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									                                 How much does it really cost
                               to hire the Wrong Sales Person?
                                          by Dan Cullin – Selecting Super Stars

Many companies experience 3 out of 4 sales people             •    Salary and benefits for 6 months                $45K
failing. They then are trapped into a never ending            •    Recruiting cost                                  $6K
cycle of revolving door sales hiring. This happens            •    Training and development                         $4K
despite the fact that most are firmly committed to            •    Coaching time and effort                        $15K
training and development.                                     •    Doing it over again                             $25K
Questions to ask yourself. What does this really
cost? What are the direct costs? Are there other              Indirect Cost
hidden costs? What can you do about it?
                                                              •    Coaching lost – opportunities missed             $15K
Think about a real world situation.                           •    Lost Revenue                                    $300K
You have an open sales position. It has to be filled
immediately to meet your market demands.                               (Fill in the costs for your organization)
You have to find time to go through the effort
                                                              •    New Business opportunities lost
required to select the best person. With some luck,
                                                              •    Future lost revenue (unhappy customers)
you’ll already have a stack of resumes to review. If
                                                              •    Time, effort & cost to get customers back
you’re not so lucky you’ll have to go through a
                                                              •    Lost market share (stronger competitors)
lengthy recruiting process.
                                                              •    Impact to forecast
Somehow you find the extra time to fill the position          •    Impact to sales measurement indices
and select the “perfect sales person”.                        •    Impact to sales team
                                                              •    Finding the time to do it over again
After making what appears to be a terrific selection,
you begin to have some doubts about your choice.
You want to give them some time to adapt and                  The indirect totals will far exceed the direct cost
adjust and commit more of your time to coach. By              losses. The rule of thumb total estimate is that hiring
the time you’re sure it’s a bad fit as much as 6 month        the wrong sales person will cost your business 10-12
has passed and it’s time to start over again.                 times annual salary and benefits. In this example
                                                              that’s a huge expense ($600K+).
We find this selection problem happening far too
frequently. Too often the selection doesn’t meet              How many misses can you afford?
expectations and isn’t close to being “average.” And          The most important step in putting together a truly
average isn’t even close to what you want. Sales              great hiring process is to recognize how important it
success requires you have the high performers who             is to your long term success. Understanding the
will significantly impact your business.                      economic impact on the business will help you to
The question to consider: what does it really cost to         take the steps necessary to get it right the first time.
hire the wrong sales person? The easy answer is to            A Sales Person rated at the top of our
just add up the direct salary costs for the 4 to 6            evaluation process is 14 times more likely to
months they were with you.
                                                              be a top performer than someone rated in the
The realty is that the true cost is more, in fact a lot       middle.
Let’s review an example using some nice round                 For a free evaluation of your next candidate Click
numbers.                                                      here or contact us at Info@SSStars.com or call (937)
                                                              429-9227 to find out how to have your next
The Direct Cost                                               candidate tested absolutely free. This is our way of
                                                              demonstrating the power of our process without any
The Sales person has a base salary of $60,000 with            cost or obligation on your part.
an annual quota of $600,000.

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