Category: Sales Management

Tips to Cut New Sales Rep Ramp Time by 50%

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How Long Does it Take the Average Sales Rep to Reach Their Maximum Potential?

Sales rep development can be both costly and time-consuming. Training alone costs an average of nearly $1,900 per salesperson for companies with less than 500 employees. 

And when you factor in the time spent recruiting, onboarding, and ongoing development, it’s clear that getting a new sales rep up to speed can be quite onerous. So, a common question many companies have is, “How long does it take the average sales rep to reach their maximum potential?”

Let’s find out by synthesizing the findings from a few different studies. 

Looking to the Data

One study by independent research firm, CSO Insights, found that it takes a minimum of seven months for salespeople to reach full productivity. Of the businesses surveyed, 61% said it takes at least this long for investments they make in reps to pay off. 

A second study by the Sales Management Association (SMA) found that it takes a bit longer at just over 11 months for a new sales rep to become fully productive. 

And a third study from sales training and consulting firm, RAIN Group, found that it’s even longer and takes more like 15 months. Although it takes around 9 months for a new sales rep to become “competent to perform,” it takes well over a year before they hit their full stride. 

Ask different experts and you’ll get different answers, but after crunching the numbers, we can surmise that it takes around 11 months or so for the average sales rep to reach their maximum potential. 

11 Months? That’s a While!

I was personally a little surprised that it takes this long, and I’m sure many other companies feel the same. But it makes sense when you consider all of the steps a new salesperson has to go through to get in the groove. 

They have to:

  • Not only learn your industry and product but eventually master it
  • Understand the greater context of how your product fits in with the needs of prospects
  • Learn your brand’s core values and philosophy
  • Master the product demo
  • Build initial rapport with your customers
  • Nurture relationships
  • And so on

When you unpack everything, it’s easy to see why it takes nearly a year for the average sales rep to reach their full potential. 

How to Accelerate Sales Rep Development

So, what can you do to hasten the process and get a salesperson firing on all cylinders more quickly? 

Mike Schultz, president of RAIN Group, boils it down to focusing on two main things — strengthening your onboarding and sales enablement. 

“With a strong onboarding and sales enablement process, this timeframe can be shortened considerably,” Schultz writes. “We’ve seen ramp-up time cut by greater than 50% when companies hone in on improving in this area, increasing seller effectiveness, and correlating turnover of sellers for whom getting up to speed was taking too long.”

In terms of specific actions, you’ll want to first identify the skills that are most essential to your sales team’s success and make those focal points during onboarding and continually reinforce them during the subsequent phases of a rep’s development. Schultz also suggests systematically teaching additional skills as a rep becomes more comfortable in their position. This allows you to effectively distill foundational knowledge and gradually build upon it over time. 

Finally, Schultz emphasizes the importance of holding sales reps accountable when using those skills. One of the best ways to do this is to use tangible metrics such as a leaderboard like this that shows performance.

This creates a high level of transparency, while at the same time creating some friendly competition — something many reps thrive on. In fact, research found that 55% of salespeople enjoy a competitive environment. 

“A well-built curriculum not only shortens ramp-up time,” Schultz says, “but also transforms sellers into top performers.”

Besides developing a strong onboarding and sales enablement process, there’s one last thing I’d like to suggest, which I’ve personally had a lot of success with. And that’s hiring sales candidates with amazing selling skills over those who simply possess a wealth of industry knowledge. 

From my experience, I’ve found that most people can be trained on products, but very few people have naturally outstanding sales talent. Unfortunately, many companies hinder the growth of their sales team because they zero in solely on finding candidates with X years of industry knowledge. 

Like I said in a previous post, as long as someone knows how to sell and will sell, their skills are usually transferable, and they’re likely to thrive in less time than it would take if you have to teach someone to sell from scratch. 

So, this is definitely something to keep in mind. 

Building a Framework to Help Sales Reps Succeed

Although the findings vary somewhat from study to study, research suggests that it takes most sales reps somewhere around 11 months to really get going. And that’s longer than what I think most sales leaders would prefer. 

That’s why it’s important to consciously look for ways to expedite that process — something that can usually be done through a strong onboarding and sales enablement process. That alone has the potential to cut salesperson development time in half. 

Also, don’t get so fixated on industry knowledge that you pass up A+ salespeople with transferable experience. These types of reps should be able to climb the ranks faster and have a much higher ceiling than their counterparts who simply possess a ton of industry knowledge but are only mediocre at selling. 

sales rep ramp time

A great way to do that and find the best of the best is by using a hiring tool like HireDNA. It uses science-based assessments based on 21 core selling competencies and intelligent matching that analyzes 20 key data points to help you filter through the candidate pool and find high-level salespeople, while saving you a ton of time.

The Dos and Don’ts of Headhunting Next Level Sales Reps

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The Pareto Principle, or the 80/20 rule, applies to many aspects of business, including sales rep performance. Under this principle, roughly 80% of salespeople will account for 20% of sales, and the other 20% of salespeople will account for 80% of sales. 

And it’s the latter — the elite, top performers — you want to focus on hiring. One of best ways to find these next level sales reps is with “headhunting” where you proactively target a handful of hyper-qualified individuals who you believe would be major assets to your company. 

Here’s an overview of how headhunting works and actionable tips on how to implement it into your hiring process. 

What’s the Difference Between Regular Recruiting and Headhunting?

“Recruiters advertise jobs and wait to be contacted by potential candidates, or approach a wide network of potential candidates,” explains WikiJob. “Headhunters approach a select few candidates, and only the ones that fit the brief.” 

These are highly skilled sales reps, the exclusive candidates that, if hired, could be potential game-changers for your company. As you might imagine, these salespeople are in high demand and often already employed, which means they have a ton of leverage. 

Therefore, you need to go after them, tailoring your approach to capture their attention and effectively differentiating your brand from the competition. 

What to Do When Headhunting Sales Reps

First, you need to be ultra specific when narrowing down the candidates you want to reach out to. By nature, headhunting goes after the best of the best, so it’s essential that you only contact individuals that meet the right criteria. 

This graphic from SOCO Sales Training serves as a good starting point for traits to look for. 

Also, note that possessing amazing selling skills that are transferable to the position is often better than going after reps with a lot of industry/product experience — something I discussed in detail in this blog post. 

Next, it’s essential to give a salesperson enough incentive to realistically entertain your offer. And if they’re currently employed, it needs to clear that joining your company would be a legitimate “come up.” Better pay, more benefits, clear cut advancement opportunities, and an amazing company culture are all potential areas to focus on. 

To better understand the reasons why elite sales reps are attracted to new companies, check out this graph from PayScale. 

Finally, find the right balance between persistence and pushiness. Fittingly, headhunting elite sales reps is a lot like selling where you’ll naturally encounter rejection. 

Therefore, you’ll want to follow-up with these candidates to stay on their radar and remind them of the benefits of joining your team. However, you don’t want to be a pest because that’s going to reflect poorly on your company culture. 

What Not to Do When Headhunting Sales Reps

I think one of the biggest mistakes businesses make when headhunting is making their offer all about the money. Is earning a handsome salary — and for sales reps that are already employed a larger salary — important? 

Sure. Increased pay is the third biggest thing that attracts salespeople to a new organization. 

But it’s not the only thing to focus on. Over a quarter of people (27%) seek the opportunity to do more meaningful work, and 16% seek increased responsibilities — both of which are more important than money. So, you never just want to make it a cash grab. 

Rather, you should look at the big picture and articulate the full range of benefits to make the position more desirable. 

Something else to avoid is reaching out to sales candidates prematurely without doing adequate research on their skills and background. Oftentimes, someone looks great initially and seems to check all of the boxes. Maybe, for instance, they’ve worked for a Fortune 500 company and have over 10 years of experience in your industry. 

But when you dig a little deeper, there are chinks in their armor. Perhaps they’re hyper-aggressive and lack listening skills, or they’re so confident in their skills that they’re unwilling to accept feedback. Or maybe, they have a history of jumping ship and lack loyalty. 

The specifics can vary, but you’ll want to take a close-up look at what they’re like before investing the time and resources into acquiring them. Digging through their LinkedIn account is usually a good place to start.

Besides that, you’ll want to avoid approaching any candidates that have non-compete agreements in place with their current employer. “Because no-poaching agreements eliminate competition, the government generally considers them to violate anti-trust laws,” writes Alison Doyle of The Balance Careers. 

If you violate one of these agreements, even unknowingly, it can potentially lead to costly litigation. While this won’t be an issue if you’re headhunting someone who isn’t currently employed, it’s definitely something to be aware of if you’re going after a sales rep who is. 

Hiring the Best of the Best

You can’t expect A+ salespeople to come to you. Often, you need to go to them. 

That’s why taking a conventional recruiting approach where you simply put up a job ad can lead to subpar results. At the end of the day, the true rockstars don’t usually need to spend time perusing job boards and applying to positions. They’ve got enough talent that they can pick and choose the companies they want to work for. 

Headhunting, when done correctly, creates a framework that allows you to get in touch with the best of the best and provide them with the right incentive to choose your business over your competitors.  

To learn more about sourcing top talent while filling open positions faster, check out HireDNA. It’s a platform that utilizes cutting-edge technology like science-based assessments and intelligent matching to find ultra qualified sales candidates to fill your talent pipeline. 

HireDNA has been proven to lower hiring mistakes by 96%, and 92% of candidates found through it go on to reach the top half of the salesforce within a year. 

How to Onboard New Salespeople 100% Virtually

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Largely fueled by COVID-19, a growing number of companies are making the shift to a fully remote workforce. According to a recent Willis Towers Watson report, “Employers expect 19% of their workforce to be full-time employees working from home post-COVID-19” — nearly three times what it was in 2019 at just 7%.

Just like with any other type of position, new salespeople who will be working remotely need effective onboarding. Here’s how to tackle this process 100% virtually and set your salespeople up for success. 

Start By Amassing the Right Combination of Tools

The success and efficiency of your digital onboarding largely hinges upon the tools you use. Therefore, you need to find the right combination and make adjustments along the way. 

One of the best platforms for creating a streamlined onboarding process is Kissflow. It allows you to easily manage every aspect of onboarding and make it systematized for a homogeneous experience for all of your reps. 

Or as they put it, “Keep the onboarding process paperless and free from human intervention with online onboarding and workflows.”

Among its many features, there’s an employee self-service area where new salespeople can submit documents, find information, speak with other team members, and more. 

For basic communication, there’s Slack which allows you to conveniently send messages, share files, and keep new salespeople in the loop. Create different channels and ensure new reps are on the same page with your sales leaders every step of the way. 

And for all of your video conferencing needs, there’s Zoom, which is the most popular option with nearly 43% of the market share as of mid-2020. This is the perfect platform for holding video calls during the onboarding process and building strong rapport (something we’ll discuss in more detail later on). 

For an exhaustive list of other tools you can use to facilitate smoother virtual onboarding, check out this resource from Time Doctor. 

Send Out a “What to Expect” Email

Since there will never be any in-person interaction, it’s easy for miscommunications to happen. So, soon after a new salesperson has officially been hired, send them an email welcoming them to the team along with a detailed outline of what to expect from that point until they’re actually selling. 

For instance, you’ll want to include the exact date and time onboarding will begin. And you’ll want to provide an outline of what will happen throughout each day of onboarding. Here’s a quick example of how LinkedIn approaches their virtual program.

You may also want to mention the technology you’ll be using, both for onboarding and for day-to-day activities, along with login information so new salespeople can get familiar with it ahead of time. The more transparent you are, the smoother the onboarding should go and the less potential for glitches there will be. 

Create a Robust Online Learning Hub

Another essential part of providing streamlined onboarding is developing a robust online educational resource that’s available 24/7 to answer a new rep’s questions and direct them to helpful content. This is a growing trend where “many of today’s leading cloud-based companies, such as Uber, Shopify, Airbnb, Salesforce, and HubSpot, are strengthening their businesses with effective online learning resource centers,” explains Dan Westmoreland of eLearning Industry. 

Some common types of content that are featured in these hubs include:

  • Sales courses
  • Educational videos 
  • Webinars
  • Media files
  • Blog posts
  • eBooks
  • Answers to FAQs

Some companies even have discussion boards and forums where salespeople can share their experiences with one another and sales leaders can offer insights.

So, how do you get an online resource hub like this set up? Use a learning management system like TalentLMS or LearnUpon to create a fully customized library. 

Break Down Training Sessions Over the Course of a Week

Most experts agree that trying to jam a ton of in-depth training into a single day is ineffective, especially when it’s online. If possible, it’s much better to break down your virtual training into multiple sessions throughout the week. 

“Spreading the process over a longer period of time enables hiring managers to address issues and make improvements if something is not working,” says Vicki Chabot of The Enterprisers Project. “It also reduces the stress that a new hire might feel working from home, especially if they are juggling responsibilities with children, partners, and pets while also attempting to absorb new information.”

You might, for example, spend the first day going over the basics like a salesperson’s role, job description, and your company culture. From there, you could move on to more advanced topics like the products you sell, the specific sales techniques your company uses, and so on. 

Have Sales Leaders Speak Regularly with New Salespeople Through Video

Earlier, we touched briefly on using Zoom as a platform for video conferencing. While email and messaging apps like Slack are generally fine for basic communication, experts recommend making it a point to have sales leaders maintain contact with new reps via video throughout the duration of the onboarding process.

That’s because “using video can improve engagement during calls and helps managers/trainers pick up on non-verbal cues (i.e. facial expressions and body language) which is important throughout training and gauging comprehension,” writes Angela Hughes of Acceleration Partners. 

Onboarding in a Remote Sales World

With nearly a fifth of all salespeople being fully remote in 2021 — and no doubt more in the future — many sales leaders need to make some radical changes to the way they onboard. And often that means making the onboarding process 100% virtual. 

Doing so effectively requires sales leaders to use the right combination of technology, set clear expectations right from the start, provide new salespeople with comprehensive online resources, spread out training sessions, and use video to stay in close contact with reps.

See how HireDNA can help you build a stronger sales team by using cutting-edge technology to find ultra talented reps. Book a demo today. 

The 3 Biggest Reasons Why Top Performing Salespeople Leave (And How to Lower Turnover)

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Turnover. It’s one of the biggest causes of stress and frustration for employers. And if left unchecked, it can waste time, erode profits and bring company growth to a grinding halt. 

What’s concerning is the sheer number of people leaving their jobs these days. “The percentage of US employees quitting their jobs is at an all-time high,” says Gallup. Further, “67% of US employees are disengaged at work, and 51% say they’re actively looking for a new job or are open to one.”

In this post, we’ll get to the heart of why top performing salespeople leave and go over some specific steps you can take to address this problem. 

The 3 Biggest Reasons for Turnover

SiriusDecisions, a global B2B research and advisory firm performed extensive research to identify the main reasons why top performing salespeople left the companies they worked for. 

Here’s what they found:

  1. Insufficient compensation – This was the reason why 89% of salespeople left
  2. A lack of connection with leadership / Incompetence of leadership – 60 – 80% 
  3. Concerns about their company’s ability to meet market needs – 75%

Note that a certain amount of turnover is normal and shouldn’t cause any major disruptions to your business. Currently, the average turnover rate for sales organizations is hovering just under 35%. But if the number gets much higher than that, like it does for one in 10 companies with a turnover rate above 55%, it’s definitely a cause for concern and something that should be addressed right away. 

Now let’s take a closer look at these three main reasons for turnover and discuss some potential solutions. 

#1 – Insufficient Compensation

Above all else, not being paid what a rep thinks they’re worth is the number one reason why they head for greener pastures. And this is nothing new. 

Just like with nearly every other industry, those in sales are quick to jump ship if they can earn more somewhere else. This is especially true for SaaS salespeople where there’s been an explosion in the number of companies that were launched in recent years. 

So, what exactly is considered adequate pay? According to recent data from PayScale, the average salary for a salesperson in 2020 was $45,676. 

If you’re paying well below that, especially in a larger market, high turnover is an inevitable issue that’s going to plague your company. The solution though is quite obvious — pay your reps more so that it’s competitive with other sales organizations in your area. 

And if possible, consider offering your top performers rewards like bonuses, health benefits, and recognition awards, which collectively help boost your employee value proposition (EVP). A study by Gartner found that effectively delivering on your EVP can lower annual turnover by 69%. 

#2 – Leadership Issues

The second biggest culprit for high turnover is when there’s either A) a disconnect between sales reps and company leaders or B) a perceived incompetence among leaders. Liz Ryan of Forbes chimes in on this saying, “Turnover is a leadership problem. When you as a manager are told over and over again that your employees will get raises and over and over again, the raises don’t come through, you become part of the problem.”

Admittedly, this isn’t usually something that’s a quick fix and often requires a fundamental cultural shift. That said, there are some specific techniques higher ups in your company can take to become better leaders. Lolly Daskal, President and CEO of Lead From Within, offers some great insights, including:

  • Accepting criticism
  • Being open to feedback from salespeople
  • Being authentic, honest, humble, and transparent
  • Taking a “practice what you preach” approach to leadership
  • Constantly striving to improve communication skills
  • Being quick to praise reps for a job well done

#3 – Concerns About a Company Meeting Market Needs

“‘Marketplace needs’ is a marketing concept that relates to the functional or emotional needs or desires of a target market,” explains college marketing professor Neil Kokemuller. “Generally, a successful company identifies when a segment of customers is not effectively served by existing providers and develops and promotes products or services to match.”

But when a company fails to do this effectively, it can create concerns for salespeople, where they have anxieties about its long-term growth and success. And this is understandable given that nearly 400,000 startups close their doors each year. 

Couple that with the negative impact COVID-19 has had on the economy, and concerns from salespeople are definitely justified. 

By these numbers, it’s clear that companies need to have a pulse on market needs — both functional and emotional — and be constantly evolving to stay relevant. It’s also important to develop a strong unique value proposition (UVP) and offer products that give your brand a clear edge over the competition. Not only is this important for carving out a sustainable niche, it lets your salespeople know that they have job security, which reduces the likelihood of excessive turnover. 

Keeping Turnover In Check

Turnover has become a serious problem for many of today’s organizations. BambooHR found that nearly a third of people have quit a job within the first six months, and 68% of those people left within the first three months. 

While there’s no magic bullet for turnover, understanding the root causes we’ve discussed here should help you gain a better understanding of what compels top salespeople to quit. Then, implementing solutions like offering competitive pay, developing better company wide leadership, and better meeting market needs should help you get it under control.

And with the right effort and focus, you can keep your most elite salespeople around for the long haul. 

Another big part of increasing retention is improving your recruiting process. Find out how you can use HireDNA to attract and recruit better candidates using science-based sales assessments. 

HireDNA Named a Top Recruiting Company for 2020

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At HireDNA, we know how important it is to work with a team you can trust. We provide a modern sales recruitment platform for growth-stage technology companies to hire and retain the right sales talent to hit their goals faster.

Clutch recently announced the top 72 highest-ranking recruiting firms on their site. This effort is part of Clutch’s Small Business Solidarity program. We are excited to announce that Clutch has listed HireDNA among the top recruiting firms for 2020.

Located in the heart of Washington, DC, Clutch is a ratings and reviews platform operating in the B2B space. Their independent team of analysts conducts interviews with the former clients of companies listed on their site. This direct feedback ensures that all of their rankings and awards are fair and transparent. 

We are also featured on The Manifest, Clutch’s sister site! The platform helps guide users through each stage of the buying process. The Manifest features shortlists of B2B service providers according to geographic location and service line as well as business survey data and how-to guides. We are excited to announce that HireDNA is among the top recruiting companies on the Manifest!

“When you are looking to expand you company’s team, recruiting firms are invaluable partners,” said Clutch Business Development Analyst Dustin Sammons, “You want to ensure that you are hiring the right person with the EQ, IQ, and technical skillset necessary to do the job right. Recruiting firms’ number one priority is making sure they find you that perfect fit.”

We are grateful for each and every one of our customers, especially those that took the time to leave us a review on Clutch! We always appreciate hearing feedback from our clients. Here’s what they had to say about working with us.

“Their team really listens to what the client is asking for and what type of candidates they want. They ask a tremendous amount of questions about the business, it’s leadership, and the role so that they have a clear and concise message with which to bring in candidates.” – Director of Sales & Marketing, Software Company

We owe so much to our clients. This award and our 4.8-star rating on Clutch were made possible by all of your support over the years.

To learn more about us, check out our profile on Clutch and read the reviews left by our customers. Ready to get started on your next project? Get in touch!

5 Obstacles High-Level Sales Reps Must Overcome

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In an eBook by sales training and coaching company, SG Partners, called Best Practice to Recruiting The Hardest Role in the Company, they talk about the difficulties involved with being a salesperson. It’s a reminder that this role is highly challenging, and being successful demands a person that possesses the right hard and soft skills. 

With that said, we’re about to take a close look at five specific obstacles high-level sales reps must overcome so you’ll have a better idea of what to look for when assessing candidates. 

Let’s jump right in. 

1. Competition

For starters, most sales reps face an immense amount of competition. Take SaaS companies for example. As of mid-2020, there were over 15,500 SaaS companies in the world. And although the number of these brands has cooled off a bit over the past three years, it’s definitely a saturated market. 

So, often the biggest obstacle is simply having an original unique value proposition (something that’s becoming more difficult, by the way) and an approach that helps your brand stand out from the competition. 

These days, the most successful reps tend to take on the role of consultant and trusted advisor rather than having an overly aggressive “sell, sell, sell” approach. They also have a genuine passion for their industry and product, which naturally shines through when they’re interacting with leads and giving product demos. 

The bottom line is that high-level sales reps have a knack for preventing your company from getting lumped into the crowd and have a likable personality that leads are receptive to. 

2. Hostility From New Prospects

SG Partners mentions that salespeople will “encounter hostility from new prospects that view their presence as an unnecessary interruption to their day. They must venture into a marketplace where prospects are time poor and often rushed, irritated, disinterested, or even hostile.”

And that’s an excellent point. Often, it doesn’t take much for a conversation to go in a negative direction, where a new prospect becomes openly hostile, especially when cold calling. If they’re caught off guard and adamantly against making a purchase, things can get ugly in a hurry. 

Therefore, a high-level sales rep must be able to disarm the situation — something that’s best done using “friendly strength.” Rather than being passive and immediately waving the white flag or returning the prospect’s hostility with their own hostility, friendly strength is where a rep combines the confidence in their product with their knowledge and expertise to steer the conversation in a more pleasant direction. 

For more on friendly strength and how it can be used to win over more prospects, check out this post by sales enablement evangelist Josh Harcus in Forbes. 

3. Objections From Leads

SG Partners also points out that a high-level salesperson “must persuade people to purchase from their company” — something that often requires them to overcome a gauntlet of objections. These can run the gamut, but according to Bryan Gonzalez of HubSpot, there are seven common sales objections that reps encounter most frequently. 

And let’s face it. Formulating an intelligent response, let alone one that instantly slashes through objections from a highly skeptical lead, can be incredibly difficult. So, you need a sales rep that can put themselves in a lead’s shoes and effectively quell their concerns, while putting their mind at ease. 

Possessing this ability takes time, experience, knowledge, confidence, and the right diplomatic touch. While much of it can be learned, overcoming sales objections is something that some reps are naturally more skilled at than others, which is why you should ask what their approach is to handling objections during an interview. 

4. Rejection

It should go without saying that being a sales rep is a position that requires some thick skin. As SG Partners puts it, “they will face rejection on almost a daily basis. There is no selling without rejection and salespeople will face this as they attempt to develop new business for the company.”

A high-level sales rep will have the ability to handle rejection, deal with it, and move on without it ruining their day. They’ll also be able to ensure that it doesn’t “kill their vibe” as they transition to speaking with other leads. It’s like a football quarterback being able to pick themself up and dust themself off after throwing an interception and get right back in the game. 

In short, a high-level sales rep will have the resilience and “short-term memory” needed to persevere even with chronic rejection.

5. Complacency

Finally, even the most rockstar of sales reps will likely battle complacency at some point. In fact, you could argue that this can be a bigger issue for elite sales reps as opposed to mediocre ones because of the level of success that they have. 

It’s human nature to go into “cruise control” when things are going our way. And when a rep gets massive results where they’re on fire, making sale after sale, it’s easy for them to cool off where they lose some of their drive. But the top salespeople will realize when they’re going this route and kick it into the next gear. 

While they’ll remain continually confident, they’ll also be wired to always look for areas of improvement, no matter how minor they may be. 

Overcoming Obstacles to Unlock a Rep’s True Potential 

Selling is easy, said no one ever. It’s a career that’s fraught with difficulties and one that only a small handful of individuals truly thrive in. 

In fact, exhaustive research from Objective Management Group found that only 6% of sales reps are elite performers. 

The five challenges listed above are some of the biggest that high-level sales reps must overcome, and having the ability to do so should always be on your radar when assessing candidates. 

For more on this topic and other tips for better recruiting, check out Best Practice to Recruiting The Hardest Role in the Company by SG Partners. 

And to learn about common mistakes CEOs and sales leaders make when recruiting, check out The Top 5 Reasons You Are Failing at Recruiting Consistently Great Sales Teams. 

Increase Productivity By 38% and Profits By 27% With an Employee Engagement Strategy

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Employee engagement is one of the hottest topics in the business world right now and something nearly all companies are trying to increase. And for good reason. 

“Organizations with higher than average levels of employee engagement realized 27% higher profits, 50% higher sales, 50% higher customer loyalty levels, and 38% above-average productivity.”

It’s hard to argue with those numbers. But how can you increase sales rep motivation in a practical, concrete manner?

It’s simple. Create an employee engagement strategy. 

The Impact an Employee Engagement Strategy Can Have

Before we dive in too far, let’s discuss just how big of an impact this can have. To put things into perspective, we must first understand how prevalent employee disengagement currently is. 

According to research, 45% of the workforce is not engaged, and 26% of employees are actively disengaged. That’s a huge problem and means that less than a third (29%) of employees are actively engaged.

Further, “disengaged workers cost the economy $300 billion or more per year,” mainly because they’re only there for the paycheck and do the bare minimum to not get fired. This scene featuring Peter Gibbons in the movie Office Space summarizes this trend perfectly. 

But having an official employee engagement strategy in place is arguably the best way to slash through disengagement. Not only does it help boost productivity and profits, it tends to make the workplace a more pleasant place and naturally enhances the collective culture. 

Besides that, companies with high employee engagement have a 41% lower absenteeism rate. And having a positive company culture results in 4x the revenue. One study even found that 90% of business leaders believe an employee engagement strategy could yield positive results for their company. 

How to Create an Employee Engagement Strategy

Now let’s get down to brass tacks. Here’s how to develop a winning employee engagement strategy for your business. 

Step 1 – Pinpoint Your Specific Goals

Of course you’ll want to increase productivity and boost profitability. Those are givens. 

But the first step to shaping your strategy is to look deeper and pinpoint a handful of specific goals you want to accomplish with your employee engagement strategy. 

Some examples can include:

  • Raising collective employee satisfaction levels
  • Reducing turnover
  • Motivating employees to stay with your company longer
  • Creating a more positive, collaborative culture 

Once you’ve got these nailed down, it’s time for step two. 

Step 2 – Build an Action Plan Based on the 10 Key Engagement Drivers

When you break it all down, there are 10 main factors that contribute most heavily to employee engagement and overall satisfaction. Here they are. 

Therefore, these are the primary areas to focus on and will help shape your approach. The trick is to analyze each of these factors and prioritize them in the order of the most importance. 

For example, your top three engagement drivers may be:

  1. Recognition and rewards
  2. Wellness and balance
  3. Career growth

Those would be the top three you would want to focus on, and have everything else come after that.  

Step 3 – Identify Actionable Ways to Improve Top Engagement Drivers

Once you’ve identified your top engagement drivers, you need to devise actionable strategies to improve them. 

If, for instance, recognition and rewards was your number one priority, you might encourage managers and higher ups to continually praise employees and thank them for a job well done. “70% of employees say that motivation and morale would improve ‘massively’ with managers saying thank you more,” according to a Reward Gateway study.

You might create a rewards program, where employees receive things like bonuses, paid time off, gift cards, and so on, for exceeding expectations. Here are some more ideas on this. 

Or, you might even go so far as to hold an annual event where you pass out awards to your team and acknowledge areas where they’ve excelled. Think Dunder Mifflin’s “Dundies” awards from The Office. 

Step 4 – Determine How to Measure Outcomes 

Quantifying your results is absolutely essential. Without having an effective means of analyzing the impact, it’s hard to gain any real progress. So, you’ll want to figure out which KPIs to look at and be diligent about keeping tabs on the numbers. 

One of the most straightforward KPIs is your turnover rate before implementing an employee engagement strategy and after. 

Say your turnover rate hovered around the average of 17.8% before developing an employee engagement strategy. But after a year of having it in place, you were able to drop it to just 10% — a good number experts say to aim for. 

That would mean you were able to lower your turnover rate by roughly 8%, which would indicate that your efforts were definitely paying off.

Step 5 – Set a Realistic Budget 

While some aspects of an employee engagement strategy are basically free (e.g. having managers thank employees for doing quality work), others like bonuses and gift cards require an investment.

So, you need to come up with a realistic budget that allows you to get the results you’re looking for without killing your profits margins. At the end of the day, it’s about getting the best return on your investment. 

This begs the question. Just how much should you spend on an employee engagement strategy?

A 2016 study found that around 1% of payroll is a good number to shoot for. “When companies make this level of investment, they are nearly three times as likely to rate their program as excellent, compared to companies that invest less.”

Taking Employee Engagement from So-So to Stellar

Although employee engagement has risen slightly over the past decade, there’s still plenty of room for improvement.

Hands down, one of the best ways to attack this problem is by developing an employee engagement strategy. And with only a quarter of businesses having one in place, this should put you ahead of much of the competition. 

A big part of having a highly engaged workforce is choosing the right employees from the get-go. See how HireDNA can help refine your recruiting through powerful technology and science-based sales assessments. 

Better Sales Coaching Creates Measurable Results

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Sales coaching is often listed as one of the top three priorities for sales managers – and with good reason. Sales coaching is an effective way to increase sales, retain employees, and create measurable positive changes for any organization. Coaching also offers managers an opportunity to not only get a firsthand look at the issues their reps are facing in the field, but also to share best practices that will assist reps in improving their performance. 

But despite the major benefits coaching can offer, research has shown that the majority of sales managers fail to provide effective coaching to their sales reps. In this post, we’ll highlight the impact of effective sales coaching, and show you how you can improve your own organization’s coaching efforts to maximize your sales team’s success. 

Better Sales Coaching Raises Sales Percentiles by 28% – 49%

While it seems fairly obvious that better coaching creates better results, research suggests that the potential for improvement may be significantly higher than many sales managers expect. 

In an evaluation of almost 2 million salespeople and sales managers, Objective Management Group (OMG) found that sales percentile scores were 28% higher for sales reps whose managers devoted at least 50% of their time to coaching. Reps who received coaching also showed higher scores in key sales competencies: 13% better in Qualifying and 24% better in Closing, compared to reps whose managers rarely provided coaching.

Interestingly, these numbers only factor in the time spent coaching – not the quality of the coaching itself. In a follow-up evaluation, OMG discovered that managers who spent extensive time coaching and have great coaching skills can increase their reps’ sales percentile scores by as much as 49%, compared to managers with weak skills who spent minimal time coaching.

More Than Half of Sales Managers Are Not Good Coaches

Unfortunately, further OMG research has indicated that the majority of sales managers do not possess the coaching skills needed to create this level of positive impact. According to OMG, 63% of all sales managers fall into the weak category and 24% of all sales managers fall into the serviceable category – leaving only 13% of sales managers with “strong” or “elite” coaching skills.

Poor coaching among sales managers may be attributed  to factors such as: 

  • Competing priorities – A sales manager’s role includes a number of varying responsibilities, and while coaching is often named as a key objective, few organizations reflect that prioritization in management KPIs. For many sales managers, personal sales and commissions may also outweigh management compensation, and influence the manager’s motivation to devote their time and energy to coaching.
  • Poor definition – Sales managers may also have a poor definition of what “coaching” involves. Some managers may believe that coaching is simply a matter of telling a sales rep what to do, or helping them with basic tasks such as lead identification or pricing. Others feel that listening to a sales call or observing a client visit in the field constitutes coaching. However, these activities require additional learning and engagement elements in order to be effective.
  • Inability to execute – In other cases, a sales manager may understand the various factors that go into effective coaching, but are unable to effectively implement them. In particular, many sales managers falter when it comes to role-playing activities – often considered one of the most important and effective elements of sales coaching.

What Makes Sales Coaching “Good”?

There are a number of ways to develop and implement successful sales coaching programs, but the most effective programs share the same basic qualities. In general, good coaching programs: 

  • Are individualized to the sales reps’ unique skills and learning preferences
  • Promote trust by creating a non-judgmental environment and allowing open discussion of challenges
  • Encourage self-evaluation that allows the sales rep to build self-awareness and guide the coaching discussion
  • Use the Socratic method, with effective questions that stimulate thinking and allow sales reps to have ownership in creating the solution
  • Focus on improving one area at a time versus addressing multiple points and potentially overwhelming the sales rep
  • Focus on improving skills and techniques rather than specific sales numbers

Improve Your Coaching Skills with HireDNA

The sales training and coaching experts at HireDNA can help you improve your sales coaching skills, develop an effective coaching and training program, and deliver high-quality sales training that works within the workflow of your sales team.

HireDNA was recently recognized as an emerging leader in corporate training and coaching. Our experts can assist with any questions about building first-in-class, on-demand sales training tailored specifically for remote sales forces.

3 Keys to Boosting the Productivity of Remote Sales Teams

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One of the biggest complaints we’re seeing from clients in the middle of this global pandemic is that the myriad interruptions to business operations are disrupting sales momentum. While day-to-day sales activities may be continuing, progress toward sales goals is often stalling.

But for savvy sales leaders, the global quarantine lockdown does not have to translate into a sales slowdown. While business interactions may be limited, creativity is not. For every obstacle that emerges, there exists a creative workaround to ensure your team can continue to work productively.

In previous discussions of what it takes for sales teams to thrive in a crisis, our experts highlighted steps like staying client-focused and taking your sales conversations online. In this week’s post, we’ll take a look at how successful remote sales teams can use the right tools and techniques to boost their overall productivity.

1.  Go Virtual

Virtual interactions have become a requirement thanks to the current coronavirus pandemic. While some companies have struggled to adapt their business models to remote operations, smart leaders are finding that virtual tools have allowed their teams to actually reach higher levels of productivity. This is a crucial discovery, because even when the global lockdown lifts, virtual business operations are likely to become part of the “new normal” for many organizations.

In our latest white paper on prospering during a crisis, we explained how can go on the offensive and take a proactive approach to managing the impact of a global crisis. With travel bans and quarantines forcing a shift to remote operations, this tactic includes the need to develop creative virtual sales presentations to present your solutions and demonstrate their value. This could include solutions like webinars, virtual office tours, or live product demonstrations using remote access tools or videos showing your product or team in action.

“Going virtual” can also apply beyond direct sales interactions. Virtual sales training has been a growing trend, well before the pandemic hit, with companies discovering a wealth of benefits to taking their training operations online. Virtual training has been shown to increase reps’ effectiveness, and outperform live classroom training in areas like increased pipeline and greater rep confidence.

2. Create Effective Sales Playbooks

A huge productivity killer is a daunting “to do” list that amounts to little more than a jumble of disparate tasks waiting for the next action. Reps get busy, actions slip into the “do it later” pile, and all the valuable time spent on prospecting is lost because they didn’t follow up in a timely manner. Having an effective sales playbook can help eliminate this common problem.

Playbooks are one of the most powerful tools in your sales team’s arsenal. They clearly outline your sales process, and arm your reps with all the content and strategies they need to navigate the sales cycle and close a deal. Operating without a well-defined playbook puts your team at a disadvantage, and can encourage a chaotic sales process that greatly reduces your ability to improve and scale your operations.

A playbook helps give your rep a comprehensive understanding of the entire sales journey, and allows your reps to clearly see the appropriate next action to take at every stage. This can help eliminate decision fatigue and ensure that your reps are making the right moves, at the right times, to move their sales conversations forward.

This is especially important in a remote sales environment when sales managers are not able to stand over their rep’s shoulder listening to calls and demos, and helping them take the appropriate steps to close the deal.

3. Use the Right Platforms and Tools

Rather than operating as a standalone tool, an effective playbook should be integrated with your CRM system and productivity tools, to help further automate your sales process and improve your team’s efficiency.

An effective CRM allows sales teams to automate tasks like meeting invites, email follow ups, and prospect monitoring. This is a key step in ensuring the next action dictated by your playbook is executed effectively.

Industry-leading CRM platforms, like HubSpot or Salesforce, also include productivity-boosting features like task sequencing, communication tools and templates, and call planning. These systems can be integrated with other productivity apps – including calendars, and prospecting tools – to create seamless sales operations and allow your team to operate at peak levels.

CRMs also offer remote dialer tools that will allow reps to automate the process of logging call notes, recording calls, and tracking their call activities, providing managers with full visibility into their team’s productivity despite being remote.

Expert Insights Help Move Your Team Forward

At HireDNA, we offer a range of solutions and services for businesses looking to scale their sales organizations. From sales performance evaluations and virtual training, to playbook development and CRM integrations, our team of experts can help you propel your business to success and accelerate your growth.

Contact our experts to learn how we can help you equip your sales force with the tools they need to improve their productivity and achieve peak performance.

5 Ways Sales Teams Can Thrive During Challenging Times

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As we’re all rapidly discovering, there’s nothing like a global pandemic to shift the way the world does business. The spread of the coronavirus has forced companies at all levels to implement changes they may not have wanted, and few were prepared to take on – at least on this kind of scale. Many organizations are scrambling to cope.

But amid the concerns and trepidations, new opportunities are arising. While some organizations are panicking and scaling back on budgets and staff, others are finding their services to be in greater demand, and their pipelines more robust than ever. The difference, in large part, comes down to sales leadership.

In a recent report on preparing for coronavirus-related disruptions, Gartner, Inc. suggested, “How CSOs lead now will set the tone and pace for a powerful and career-making experience for everyone in the sales function.”

As a leader responsible for the prosperity of your sales team, what can you do to ensure your organization’s success in this time of crisis?

Taking Action Right Now

1. Don’t Panic – This is always first and foremost, no matter what the circumstances are. The crisis won’t last forever. History is full of major economic turmoil and each time, the crisis has eventually passed. In its wake are stronger people and organizations, who emerge with a new perspective, more experience, and better tools to deal with the next eventual crisis.

The more ominous the headlines get, the more important it is to keep calm and remember that your best option is to focus on the things you can control, and let go of the things you can’t.

2. Stay Client-Focused – The heart of sales is helping clients succeed. In uncertain times like these, it’s important to remember that although we may change the way we do business, we shouldn’t forget the why we do it. As you look for opportunities to continue to grow your organization, don’t let your own concerns about your metrics, commissions, and goals cloud your judgment when it comes to how you serve your clients. Clients can sniff this out from miles away, and they’ll be quick to turn their back on it.

Take a moment to assess your clients’ concerns and their planned responses to the pandemic. Most clients are focused on employee and customer safety, and they may be experiencing immediate challenges like operational interruptions and cash flow declines. Reengineer your selling points to frame your solutions around your clients’ most urgent concerns.

3. Go Virtual – As entire countries are locked down under strict quarantine orders, virtual operations are a critical part of keeping business moving forward. While many companies were already starting to favor digital communications over in-person meetings, the current pandemic has pressed the fast-forward button on those plans.

If you haven’t already, move your face-to-face meetings to videoconferencing tools like Skype or Zoom, or stick with basic voice calls if that’s what your clients prefer. Expand the range of instant messengers your team uses, and use them to give your clients and prospects greater accessibility to your reps. Replace live events with creative digital solutions, like webinars, virtual office tours, and live demos using remote access tools or videos showing your product in action.

Moving Forward in the Upcoming Months

4. Reflect and Act – Change is always a good catalyst for reflection on what’s working, what’s not and what’s needed going forward. As sales leaders, we know that the key to improving our win rate – regardless of the current economic climate – is maximizing the effectiveness of our sales force. Once the immediate needs of the moment are addressed, the next step is to look at what that means for our specific organization.

A basic SWOT analysis can be a good place to start, to gain a better understanding of your overall business and how it now fits in the changing environment. From there, a more thorough sales team evaluation can provide a detailed look at your sales force and help you identify the weaknesses and skill gaps that are limiting your sales results. Those insights will allow you to develop an effective action plan for resolving them and ensuring your team’s ongoing success.

This kind of assessment is particularly important now, when the labor pool is about to expand as other companies cut budgets and workforce. Talented sales reps will become available, and savvy sales leaders are preparing themselves to make smart hires that will shore up skill gaps and create a well-rounded sales team.

5. Build Your Go-Forward Plan – When the dust eventually settles and we’re all allowed back out in public, we know that not everything will go back to the way it was before the pandemic hit. Activities like digital meetings and virtual sales training will continue to be used in greater scale after the crisis.

Companies may have been forced to switch to virtual options as a short-term solution, but reports have shown that virtual sales training can double sales reps’ confidence and increase pipeline creation by 23.2%, compared to reps who participated in live classroom training.

Partner with an Expert Team for Long-Term Success

Developing top sales talent is an ongoing need, regardless of the current sales climate. Using comprehensive, science-based sales performance assessments, HireDNA’s experts can help you identify both immediate and long-term opportunities for growth, and uncover skill gaps that may be holding your team back. We partner closely with you to create a high-performance sales culture, with a clear picture of what it will take to improve your people, processes, and systems.

HireDNA was also recently recognized as an emerging leader in corporate training and coaching. Our experts can assist with any questions about building first-in-class, on-demand sales training tailored specifically for remote sales forces.