Why You Need Competent Salespeople to Grow Your Startup

A business is only as good as it’s employees. No matter how great your idea or how much money has been invested, if you don’t have a good team, your done. Superior talent is up to eight times (800%) more productive than average performers. The return on value here is massive. Often employers are looking for cheap hires to cut down on overhead, this is the exact wrong way to think about the process. Hire talent and watch the revenue increase.

There is an intense War for Talent going on as we speak. Fortune 500 companies are constantly competing to find, hire, and retain elite professionals. Despite their ability to pay skilled work 82% of the top companies still feel that they are unable to hire and hold highly skilled talent.

Here lies the problem for startups. With the great competition among the elites, there is no chance a startup will be able to land top talent. Even if they do, it would be almost impossible to hold them for long.

Do not even waste your time with undesired sales candidates. It may seem like a quick fix or the potential hire may show potential, but unfortunately many people are experts at being mediocre. Before hiring you must take a long hard look at your brand, culture, and recruitment plan. Welcoming people who seem motivated isn’t enough. Anybody can show up with a smile and promise the world.

4 Problems With Your Startup Strategy:

  1. You don’t know where to look
  2. Your brand is dull
  3. You don’t provide enough benefits
  4. You provide no long-term growth

1) You don’t know where to look

The one thing you can always expect is for things to change. Hiring processes that worked for baby boomer won’t work for the millennials and younger generations. For better or for worse a whole new generation of employees are slowly entering the workforce. This means that traditional hiring methods such as job boards or online postings are no longer relevant. Talented salespeople, more often than not, are already making deals and forming relationships. You won’t catch them looking for a job on indeed.com.

Before you hire talent, you need to have a vision of what you want that talent to be. Understand the persona of your ideal candidate. Once you have an idea of who they are, you can position yourself to get into their field of vision. Social media is a creative way to present your brand in a way that is enticing and powerful to potential employees.  Get your content/brand in industry events and conferences, and on specialist sites that provide content, training, and other resources for sales professionals

2) Your brand is dull

No matter what your niche there will always be an audience who supports your market. You need to establish that your niche is cool and attractive, just because it may seem boring to a mainstream audience, doesn’t mean you can’t strut your brand like your Elon Musk. A dull company leads to dull work, avoid it at all cost.

Your brand matters to millennials and younger generations who place a high premium on “experience” and online reputation. Many companies provide reviews to for people looking for jobs. You need to make sure your corporate culture is seen by many to be fun, engaging, and rewarding. Value people over outdated systems, promote health and happiness over deadlines and 30-minute lunches.  Your company culture will speak volumes to potential hires. Millennials want a place to not only work, but to live.

 

3) Your Compensation Plans do not Give Reps Enough Incentive

This is extremely important. Highly talented workers consider compensation one of their highest priorities when looking for a job. The whole idea of hiring a talented employee is to increase revenue one way or another. You need to be generous with your salary because that is one of the major stepping stones when getting someone in the door.

Always be honest when it comes to compensation. Any trickery here can seriously harm your reputation for years to come. However, don’t just come out and show potential candidates your above-market rates. Instead, provide a package which includes training, flexible schedule, and other perks first. Then surprise them with a handsome paycheck.

4) You Provide no Long-Term Growth

Perhaps the single most important element of the hiring process is long-term growth. Talent wants to work on the projects their skilled in, do not have them doing monotonous soul-sucking tasks. Show them a path upwards and that promotion is possible. This ties into having a scalable business model set in the first place. If you don’t know how to manage your talent appropriately and your business structure has no upward growth, you’re not getting the talent you need.

This is easier said than done, but figure out a way to make the work fun. Show your employees that the work their doing is contributing to the success and growth of the company and reward them whenever you can. Highlight advantages such as company-subsidized professional development programs, travel incentives, generous commissions, job meaning, and impact, as well as clear career paths and growth avenues for sellers.

Conclusion

You need competent salespeople to grow your startup. But they are hard to find and rarely come cheap. For highly skilled and motivated sellers to join your team, you have to do your part as a responsible employer that values its people. And it all starts with the applicant journey as sales candidates go through the stages of your recruitment process. To hire the best people, offer the best value you can.

how to build an employee referral program to attract high quality candidates

11 Simple Steps to Attract Top Sales Talent with an Employee Referral Program

In this guide, we’ll breakdown 11 steps to build a killer employee referral program in order to help you attract top talent. Read on!

Businesses will do everything in their power to attract competent professionals and they will use every trick in the book to strengthen their talent pool. Traditionally, HR solely assumed responsibility for this function but as new technologies, mindsets, and practices (such as crowdsourcing and user-generated content) recast the workplace, newer and more responsive methods for recruiting talent are emerging.

In recent years, employee referral programs (ERP) have become a competitive advantage in the talent sourcing market. According to reports, it has surpassed conventional talent acquisition and recruitment practices as the top method for finding and hiring new employees.

What is an employee referral program?

An employee referral program is an in-house system for finding, qualifying, and hiring candidates for vacant roles and functions in the company. ERPs incentivize employees to submit personal referrals from their social and professional networks who may qualify for open positions in the company. Incentives and rewards may include monetary bonuses and non-monetary prizes such as vacations and concert tickets.

Benefits of Employee Referral Programs

Numerous studies have already established the case for ERPs. Here are some of the most persuasive arguments for its adoption:

  • Employee referral programs significantly reduce recruitment costs, with a study finding that businesses can save $3000 or more per hire using referrals.
  • ERPs improve candidate quality, culture fit, and retention rate.
  • Candidates sourced via an employee referral program get hired much faster than candidates sourced through traditional channels.
  • Candidates sourced via ERP make it to onboarding stage (3 to 4 times) more compared to candidates sourced via traditional methods
  • ERP-sourced candidates deliver the highest ROI compared to other methods.

And here are some figures from LinkedIn:

  • Employee referrals rank as the number 1 method for people to discover a new job.
  • Companies can expand their talent pool by as much as ten times if they leverage their employees’ social and professional networks via an effective referral program.
  • While rewards motivate employees to submit referrals, 35% do so primarily to help friends, 32% to help their organization, and 26% to be recognized as a valuable colleague. Only 6% submit referrals for the rewards.
  • Candidates are 46% more likely to accept your messages when these messages are associated or tagged with employees they personally know.
  • Along with online job boards and social media, employee referral programs are among the top source of high quality talent.

11 simple steps to turbo-charge your employee referral program:

Set clear objectives.

Never embark on a journey without a clear destination in mind. Ideal employee referral programs go beyond just getting as many candidates as you can in your talent pool. While across-the-board recruitment is obviously the overarching goal of ERPs, you can still fine-tune the program for specific campaign-based objectives such as improving workforce diversity, populating a freshly minted customer success unit, or expediting the search for a crucial software developer position specializing in a particular programming language or development framework.

Once specific objectives have been set for time-bound referral campaigns, get the entire organization in the loop. Communicate the objectives, explain the need, and mention the rewards. Transparency, immediacy, and relevance will help drive and sustain employee involvement.

Make everything simple and easy.

Even when employees want to participate in your ERP, engagement and results will ultimately depend on how simple and effective your referral process is. Tedious, convoluted, and inconsistent ERP processes may generate buzz at the onset but tend to fizzle out much sooner than everyone expected.

Never complicate the process. Don’t require employees and referred candidates to exert more effort than is necessary. Remember, your people have primary functions they need to focus on. An ERP solution that requires too much time and effort will keep them from delivering high performance in the roles they were hired for in the first place. So make it ridiculously easy to attract, submit, monitor, evaluate, and conclude referrals.

One way to do that is to adopt ERP and applicant tracking solutions (ATS) that are intuitive, easily accessible, and engaging. Go for packages that are mobile-ready and integrable to networks such as LinkedIn, Twitter, and Facebook. Embrace solutions that virtually anyone in the company can access anytime and enjoy using.

Let everyone know.

You might have the best ERP, but if no one knows about it, nothing happens. Communication is the glue that keeps effective referral programs together. ERP awareness and involvement should pervade the organization from top to bottom and from the ground up. Make it everyone’s business to find and attract talent because it is the only resource that can really make things happen.

Advertise your referral program and bang the gong each time you launch specific referral campaigns. (Some companies even go beyond the organization to include customers, suppliers, and vendors in their incentives program). Information about vacancies, job requirements, role qualifications, corporate culture, benefits, candidate status, incentives for efforts, and rewards for successful referrals should be transparent and easily accessible.

Establish a communication, feedback, and tracking system that keeps all stakeholders in the loop and enables them to easily advance referrals from start to finish. Form a team or assign a coordinator to ensure ERP communications are clear, complete, and pervasive.

Use technology.

In virtually every aspect of business, technology serves as the ultimate enabler. However, the way technology is used can also make a big difference. The baseline is to have a centralized ERP platform that makes it extremely easy for employees to submit referrals, for HR to evaluate candidates, for referred candidates to track their status, and for everyone in the loop to communicate.

Some applicant tracking systems (ATS) have native ERP functionalities while others allow for equivalent plugins or extensions. Determine what is best for your organization. In the new economy, relying on mere emails or spreadsheets to manage referrals and talent acquisition will no longer make the cut.

Train your people.

The processes and technologies that comprise your employee referral program may be intuitive but you still need to educate everyone not only about smarter ways to use the system but also about the rationale and rewards behind the program.

Articulate the program’s overall goal of attracting competent — if not top-notch — professionals to the company. Establish quality benchmarks. Because candidate screening takes time, dissuade employees from referring known shenanigans at the onset.

Walk everyone through the process from start to finish so they know what to expect in terms of feedback frequency, documentary requirements, and screening parameters. Finally, clarify how incentives and rewards will be implemented.

Speed up the process.

Few things are more frustrating than having to wait longer than you should. Employees who were initially excited to a) help friends get onboard; b) help the company solve its talent shortage; or c) help themselves to the ERP’s cool incentives, will eventually lose steam when left to keep wondering whatever happened to their referrals.

Establish a reasonable timeline for processing employee referrals. Always send timely feedback each time a milestone have been reached. Respond to employee or candidate queries and clarifications within 24 hours.

Consider screening and interviewing candidates within one week before giving a job offer or terminating their candidacy for the specific role they were referred to. One way to do this is to provide remote interview and assessment options.

Provide an excellent candidate experience.

Make your brand as an employer stand out. Start by giving job applicants a smooth, flexible, responsive, and stress-free experience. This way, even candidates who don’t get onboard will still remember the good experience and share it with their friends. Remember, online reputation matters.

Recognize efforts, reward results.

Without motivation, people will hardly move. Sure, helping friends land a job or being loyal to a good company may incentivize employees to submit referrals but that won’t be enough to sustain an ambitious talent acquisition strategy. People exert effort because they expect something out of it.

That being said, rewards entail costs and a good employee referral program should have a well-thought out budget and strategy for rewards. The key is to have compelling but sustainable rewards for good results and adequate incentives for keeping employees involved in the ERP.

Having creative, unique, or original rewards will go a long way. In addition to monetary prizes, you should also consider vacations, gadgets, free enrollment to a popular certifications program, and tickets to concerts, sporting events, or health spas. Acknowledge and incentivize active ERP participants even when their referrals do not get hired. You can, for example use a point-based gamification system that entitles active ERP participants to free breaks and treats at the nearest cafe.

Bottomline: make your rewards and incentives system so fun, compelling, and sustainable that employees will enjoy being involved in ERP for the long haul.

Try every method. Explore all channels.

There are countless ways to implement an employee referral program. You’ll be limiting your talent acquisition potential if you keep yourself from trying more than a few. Worse, you may not discover what works perfectly for your organization if you chose to adopt the same methods over and over again.

Some of the techniques used by smart talent acquisition teams include —

  • gamification of incentives to sustain employee engagement
  • linking ERP with performance assessments
  • referral sprints (extremely short but focused campaigns to create a shortlist of candidates)
  • quarterly referral contests (most referrals, most successful hires, funniest candidates, etc) between groups, teams, or departments with significant rewards to the ultimate winner
  • head-turning rewards such as cars, home entertainment systems, and exotic travel packages to be awarded during special company events.

Make onboarding memorable.

Greet new hires via the referral program with a warm welcome. This extends the great experience they had during the recruiting process and reinforces the impression that your company truly values its talent. Provide relevant training and responsive coaching that will not only prepare new hires for the specific challenges associated with their functions but also immerse them in the corporate culture.

Make the case for your brand throughout the employee journey. Make new hires feel at home and happy about joining your company that they’ll gladly participate in the referral program right off the bat.

Assess program performance. Improve. Repeat

Having a functioning employee referral program that reels in decent talent from the job market is wonderful. But that is not enough. You always have to think long-term and consider emerging changes in the workplace. That entails making a self assessment on whether the ERP is as successful as it can possibly be.

Establish your criteria for success. These could be metrics such as —

  • Employee Engagement (percentage of employees participating in the ERP)
  • Share of Referrals to Number of Total Hires per Period
  • Percentage of Good Referrals to Total Number of Referrals
  • Performance of Employees Hired via ERP

Use other data-driven metrics to measure the success of your ERP implementation. When results do not meet your expectations, adopt other techniques, approaches, and technologies that may improve performance.

Reboot. Repeat.

Conclusion

Whether you are just starting to build an employee referral program or have been running one for a while, getting the results you expect don’t happen automatically. You may use the best HR technologies on the market but you simply cannot automate success.

Talent is about humans and recruiting talent into your company takes a team of motivated humans on the other side of the equation. By making everyone in your company a stakeholder in talent acquisition, you give everyone a proactive role in your company’s success.

Valuing people is the first step in strengthening an employer brand. If your brand sticks, your employees will more than gladly submit candidate referrals to a company they are proud of.

How are you running your employee referral program? Let us know in the comments below.

attracting talent to your company

Why Does Your Startup Keep Attracting The WORST Sales Applicants?

Having trouble attracting talent to your company, particularly in the sales department? You’re not alone. Finding top sales talent is a major pain for startups and larger companies alike, especially in 2018.

Without the right people to ideate, build, and sell your product, profit will be less than optimal. In fact, superior talent is up to eight times (800%) more productive than average performers, according to a comprehensive research cited by McKinsey.

relationship between talent and business productivity

That is why the most valuable and successful organizations fiercely compete against each other in a relentless War for Talent just to find, hire, and retain elite professionals. Even then, 82% of Fortune 500 companies still believe they are not successful at hiring highly skilled people, and only two out of ten HR leaders from these big players think their recruitment and retention strategies actually work as planned.

Finding, attracting, and keeping such high performers on your roster will likely be a moonshot, especially if you’re running a fresh startup with bootstrapped resources. In contrast, the likelihood of attracting mediocre, unreliable, and crappy job applicants claiming to be competent sales professionals can go off the scales.

You wouldn’t want to waste time, money, and energy on these shenanigans but if you are sending the wrong signals, hordes of these unwanted sales candidates can swarm your recruitment process like a plague. So make an honest assessment of your brand messagingtalent culture, and recruitment journey. It might be that you are inadvertently drawing the wrong types of talent (e.g., good at making excuses, excellent at being mediocre, highly skilled in job hopping) under your banner.

7 Reasons Why Startups Are Not Attracting Talent (Especially in Tech Sales):

  1. You’re looking for sales talent in the wrong places.
  2. You’re using outdated recruitment practices.
  3. You project a corporate brand that lacks excitement.
  4. Your job ads are horrendous.
  5. Your comp plans do not give reps enough incentive.
  6. You convey a boring, tedious workplace reinforced by a gloomier career path.
  7. You provide a poor recruitment experience for applicants.

1) You’re looking for sales talent in the wrong places.

The job market is in flux. Not only are skills and talent in dire shortage but workplace demographic is also shifting. Baby boomers are retiring in droves while millennials and younger generations are steadily taking over the reins. Moreover, competent sales practitioners are often busy doing what they’re good at — which means they are closing deals or successfully building rapport with clients and not actively looking for jobs. You won’t reach them through traditional job boards or online postings. If you stick with traditional ways employers search for candidates, you’ll be left with the dregs of the job market.

TIP: Establish your company’s ideal sales candidate personas. Study the behavior of these personas and understand where you might reach potential candidates and how best to catch their attention. Use indirect but powerful messaging on social media channels (such as Instagram, Twitter, Facebook, and LinkedIn), during industry events and conferences, and on specialist sites that provide content, training, and other resources for sales professionals.

2) You’re using outdated recruitment practices.

Process is key to efficiency but only when it evolves with emerging market realities. If you were to rely on snail-mailed resumes or on posting job ads on the Sunday paper for example, your competitors would have already on-boarded a few good candidates well before you can set a job interview with the sub-par applicants they’ve already rejected. Implementing a one-size-fits-all recruitment strategy would also short-change your team, especially when you deploy specialized roles in your sales organization.

TIP: The world has gone digital and you’ll lose out if don’t have a catchy, upbeat presence in online job boards and other channels. But even that is just the bare minimum. As mentioned previously, don’t rely solely on conventional postings. There are other tools such as applicant tracking systems (ATS) and cloud-based talent management platforms that you should try out. Build a virtual talent pool on social media channels by publishing thought leadership articles that are relevant to sales practitioners.

3) You project a corporate brand that flat out lacks excitement.

The moment you accept that your niche is unsexy is the moment you doom your team to a mindset of irrelevance. Your brand matters. If you go far afield with a brand and a disposition that shouts “boring,” you’ll repel excellent sales professionals who demand the best from employers in exchange for delivering outstanding performance. These elite sellers simply won’t settle for a timid, lackluster brand that doesn’t seem to care about the people behind it.

TIP: Millennials and younger generations place a high premium on “experience” and online reputation. Your corporate culture and “employer rating” will be at least as important to this subset of professionals as the compensation package you’ll offer them. The first step is to establish an open environment that values people and provides systemic support for their career, health, and happiness. Doing this equips HR or a public relations team with solid authenticity to present a workplace culture worth thriving in. Aim for audience mindshare by which your company comes top-of-mind each time an excellent sales practitioner begins looking for a new employer.

4) Your job ads are horrendous.

Your job posts says a lot about how much you value the role you are advertising for. Avoid using run-of-the-mill templates that don’t differentiate your brand, your needs, and the benefits you offer from those of other recruiters. Ambiguity, long-windedness, ridiculously high qualifications, triteness, grammatical errors, excessively formal tone, and disproportionate focus on the company can dissuade job seekers from further considering your post.

TIP: Be accurate, error-free, and upbeat when creating the copy for your job posts. Focus on what the job entails but fine-tune the message along the vantage point and emotional lens of a job seeker. Clarify both the requirements and the benefits. Don’t use a copy that sounds too formal or demanding. That will just scare half of the job market. But don’t make it sound too easy either because that turns off achievers looking for challenging roles.

5) Your compensation plans do not give reps enough incentive.

This is where the rubber hits the road. Most professionals place compensation near the top of their priorities and any recruiter playing scrooge on compensation risks discouraging good sales candidates from applying. Worse than scrimping is creating the impression that you are offering generous packages but can actually deliver a much smaller paycheck. Doing so causes major candidate frustration when they realize the truth and tarnishes your reputation down the road.

TIP: Be honest when it comes to compensation. If you offer above-market rates, it’s better to mention the package in your post to draw more applicants. Otherwise, hold off disclosing your hand and focus instead on non-monetary benefits such as free training, flexible schedule, and other perks you do offer. The bottomline is to persuade excellent candidates that your company is worth working for without resorting to dirty tricks.

6) You convey a boring, tedious workplace reinforced by a gloomier career path.

Compensation is a major part of the employment agreement but it is not everything. If your organization seems peculiarly like the company parodied in Dilbert and other satirical comic strips/television series, then you have a lot of house-cleaning to do. Tedious labor without the possibility of achieving a healthy work-life balance or getting sensible promotions drains motivation and productivity like a leaky faucet.

TIP: Make working with you both fun and fulfilling. Whenever applicable, send a clear message that salespeople are valued in your organization. Highlight advantages such as company-subsidized professional development programs, travel incentives, generous commissions, job meaning and impact, as well as clear career paths and growth avenues for sellers. If these are still in the wish list, think of other tangible ways you can make your company worth working for.

7) You provide a poor recruitment experience for applicants.

Your hiring process serves as a window to the actual day-to-day conditions in your workplace. A poor experience for applicants during this process portends a poor experience working for your company. If your recruitment process seems disorganized, unnecessarily takes a lot of time, and feels too convoluted, applicants will easily lose the appetite to see the whole thing through.

TIP: Create a clear and effective recruitment plan. Map out each step and set expectations at the onset of the hiring process so candidates are always clear and updated about their application status at any point in the process. Streamline interview questions and bridge any gap in communication across the engagement.

Key Takeaway: Good recruiters attract good candidates

You need competent salespeople to grow your startup. But they are hard to find and rarely come cheap. For highly skilled and motivated sellers to join your team, you have to do your part as a responsible employer that values its people. And it all starts with the applicant journey as sales candidates go through the stages of your recruitment process. To hire the best people, offer the best value you can.

never hire bad salesperson again

10 Critical Warning Signs of a Bad Sales Candidate

The cost of a hiring a bad sales candidate can be extremely painful. In this article, we’ll explain how to avoid that.

Having a full roster is the standard to aim for but that doesn’t guarantee you’re getting an optimal salesforce. The truth is, new sales hires can either make or break your team performance. Good hires certainly will help you sustain growth and even improve overall performance down the road, but onboarding bad candidates can cause problems much worse than a simple headache.

In any type of business organization, the process of recruiting, hiring, onboarding, and training job candidates entails substantial costs in time, money, and effort. A recent CareerBuilder survey estimates that the average cost of one bad hire in the U.S. clocks in at $15,000. That barely includes serious business impacts such as reduced productivity, lost time to hire and train more deserving candidates, tarnished output quality (your brand!), and spikes in customer attrition rate.

Bad hires — especially those with harmful emotional baggage — can also cause team morale to plummet, which in turn can significantly undercut the team’s ability to maintain standards, comply with timelines, and achieve goals. Finally, bad hires rarely stay put, forcing you to go through the recruitment cycle again (sigh) and spend even more precious resources in the process.

In the case of a sales organization, hiring bad candidates have a direct impact on revenues and your bottom line. Surely, you wouldn’t want anything to mess up those figures. Unfortunately, bad sales hires come and go more often than anyone expects. That’s because of several factors inherent in sales recruitment:

  1. Most people think sales is easy. Desperate job seekers would try their luck applying for a sales opening even if they prefer another role.
  2. Selling is not for everyone. A successful sales career requires unique combinations of skills, experience, personality, and mindset.
  3. Sales-related certifications exist but these are rare and are seldom industry-mandated or required as qualifications in job ads.

Given this scenario, sales recruiters need to have the right tools and awareness that will help them prevent mediocre candidates from ever getting a foothold. Detecting red flags well before handing out a job offer is a good place to start.

To help you do that, here are some of the most common telltale signs of a bad sales candidate:

1) Low interest, enthusiasm, or motivation.

An applicant who doesn’t demonstrate enthusiasm about the role she is aiming for may show the same disinterest when actually making pitches on the sales floor. It is possible that your initial impression is inaccurate or that the applicant is only momentarily unmotivated, but even minor optics and small lapses can become real disadvantages later on. As a sales recruiter, you’ll always want (visibly and genuinely) passionate, driven professionals on board.

2) Hates doing homework.

Did the candidate research about your company, services, and key movers before sending his application or attending an interview? If not, ignore the fool. If a candidate chooses not to spend time preparing, then he is not worth your time. After all, selling success primarily depends on how prepared you are when engaging prospects. Only sales professionals willing to do their homework can dare hope to achieve targets.

3) Lacks basic sales competency.

Selling techniques and advanced methodologies can be learned. But don’t settle for candidates who lack even the rudimentary skill to sell themselves — especially when better candidates are around. If a candidate can’t formulate a decent elevator speech to get themselves noticed, then hiring one will short-change your team.

Moreover, avoid candidates who can’t seem to listen and those who ask senseless questions. Blacklist anyone who don’t ask any question at all. Selling is a conversation and active listening and asking the right questions are key to successful customer engagement.

4) Unprofessional behavior.

Excessive spelling/grammatical errors, sharing sensitive information about former employers, immature mannerisms, disturbing posts on social media, coarse/impolite language, and dressing way off the norm are some signs of unprofessional behavior. You’re not running a police state and you have a reasonable tolerance for deviant behavior but there’s a limit to what a competent sales organization can take. Sales is methodical and adheres to norms and best practices especially in the B2B space. Going well beyond acceptable thresholds will cause unwanted impact on your brand or performance.

5) Bad punctuality and time management.

Managing time and respecting other people’s schedule may seem so old school but punctuality remains high on the list of critical selling skills. You will always want sales professionals who meet timelines and rarely need to cram at the very last leg of the quarter to meet quotas.

Showing up late during client engagements shows that you lack motivation and respect for other people’s time. Few customers will be willing to wait for perennially delayed demos when a rival vendor can deliver the goods immediately. After all, the digital economy unfolds in an age of instant gratification.

6) Excessive job hopping.

Frequently switching roles or employers shows that a candidate is struggling to follow a coherent and focused career track. Think twice before investing time and money to hire and train this type of applicant. Note that the costs of hiring and losing workers are becoming prohibitive in highly competitive markets like B2B tech sales. In addition, frequent job hopping may also be a sign of personality flaws in the candidate that you wouldn’t want to deal with as a sales leader.

7) Underperforming career track.

On the other hand, you also need to flag candidates who have more or less held the same role and pay grade in the same company for many years. If a professional seems to struggle to get a promotion for a long time and still choose to stay, then something is very wrong. You would want highly driven sales professionals who care about their career advancement and who possess reasonable levels of ambition.

8) Lies during the interview.

If a sales candidate’s online profile or submitted resume seems too good to be true, perform due diligence. You want excellent and highly motivated sellers on your team but you want the real deal, not counterfeit con artists. It is understandable that people would want to show you their best foot forward but excessive self-promotion to the point of misleading and lying to recruiters is a glaring red flag.

Validate claimed certifications, degrees, and sales achievements, especially when these are accompanied by dollar signs and other verifiable metrics. Lying about relevant experiences even in minor aspects such as the number of months an applicant worked in a certain company is a big deal for companies with high ethical standards. Remember, trust is the most valuable currency in sales.

9) High levels of negativity and vibes of disgruntlement.

Happy, well-balanced, and passionate people are what you need for your salesforce. Your door should be locked shut for candidates who demonstrate toxic levels of negativity and emotional baggage even at the onset. Applicants who regularly bad-mouth former employers and co-workers shouldn’t find a way to join your team. Candidates who think they are always the best, show excessive aggression, and take credit even for achievements for which they have minimal contributions should be shown the nearest exit. Finally, habitual complainers and whiners won’t thrive in sales — a world where getting rejected multiple times is just part of the daily grind.

10) Lack of legitimate references.

You want candidates who are proud of their professional or academic achievements and who can readily have someone authorized to verify their credentials. In some cases, the standard practice is to provide character or professional references only upon a recruiter’s request. That is understandable but what amounts to a red flag is when the only reference submitted is the candidate’s cousin. Always prefer candidates whose applications are backed by strong and relevant references, especially when you personally know or can readily reach out to these persons.

Avoid Making Bad Sales Hires… Once And For All

Having incompetent or unmotivated sellers in your team not only wastes valuable resources but also impacts morale and performance negatively. The ideal scenario is to have a reliable system that prevents sub-par applicants from ever getting on board. The foregoing red flags should at least alert you of common types of unwanted candidates.

Here are some final tips to remember/implement:

  1. Don’t be desperate. Don’t settle for candidates you feel will just cause headaches later on.
  2. Create and adopt an Ideal Candidate Profile for each role in your sales team.
  3. Do your homework. Perform background checks. Go beyond online profiles and resumes and snoop around to verify what candidates are claiming in their applications.
  4. Conduct preliminary phone interviews to spare yourself the agony of actual, in-person interviews with behaviorally flawed or unprofessional candidates.
  5. Partner with specialist recruiters or reliable talent scouts in your particular field.
how to build a successful sales team

How To Build A Successful Sales Team From Scratch: Going From 0-10 Employees, FAST!

In this series, How to Build a Sales Team from 0-10 employees, we review in detail how early stage software companies can go from having a tiny or non-existent sales team to having a large, organized and revenue generating sales team. Specifically, we’re writing for CEO’s with little sales experience or new sales managers of small start ups.

There are many parts to building a successful sales team. You need to hire right, put the right procedures into place to make your team successful, provide your sales team with the proper business development/marketing support etc. For the first part in our series we’ll focus on hiring right because we believe that this is the most important part to creating a successful sales team by far.

If you have a product market fit and talented/hardworking sales people, you can do a whole lot of other things wrong and still see substantial revenue growth.

Which Roles Should You Hire First?

Your first two sales hires, in most cases, should be two Account Executives.

They will be ‘full cycle’ AE’s in that they will handle the business relationship from beginning to finish.

There are many career paths for an AE, but in this case they will essentially be an SDR, AE, and AM simultaneously.

You do this for a few reasons:

  • Hiring only one AE removes competition from the sales process and disables you from seeing any sort of ‘average’ in terms of performance levels.
  • Before hiring SDR’s to book meetings for your AE’s, you need to make sure you have AE’s that can close deals.

For more information on this very early stage hiring, we recommend you watch Danny Leonard from 500 Startup’s speak about this process.

One thing Danny notes is that for these early AE’s you need particularly hungry, entrepreneurial, aggressive salespeople who can pursue new business in a new market with a product that has little brand recognition. This is most likely a different type of employee than a highly polished and refined salesperson that you’ll hire as your company grows.

After your AE’s are consistently closing deals, NOT BEFORE, you can start to scale your sales team. An initial scaling will look something like going from 2 AE’s to 3 AE’s and 2 to 3 SDR’s.

By the way, hiring for SDRs is a different ballgame. Great SDRs will certainly have adjacent skills to AEs, but they are not necessarily one in the same.

Once you have 3 AE’s, you can begin to have a good idea of performance baselines. Here’s what you should see (again, if you have a product market fit):

  • Exceptional AE’s will close up to 45% of opportunities in their pipeline

  • Decent AE’s will close 20-30% of opportunities in their pipeline

  • Poor AE’s will close less than 15% of opportunities in their pipeline and should be fired

Ideally you want to foster a culture of excellence in your company and have all AE’s performing exceptionally. If you have 2 decent and 1 exceptional AE on your sales team, you’re doing a swell job.

Once your sales team is at 5 or 6 people, if your company doesn’t have a sales leader it’s time to hire one. There are two choices, hiring an experienced external leader or promoting your most talented AE to the role.

According to Auren Hoffman (serial entrepreneur with over 1B in exits) companies hire externally for leadership because they want to import the culture of other companies (they want to be like Google or Oracle so they hire sales managers from there). If you want a more pure culture (this is the route Auren seems to prefer for his own companies) you promote internally.

Post Sales Leadership – Hire For Growth

Now that you have a sales leader, you should hire more salespeople very conservatively. If you have three good AE’s, there’s no need to hire more unless they all have calendars that are completely full. If they don’t have full calendars, it’s more important to find out how to earn more leads before hiring more salespeople.

In other words, improve the SDR team’s output or improve marketing efforts before hiring more AE’s. A lot of companies hire to many AE’s and then have to divide the opportunities so much that no AE meets their quota. This is bad for moral and financially inefficient.

Think about your AE’s as conversion rates — and know that they only have value in proportion to the opportunities the company can feed them.

How To Hire For Your Fast Growing Sales Team

Hiring for a sales team is hard especially if you don’t come from a sales background. You have to hire based on the individual level (will this person perform well?) and also at the group level (will these people work well together to accomplish goals as a team?).

We’ve detailed two criterion that you can use to evaluate candidates, with some clear cut guidelines to help make your hiring decisions easier.

We think you should focus on:

  • Sales Talent (for individual success)
  • Diversity (for the success of the team)

How To Identify Sales Talent

Sales talent is different from other kinds of talent. It’s not the talent of software engineer or symphonic pianist. Good SaaS sales people have to be effective communicators, socially strategic, technical, hardworking and patient.

Here’s a good breakdown of evaluating sales talent:

Intelligence:

There are a lot of stereotypes about good salespeople being the former high school popular kid who gets B minuses and C pluses. For good software salespeople this couldn’t be further from the truth. Your company needs smart salespeople. Can you evaluate this by looking at what school a candidate went to and what grades they got? This might help a bit, but it’s better to evaluate intelligence through a conversation during the interview.

Here’s a great question to ask to evaluate intelligence, and its favorite of mega-investor Peter Thiel.

“What is an opinion you have the most other people disagree with?”

An intelligent person will be able to give a thoughtful response because intelligent people think outside of the box.

Ability To Learn (And Be Coached):

Oftentimes this is referred to as ‘coachability.’ But what happens if you’re a CEO with no sales experience hiring your first two AE’s? In this case you need salespeople who can recognize their own mistakes and areas to improve, and figure out how to do better. We’ve found that salespeople who are naturally curious and humble are able to learn from others (management, coaches, peers) and from their own experience. This is something you need to hire for.

Hunger, Hustle, Heart:

Is this person going to work hard enough to foster a culture of competitiveness on my team and drive revenue? You can evaluate this by asking about career goals (people who have high ambitions want to beat the competition to make it to the top). People who played sports in high school or college typically fit this criterion, but so do candidates who did not. You’ll have to go with your gut on this one for the most part.

Hiring For Diversity

We think diversity is perhaps the most important component for having a successful sales team. This is true for the sake of driving revenue, as sales teams that have diverse backgrounds are able to pursue a wider variety of accounts. It’s even more important for internal culture however, as teams that lack diversity often form cliques, and the development of cliques at a startup is highly counterproductive.

We think you should try your best to hire for the following kinds of diversity when building your early sales team:

Gender diversity:

Study after study has concluded that sales teams with a sizable portion of women almost always outperform their male dominated counterparts. For various reasons (perhaps being more empathetic generally), women are typically 5% more likely to close a deal then male salespeople.

Cultural diversity:

Having a mixture of cultural backgrounds at a company is vital to having a strong ‘company culture’. The more backgrounds their are, the more perspectives and ideas permeate the company. This promotes individualism, creativity and prevents ‘group think’. Not to mention there are massive opportunities to sell SaaS in Asian and Latin American markets which require salespeople from those backgrounds.

Experience diversity:  

As we mentioned earlier it is important for early sales hires to be aggressive and hungry. This often times means hiring sales people with less experience than usual who can ‘grow with’ the company so to speak. However when a company starts selling large contracts to Fortune 500 companies, it most likely will need to hire more experienced sales reps who have done something similar. That being said, with a mixture (for example one experienced rep and two less experienced) the experienced rep can coach the newer ones, while the newer ones keep the experienced rep hungry and on her toes.