Tag: sales assessment

Using Data-Driven Assessments to Hire High-Performing SaaS Salespeople

Posted on by Nick Mann

Here’s a sobering stat. 70% of SaaS salespeople failed to reach their quota in 2024. While there’s a laundry list of reasons why many SaaS salespeople fall short, it’s important to look to the very beginning — the initial hiring stage — when looking for a solution.

If a hiring leader fails to make the right decision and hire truly elite talent that not only has the skills and qualifications but also fits in culturally, problems will likely arise. Fortunately, many hiring mistakes can be avoided by using data-driven assessments to find the best of the best.

The Problem with Intuition

In the past, much of SaaS sales hiring relied heavily on intuition. The logic was that if a hiring manager knew the ins and outs of their product and industry and what it takes to succeed, they could use their expertise to find talented SaaS salespeople.

And in some cases, intuition works out. That said, it’s easy to get yourself in trouble with this approach.

That’s because relying on one person’s subjective judgment — something that’s often laced with bias — can lead to bad decisions and potentially high turnover.

For perspective, “When hiring is over-reliant on intuition and assumptions about candidates, we make successful hires only about 30% of the time. At that rate, you get better odds with a coin flip.”

As hiring technology has progressed, we’re now able to quantify things that previously were unquantifiable and objectively measure a SaaS sales candidate’s ability to make smarter decisions.

That’s where data-driven assessments come in.

The Power of Data-Driven Assessments

Rather than taking what a candidate says at face value and relying on intuition, data-driven assessments arm you with valuable information to help you make consistently great hiring decisions. Let me give you an example.

The Sales Skills Assessment by Objective Management Group allows you to thoroughly analyze a SaaS sales candidate on a granular level by objectively assessing multiple selling competencies, such as relationship building, consultative selling, presentation approach, closing, and much more.

This gives you a bird’s-eye view of exactly what each candidate brings to the table, which allows you to make a hiring decision with far greater certainty and accuracy. With it, you can compare candidates side-by-side to see who’s truly the most skilled based on the specific criteria you’re looking for when filling a role.

While it’s always been easy to compare candidates on factors like education, previous experience, and industry knowledge, core selling competencies have been trickier to pin down. But with data-driven assessments, you can know for sure just how capable each candidate is to dramatically improve your SaaS sales hiring.

If you’re looking for concrete numbers, 92% of candidates recommended by the Sales Skills Assessment went on to reach the top half of their sales force within their first year. And 72% became top performers.

But that’s just the tip of the iceberg. The Sales Skills Assessment is just one example, and there are several other options you can use to zero in on the particular aspect of SaaS sales hiring that you want.

For instance, there are personality assessments that provide insights into a candidate’s true personality so you can get a sense of how well they would match your company culture. There are situational assessments that let you see how they would react in real-life SaaS sales scenarios.

There are behavioral analysis assessments that give you a feel for interpersonal skills. And there are psychometric assessments that provide insights into cognitive abilities and working style.

Whatever part of a SaaS salesperson you want to analyze, odds are there’s a data-driven assessment for it.

The Full Scope of Benefits When Using Data-Driven Assessments

At this point, it’s clear that using data-driven assessments can help you make better hiring decisions. But let’s go a bit deeper and discuss some specific reasons why.

First, it significantly increases your odds of choosing the right person for each role. By analyzing hard skills, soft skills, and everything in between, while factoring in the specific role you’re trying to fill and company culture, you can use the data to greatly improve hiring accuracy. That way, you’re far less likely to make the wrong hire, which brings us to our next key benefit — less turnover.

One study from Deloitte “found that companies leveraging data-driven approaches to hiring saw a 36% increase in employee retention.” And it’s easy to see why. Whenever you find the perfect person for a SaaS sales role — someone who was made for the position — it’s only natural that they’ll A) succeed and B) stick around for the long haul.

This means you don’t have to worry about excessive turnover, where you constantly have to rehire. By getting it right the first time, there should be greater stability and you can build a cohesive SaaS sales team, with some hires moving up the ladder into leadership positions.

It also streamlines your hiring process. Rather than having to meticulously sift through candidate after candidate the old-fashioned way, data-driven assessments help accelerate recruiting so you can create a shortlist of top candidates without eating up a ton of time.

And let’s not forget about sales performance. Whenever you hire the cream of the crop, where SaaS salespeople possess the essential core competencies it takes to thrive, you can expect increased performance.

Needless to say, that’s extremely helpful, as this often leads to a host of other benefits, including higher conversion rates, increased profitability, greater customer satisfaction, and a stronger bottom line.

Final Thoughts

We’re at an exciting point in history where hiring leaders now have access to cutting-edge technology that simply didn’t exist a decade ago. Case in point — data-driven assessments, which can be used to quantify and objectively understand even the most intangible of candidate traits.

By leveraging this technology, you can capitalize on a plethora of amazing benefits, including smarter hiring decisions, shorter hiring time, reduced turnover, better sales performance, and ultimately bigger profits.

Learn more about the Sales Skills Assessment feature above and how it can help you find A+ SaaS salespeople.

Why Companies That Use a Sales Assessment Have Reps That Are 24% More Likely to Exceed Performance Goals

Posted on by hiredna

When it comes to sales candidates, what you see isn’t always what you get. One study found that nearly four out of five sales resumes are misleading, and up to 46% contain straight-up lies! This isn’t to say all sales candidates are deliberately trying to be deceptive. But the fact of the matter is that you simply can’t take everything at face value. That’s where a sales assessment comes in.

Though not a magic bullet, there’s a solid body of evidence that shows effectively using a sales assessment can have a dramatic impact on recruiting, with companies that use it having a noticeable advantage over those that don’t. Allow me to explain.

Some Eye-Opening Stats

Most sales recruiters acknowledge that sales assessments have some type of impact on recruiting. But many don’t realize the extent of the impact. So let’s quantify.

One of the most telling studies comes from Aberdeen Group, which found “organizations that use pre-hire assessments are 24% more likely to have employees who exceed performance goals.” That alone I found to be highly impressive and, right off the bat, it shows the correlation between evaluating the skills a potential candidate claims and making smart hiring decisions.

But that’s not all.

Additional research found that “hiring managers who utilize pre-employment assessments report 36% more satisfaction with their final decision than those who don’t.”

So not only are salespeople who are hired after completing a sales assessment far more likely to thrive, hiring managers are far more likely to be satisfied with their decision.

Why is a Sales Assessment So Beneficial?

Again, a sales assessment isn’t a cure-all, and there’s no guarantee that by using one you’ll find the perfect salesperson 100% of the time. But there’s no denying that it can be an immensely helpful tool. I think Aberdeen Group summarizes it well with this quote.

“While this technology might not predict every facet of an employee’s tenure with a company, it certainly is an improvement over making hiring decisions based on interviews, references, resumes, and/or gut feel — together or separately.” By objectively evaluating a sales candidate’s knowledge and skills, you can approach recruiting much more confidently than in the past. And the odds of the person you hire working out long-term are much higher.

But what are some specific reasons why companies that use a sales assessment have reps that are much more likely to exceed their performance goals? Here are three of the biggest.

You Can Verify a Sales Candidate’s Claims

Perhaps the most obvious benefit is that this tool gives you a means of “fact-checking” a sales candidate to ensure they truly possess the skills they claim to have on their resume. Going back to the data in the intro, the majority of resumes are misleading, and, unfortunately, close to half contain some type of lie. So you shouldn’t assume that every candidate you encounter is as good as they say they are.

But with a sales assessment, you can see exactly what they bring to the table. And because all candidates answer the same questions and perform the same tasks in their assessment, you can accurately compare each one side-by-side to see who’s the best fit for your company.

You Can Get a Feel for a Sales Candidate’s Personality

Besides finding someone with the right hard skills, it’s also important to take soft skills like communication, problem-solving, and organization into account. While you can get a general sense of a candidate’s personality through interactions and interviewing, this doesn’t always tell the whole story.

Another big advantage of a sales assessment is that it goes beyond traditional interviewing where you can ask questions to gauge their personality and see how good of a match they would be for the specific role and your overall company culture.

You Can Eliminate Bias

One reason why some sales recruiters make the wrong hire is that they “fall in love” with a particular candidate, even if they’re not the optimal choice. Say, for example, a candidate is incredibly charismatic, shares the same interest, and went to your same college. There’s a good chance you would be compelled to hire them over another candidate that didn’t check these boxes even if they’re not objectively the better fit.

At the end of the day, human bias is always a factor and can easily cloud a recruiter’s judgment. The great thing about a sales assessment is that it eliminates bias so each candidate can be evaluated objectively.

Sales Assessment Tools to Use

At this point, I think we can agree that, when used correctly, a sales assessment can be a huge asset. But what specific tool should you use?

One that many sales recruiters have success with is HireDNA, which offers the industry’s number one skills assessment solution. Here’s an overview of what HireDNA has to offer.

With it, you can assess core selling competencies like lead hunting, the ability to reach decision-makers, relationship-building, and more.

You can also measure “sales DNA competencies,” such as being able to control emotions, comfortably discuss money, and handle rejection, as well as development traits like the will to sell and coachability.

Aftering setting up your ideal candidate profile, you can use HireDNA to filter and screen candidates 10x faster, and recruiters that use it are able to eliminate 96% of hiring mistakes. You can get a full overview of HireDNA and learn more about it here.

Wrapping Up

Sales recruiting isn’t something you want to leave to chance. Fortunately, technology like a sales assessment has created a framework that allows you to evaluate potential candidates from all angles while eliminating many of the inefficiencies that recruiters had to deal with in the past. With a clear correlation between using a sales assessment and reps exceeding their goals, it’s definitely a technology worth implementing if you haven’t done so already.

Ready to take the next step? Schedule a live HireDNA demo today.