How to Hire the Right
Sales Manager
Cope with the "free agent"
mentality
by Steven Morgan, SalesRecruits
Effective sales managers need to
be different than those of, say, five or ten years ago. Today’s sales managers
are more like professional sports-team head coaches. We operate in an economy where many of the top sales performers
are "free agents"—routinely testing the market and seeking out new and more
lucrative career opportunities.
A good manager is realistic about
this, knows the metrics for his/her industry and plans accordingly. For
example, the high-tech industry has about a 35 percent turnover rate in the
sales force. So a smart sales manager will always be recruiting, always looking
to backfill non-performers and be prepared for a free agent loss.
When interviewing applicants for any
sales manager position, it’s important to probe for this recruiting skill and
the willingness to confront the free agent mentality.
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Look for certain traits
Other more timeless traits are
still important:
-
Experience in the particular product/service category—especially in the
high-tech field
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Knowledge of prospective clients’ businesses
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Previous experience as a sales manager
-
People
skills and interpersonal communication strengths
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Motivational skills—these are crucial to keep "free agents"
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A track
record of a successful salesperson
-
Travel
willingness
-
Gross
profit rather than gross sales mentality—particularly in service businesses
There are other plus factors and
knowledge of compensation that may attract and retain strong salespeople.
The best compensation plans are
focused on the "upside"—meaning commissions earned as compared to guaranteed
salary. The bare minimum should be a 50/50 percent plan. So if a sales rep has
an on-target earnings (OTE ) of $150,000 for the year, then $75,000 should be
guaranteed salary and the other $75,000 on the basis of the salesperson
reaching 100 percent of his/her assigned quota.
Many good sales managers implement
30/70 percent and 40/60 percent programs. Confident salespeople will be attracted
to the upside of these splits if they are equally confident in the company and
its products/services.
Three common mistakes to avoid:
-
Instead
of accepting references offered by the candidates (some companies check these;
some do not), there is a better practice. Ask the applicants for references of
customers to whom they have sold. A customer is the best and most neutral
reference.
-
Verifying past/current income is too often avoided. Ask for W-2s. This is an
ethical and professional practice used by smart employers. Previous earnings are
a measure of competency. If an applicant embellishes earnings, there are some
honesty concerns.
-
The "We
should promote from within" motto may sound good, but smart employers should not
limit their options. A neutral stance is better since the goal is to put the
most effective sales manager in place—whether that person comes from within or
from the outside.
In today’s
"free agent" sales
world, it’s important to find a sales manager who will make recruitment an ever-present
game plan. On average, it takes about 45 days to find and hire a high-tech
salesperson. If the average turnover rate is 35 percent, recruitment must be an
ongoing process.
Steven
Morgan is the founder and CEO of SalesRecruits.com,
the #1 online recruiting service focused exclusively on software and IT sales
careers. He can be reached by email at stevenm@salesrecruits.com.
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