It is crucial for organizations to utilize a good candidate assessment tool when building a sales team because successful sales begin with hiring the right candidate for the position.
That is easier said than done. It is comfortable to hire new sales reps as we have done in the past – collecting resumes, interviewing candidates and choosing the one that we feel will do the best job. Moving out of our comfort zone is disconcerting and downright uncomfortable. Why change?
John identifies three major issues when it comes to hiring new talent and reducing sales turnover:
manager’s ability to hire optimal peopletheir interviewing skill setassessment tool not utilizedCandidate assessment tools reduce the risk of candidate failure.
Objective Management Group (OMG), under the direction of Dave Kurlan, developed a sales skills assessment test specifically for use when screening candidates for sales positions. The sales analysis was built for sales from the ground up specifically written for the sales industry.
Take a look at the numbers. The OMG assessment has been used with 750,000 sales people from 1100 companies from 200 industries in 30 countries. Of all of the sales people assessed, 26% come back recommended for the position. In other words, 3 out of every 4 candidates could be a potential mistake for your organization.
Mistakes are expensive! The approximate cost of a bad hire is $50,000 - $75,000. That takes into account salary, training, time invested, benefits, and recruiting services. That number is only valid if you move on after 90 or 120 days. It rises when you are unwilling to make a change or hope that things will just work themselves out. Suddenly a year or two has elapsed and you have a sales rep who is still underperforming.
A sales analysis gives insight into what the candidate can sell and their specific capabilities. The results of the OMG sales evaluation and the reps success/failure ratios speak for themselves: 96% of candidates who come back highly recommended reach the top half of the sales force. Some managers go against the recommendations of the assessment and hire the candidate even if he or she is not recommended. 75% of those non recommended candidates fail within the first 6 months of being hired. The assessment is just one component of the hiring process, but using the assessment on the front end saves time. If the candidate comes back not recommended, do not conduct an interview.
How does the assessment yield specific results?
The first step of the assessment is to create an ideal candidate profile. Set parameters for your ideal candidate. That information is then entered into the assessment tool and the rep taking the assessment is based against your ideal.
Objective Management Group’s development findings are skill specific. The assessment examines sales competencies and the report includes detailed insight into skills and strengths potential hires possess. Sales quotient – single biggest measure of how strong this sales person’s skills are - is revealed. Results include a confidence score; a percentage that evaluates the candidate’s answers for honesty. Did the candidate provide honest answers or have they tried to game the system? Results also include whether a candidate is trainable. Are they coachable, can you move the needle with them? How quickly can they get up to speed?
This sales skills assessment is involved, intense and requires heavy lifting on the part of managers. It answers the question, “Can this candidate be successful at this specific job”. There are three possible results: recommended, not recommended, or worthy of consideration. What does worthy of consideration mean? The candidate meets enough of the criteria, but will require extra training and development. If you have a solid onboarding program and are willing to put in the extra time and effort necessary for success, consider this candidate. If not, move on.
There is an art to understanding the assessment. John coaches his clients through the process and teaches them how to read the results. Then he does specific interview skills training. But there are skilled managers in the field that just need access to a sales skills assessment. Those individuals can purchase the evaluation directly through a link on the Alignment Group website (Objective Management Group does not sell the assessment individually, they are available through consultants) After purchasing the assessment, if managers decide they want consulting services, contact Alignment Group.
If your company doesn't use a candidate assessment prior to interviewing new hires, this tool is worthy of consideration. There is tremendous value and benefit to using a candidate assessment tool. HubSpot believes in this product and utilizes it to hire their sales people. They recommend the product to their VAR’s. Many successful companies use this tool when evaluating new hires – Blue Cross/Blue Shield, Angie’s List, Rolls Royce - the list goes on and on. Consider a candidate assessment and take the guesswork of of how to build a sales team.