Author: Nick Mann

From Guesswork to Growth: How Data Analytics Can Supercharge Your SaaS Sales Hiring

Posted on by Nick Mann

Multiple boxes must be checked when doing SaaS sales hiring, from process efficiency to candidate quality to cultural fit to addressing potential bias. Otherwise, if even one box is left unchecked, it can lead to a host of issues like an overly lengthy hiring period, a poor candidate experience, and high turnover to name a few. Fortunately, we live in a day and age where data analytics can take much of the guesswork out of SaaS sales hiring and provide you with a steady stream of high-quality candidates — many of which will convert into loyal salespeople who crush their quotas.

Here are some specific ways data analytics can supercharge your SaaS sales hiring.

Identify Ideal Salesperson Qualities

Ask most hiring managers what the ideal salesperson looks like and they’ll probably say that they’re confident, resilient, a great communicator, and so on. But they likely don’t have a concrete salesperson profile based on completely objective data.

That’s where data analytics comes in. With this type of platform, you can analyze historical data to generate a crystal clear candidate profile, highlighting things like:

  • Education
  • Experience
  • Desire
  • Commitment
  • Personality
  • Behavior
  • Motivation
  • Responsibility

And we’re not just talking about a generalized, cookie-cutter profile that could apply to any company. Data analytics can be fully tailored to your unique sales environment so you know for certain which types of candidates are most likely to succeed working for you.

That way, you can target your SaaS sales hiring approach to filter through the candidate pool and zero in on the true superstars, which should result in A+ hires while lowering your turnover rate. This brings us to our next point.

Assign Scores to Candidates for Easy Comparison

Based on salesperson qualities that contribute to an ideal candidate, you can use data analytics to generate a numerical score for each person who applies. Here’s an example of what that can look like where you objectively rate a potential candidate based on core competencies so you can see where they rank in terms of qualities like desire and commitment.

In turn, you can instantly see how a candidate stacks up against others, while always maintaining consistency. So if it comes down to a few candidates that you’re interested in but aren’t sure who to choose, having a quantitative score like this can make your decision much easier.

Lower Your Hiring Costs By 3x

The SaaS sales industry has a notoriously high recruitment cost. According to SHRM, the average cost per hire across all industries as a whole is around $4,700. However, the typical cost for sales roles is much higher, often ranging from $7,000 to $8,000 for each salesperson.

One of the biggest reasons to use data analytics is that it can help you find the cream-of-the-crop sales candidates more quickly. From using applicant tracking systems to keyword filtering to behavioral assessments to gauge the odds of candidate success, this technology helps you move through the sales hiring process much more efficiently than doing so manually.

In turn, this can significantly lower hiring costs. To quantify, “Organizations that use analytics to improve the quality of a recruiting effort can reduce the cost per hire by three times,” explains RecruitingDaily. Even filling one position can save money, but when you look long-term, this can dramatically lower your sales hiring costs.

Create a Far Better Sales Candidate Experience

Because you’re able to create a more efficient, streamlined SaaS sales hiring process, this tends to result in a better candidate experience. This mainly stems from moving through the process quicker where you’re able to provide candidates with timely updates on their job application status.

That way they’re not left waiting, and you can get them from one round to the next without wasting their time with long, drawn-out sales recruiting. Besides that, you’re less likely to lose A+ candidates to competitors simply because it takes too long to hear back from your recruiting team. So it’s a win-win situation.

Eliminate Hiring Inefficiencies for Continual Improvement

No matter how good your SaaS sales hiring process is, there’s always room for improvement. But without the right data, there’s usually a fair amount of guesswork rather than data-driven decision-making.

The beauty of data analytics is that it continually provides you with objective data that helps you get better and better. Let’s say your hiring process looks something like this.

But somewhere along the way, quality candidates are dropping off and you’re missing out on golden opportunities. However, you’re not exactly sure where it’s happening.

Armed with data analytics, you could pinpoint precisely where the majority of candidates are being lost. For instance, maybe everything is going smoothly up until the phone interview. But poor communication or inefficient interviewing results in a high level of qualified candidates ditching your SaaS hiring process without moving on to the next round.

By having this information, you would know that the phone interview would be the area you would want to focus on improving. Once you’ve done that, you can eliminate a major friction point and create a more seamless hiring process.

Build Your SaaS Sales Dream Team Data Analytics

With so many variables that can affect SaaS sales recruiting success, it’s important to leave nothing to chance. Although there is no magic bullet that can guarantee a 100% success rate with every hire, data analytics has been proven to get legitimate results.

Using the right platform should help you predict which candidates are most likely to thrive in your sales environment, while simultaneously reducing your time-to-hire, lowering your hiring costs, improving the candidate experience, and more. For an overview of some of the top data analytics products on the market, I suggest reading this guide from People Managing People.

And if you’re looking for one of today’s leading hiring readiness assessments to level up your SaaS sales recruiting, check out HireDNA’s free assessment.

83% of Sales Candidates Want a Clear Hiring Timeline: Here’s How to Give it to Them

Posted on by Nick Mann

Put yourself in a sales candidate’s shoes for a second. The average person is eager to find a sales position and ready to start ASAP. They’re also likely facing a lot of uncertainty that could make them anxious. The last thing they want is any vagueness with the hiring process.

In fact, this could easily result in them jumping at another sales position, where you lose out on top-tier talent to a competitor. A simple way to avoid this problem is to provide sales candidates with a clear hiring timeline so they know exactly what to expect.

Why It’s Important to Have a Clear Hiring Timeline

Almost everyone knows what it’s like to be in job search mode. I know I do.

You’re busy sending out resumes and cover letters, filling out applications, and corresponding with hiring managers. There’s a lot going on.

When you find a prospective employer that looks promising, your goal is to quickly build rapport and swiftly move through the hiring process. From initial screenings to interviews to follow-up conversations to ultimately getting an offer and beginning onboarding, you want to navigate through this sequence of steps seamlessly.

But what if you find what seems like an amazing employer but they have absolutely no transparency in terms of what to expect with the hiring process? This can be incredibly frustrating, and many would-be superstar salespeople may be lost because of it.

Having a clear hiring timeline is essential because this provides the structure that lets sales candidates know for certain what’s about to happen. And this is something that most people crave, with research finding that “83% of candidates prefer having a clear timeline of the hiring process.”

But it goes deeper than that and is beneficial for your hiring team as well. This quote from ClearCompany summarizes it perfectly.

“Without a hiring timeline, you’re essentially creating a new process every time you hire. You can’t tell candidates — or your internal teams — when a decision will be made. Everyone, including your recruiting team, is in the dark. That’s frustrating for employees and candidates alike.”

With that said, here’s a straightforward strategy for giving sales candidates the clear hiring timeline they seek.

Outline the Sequences of Your Hiring Stages

First, you’ll need to articulate the exact series of steps involved in your sales hiring process. This can look slightly different from company to company, but here are two examples that you can build your outline around.

This one is quite simple and involves five basic steps.

  1. Verify a candidate’s information
  2. Interview them
  3. Evaluate their skills
  4. Perform employment verification
  5. Make your hiring decision

The other example is a little more involved with additional steps, but it should provide a thorough hiring process that increases your chances of finding the ideal sales candidate.

I suggest spending some time looking at these two examples and considering any other steps that are unique to your hiring and fleshing out a concrete process. Also, be sure to include roughly how long each step will take so that candidates and your sales hiring team know.

For example, you may mention that candidates can expect to hear back from you within three days after conducting an assessment test to schedule an interview.

Keep in mind that you can (and probably should) make changes as time goes on. But this should serve as a solid first draft so you can be on the same page with sales candidates. This brings us to our next point.

Provide an Overview of the Hiring Timeline to Sales Candidates

Once you’ve got a finished product, you’ll want to type up a tangible outline that you can give to sales candidates, as well as your hiring team. Here’s a simple example that I came up with off the top of my head.

Application Review and Screening1 week
Initial Phone Interviews3 days
In-Person or Video Interviews3 days
Reference/Background Check3 days
Offer and Negotiation1 week
Onboarding2 weeks

Notice that this not only shows the precise sequence of steps that will occur in the hiring timeline but also the approximate length of time with each step. And in the spirit of underpromising and overdelivering — which I find to be highly important in hiring and business in general — it’s best to give yourself some wiggle room with dates.

For instance, it would be better to tell candidates to expect it to take a week to receive an offer after conducting a reference/background check and it only takes five days to get back to them rather than promising three days and it taking you five.

In terms of the tools for creating a clear hiring timeline, a basic spreadsheet should be sufficient. However, you can find free, customizable templates here that have stronger aesthetics.

Track Progress and Make Adjustments

After you’ve identified the hiring timeline, created a tangible outline, and started implementing it, be sure to track your progress and measure the results.

Here are some specific quantitative KPIs to look at:

  • Time to fill
  • Time to hire
  • Interview-to-offer ratio
  • Offer acceptance rate
  • Quality of hire
  • Cost per hire
  • Employee retention

It’s also important to dive into qualitative metrics that rely less on numerical data and more on feedback. Mainly, I suggest getting direct candidate input on what their experience is like so you can identify pain points to fix. It’s also smart to get direct input from your hiring team to see how satisfied they are with the process and what could be improved.

Optimizing Sales Recruiting with a Clear Hiring Timeline

Given that 83% of sales candidates like having a clear hiring timeline it’s definitely worth your time to provide them with one. And it’s really not that complicated and only involves three steps.

Outline your hiring stages. Provide a concrete overview of those stages to sales candidates and your hiring team. Make ongoing improvements as you gather data.

Do that, and you should be on your way to creating an amazing sales candidate experience, which should result in more quality hires, increased ROI, and greater retention.

If you’re looking to eliminate weaknesses in your sales recruiting, try out our Hiring Readiness Assessment. It can help lower your recruiting costs, expedite your time to fill, and dramatically reduce poor hires.

How Optimized Sales Recruiting Can Shorten Your Hiring Cycle By 60% 

Posted on by Nick Mann

The average time to hire in 2023 was 44 days, with research finding that the process is harder than ever. While you never want to cut corners and risk the quality of the salespeople you hire, it’s important to shorten your hiring cycle as much as possible. According to a 2024 study, the best way to accomplish this is with optimized sales recruiting, which can shorten your hiring cycle by 60%.

For perspective, if it normally takes your recruiting team 44 days to make a hire, that number would be slashed to around 17 days. For this post, I’ll unpack the three main strategies to establish optimized sales recruiting based on the 2024 study referenced above.

Refine Your Job Posting

Sales recruiters tend to run into one of two problems with job postings. They either bring in too many unqualified candidates, which creates delays as they have to sift through a bloated candidate pool. Or they don’t bring in enough qualified candidates, which means they have to make revisions and spend more time chasing down additional candidates.

Ideally, you’ll find the sweet spot, where you drive a sizable volume of qualified candidates, which you can quickly narrow down into the best of the best. But how do you do this?

Here are some suggestions:

  • Use clean job post formatting that’s easy to read
  • Include must-have requirements in a job posting
  • Be transparent about salary
  • Be clear about your company’s values and culture
  • Offer employee testimonials

Another hack is to include a specific keyword toward the end of your job description. When applying, ask candidates to mention the keyword to prove they read the entire job description.

Remove Candidate Application Obstacles

Let’s say a qualified candidate has found your job posting, checked out your brand, and is ready to apply. But once they start the application process they quickly sour because they encounter frustrating obstacles — mainly the application being overly lengthy or complicated.

This is an issue that’s far too common. In fact, one study even found that as many as 60% of talented salespeople ditch an application because it’s too long or complex. Because more than half of would-be candidates never enter the candidate pool because of the application process, this is a low-hanging fruit that most sales recruiters need to assess.

We wrote an entire article on how to simplify the job application process, which you can find here. But some of the highlights include:

  • Keeping the entire process under five minutes
  • Avoiding having multiple steps where candidates have to fill out several pages or forms
  • Avoiding requesting excessive, unnecessary data
  • Avoiding asking a candidate to create an account to apply
  • Having autofill to instantly populate an application with sales candidate info

Also, keep tabs on the functionality of your application, ensuring pages load quickly and there are no glitches that are creating disruptions.

Outline the Hiring Process

The final strategy stated by the 2024 study to reduce your hiring cycle by up to 60% was clearly outlining the hiring process so candidates know exactly what to expect. Not only does this set the right expectations with sales candidates right from the start and create a better overall experience, it also helps your recruiting team because it provides you with a consistent roadmap so you can move through the process more efficiently.

Below is a simple example of what a hiring process outline may look like. Note that this is an arbitrary example and doesn’t specifically involve the sales industry. However, it does a great job of showing what a concise overview should look like.

Use Analytics to Pinpoint Specific Areas to Improve

Like most areas of business, succeeding with sales recruiting requires making data-driven decisions. Even the most airtight sales recruiting process has some type of weakness, and analytics will help you find it. That’s why I suggest using a recruitment analytics platform to make a thorough assessment of your process.

While you can figure out a lot on your own, this provides full transparency that lets you see the big picture. For example, you can see:

  • The total number of candidates you’re getting
  • How many days it takes on average to fill a position
  • How many days to the first interview
  • Which sources are generating the most candidates
  • Which devices candidates are using

Here’s a real-life example of what the main dashboard looks like for recruitment analytics platform Talentech.

This is extremely helpful for getting an overarching view of what’s happening. It should also help you identify any issues that are getting in the way. For instance, maybe you’re spending a lot of time and money on a particular source for driving candidates but it’s only having a minimal impact. In that case, you would want to reevaluate your strategy and potentially pivot, where you double-down on a different source that’s having a bigger impact.

I also like that Talentech has a candidate quality score, which gives you a quantifiable number of what percentage of candidates possess the qualities you’re looking for.

Keep in mind that this is just one platform, and there are numerous options available, each with different strengths and features. The bottom line is that if you haven’t been using recruitment analytics up until this point, it’s definitely worth considering, as it can improve nearly all aspects of the recruiting process.

Drastically Reducing Time-to-Hire with Optimized Sales Recruiting

Hiring Readiness Assessment

Sluggish, inefficient sales recruiting can be toxic to your company, as it can put a strain on your workforce, lower morale, and increase turnover. Therefore, developing a game plan for optimized sales recruiting should be a top priority.

Some of the best ways to do that are to improve your job posting, remove application obstacles, clearly outline the hiring process, and use analytics to eliminate problem areas. Do that effectively, and you can shorten your hiring cycle by as much as 60%.

When it comes to recruiting elite sales talent, try the Objective Management Group sales assessment. It’s designed to help you find rockstar candidates who will thrive in your unique sales environment and keep turnover to a minimum.

Remote vs. In-office SaaS Sales Teams: Stats That Show the Pros and Cons

Posted on by Nick Mann

In 2015, 10-15% of SaaS sales teams worked remotely, at least some of the time. In 2024, that number ballooned to 71%.

This begs the question. Is it better to have a remote SaaS sales team or stick with the traditional in-house model?

While there’s no black-and-white answer, let’s look at some interesting stats that should indicate what’s right for your company.

The number of SaaS salespeople who work remotely at least part of the time increased by 26% from 2022 to 2023.

A recent study by HubSpot found that 45% of SaaS salespeople worked hybrid in July 2022. By July 2023, that number grew to 71% — a 26% increase.

Now these stats refer to reps that work remotely part of the time (only 10% are fully remote). However, it still illustrates the huge spike we’ve seen in remote work in the past few years. The shift from in-house to remote was already underway pre-COVID. But the pandemic really threw gas on the fire and greatly accelerated the growth of remote SaaS sales teams.

Now in 2024, we’re at the point where it’s become ubiquitous. While only a small percentage of sales teams are fully remote, that number is almost guaranteed to increase in upcoming years.

84% of sales reps say working remotely would make them happier

Employee satisfaction is extremely important, as it tends to correlate with less turnover, better morale, and increased performance. A study by Owl Labs that surveyed 2,050 full-time workers found that the vast majority (84% of reps) said, “Working remotely after the pandemic would make them happier, with many even willing to take a pay cut to continue to work from home.”

You might say that “the genie came out of the bottle” during COVID. By sheer necessity, a large percentage of sales teams were forced to work online. And though it certainly has its drawbacks, the data suggests that most people consider having the option to work online as a good thing.

The fact that many are even willing to work for less shows just how popular this working arrangement can be.

90% of salespeople say they’re more productive when working remotely

One of the biggest concerns for sales managers is productivity. After all, with minimal supervision, can you expect a sales team to maintain as high of a level of productivity at home as they would in an office?

According to the same study by Owl Labs, the answer is overwhelmingly yes. “90% of respondents said they were equally as (or even more) productive when working remotely — compared to when they worked in-house. And 55% said they worked more hours when working remotely than they did in office.”

Some potential reasons for this productivity spike can be attributed to no commute time, flexible work hours, fewer distractions, and a comfortable working environment.

67% of sales managers say managing remote SaaS sales teams is challenging.

Given that working remotely tends to translate into increased employee satisfaction and higher productivity, it sounds like sales managers should go all-in, right? Like implementing most major changes in a workplace, there are also some downsides to be aware of.

One of the biggest is that over two-thirds of sales managers (67%) say that managing SaaS sales teams is more challenging than they anticipated. This stat references the work-from-home environment that was thrust upon so many companies during the pandemic.

According to a study by Saleslion, the two biggest challenges cited by most sales managers were the breakdown in communication and collaboration that often happens without a physical working environment. As they put it, “Without the ability to walk over to a colleague’s desk or hold impromptu meetings, sales teams can become siloed.”

Besides that, it can be trickier to assess a SaaS sales team’s performance and offer feedback when everyone is working remotely.

While there are plenty of tools that can measure performance to some extent and quantify progress, you just can’t get the same personal touch as you would in an in-house environment.

Remote workers are nearly twice as likely to change jobs than those working in-office.

Here’s the stat that really caught my attention. And it’s not something I had given much thought to beforehand.

One study found that remote salespeople are “twice as likely (37%) to switch jobs compared to those working in an office (21%). The top reasons for changing jobs were better pay (84%), better career opportunities (82%), and better work/life balance (78%).

And this makes sense when you think about it. Say a salesperson is working a traditional in-house position where they live in a particular area, have a home, their kids are in school, and so on. They’re fairly well-rooted and are less likely to jump at the first opportunity that comes their way.

However, say someone is working online and can easily take another position without having to uproot their life. It would be far easier to jump ship.

While giving salespeople the option to work remotely can increase satisfaction — something that correlates with lower turnover —, it also has the potential to increase turnover because of how easy it is to switch companies.

So this is something to take into consideration when deciding which approach to take.

Remote vs. In-Office SaaS Sales Teams: Which Option is Best?

With remote sales teams (at least on the partial level) becoming the norm, it’s easy to jump in head-first. But as we’ve learned, there are pros and cons to each working arrangement.

You obviously want to keep your sales force happy and productive and keep up with the competition. However, you don’t want it to hinder communication and collaboration and have to continually replace your staff because they leave for greener pastures.

If you’re considering making the move to remote, I suggest giving careful consideration to the pros and cons and doing some experimentation before going all-in. Also, you may want to stick with a hybrid model, which many SaaS companies are having success with.

Looking to recruit elite SaaS sales talent and retain the maximum percentage of your reps? Register with HireDNA and leverage our cutting-edge sales recruitment technology.

Customer Retention in SaaS: Best Practices for Subscription-Based Models

Posted on by Nick Mann

Churn, by nature, is baked into the SaaS industry. Whenever you run a subscription-based company, a certain percentage of users will inevitably churn. There’s no getting around it. That said, you want to stay on top of turnover and do everything you can to maximize SaaS customer retention.

To quantify, revenue intelligence company Gong says you should aim to keep your churn rate under 3%.

In this post, we’ll go over ultra-practical steps you can take to accomplish this, while also providing your customers with a consistently positive experience.

Start with Retention Analytics Reports to See the Big Picture

Like any sound business decision, it’s important to start with objective data so you can see what’s happening and what’s causing the bulk of users to leave. To obtain this data, I suggest using a customer journey analytics tool like Woopra.

It offers detailed retention analytics reports that let you:

  • Measure your churn rate
  • See how long customers use your product before churning
  • Determine why you’re losing customers
  • Identify specific areas of improvement that can lower your churn rate in the future

For instance, you can get a bird’s-eye view of your churn rate over time.

You can see how many customers return after using a core product feature.

.

You can see what your product retention rate is for mobile users…

..and much more.

Armed with this data, you’ll be able to diagnose any leaks that are contributing to higher-than-ideal churn so you’ll know which areas need your attention. That way, every decision you make is based on tangible evidence rather than merely going on a hunch.

Identify At-Risk Customers

Another helpful feature of retention analytics is that it can help you identify at-risk customers — those that have a higher-than-average chance of churning.

Say, for example, a particular customer hasn’t logged into their account for an extended period of time or is engaging with your product far less than most other users. They would likely have a higher chance of churning than another user who logs in every day and frequently uses a variety of product features.

By proactively catching at-risk customers before they leave, it gives you an opportunity to create a better experience and appeal to them before it’s too late, thus increasing their chances of hanging around longer.

Here are a few potential ways to do that:

  • Have a team member reach out to the at-risk customer directly to see what they can do to improve their experience
  • Provide resources to help the customer get the most out of your product
  • Offer an incentive such as a discount to encourage them to keep using your product

Note that any feedback gained through team member interactions should be logged so it can be used to prevent similar issues from happening in the future. For example, if a customer mentions that a specific product feature is frequently glitchy, you would want to fix it ASAP.

Optimize SaaS Onboarding

Research by customer success platform Retently found that the number one leading cause of churn is poor onboarding, accounting for 23% of overall churn.

And this makes complete sense. Just put yourself in the shoes of a new customer who is initially excited about using your SaaS product. However, after experiencing an excessive amount of friction during onboarding, they could quickly sour and jump ship to another competitor.

If this happens at scale, you can have a serious churn crisis on your hands. That’s why efficient onboarding should be a top priority for every SaaS company.

By making onboarding smooth and seamless, this not only minimizes early churn, it sets the tone for long-term rapport-building so you can maximize customer lifetime value and get more loyal brand advocates.

Here are some specific ways to optimize SaaS onboarding:

  • Send welcome emails with tips on how to efficiently learn how to use your product
  • Offer an extensive onboarding resource section with tutorials and walkthroughs
  • Create a detailed troubleshooting and support section for users who run into issues
  • Provide every user with a point of contact if they need one-on-one assistance

Also, be sure to continually ask for feedback so you can identify problem areas that need work.

Rev Up SaaS Customer Support

Unsurprisingly, poor customer support is another chief reason for SaaS turnover, with 14% of users leaving because of lackluster customer support.

I think this is an issue that nearly everyone can relate to. Personally, I’ve found this to be something that’s turned me off from continuing to use tools, and I’ve switched to other products because of bad customer support. After all, nothing is more frustrating than having an issue and struggling to find a quick resolution, especially after you’ve spent good money on a product.

The bottom line is that you should strive to offer A+ customer support, where users can seamlessly get assistance without jumping through a bunch of hoops.

Here are some suggestions for achieving that:

  • Offer 24/7 support through a variety of channels, including phone, live chat, email, and social media
  • Create a self-help center where users can find solutions to common issues
  • Provide walkthroughs on product updates so users can easily learn new features
  • Follow up with customers after they seek support to ensure their issues have been fully resolved

For more details on creating amazing customer support, I suggest reading this guide from Help Scout.

Making Customer Retention a Top Priority

SaaS is an incredibly competitive industry, and excessive customer turnover can make it incredibly difficult to gain any momentum. After all, if you’re on a hamster wheel of continually replacing lost customers, your progress will be minimal.

However, by following best practices like implementing retention analytics, identifying at-risk customers before they leave, optimizing onboarding, and fine-tuning customer support, you should keep churn in check and boost overall customer lifetime value. Not to mention, it makes for a more enjoyable customer experience, which sets your business up for long-term success.

Ready to build an elite team of SaaS salespeople? Register with HireDNA to attract, recruit, and retain the best of the best.

Use These Metrics to Ensure Continuous Improvement in Sales Candidate Sourcing and Screening

Posted on by Nick Mann

Like in most areas of business, I’m a firm believer in incremental progress with sales candidate sourcing and screening. I find that, in most cases, major progress doesn’t happen overnight, but gradually over time.

It’s all about creating an initial process, continuously analyzing that process by looking at the right KPIs, and using your findings to make data-driven decisions to spark tangible improvements. Following that logic, let’s look at some essential metrics that can help you drastically improve the initial stages of sales recruiting.

Volume of Candidates Per Source

Starting from the top, it’s important to know how productive each sales recruiting source is. While this won’t necessarily indicate the quality of each source (we’ll get to that in a second), it should give you a baseline of which sources are producing the most sales candidates.

Here’s an example of what that could look like:

  • 30% – Job boards
  • 20% – LinkedIn
  • 20% – Other social networks
  • 10% – Your website careers page
  • 10% – Referrals
  • 10% – Other sources

Having a basic breakdown like this is helpful for understanding which of your sales recruiting efforts are bringing candidates to you. So if you’re putting a ton of time and money into a particular channel and it’s getting minimal results, it would either need tweaking or you may want to scrap it altogether and focus on other channels that are carrying their weight.

Screening Assessment Completion and Pass Rate

From the screening side of things, there are two main metrics that should shed insight into how effective your current system is and if anything needs changing.

First, there’s the assessment completion rate, which is the percentage of sales candidates that successfully complete any assessments or tests that are part of your screening process. What you’re trying to avoid here is a low completion rate, as this may indicate that your current screening process is too long or complex.

If, for instance, you find that only a small fraction of candidates are making it through the assessment, you may want to trim back the number of questions or exercises and simplify it. The end goal is to find the sweet spot, where you can accurately assess candidates without creating a negative experience.

Also, it’s helpful to look at the pass rate. If your current pass rate is extremely high, this may mean your screening assessment is too easy, which may reduce overall salesperson quality. On the other hand, if the pass rate is overly low, it may mean your screening assessment is too difficult.

Getting it just right will likely require some trial and error, but with some ongoing adjustments, you should be able to optimize it.

Number of Qualified Candidates Per Source

I think we can all agree that effective sales candidate sourcing isn’t just about getting a large volume of candidates. You need to ensure you’re getting qualified candidates.

At HireDNA, for example, we vet sales candidates by examining a wide variety of selling competencies, such as motivation, responsibility, relationship-building, and the ability to handle rejection.

To get your sales candidate sourcing to a high level and ensure it’s continually improving, it’s important to measure how many qualified candidates you get from each source. By “qualified,” I mean candidates with the essential skills and experience for the sales positions you’re hiring for.

Say, for instance, job boards are bringing in the majority of sales candidates. However, only a small percentage of those candidates are truly qualified. You would likely want to improve your job postings to filter out unqualified candidates more effectively. Or, you may want to put less effort on job boards and double down on a different sales recruiting channel that’s bringing in a larger percentage of qualified candidates.

These are just hypotheticals, but you get the idea. The end goal is to find sales recruiting channels that bring in a sizable number of candidates while ensuring the majority of those candidates are qualified. If you can do that successfully, you’ve already won half the battle.

Interview Acceptance Rate

Now let’s talk about the next step in the process — measuring the number of candidates who agree to an interview for a sales position.

This is pretty straightforward, where you simply divide the number of candidates who agree to an interview by the total number of candidates during a given period.

So if four out of 10 candidates agreed to an interview, there would be a 40% acceptance rate.

From my experience, 20 to 30% is about the norm for the application-to-interview rate. This, of course, can vary depending on the exact sales position you’re hiring for. An entry-level sales rep position, for example, would likely have a higher acceptance rate than an account manager.

But if your rate is at 20% or higher, you should be in fairly good shape. That said, going higher to 30%, 40%, or more is even better.

Source to Hire Rate

Going one step further, it’s extremely helpful to know what percentage of successful hires come from each recruiting channel. That way, you not only know which sources are leading to the most interviews but which are leading to the most job offers.

Identifying this should help you figure out which channels are getting the best results, which should translate into more offer-worthy candidates later on. Again, there may be one channel that is driving the lion’s share of candidates, but only a small percentage are converting into actual job offers.

If that’s the case, you would likely want to reassess that channel and either figure out ways to make it more productive or shift your focus to other channels that are getting better results.

Keeping Your Sales Candidate Sourcing and Screening Going Strong

You never want to take your foot off the gas with sales recruiting, and optimizing it should never been seen as a one-off type of deal. Focusing heavily on the initial part of sales hiring in the sourcing and screening phases is particularly important, as it helps set up the subsequent phases.

A big part of improving involves leveraging the right metrics like the ones mentioned above, which should give you an objective overview of what’s working and what’s not so you know exactly what to focus on.

If you’re looking to filter through your sales candidate pool to find the best of the best, I suggest using The Objective Management Group Sales Assessment. It accurately predicts which candidates will thrive in your unique sales environment, with 92% of recommended candidates going on to reach the top half of their sales force. Learn more here.

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From Startup to Enterprise: Strategies for Scaling Your Sales Team

Posted on by Nick Mann

Regardless of the industry or the products sold, the end goal of nearly all businesses can be boiled down into one word — growth. You want to go from a fledgling startup just finding its footing to a profitable, well-established company with a solid slice of the market. While countless factors contribute to achieving this growth, a big one is effectively scaling your sales team.

Unfortunately, the odds for new startups aren’t great, as only 10% succeed in successfully scaling their business. However, if you can get it right, you should be well-positioned, because businesses that successfully scale up see an average revenue increase of 40-60%.

On that note, here’s a step-by-step process you can follow to scale your sales team and go from startup to enterprise.

Build a Strong Technological Infrastructure

Whether your sales team is 100% in-house, 100% remote, or a hybrid, you need the right tech stack. This helps your teams do their jobs more efficiently, be more productive, collaborate better, and provide the best possible customer experience.

When you’re at the initial startup stages, it’s crucial that you build a strong technological foundation from the start — one that meets your current needs as you gain initial momentum and one that’s capable of growing along with you over the years.

While the specific needs of each business can vary, some of the primary types of tech you usually need are a CRM platform, meeting and demo scheduling software, customer engagement tools, resource management software, and something for handling proposals and contracts. To simplify things, here’s a table that breaks down popular options for each category by each stage of growth.

Develop a Sales Talent Pipeline

Let’s be honest. Turnover is going to happen.

Studies have found that the average sales turnover rate can be as high as 35%, which is nearly three times the average for all professions at around 13%.

Like it or not, sales is an inherently high-turnover career. No matter how great your company is to work for and how far you go to retain top talent, unfortunately, turnover is going to happen. Without a process in place to “reload” when salespeople leave, scaling your sales team is going to be an uphill battle.

That’s why it’s so important to develop a streamlined system that allows you to quickly replace lost reps with talented new ones. This isn’t to say you shouldn’t work diligently to reduce turnover and twiddle your thumbs while rockstar reps walk out. But you should have a realistic game plan in place when salespeople inevitably leave at some point.

I find the best way to do this is to build a talent pipeline through techniques like:

  • Enhancing your brand
  • Creating a dedicated careers page on your website
  • Building your social media presence
  • Creating an employee referral program

We actually wrote an entire blog post that discusses the concept of a sales talent pipeline in detail, which you can find here. That’s a great starting point and can help you get the ball rolling.

Leverage Sales Automation

One of the biggest drains on a salesperson’s time is non-selling activities like handling emails and inputting customer data. These tasks can be tedious and time-consuming and take away from a rep’s ability to focus on more important activities like engaging with leads and closing deals.

What’s crazy is that Salesforce reports that “sales reps spend 66% of their time on non-selling activities.” And “in light of these responsibilities, 57% of reps expect to miss their quota.”

Needless to say, if your sales team is bogged down with burdensome, redundant tasks like these, it’s going to minimize their impact. And long term, this can be extremely detrimental to scaling your sales team and growing your business.

Fortunately, there are a ton of repetitive tasks that can be largely automated without skipping a beat.

Here are some examples.

  • Automated email reply tools
  • Automated data entry on CRM platforms
  • Lead scoring tools to automatically score leads
  • Online meeting scheduling software that allows leads to set up meetings

If you haven’t been using sales automation yet, now is the perfect time to get on board.

Stop Wasting Time on Unqualified Leads

One major hindrance to closing deals and business growth is sending unqualified leads to your sales team. And this is a bigger issue than you may think, considering that one study found that only 25% of leads are legitimate and should advance to sales.

While the definition of a qualified vs. unqualified lead can vary, for simplicity’s sake, I’m referring to “qualified” leads as sales qualified leads (SQLs), which “have been qualified, vetted, and expressed intent to engage in a sales cycle.”

Marketing qualified leads (MQLs), on the other hand, are more likely to buy than other leads but are still higher up in the sales funnel in either the awareness or interest stage. MQLs may become SQLs in the future, but they’re not scorching hot and likely still need some nurturing before being passed off to sales.

By having a clear understanding of which leads are SQLs and which are MQLs, you’ll be in a much better position to supply your sales team with the best of the best leads. In turn, this makes their jobs easier, and they can make more conversions, which should help grow your business quicker.

The question is, “How do you effectively qualify leads?”

It usually starts with creating your ideal customer profile (ICP), so you have a clear understanding of who you want to send to sales. And, as I touched on earlier, lead scoring tools can be incredibly helpful for objectively assessing a lead’s odds of buying through quantifiable data.

A simple example would be assigning points based on actions like visiting your pricing page, opening an email, and downloading content.

While this doesn’t always tell the entire story, it’s a reliable way of giving each lead a score so you know who’s ready to be sent to sales and who still needs nurturing.

Scaling Your Sales Team From the Ground Up

Confidently scaling your sales team and growing your business requires a well-defined, systematic process that you can build upon as you go. Although every company’s game plan will look a little different, the strategies outlined above should cover the essentials and spark noticeable, sustained growth.

When it comes to finding top talent to add to your sales force, HireDNA can be a huge help. It uses a data-driven, scientific approach to finding elite salespeople that can take your business to the next level. Register today and build an all-star team with HireDNA.

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Evaluating Cultural Fit in SaaS Sales Recruiting: Beyond the Resume

Posted on by Nick Mann

Skillset, industry experience, a proven track record, communication. These are some of the main factors SaaS sales recruiters look at when assessing candidates. And they’re all incredibly important. But there’s another vital factor that doesn’t always get the attention it deserves — cultural fit.

What is Cultural Fit?

This refers to how well a SaaS sales candidate fits in with your team from a cultural standpoint and can include sharing the same goals, values, attitudes, and working style. When someone is a good cultural fit it increases the chances of them meshing well with your existing team for better collaboration and overall harmony within your organization.

Conversely, if someone isn’t a good cultural fit it’s like trying to fit a square peg in a round hole. If their goals, values, attitudes, etc., don’t align with the rest of your teams, there’s almost guaranteed to be friction right from the start.

Here are a few stats that shed light on the importance of cultural fit.

While choosing someone who’s a good cultural fit doesn’t guarantee success, it’s extremely important for retention and profitability. In fact, “The result of poor culture fit due to turnover can cost an organization between 50-60% of the person’s annual salary,” Forbes reports. When this happens at scale it can quickly erode your overall foundation.

With that said, here’s a straightforward way to evaluate cultural fit in SaaS sales recruiting to drastically increase your odds of making the right hire.

Write a Job Description That Reflects Your Company’s Culture

Technically, the first step is to define your company culture. But assuming you already know that, the first thing to do is ensure any job description you write clearly reflects what you’re looking for in a salesperson in terms of culture.

For instance, you may want to mention what your specific values are, what your day-to-day work environment is like, and what’s important for being successful in a role. Here’s a real-life example from Google where they mention their ideal salespeople have experience working and learning in a fast-moving, dynamic environment and have a passion for using Google products.

Making it clear what your culture is from the start should reduce the number of poor-fitting candidates who apply and save you time when narrowing down your candidate pool.

Create Cultural Fit Interview Questions

Perhaps the most crucial step in the process is asking SaaS sales candidates the right questions that specifically target cultural fit. Generally, this should consist of around five or so questions that allow you to gauge this with a reasonable amount of objectivity.

Here are some examples of basic questions to ask:

  • What’s your ideal working environment?
  • What are your core goals and values?
  • What’s your preferred management style?
  • Do you work better independently or as part of a team?
  • What motivates you to make sales?
  • What do you feel you need to succeed in a SaaS sales position?

And here’s a more detailed list that focuses on behaviors, attitudes, values, beliefs, and assumptions.

To ensure consistency, you’ll want to ask the same questions to every candidate you interview.

Compare a Candidate’s Answers with Your Culture

With each response, pay close attention to how well it fits in with your company’s culture. For instance, if being able to work well collaboratively as part of a group is critical to succeeding in your SaaS sales role, you would likely want a candidate who works better as part of a team rather than independently.

Or if some of your core values are passion, teamwork, and continual improvement, you would want a candidate’s responses to be similar. Just be sure that whoever handles recruiting understands what you’re looking for and listens for cues during their interactions.

Pay Attention to Personality and Character

Another part of the process is a bit trickier to analyze and isn’t something that can be done quantitatively. But paying attention to personality and character during interactions, from initial outreach, to interview scheduling, to the interview itself, is a great opportunity to assess cultural fit as well.

For example, during the first few moments when you’re meeting with a candidate and having a casual conversation, use it to get a feel for what their natural demeanor is like and if they seem like someone who would get along with your existing team.

Are they polite and courteous? Do they conduct themselves professionally? Are they a smooth conversationalist?

These are just a few things to consider during casual conversation and can add to the rest of the input you get from previous steps to determine overall cultural fit.

Be Careful of Bias

One last thing to note is that you should always be aware of the potential for bias and not let that cloud your judgment. While it’s impossible to eliminate bias 100%, it’s something that can be largely reduced by simply being aware of it.

Also, it’s helpful to get feedback from multiple team members when making the final hiring decision. I find that this tends to provide a clearer perspective on how good of a cultural fit a candidate is, and you’re less likely to fall into the bias trap when you get the opinions of multiple people.

Let’s Recap

One area of SaaS sales recruiting that doesn’t always get the attention it deserves is cultural fit. While it may not be quite as important as skillset and experience, it plays a significant role in how likely someone is to mesh with your team. To avoid premature turnover and other complications, it’s worthwhile to make assessing cultural fit part of your hiring process.

That way, whoever you hire should truly check all the boxes, and it greatly increases the odds of things working out for both parties.

If you’re looking to make your SaaS sales recruiting more accurate and predictive to find the best of the best talent, check out the Objective Management Group sales assessment. It can be fully customized to your unique selling environment, and 92% of candidates recommended by it go on to reach the top half of the sales force.

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The Science of Lead Qualification in Your Sales Process

Posted on by Nick Mann

Not all sales leads are created equal. Some have a strong intent to buy, while others are essentially just window shopping. To ensure you pursue the right leads, you need a proven lead qualification framework that helps you separate the wheat from the chaff.

In this post, I’ll discuss the science of lead qualification and walk you through a step-by-step process to quickly sort through leads and find the best of the best.

Create an Ideal Customer Profile

Before doing anything else, you’ll need to articulate exactly who you’re trying to reach with your sales and marketing. What does your ideal customer look like? What’s their budget? What are their pain points?

These are just a few of the questions you’ll need to find answers to. Upon finding these answers, this will guide the subsequent steps in the process so you’ll not only know what types of leads to aggressively pursue, but also which ones to back off on.

One of the easiest ways to identify your ideal customer is to create an ideal customer profile (ICP). Here’s a sample template to get you started.

After your ICP is fleshed out, you’re ready for the next step.

Use Lead Scoring To Assign a Numerical Value to Leads

Once you clearly understand who you’re trying to reach, as well as who isn’t a high-priority lead, I suggest using lead scoring. If you’re unfamiliar, lead scoring is a type of software that analyzes leads based on critical criteria and assigns them a numerical value.

Say, for instance, a lead visited your pricing page or submitted a form. They would be given a certain amount of points. Or, if someone performed an action that would lower their chances of converting, like unsubscribing from your email, they would receive a point deduction.

After a lead scoring software crunches all the numbers, each lead is given a quantifiable score.

In turn, you can objectively determine how qualified a lead is. For those who aren’t qualified, you can nurture them until they are qualified or scrap them altogether if need be. And for those who are qualified, you can go even more granular to see which ones have the highest scores, so you’ll know who to prioritize.

Say, for instance, one lead received a score of 85…

…and another lead received a 91.

You would want to make the one with a 91 a bigger priority than the one with an 85 because they’ve shown a stronger intent to buy. As long as this lead meets an adequate amount of ideal candidate profile criteria, they would be someone you would want to quickly pursue.

If you’re wondering about lead scoring platforms, one of my favorites is Active Campaign.

It’s simple and intuitive and lets you score leads on a wide variety of actions, including the following.

Besides that, it automatically notifies team members when you have a hot lead on your hands. And for those that reach a certain score but aren’t scorching hot, Active Campaign will initiate nurturing to warm them up. This brings us to our next point.

Break Leads Down into MQLs and SQLs

We’ve touched on the importance of distinguishing between warm and hot leads. But let’s dive a bit deeper.

One of the best ways to separate qualified leads further is by ranking each as either a:

  • Marketing qualified lead (MQL) — Someone who’s in the awareness or interest stage of the sales funnel
  • Sales qualified lead (SQL) – Someone who’s in the decision or action stage

While this, admittedly, could be seen as an oversimplification, it’s an effective way to determine who’s sales-ready and who needs some more time. MQLs get sent to your marketing team, and SQLs get sent to your sales team.

That way, you’re only focusing on the cream of the crop — something that’s almost guaranteed to maximize your conversion rate. Needless to say, this can spill over to benefit you in several other areas, including better marketing ROI, more sales, more revenue, and so on.

And if you’re dealing with a high volume of leads (which hopefully you are), breaking leads down into MQLs and SQLs can be huge for streamlining lead distribution.

Use Analytics and Feedback to Further Improve Your Process

While some level of intuition may be helpful in lead qualification, I find that objective data tends to have the biggest impact. After implementing the three steps mentioned above and giving it some time for data to accumulate, I suggest using a mix of analytics and human feedback to see what’s working and what needs fine-tuning.

The simplest way to go about this is to look at your overall conversion rate. If it’s higher than what you expected, the current system is working and probably doesn’t need much tinkering. However, if it’s underwhelming, you’ll need to make some adjustments, which may include updating your ideal candidate profile or being more rigorous with who qualifies as an SQL rather than an MQL.

Also, getting direct feedback from your sales team can be extremely helpful. Because they’re in the trenches, they can tell you firsthand if there are any hiccups in your lead qualification process that need to be addressed.

Getting Lead Qualification Down to a Science

Whatever industry you’re in, the goal is the same. Find the leads who are the most likely to convert into customers and pursue them above lesser-qualified leads.

Doing this effectively boils down to three main steps — creating an ideal candidate profile, using lead scoring to give each lead a concrete value, and breaking leads down into MQLs and SQLs. That way, you can proceed with relative certainty that the leads you route to sales have a strong likelihood of buying.

And by making iterative improvements over time, you’ll only get better and better.

To find top-tier salespeople who can close more of the leads you send their way, use HireDNA to build an all-star team.

Building a Sales Talent Pipeline: Long-Term Strategies for Recruitment

Posted on by Nick Mann

Finding and retaining quality sales talent is a constant challenge. Even with all of your ducks in a row, you’ll inevitably encounter issues at some point. Therefore, it’s not enough to be reactive with your recruiting, where you find yourself scrambling to fill a position. You need to be proactive and build a sales talent pipeline to ensure you have a steady stream of qualified candidates at all times.

In this post, I’ll highlight what I’ve found to be the most effective and practical strategies for developing a sales talent pipeline so that you don’t find yourself in a bind.

Show Sales Candidates Why They Should Choose You

Before doing anything else, it’s important to show sales candidates that your company is the one they want to work for.

  • What makes your company stand out above your competitors?
  • What makes it special?
  • Why should sales professionals want to develop their careers with you?

These are just a few questions you should answer for candidates so that when you pique their interest they’ll want to take the next step and apply with you. There’s a lot that goes into this, but it starts by striving to improve your company culture and focusing on reputation management.

Create a Dedicated Careers Page

In the past, very few companies had a dedicated careers page, and it was typically reserved for larger enterprises with deep pockets. But I’ve noticed a significant increase in recent years, where a growing number of small and mid-sized companies are now using this strategy as well.

I like a dedicated careers page for two main reasons. First, it actively recruits for you. Through search engine queries, sales candidates can find your company, learn more about you, and apply. It basically acts as an automated recruiting funnel.

Rather than having to post on multiple job boards every time you need to fill a position, sales candidates can come to you. Take SaaS productivity and note-taking company Notion for example. Their careers page is set up so candidates can find them through search engines, social media, and other digital outlets.

And after landing on that page, candidates can get a basic overview,…

…learn about Notion’s story,…

…and check out open sales positions.

So if you haven’t gotten around to creating a dedicated careers page yet, I highly suggest doing so. Here’s a basic guide for getting started.

Improve Your Social Media Presence

Another way to build brand equity while simultaneously funneling candidates into your sales talent pipeline is by going all in on your social media. By this, I don’t mean simply slapping up an occasional post on Facebook. I’m talking about putting together a full-scale campaign that targets consumers, as well as sales candidates.

Let’s look at Notion again for an example. They have an impressive social media presence, with 324k followers on Instagram, 267k subscribers on YouTube, and 551k followers on LinkedIn.

On their LinkedIn page, users can learn about their company, check out their LinkedIn posts (something that establishes thought leadership), see what employee life is like at Notion, and look at recent job openings.

From there, users can learn more about job opportunities and apply directly from LinkedIn.

Through this social media campaign, Notion can build their reputation while seamlessly connecting with professional sales candidates. It’s baked right into their campaign.

And while you can’t necessarily expect to build a following quite this size, it shows how social media kills two birds with one stone and can send a steady stream of sales candidates coming your way.

Encourage Referrals

You may already know that salesperson referrals can have a big impact. To quantify:

  • “Referred employees are 18% more likely to be satisfied with their jobs.”
  • “Referral hires are 40% more likely to be retained after one year than non-referral hires.”
  • “$7,500 is the amount of money saved in productivity and sourcing costs when hiring a referral.”

Besides massively increasing salesperson satisfaction and retention and decreasing costs, referrals are also an excellent way to build a sales talent pipeline.

So at the very least, I suggest encouraging your existing salespeople to send vetted candidates your way. Even if you don’t need to make a hire right away, this will provide you with a list of candidate profiles that you’ll have at your fingertips whenever a position does open.

And if you want to go all in, you can create an employee referral program, which you can learn about here.

Offer Career Development Opportunities

Finally, hiring from within can ensure you always have a short list of top-tier candidates at the ready for mid and upper-level positions. While this won’t necessarily help with hiring entry-level sales reps, it’s perfect when hiring for more advanced positions and gives you access to salespeople you know and trust.

And here’s the kicker. Salespeople who are hired from within stay an average of 41% longer than those who are hired from outside. Further, 69% of companies who hire internally say they’re able to bring those team members to a positive state more quickly.

Not to mention, salespeople who have a legitimate opportunity to climb the ranks tend to work harder and be more invested in their jobs than those who don’t. By taking a hiring-from-within approach to recruiting, you not only have immediate access to high-quality salespeople, it also helps strengthen your overall culture at the same time, for the ultimate win-win.

Building a Strong Sales Talent Pipeline From the Ground Up

While it’s impossible to never feel hiring stress, constructing a sales talent pipeline in the way we discussed here can dramatically lower your chances of running into issues. Instead of waiting until someone leaves or you need to scale up, having processes in place should ensure you always have access to a pool of amazing candidates.

Speaking of amazing candidates, register with HireDNA today to use our all-in-solution to attract, recruit, and retain the best of the best.