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. more. 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.
Pages to are hidden for
"Hire Sales Person - PDF"Please download to view full document