Hiring salespeople is typically among a company’s largest budget items, and the cost of a bad hire is immense. The average cost of a bad sales hire is more than $115,000, while the cost of a bad sales management hire can reach as high as $3.5 million, as outlined in our recent blog post on hiring effective sales managers.
These numbers represent average costs; you can use this free Hiring Mistake Calculator to determine your organization’s specific bad hire impact, including your cost of recruitment, development and lost business.
And that’s strictly from a mathematical perspective – the overall impact is compounded when you factor in the loss of resources devoted to the bad hire, lowered team morale and performance, and the damage to your brand reputation among your clients and prospects.
In this blog post, we examine why the wrong sales reps are hired so often, and what smart sales leaders are doing to reduce the risk and impact of hiring mistakes.
According to a recent evaluation by Objective Management Group (OMG), the wrong salespeople are hired 77% of the time. According to OMG, these bad hires:
When OMG compared data between all salespeople and the lowest-performing 50%, they found that the most significant differentiator among “good” and “bad” hires was their Sales DNA – the unique set of traits and behaviors that influence a rep’s performance. 97% of weak salespeople lack the minimum required Sales DNA for success in their roles.
In a detailed white paper exploring the science behind salesperson selection, OMG outlined five key components of a rep’s Sales DNA that signal a potential bad hire:
Science-based sales assessments that identify a candidate’s Sales DNA, along with other sales competencies, can help sales leaders determine a candidate’s likelihood of success before making a costly hiring mistake.
At HireDNA, we offer a range of science-based recruiting and assessment solutions for companies looking to hire and retain top sales talent. We help sales leaders determine candidates’ Sales DNA, among other competencies, and avoid costly hiring mistakes.
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