Sales Salary Negotiation: An In-Depth Guide for Employers

Negotiation is found everywhere in business. And a sales rep’s salary is no exception. 

According to recent data from G2, “69% of men and 51% of women say they would enter into salary negotiations with an employer.” So this is something you should be prepared to do.

By understanding a few core principles and applying best practices, you should be able to hire rockstar sales reps, while staying on budget. Let’s get right into it. 

Start with Job Salary Research

Just like with nearly any type of negotiation, whoever is armed with the most knowledge tends to have more leverage. So the first step is to figure out what the average salary is for sales reps in your specific industry. 

Say, for example, you’re in SaaS. These reps earned, on average, $48,250 per year as of October 2020. However, those in the bottom 25% earned just $38,000, and those in the top 75% earned $59,000.

Having clear data gives you a baseline of how much you should pay a potential candidate based on their knowledge and experience and provides you with something concrete to point to if a candidate wants to know how you came up with your figure. 

Assess the Candidate’s Value

Next, you need to determine just how badly you want a particular candidate. Maybe you’re dealing with a next-level salesperson with an outstanding track record for success. Someone you’re personally headhunting and are certain would be a massive asset to your company. Or, maybe they look solid, but it wouldn’t be the end of the world if things didn’t work out. 

Assessing a candidate’s value and having a clear view of what they bring to the table will impact your negotiation and how high you’re willing to go. So go ahead and figure that out ahead of time, ideally quantifying with a 1-10 ranking of what their value is. 

Pinpoint a Salary Range

Once you know the average salary for a salesperson in your industry and how much you want a particular candidate, it’s time to pinpoint a salary range. Here you’ll need to determine what your ideal salary is and the maximum amount you’re willing to pay a salesperson. 

Say, for instance, you’ve found an A+ rep who could be a legitimate game-changer to your sales team. The ideal salary may be somewhere around $46,000. However, you may be willing to go as high as $55,000 if that’s what it takes to land them. 

So here’s what your salary range would look like. 

Having this articulated before beginning formal negotiation gives you a firm, quantifiable reference point so you 1) increase the likelihood of reaching a favorable agreement and 2) ensure you don’t go beyond your limit. 

Don’t Start With Your Best Offer

Up until this point, the steps of the sales salary negotiation process have been preliminary, involving research and analysis. From here on out, the following steps will revolve around the actual dialogue between you and a candidate. 

Perhaps the most important thing to remember when you’re throwing out an initial number is to not start with your best offer. You by no means want to lowball them with a ridiculously small salary, as this can create friction and derail your efforts. But you don’t want to offer your max salary right out of the gate because this leaves you with no wiggle room and can result in spending more than you need to. Besides that, an elite candidate may feel you’re not all that interested in them if you’re not willing to go higher than your initial number. 

I personally suggest starting at or around the low end of your salary range. So, if it was $46,000-$55,000, you’d want to start around $46,000.

Anticipate a Counter

In some cases, a candidate may go ahead and accept your initial offer right off the bat. That’s certainly possible. 

However, it’s not something you should expect. As in the art of any effective negotiation, you should anticipate a counter and know how to react. 

Remember that making a counteroffer isn’t something that should be seen as rude or disrespectful. It’s simply something any smart, savvy candidate will do. This shows they know their value, and it can factor into them being a successful rep if they’re ultimately hired. 

And given that 74% of employers have room to increase their first offer by 5-10%, a good chunk of candidates will look for more. So be prepared when they push for a higher salary. 

This brings me to my final point. 

Know Your Limit

There will likely be some back-and-forth where you each throw out numbers, moving from the two extremes of salary figures to something closer to the middle. While you’ll probably end up going higher than the initial number you threw out, you definitely need to know your limit. 

Again, this goes back to the salary range you identified earlier where you’ll want to consider the max salary you can pay and not exceed it. Based on our example, $55,000 would be the limit, where you would need to walk away from any further discussion at that point. 

When you get in this territory, it’s important to be transparent about what your company’s budget is and set a firm limit. From there, it’s up to the candidate whether they want to accept or reject it. If all goes well, you’ll be able to come to an agreement that works for both parties. 

Finding A+ Salespeople with Sound Negotiation Skills

Although negotiation won’t be part of every hire, it’s something you’ll likely encounter at some point and should be prepared for. Understanding what the basic process looks like and best practices to follow should ensure you enter negotiation with maximum leverage to increase your chances of striking a fair deal and adding top talent to your roster. 

Learn how HireDNA can help transform your sales hiring and attract the best and brightest reps in your industry. 92% of recommended candidates become top performers within their first year, and 96% of hiring mistakes can be eliminated with HireDNA. 

Here’s Why 60% of Talented Sales Recruits Fail to Complete Their Application

Here’s the scenario. You create a job ad to find a top level salesperson. To achieve this, you design an application for candidates to fill out so you can gather key information and add them to your database. 

But after posting the ad, you’re underwhelmed by the response, and you don’t receive anywhere near the volume of candidates you were hoping for. 

This is an issue encountered by more sales companies than you may think. And one of the biggest reasons is because a good chunk of talented sales recruits simply don’t make it all the way through the application. In this post, I’ll unpack why this is so common and how you can avoid falling into this trap. 

What the Data Says

There’s one very specific reason why nearly two-thirds of job seekers don’t complete their applications. According to 2020 research by G2, “60% of job seekers quit in the middle of filling out online job applications because of their length or complexity.” 

It’s really that simple. Most people don’t want to deal with the hassle of painstakingly answering a gauntlet of questions and meticulously providing detail after detail. If this happens, many will end up abandoning the application and looking at other sales job opportunities. 

But why do so many brands ask for so much information?

The Logic Behind Lengthy Applications

There are two main reasons why sales recruiters use long applications. One is simply to gather as much information as possible on candidates so recruiters can learn all they can about their experience, qualifications, education, and so on. 

The other is to weed out lazy candidates who aren’t willing to complete a lengthy application. Conventional logic often states that top tier talent is dedicated enough to complete an application in its entirety, even if it’s long winded. 

“But, in reality, the opposite is true,” explains user research manager Sarah Gregory. “Good candidates know their time is important and they have plenty of opportunities in the job market. Their tolerance for jumping through hoops is much lower than many employers think.”

And this totally makes sense. Elite talent are acutely aware of how much value they bring to the table. Many never even end up performing a formal job search in the first place because recruiters come to them. But if they do fill out an application, most will feel frustrated if they’re barraged by seemingly never-ending questions and needless complexity. 

So in many cases, asking candidates to fill out lengthy applications may do more harm than good and cause you to miss out on high caliber salespeople. 

Finding the Sweet Spot

This isn’t to say you should go to the other extreme and ask too few questions, as this can lead to a flood of under qualified candidates. The takeaway here is that you want to ask enough questions to get adequate information and filter out low level candidates, but not ask so many questions that you turn off talented sales recruits. 

In other words, hit the sweet spot. This, of course, will likely require some trial-and-error before you get it just right. But if you’re finding you’re not getting the number of applicants you want — the average job ad receives 250 resumes, by the way — the application will likely need some condensing. 

Also, make it a point to simplify it so you’re not asking job seekers to jump through unnecessary hoops. 

Other Ways to Optimize the Job Application Process

Besides that, I have a few other suggestions on making the job application process more pleasant and user-friendly. 

One is to allow candidates to apply through LinkedIn. You can, for example, include an “Apply with LinkedIn” button to a job ad, which looks like this. 

Given that many people are already active on LinkedIn (there were more than 774 million users as of mid-2021), this can take a lot of friction out of the process. To learn how to set up an “Apply with LinkedIn” button, check out this resource

And if you’re using LinkedIn as one of your main channels for posting sales jobs, you may want to consider using the “Easy Apply” feature, which lets job seekers apply with just a few clicks. This is a feature I actually use myself. 

While it’s not always a great choice for high level positions like a sales manager, it’s certainly worth considering for many sales rep positions. 

Also, never require candidates to create an account in order to apply for a job. This is something that’s become increasingly common as of late, especially with larger enterprises. But it can be a huge deterrent to prospects and injects pointless friction into the process.  

Finally, don’t ask recruiters for references on the application unless you absolutely need it. “Why not wait to ask for references when you reach the offer stage?,” notes talent management expert Tiffani Murray. “You don’t need to add that information burden to candidates when a high percentage won’t make it to an offer.”

Eliminating Unnecessary Obstacles 

The numbers don’t lie. 60% of talented sales recruits abandon an application when it’s too long or complex. 

If you’re not getting the number of applicants you’d like, this is one of the first areas to investigate. By trimming off extraneous questions and generally simplifying the application, it should make for a better applicant experience and keep a steady stream of talent coming your way. 

Looking to fill your talent pipeline with top tier sales reps? See how HireDNA can help using science-based assessments and intelligent matching. Companies that use our suggestions have a very high success rate, with a staggering 92% of recommended candidates reaching the top of the sales force within their first year. 

Sales Jobs Are in Demand, But Talent is Limited: How to Thrive in the Current Sales Recruiting Climate

We’re at an interesting point in history. Sales jobs have surged as the world recovers from COVID, with many paying quite well. But companies can’t seem to find enough young talent to fill open positions. 

Why is that?

In this post, I’ll fully unpack this phenomenon, explaining how the demand for sales jobs has increased, why recent grads are hesitant to become salespeople, and what you can do to make your company a more appealing place to work at. 

The Demand for Salespeople is High…

Let’s jump right into the data. Recent research found sales roles have shot up by a staggering 65% in 2021, totaling around 700,000 positions in the US alone. After huge layoffs at the start of the pandemic in mid-2020, sales jobs are definitely back, which is illustrated by this graphic. 

It should also be noted that many sales reps make good money. According to data from the US Department of Labor, those selling technical and scientific products earned over $108,000 in 2020

Companies are in dire need of talented salespeople, and this isn’t a trend that’s likely to slow down any time soon. As more and more people become vaccinated and with interest rates being slashed in many countries like the US, this has led to rapid economic growth across much of the world. 

Just check out this graph from the BBC that shows how the Dow Jones and other major stock market indexes have quickly climbed since the first vaccine was announced. 

Combine that with stimulus checks and the fact that many people have resumed their pre-COVID buying habits, it creates a climate where sales jobs are very much in demand. In fact, it’s arguably easier to land a position as a salesperson than it’s been in recent history. 

…But New Grads Are Reluctant to Get Into Sales

What’s interesting, however, is that companies are really struggling to fill these positions. There  seems to be a new sentiment among new grads where they’re just not as inclined to become salespeople as previous generations have been in years past. 

And it boils down to one main reason. Young talent largely equates this profession to working as a “sleazy used car salesman.” 

In an article on The Wall Street Journal, business education reporter Thomas Patrick articulates it perfectly saying, “Many young workers assume that sales work means convincing customers to buy with high-pressure sales tactics, and are turned off.” In other words, there’s the lingering perception for many recent grads that they’ll be burned out sitting behind a desk, cold calling leads all day, and trying to clobber them over the head to buy. 

That mental imprint is understandably a little cringy, so it’s easy to see why many companies are having so much difficulty assembling sales teams. The question is, how should you respond to this?

How to Appeal to Top Talent in the Current Sales Recruiting Climate

First, you need to understand the paradigm shift that’s happened in the sales world as of late. “Sales has dramatically changed in recent years, shifting from cold calls to potential customers to consulting with companies that often seek out products,” says Patrick. 

One term I use frequently is trusted advisor, where leads are far more receptive to salespeople they view as a consultant who’s there to help them find the right fit, rather than someone who’s merely trying to get the quick sale and jam products down their throat. Research has even found 88% of leads buy when a rep assumes the position of trusted advisor. 

So that’s the approach I recommend most companies take, as it aligns with the new era of customer empowerment, helps quickly build trust, and is simply more effective than outdated high-pressure sales tactics. 

Second, you need to let applicants know this is the approach you take. “Changes in sales accelerated during the pandemic, and businesses are trying to entice more people into the job by demonstrating that they don’t have to operate in a pressure-cooker environment (or work the phones) the way sales workers once did,” Patrick adds. 

I personally recommend making specific mention to this in your job description, letting potential applicants know they’ll take a more consultative role rather than a hyper-aggressive one. It’s also smart to work elements of this philosophy into the “about us” section of your website. This kills two birds with one stone because it should make your company more appealing to salespeople as well as leads who are considering buying from you. 

Lastly, focus on finding salespeople with legit selling skills and who exhibit signs of curiosity and empathy rather than those who simply have a ton of industry/product experience. This is something I covered extensively in another post that you can read about here. Given that not many people intentionally target sales as a career while they’re in college, but rather often fall into it, some of the best and brightest may not have extensive experience in your industry or selling your product. 

That’s why I recommend looking for people with the key traits I just mentioned, as well as others like ambition, tenacity, and initiative. Remember that you can always train someone on products, but you can’t teach “the it factor.”

Adapting to the Current Sales Recruiting Climate

Despite exploding job opportunities and solid salaries, there’s a reluctance among most young talent to get into sales. Something that’s mainly due to the perception of old school, hard-nosed sales tactics. But this is something your company should be able to overcome by taking a more consultative approach and seeking candidates that possess the relevant characteristics. 

Want to streamline your sales recruiting and find A+ talent without all the drama? See how HireDNA can help you find top-tier candidates using science-based assessments and intelligent matching. 

Sales Salary Transparency: Why Listing How Much Salespeople Earn Can Generate 75% More Clicks for Your Job Posts

There are several factors that impact how many candidates apply to your job posting for a salesperson. Your industry, scheduling, benefits, advancement opportunities, and company culture are a few prime examples. But hands down, sales salary is one of the biggest factors across the board. 

At the end of the day, top sales recruits want to know they’ll receive competitive pay, and they don’t want to jump through a bunch of hoops to figure out exactly how much they’ll earn if hired. Being upfront about this is a surefire way to generate more clicks for your job posts and send a steady stream of qualified candidates your way. 

With that in mind, let’s take an in-depth look at exactly how big an impact sales salary transparency can have on your recruiting. 

What the Data Says

Business software and services review company, G2, compiled an exhaustive list of recruiting statistics that are very insightful. In terms of sales salary transparency, they found “67% of job seekers try to find information about salaries when researching a company or looking at job ads.” 

This shows firsthand how important salary info is for job seekers. With over two-thirds specifically looking for it, it stands to reason that sales recruiters that offer this info and place it in a conspicuous place would have an edge over competitors who make no mention of it. And that is in fact the case. “Job listings which include a salary range got 75% more clicks than job listings that don’t,” writes G2.

Take this job posting by LingoAce, an online Chinese learning platform for kids, for example. They place sales salary information front and center of this job ad for an inside sales rep to easily see. Here it is at the top, giving job seekers a clear salary range they can expect. 

LingoAce then places more details a bit further down here, discussing base salary, as well as on-target earnings. 

And toward the bottom, they restate the salary information sales candidates saw at the top, leaving no room for guesswork. This makes it dead easy for job seekers to find the information they’re looking for at just a glance. 

So, if you’re looking for a basic template to follow, this is a great one to borrow from. Ideally, you’ll put salary info at the very top of a job ad and restate it somewhere further down the page. That way sales candidates don’t have to scroll back up, creating a deeper level of convenience.  

Not Including Salary Info Creates Stress for Candidates

Another interesting stat I found was that a lack of information about pay is a main reason why 50% of sales candidates consider their job search to be stressful. Just put yourself in an average candidate’s shoes for a second. They’re looking for employment and may be under a significant amount of pressure to find a job quickly. 

They see multiple job postings they’re interested in, but can’t figure out exactly what the pay is. So, they have to sift through long winded job descriptions, check company websites, and do Google searches just to get a ballpark idea of how much these jobs pay. 

This can be incredibly tedious and frustrating, where many will simply give up and opt for applying with a different company that’s more transparent about their salary information. So you can see the negative impact that not providing salary info can have, and you can bet that failing to do so will result in many high-quality, top tier candidates slipping through your fingers. 

Outshining the Competition

There’s one last stat I’d like to share with you that’s really interesting. “Only 27% of businesses share salary ranges publicly,” G2 adds. While I’ve definitely noticed an increase in the number of companies providing salary information in job ads recently, it’s only slightly over a quarter that are currently doing so. And I don’t foresee a massive surge in this anytime soon. 

This is something you can use to your advantage, because being one of the few brands to offer sales salary transparency naturally brings more eyeballs to your job postings. More qualified candidates will see you when they’re browsing through ads and check out the positions that are available. If it comes down to a sales candidate considering your company or one of your key competitors without salary information, they’re far more likely to apply with you

I personally predict that as more and more businesses catch wind of this trend that providing sales salary transparency will gradually become commonplace. But we’re definitely not at that point yet. So, this is a sales recruitment strategy that’s ripe for the picking in 2021. 

Winning the Sales Recruiting War

We’re living in an era which many experts have called a “sales talent crisis.” Although there are plenty of sales candidates out there, the true A+ talent is hard to come by. And a tangible trend we see among the elite is wanting sales salary transparency when looking for jobs. 

In other words, they don’t want to jump through a bunch of hoops to see how much a company pays. By being upfront about it and placing salary information directly in your job posting, you can generate 75% more clicks and connect with top tier talent. 

See how HireDNA uses cutting-edge techniques like top talent sourcing, intelligent matching, and science-based assessments to find the best of the best salespeople. Brands that use HireDNA cut their hiring time in half, and 92% of suggested reps reach the top of their sales team within their first year.

How to Launch an Employee Referral Program Step-By-Step

There’s a ton of data out there that shows, when implemented correctly, employee referral programs can have a massive impact. 

45% of salespeople that are referred from internal employees, for example, stay for over four years. By comparison, only 25% sourced from job boards hang around for 2+ years. Employee referrals also save companies over $7,500 per hire. And a whopping 82% of employers rate “employee referrals above all other sources for generating the best ROI.”

The numbers speak for themselves. 

If you’re wondering how exactly you go about launching an employee referral program, I’m going to break it down step-by-step in this post. Here’s a full overview of the nuts and bolts of the process. 

Step 1: Identify Which Positions You Want to Hire For

First, determine which specific positions you want to accept referrals for. You may, for example, strictly be looking to bring on sales reps but aren’t interested in sales managers because you need someone with a highly specific skill set for the latter and want to handle the recruiting yourself.

I suggest going through every single one of your company’s positions and making note of the ones you’re open to filling through an employee referral program. 

Step 2: Pinpoint the Types of Candidates You’re Looking For

Just like with any other method of hiring, it’s essential to know precisely what makes for a great candidate. After all, it doesn’t do you any good if your existing employees are leveraging their networks only to bring in ill-suited candidates. 

Here’s what I suggest doing to ensure employees send rockstar talent your way:

  • Create candidate personas, including hard skills, soft skills, experience, education, and so on
  • Identify what you’re looking for in terms of a cultural fit
  • Determine what core values a candidate should possess

Once you have that fleshed out, create a resource to serve as a point of reference when internal employees are considering who to reach out to. 

Step 3: Decide if You Want to Offer Rewards for Referrals

A study by LinkedIn found that most employees don’t have monetary gain in mind when providing referrals. 

Only a tiny 6% do it for money. That said, having some type of reward or perk in place is definitely something to consider, as it can give your employees further incentive to find the right candidates. 

Research from TalentLyft found the vast majority of companies offer cash incentives, typically between $1,000 – $5,000, and 15% offer days off or vacation days. 

A few other ideas they suggest include:

  • Tickets for local events
  • Tickets for a trip
  • Food and drink

Step 4: Choose an Employee Referral Software

You certainly don’t need a lot of bells and whistles to launch a successful employee referral program. In fact, I suggest keeping it as simple as possible. 

But there are some amazing software platforms available that can streamline the process dramatically, while simplifying things for HR, your employees that provide referrals, and for the referrals themselves. 

Here are some specific features that can be a huge help:

  • Automatic job alerts
  • Links employees can conveniently share with potential candidates through email, text, and social media with information on the sales position
  • Fully customized applications for candidates to fill out, complete with unique branding elements
  • Built-in referral tracking to ensure the right employee gets credit

In terms of specific platforms, Workable is easy to use and one I personally recommend. 

Or, if you want an exhaustive list of the top employee referral software, this guide from G2 is super helpful. 

Step 5: Create an Employee Referral Policy

Once you’ve figured out what positions you’re willing to accept referrals for, what you’re looking for in candidates, determined whether or not you want to offer rewards, and chosen a software platform, it’s time to create a formal employee referral policy. 

The purpose of this is to let your employees know the following:

  • Which positions are available
  • What skills, traits, etc., you’re looking for in an ideal candidate
  • What the incentives are
  • How to submit referrals
  • Specific instructions to follow 

Here’s a sample template from Fit Small Business to point you in the right direction. 

Step 6: Write Job Descriptions

It’s also important that you have job descriptions ready to roll whenever candidates are generated through referrals. This should be approached just as it would with any other form of recruiting. The purpose here is to concisely articulate:

  • The core tasks an employee will be responsible for
  • Necessary skills and experience
  • Expectations

I suggest reading this guide from Zendesk for detailed instructions on how to write A+ job descriptions. 

Step 7: Get the Word Out

Finally, you need to promote your employee referral program and get everyone up to speed. I find the best way to go about this involves a two-step approach:

  1. Formally announce the launch during a meeting
  2. Send out a company-wide email that includes key information, such as program outlines and the employee referral policy

It’s also smart to provide your employees with quick links that enable them to share through email, social media, and text like I mentioned earlier. That way they can conveniently network and generate a steady stream of referrals without having to do any heavy lifting. 

Making Referrals an Integral Part of Your Recruiting

If you’re looking to save money on recruiting, increase your retention rate, and create a tighter, more connected sales team, launching an employee referral program is definitely something to consider. The vast majority of companies that implement one see a fantastic ROI, and it can really help you strengthen your culture over time. 

Following the seven steps outlined here should provide you with the basic framework for turning an employee referral program from an idea in your head into a reality.

Tired of hiring the wrong sales reps? See how HireDNA can help you eliminate 96% of hiring mistakes using industry-leading assessment science. 

Top Skills Sales Managers Assess Based on In-Depth Data

In my last post, I discussed that having the ability to close was the number one skill top sales managers assessed in salespeople. This was the most important metric for 70% of sales managers. And it’s easy to see why given how critical closing deals is to profitability and the overall success of a company. 

I got my data from a survey conducted by digital learning and enablement platform Allego. Their data is incredibly robust, and while the ability to close was one of their main points of emphasis, there’s still a lot left to unpack. 

So for this post, I’d like to dive even deeper and go over all of the top skills sales managers assess, which is eight in total. Let’s jump right in. 

The 8 Top Sales Skills

In Allego’s survey, they determined which specific sales skills were most essential to sales managers, both when considering potential candidates for new hires, as well as assessing current team members. “We looked at the eight key aspects of sales competency including sales planning, prospecting, qualifying pipeline, pitching to prospects, negotiating contracts, closing deals, managing customers, and retaining customers,” they explain

As I mentioned in the intro, having the ability to close was the number one skill assessed by 70% of respondents. 

But just after that was the ability to prospect new opportunities at 69%. 

This indicates that the beginning and end of the sales process are the most critical areas of sales competency to measure. The best salespeople are able to effectively prospect new leads, move them efficiently through the sales cycle, and ultimately close. 

After that is the ability to retain existing clients at 59%. 

Churn is an inevitable part of running any type of business, especially a SaaS company. But it’s obviously something that needs to be kept in check, and sales managers will invariably want to seek out salespeople that help them retain the maximum number of customers. 

If you’re wondering, a retention rate of 35% over an eight-week period is considered elite for SaaS and e-commerce companies, so that’s a good number to shoot for. Here’s a graph that perfectly illustrates minimal churn (SaaS is the blue line and e-commerce is the orange line). 

Next is the ability to pitch a solution at 53%.  

Let’s be honest. Pitching isn’t easy, and there’s a serious art to it. Although having detailed product knowledge and providing salespeople with a formula and script to go off is a huge help and something I personally recommend, some reps are naturally better at it than others. 

When it comes to cold, hard selling, I honestly believe there’s only so much you can teach a rep. That’s why I consider having innate selling skills to be more important than extensive industry/product experience. Anyone can learn a product, but few people are A+ rockstars. So, it’s not surprising that having the ability to pitch is such a coveted sales skill. 

After that is the ability to qualify new deals at 52%. 

A qualified prospect is someone “who has a high probability of becoming a customer,” Zorian Rotenberg of HubSpot writes. “An opportunity should have a pain point your product or service can solve and an interest in the offering. Salespeople should ensure the opportunity is a good-fit for what they’re selling.”

Otherwise, your rep is basically wasting their time, which is why this is another key skill sales managers assess. 

This is followed by the ability to negotiate and the ability to plan strategically, which are both at 50%. 

When it comes to negotiation, reps will often be placed in tricky situations where they may need to adjust pricing, features, etc., on the fly to successfully close deals while at the same time remaining within the accepted parameters of your company. Because this has such a strong impact on closing deals, it’s easy to see why it’s such a major metric for sales managers. 

As for the ability to plan strategically, it’s a competency that affects virtually every aspect of a rep’s sales approach. From determining how to effectively qualify leads to building a script for pitching products to communicating with customers post-sale, reps need to have a clear strategy in place at all times. 

Finally, there’s effective time management at 46%. 

You may have heard the stat that nearly 65% of an average rep’s time is spent on non-revenue generating activities, such as administrative tasks and downtime activities like checking social media. While I personally think that number may be a little inflated, it definitely illustrates the importance of effective time management, which is why this skill made the list. 

Let’s Recap

The top eight skills sales managers assess in reps breaks down like this:

  1. Ability to close – 70%
  2. Ability to prospect new opportunities – 69%
  3. Ability to retain existing clients – 59%
  4. Ability to pitch a solution – 53%
  5. Ability to qualify new deals – 52%
  6. Ability to negotiate – 50%
  7. Ability to plan strategically – 50%
  8. Effective time management – 46%

While there are a ton of factors that determine how likely a salesperson is to succeed, these eight skills are the ones top sales managers focus on the most. So, if you’re looking to identify the best of the best metrics for gauging candidates during the hiring process, or if you’re assessing the performance of current team members, these are excellent metrics to examine.

Looking for a surefire way to find elite level sales talent to close more deals and take your business to the next level? Check out HireDNA today. Brands that use HireDNA are able to eliminate 96% of hiring mistakes, and 92% of candidates recommended through it are top performers within their first year. 

70% of Top Sales Managers Assess This Skill in Sales Candidates

Effectively gauging the skill set of salespeople is an absolute must when recruiting, as well as when analyzing the performance of existing reps. This is what allows you to assemble an A+ team, get the most from your leads, and inevitably maximize revenue. 

But with so many different factors, what exactly do you focus on?

While there are several skills recruiters analyze, there’s one that outshines all others at the top of the list.

The Ability to Close

Allego, a digital learning and enablement platform that focuses largely on sales training, performed in-depth research in a resource called The Ultimate Guide to Assessing Sales Rep Competency. In it, they examined the current state, as well as the future of sales competency. 

This resource contains a ton of great information, including ramp times by industry, sales training approaches commonly used, and which specific skills determine sales competency. But one piece of data I found particularly interesting was where Allego identified the top eight sales skills managers assess in their reps. 

“We looked at the eight key aspects of sales competency, including sales planning, prospecting, qualifying pipeline, pitching to prospects, negotiating contracts, closing deals, managing customers, and retaining customers,” they write. Of those eight skills, the number one that sales managers assess the most across the board is the ability to close at 70%.

And that’s not surprising. While other sales skills like prospecting new opportunities, making pitches, and negotiating are tremendously important, they pale in comparison to actually closing deals. In fact, you could ask, “What good does it do if a salesperson crushes every other aspect of the sales process but can’t seal the deal?”

The fact that 7 out of 10 managers assess the ability to close makes it the ultimate “bottom line metric” and the primary factor to consider when recruiting new reps, as well as analyzing the performance of current team members. 

This begs the question. 

How Should You Handle Underperforming Reps?

We now know that the ability to close is what you should look at most closely when recruiting new reps. Therefore, you’ll want to ask relevant questions during the interview stage, such as, “What was your close rate at your previous company?”

But what should you do with current reps that struggle closing deals and fail to hit their quota?

That’s another topic Allego examined in their research. According to their findings, the top three actions sales managers take to handle competency gaps are:

  • Implementing performance improvements plans – 50%
  • Increasing focus from management – 31%
  • Increasing training – 15%

Allego summarizes it perfectly with this quote. 

By these numbers, it’s clear that top sales managers take initiatives to put concrete performance improvement plans in place, have leaders place a bigger focus on helping reps improve, and generally offer a higher level of training. 

Note that a very small percentage of sales managers fire reps at just 3%. Therefore, we can surmise that simply letting underperforming reps go isn’t usually the best solution, and successful companies opt for investing in their people. 

Practical Tips to Help Reps Close More Deals

For the final part of this post, I’d like to share with you a few key strategies that are highly effective for helping salespeople increase their close rate. 

One is to create a resource that’s designed specifically for overcoming sales objections. The purpose is to 1) identify common sales objections and 2) show reps how to respond in each situation. That way they can react instantly and efficiently disarm the situation using “muscle memory.”

HubSpot wrote an amazing post about the 40 top sales objections, with the top five being:

  1. It’s too expensive.
  2. There’s no money.
  3. We don’t have any budget left.
  4. I need to use this budget somewhere else.
  5. I don’t want to get stuck in a contract.

They also include rebuttals for each. I suggest reading over that post and using it to create a customized resource for your team members. That alone can be a huge help. 

Next, work on ironing out any kinks in the lead handoff process from marketing to sales. As Allego pointed out earlier, 31% of sales managers increase their focus from management when reps aren’t closing as much as they should. It’s all hands on deck, and your whole team should work on moving marketing qualified leads (MQLs) to sales qualified leads (SQLs) with the least friction possible. 

This may include:

  • Using lead scoring to quantitatively rank leads so marketing knows the perfect time to hand them off
  • Ensure marketing passes along notes to sales mentioning key information (e.g. a lead’s pain points or current software)
  • Using meeting scheduling platform to strike while the iron is hot

For more on improving the MQL to SQL handoff, check out this article from Chili Piper

Finally, provide ongoing support for your salespeople. I recently wrote a post that talked about looking past a rep’s initial development and equipping them with the tools to continually improve and stay engaged. And I can’t stress enough how important this is, especially when your reps are in a slump. 

Not only can continual training help underperforming reps get back on track, it creates a framework for perpetual refinement that helps them operate at their absolute best. 

Here are some ideas:

Assessing Reps on the Most Important Skill

A big part of successfully recruiting potential new salespeople and analyzing the performance of your current ones is knowing what specific skills to assess. While there are several that are important, the ability to close is the most important of all based on data. So, keep this in mind moving forward and use this as your bottom line metric. 

Looking for a surefire way to recruit top tier reps? Learn how HireDNA can help you find the best of the best in your industry and eliminate 96% of hiring mistakes. 

Use This Tool to Accelerate New SaaS Salesperson Ramp Time By 20-50%

I talk about SaaS sales rep onboarding a lot for one simple reason. It’s insanely important. 

Research has found that effective onboarding can increase your win rate by 15% and quota achievement by 14%. Further, leading SaaS companies with A+ onboarding practices experience 39% higher employee engagement, which not only translates into much better performance but a dramatically lower turnover rate. 

But there’s a problem.

Most SaaS Companies Have a Sluggish Ramp Time

One aspect of SaaS onboarding where many companies struggle is with speed. According to data involving 384 SaaS companies, ramp time takes an average of 4.5 months. However, that time is even longer for nearly 20% of companies, where it takes longer than seven months to get their salespeople completely dialed in. 

So, while reps are still learning the ropes, they’re not hitting their full potential, and deals are likely being lost. Fortunately, there’s a tool that can help you accelerate new SaaS salesperson ramp time by 20-50%. Here it is. 

Use Cutting-Edge Sales Onboarding Software

Like nearly every aspect of sales, there’s software available that’s specifically geared toward SaaS salesperson onboarding. Simply put, “sales onboarding software is a tool that helps sales managers onboard team members smoothly, develop courses and programs to train sales reps, and build their product knowledge.” 

By adding it to the mix, you can establish an extremely efficient process and structure that turns even the greenest salesperson into one that knows the ins and outs of your products and can confidently close deals. 

Common Features You’ll Find in Sales Onboarding Software

For starters, these platforms offer real-time access to interactive, personalized learning content. You can, for example, create learning videos, product demo examples, and quizzes that new hires can access 24/7 from anywhere in the world.

Whether they’re working in-house from your office or remotely on the other side of the planet, salespeople can get up-to-speed quickly, soaking up information in a structured, uniform way. 

Most platforms also offer guided selling systems that teach new salespeople how to close more deals faster, along with tips and tricks to maximize their potential. Saleshood is a sales onboarding software that includes sales playbooks, presentations, knowledge sharing, and win stories that show new reps firsthand how to thrive within your company and rapidly evolve their skills. 

And just like learning hubs, guided selling systems can be fully customized and modified over time to evolve along with your salesforce. 

Role-playing practices are another critical part of sales onboarding software and give new reps a framework for practicing their skills for calls, demos, and negotiations. This is huge for helping salespeople feel more comfortable and confident once they’re actually in the thick of things, and they should be ready for whatever is thrown at them. To quantify, reps that properly practice these skills increase their sales by more than 75%, says sales onboarding platform, Lessonly

Finally, you’ll usually find some type of analytics built into this type of software. Sales enablement and readiness platform, Brainshark, for instance, allows you to gauge the effectiveness of your training program as reps enter the field. With their software, you can “visualize the impact of training programs by tracking course data alongside sales KPIs.”

This is super helpful because it offers objective insights on which specific elements of your onboarding program are working well and which need to be tweaked. So, over time, you can get it down to a science.

Offer Ongoing Reinforcement

In an ideal world, you would give new SaaS reps initial training, and they’d be off to the races never needing a second of further instruction. But it just doesn’t work that way. 

“Research shows that most new reps get overwhelmed with information in the first 30 days, and they can forget as much as 80% of sales boot camp training if they do not receive ongoing reinforcement.” That’s why it’s critical to provide ongoing reinforcement until a new salesperson is firmly rooted and firing on all cylinders. 

Fortunately, most sales onboarding software offers continuous learning where salespeople receive consistent updates and assessments to ensure they retain the information and keep evolving. MindTickle is a good example and places a heavy emphasis on reinforced sales skills so the knowledge reps gain sticks. 

Also, note that some platforms feature additional learning, such as micro courses and certifications that are designed to take salespeople from being good to great. So, when you have a new rep that quickly works their way up the ranks and shows a lot of promise, you can help them elevate their skill set even more through this type of training. 

I’ve featured a handful of different sales onboarding software in this post, but for a full rundown, comparison, and information on pricing, I suggest reading this resource from G2

Reducing Your Ramp Time By as Much as Half

There’s no denying how vital proper onboarding is to the success of new SaaS sales reps. Research has found that it significantly increases win rate, boosts quota achievement, creates higher employee engagement, and lowers turnover. The problem, however, is that many SaaS companies are inefficient at the process.

But this is something that can easily be remedied through sales onboarding software. In fact, brands that use it are able to accelerate new SaaS salesperson ramp time by 20-50% on average. That combined with ongoing reinforcement is incredibly potent and can help you get the absolute most from your sales team. 

Speaking of sales teams, are you looking to hire top-tier sales talent, faster? See how HireDNA can help you find the best of the best in your industry using intelligent matching and science-based assessments.

The Science of New SaaS Salesperson Onboarding: Breaking the Process Down Into 4 Key Phases

Having a streamlined, structured onboarding process for new SaaS salespeople can have a dramatic impact on both productivity and retention. To quantify, businesses with effective sales onboarding see a 6.7% improvement in quota attainment and 50% higher new rep retention. 

Not bad! 

But how exactly do you accomplish this? And what are the exact steps you need to take?

That’s what I’m going to discuss in this post. Here’s the science behind new SaaS salesperson onboarding broken down into four key phases. 

Phase 1 – Introduction and Acclimation

One of the biggest mistakes I see businesses make is overwhelming new reps by bombarding them with information right from the start. You obviously want to get SaaS salespeople up-to-speed quickly, but you don’t want to throw too much at them at once. 

That’s why the first step involves a basic introduction and acclimation phase where you do the following:

  • Make introductions to sales leaders and team members
  • Familiarize them with your company, industry, and mission 
  • Let them know about your philosophy and culture
  • Explain your unique value proposition (UVP)
  • Articulate what differentiates your brand from key competitors
  • Provide reps with training materials like product info, sales scripts, and demo examples

This is also the time to take care of formalities like tax documents, software platform logins, and so on. The main goal here is to reduce the chaos and make it easy for new SaaS salespeople to get their bearings. 

Think of it as letting them dip their toes in the water but not taking a full plunge. Don’t worry about getting into the real nuts and bolts just yet. This will come later. 

Phase 2 – Initial Development

Once a new SaaS salesperson has had some time to digest the materials from phase 1 and get a basic feel for the position, it’s time for phase 2 where you focus on initial development. This largely revolves around providing them with a standardized training program — one that’s uniform among all sales reps. 

“If you expect your team members to meet their goals, you must also give them the knowledge and tools they need to succeed,” explains Michelle Richardson, VP of Sales Performance Research at Brooks Group. “A training program that teaches new sales hires a consistent sales process is a must.”

While the specifics will vary from company to company, some common sales training content objectives include the following:

I personally suggest starting with product knowledge, as this is integral for creating context for new reps and should help them connect the dots as they move into other areas like customer use cases and communication. Teaching them how to give a powerful product demo is especially important because it has such a strong impact on their conversion rate. 

I also recommend reading this previous post I wrote for creating a streamlined checklist for this process. In it, you can get tips for:

  • Creating a single orientation resource
  • Training reps on the software they’ll be selling (and using)
  • Educating them on buyer personas

The goal isn’t for new SaaS salespeople to perfect their skills here. It’s simply to lay down the core foundation so they’ll have the base level of knowledge to sell your products and be in alignment with the rest of your team. Incremental improvements, which I’ll discuss in a minute, will come later on. 

Phase 3 – Ongoing Support

By this point, a SaaS salesperson will have gotten the hang of their initial skills development and have a firm command of the sales process. They should also be adept enough at nurturing leads and delivering demos that they’re comfortably meeting their sales quotas. Once they’ve hit that mark, it’s time for phase 3 of providing ongoing support, which is designed to keep salespeople engaged and refine their skills

This graphic from sales enablement platform MindTickle pinpoints some specific strategies that go into providing ongoing support. 

In particular, I suggest:

  • Competency assessments to determine a rep’s overall level of comprehension
  • Remediation to see which areas could use improvement
  • Metrics reporting for analyzing KPIs

Then, as you unearth information, provide new reps with either one-on-one support or relevant training materials to help them get better. This leads me to the final phase of SaaS salesperson onboarding. 

Phase 4 – Continual Improvement

Phase 4 is about one thing — sales mastery, which serves two main purposes. One is to get the absolute most from each rep. By helping them maximize their strengths and minimize their weaknesses, for example, they should become more productive and consistently reach (if not exceed) quotas. 

The other main purpose is to increase your retention rate. LinkedIn’s 2018 Workplace Learning Report found that 94% of salespeople would remain with a company longer if it invested in their career. 

And it’s easy to see why. After all, who wants to stick around in a dead end job where there’s no opportunity for growth and advancement. Following a continuous improvement cycle, which looks like this, is critical for helping reps reach their full potential and motivating them to stay with your company. 

Perfecting Your SaaS Salesperson Onboarding 

Unfortunately, the onboarding process of many SaaS companies merely involves a cobbled together plan that’s barely fleshed out. “While you want salespeople to be resourceful, it’s a mistake to simply throw them into the pool and expect them to swim,” notes Michelle Richardson

By having a clear, repeatable, long-term process in place, you can get new SaaS salespeople up-to-speed quickly without overwhelming them, while ensuring they reach major milestones. The 4 key phases I’ve outlined here should provide you with a tangible game plan so that you get your onboarding down to a science. 

Want to hire better sales talent, faster? Learn how HireDNA can help you recruit elite SaaS salespeople while reducing 96% of hiring mistakes. 

How to Build a Winning Saas Sales Team Step-By-Step

Seldom does a winning SaaS sales team come together on its own. A study by the Harvard Business Review found that half of high-performing companies had sales processes that were “closely monitored, strictly enforced, or automated.” On other hand, 48% of underperforming companies had sales structures that were either nonexistent or informal. 

One of, if not the most important aspects of organizing sales processes is having a system in place for building your sales team. Not only does this increase your chances of hiring top tier talent that aligns with your company’s mission, it provides a framework that maximizes their productivity and ultimately boosts profitability. And in many cases, this can also contribute to less turnover so you can keep your true rockstars around for longer. 

Here’s a step-by-step guide on how to build a winning SaaS sales team.

Step 1 – Prioritize SaaS Sales Roles

In most cases, SaaS companies gradually scale up over time. If you’re a newer startup, you may not have the resources (or the current demand) for a massive team of inside sales reps, sales development reps, account executives, and so on. Therefore, you need to be selective about the specific positions you hire for initially and focus on only the most essential. 

Say, for example, you’re just getting the ball rolling. You’d probably want to hire a single account executive and a handful of sales development reps and inside sales reps. Then, as you grow, you could expand as needed.

Step 2 – Pinpoint Critical Skills and Characteristics 

It’s vital that you’re hyper-specific with what you’re looking for in your SaaS sales team members. Simply taking the “we’re looking for a great sales rep” approach is only going to lead to ambiguity that marginalizes your impact. That’s why you’ll want to pinpoint a distinct set of hard and soft skills to accurately predict each team member’s aptitude to ensure they’re an ideal fit for your company. 

For instance, Sales Hacker compiled a list of over 30 sales skills that must be mastered to become a top performer, which is a good starting point. Here are the top nine from their list. 

And you can use a technology sales recruiting platform like HireDNA to screen and assess candidates based on core selling skills and capabilities to find the best of the best. 

This is an excellent way to quantify traits like having the will to sell and being coachable that would otherwise be difficult. And 92% of recommended candidates become top performers on their sales team within a year. 

Step 3 – Use Proven Recruiting Strategies

Many SaaS recruiters look in the wrong places to find salespeople. Traditional job boards and staffing agencies, for example, may seem like safe bets.  But they often lead to underwhelming results for the simple reason that top performers aren’t actively looking for jobs. However, many are open to offers as long as they check off the right boxes. 

So, how do you find these heavy hitters? It’s actually quite simple. Use recruiting software. 

A recent study found that more than 98% of Fortune 500 companies currently use it, and 68% of recruiting professionals say it’s the number one way “to improve recruiting performance over the next five years.”

You can get full details on why recruiting software is such a game changer in this post I wrote

Step 4 – Onboard with Ruthless Efficiency

The quicker you get new SaaS sales team members acclimated and up-to-speed, the quicker you can extract their full potential. But here’s what’s crazy. 

88% of organizations don’t onboard well.”

So, if you take measures to onboard efficiently, this essentially puts your company in the top 12%, enabling you to get the absolute most from your SaaS sales team. This is another topic I’ve covered in detail in a recent blog post that you can read about here

And here are the key steps involved with great onboarding:

  • Create a single orientation resource to give new hires a bird’s eye view of their position
  • Provide comprehensive training on the software they’ll be selling
  • Offer training on the software they’ll be using (e.g. your CRM and lead scoring platform)
  • Break down buyer personas
  • Pinpoint your competitor’s strengths and weaknesses

When it comes specifically to SaaS sales reps, I also suggest having them run through a mock demo so you can critique it, as this helps work out the kinks in a hurry. 

Step 5 – Develop a Legit Retention Plan

“The average turnover cost per sales rep is $97,690 when you add up recruiting costs, training costs, and lost sales,” according to a DePaul University study. Not to mention, high turnover is incredibly disruptive to everyday operations and diminishes synergy within your sales team. 

So, the final step is to create an actionable game plan to keep your team members around for as long as possible. Here are some ideas:

  • Start by offering a competitive salary (89% of salespeople leave due to insufficient compensation)
  • Help sales leaders be their best (you can find leadership building tips here)
  • Provide your team with modern sales tools like CRM and lead scoring software to make their lives easier
  • Give top performers advancement opportunities 
  • Consider large retention bonuses at strategic inteverals (e.g. after 1, 2, 4, and 5 years)
  • Promote from within whenever possible
  • Be quick to celebrate team wins 

Putting the Pieces Together

At the end of the day, your SaaS company is only as good as your sales team. Without the right combination of professionals that are cohesive, collaborative, and “all in,” it’s hard to make any real progress. And as I pointed out earlier, there’s a clear correlation between organizing and systemizing this process and high performance. 

See how HireDNA can dramatically improve the recruiting aspect of your SaaS sales team building and eliminate 96% of hiring mistakes. Get your demo today