Based on Product Knowledge Only. Product knowledge is essential to sales effectiveness. However, you don't have to know how to design a watch to sell a watch. Most hiring managers overstate the technical requirements of the sales position and vastly understate (or overlook entirely) the sales skills necessary to be successful. You will waste enormous amounts of money waiting for the technically competent person with call reluctance to make enough calls to meet the quota.

Hire Because You Like the Way They Sold to You. Many hiring managers rate the selling skills of the candidate based on how they "sold" them in the interview. It is possible to rate some of the skills such as bonding and rapport, qualifying and closing, but an interview will not allow you the opportunity to observe all of the skills needed to be successful. And it is virtually impossible to discover the self-limiting beliefs and hidden weaknesses that a candidate possesses in one interview. You can observe how the candidate performs in front of you, the hiring manager, but how do you know how they will perform in front of a CEO or a technical end user?

Hire Because Your Staff Likes Them. Your CFO, HR VP, and Operations Manager are all key members of your organization, but do they know what it takes to sell your product or service? You also can't count on your existing sales staff to always give you the right opinion. They might be intimidated, or protective of their territory or their top spot in the rankings. Being likable is one characteristic of a successful salesperson but it is far from being the only one.

Start the Recruiting Process Only When the Opening Occurs. The most successful sales leaders are always looking for outstanding candidates. If you hire when you are desperate you increase your chances of making a hiring mistake by 150%. You are much more likely to make mistakes 1 through 4 above. The candidate will have the advantage and you may end up overpaying to fill the position. The belief that "somebody in the territory is better than nobody" can cause you to lower your standards and expectations. Always hire from strength and you will build a stronger team.