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Boosting Sales Team Morale When No One is Buying

Let’s face it, if your business is not in video communications, medical devices, insurance, or cyber security, sales are likely to be lousy during the COVID-19 pandemic. That means the majority of sales leaders are left to answer and solve two difficult questions: 1. How to restock an empty pipeline? and 2: How to ensure my team’s morale is high and motivated to perform the behaviors necessary to restock pipelines when achieving quota – and receiving a great commission payout – is out of the question? 

Using our experience building and managing sales teams through the .com Bubble through to the 2008 Global Financial Meltdown, combined with research from Harvard Business School and McKinsey, this article lists three actionable steps revenue generation leaders can take to ensure their sales team’s morale stays high, even when no one is buying.   

Step 1: Ensure Your Team Believes in the Plan

Fifty-one percent of salespeople surveyed in Peak’s 2020 Sales Culture Study said that the number one factor impacting their team’s morale was leadership. “It starts with leadership,” said one of our respondents. “From there the team has to trust we are all on the same page with our eye on the same goal.” Not only do team and organizational leaders need to ensure a robust sense of trust and alignment within the team, but they are also responsible for fostering a culture of empowerment—as opposed to one of control. 

A culture of empowerment starts with extreme transparency in the plan. Reps want to know the five Ws: 

  • Who are we targeting? 
  • What are the goals?
  • Where are we focusing our efforts? 
  • When are we expected to do this? 
  • Why are we taking this approach? 

They also want to know how the plan and expectations have been adapted to fit a new environment where very few prospects have budget to invest. Perhaps most importantly, they want to know that leadership understands that the approaches needed to connect with buyers have changed – and that leadership will have their back as they test and explore a value-focused strategy. 

Step 2: Embraced a Value-Focused Strategy

“The goal is to make 150 calls per day.” “Smile and dial.” “Coffee’s for Closers.” 

Traditional sales-first approaches, expectations, and mentalities like the quotes above are not effective in regular business climates, never mind one characterized by extreme uncertainty and volatility. Sales leaders who expect reps to maintain MQL to SQL ratios, sales cycle rates, or deal sizes in this climate have lost touch with the realities experienced by front-line reps. When expectations and goals don’t match realities, trust in and respect for the leader erodes while team morale declines.  

So how do successful leaders get the most out of their teams when yesterday’s tactics no longer work? They embrace a value-focused sales strategy. This strategy recognizes the challenges faced by reps today while adopting a true consultative sales approach characterized by three pillars: 

  1. Understanding and empathizing with the challenges faced by a prospect 
  2. Providing complimentary advice, insights, and perspectives not found anywhere else and that are valued by the prospect
  3. Resisting the urge to sell 

Taken together, these three pillars force reps to play the long game. That means not focusing on closing deals now, but instead following a path that leads to better and bigger success in the long term. And in the short-term, reps can stop worrying about “striking out” and instead focus on doing what they do best – solving problems and pain points. This translates into a win-win situation for reps and leaders alike, driving and boosting team morale.  

Step 3: Don’t Forget The Basics

During times of extreme pressure or crisis, it’s easy for leaders to forget the basics of team motivation and morale. During times of normalcy, sales leaders keep engagement and happiness levels high by offering bonuses and commission accelerators. This approach taps into the fact that salespeople are intrinsically driven by money. But when monetary incentives aren’t available as a lever to push, leaders need to identify the non-financial incentives required to keep morale high. A report in McKinsey Quarterly, using data gathered from the firm’s survey of 1,047 employees, managers, and executives, notes that these types of motivators can help foster employee engagement across sectors, jobs, and business contexts. 

Specifically, respondents reported that praise from direct managers, personal attention from leadership, and opportunities to lead projects are no less—and at times more—effective than the top three financial incentives: cash bonuses, salary bumps, and stock or stock options.

The top three non-financial incentive

 

  1. Praise from direct managers
  2. Personal attention from leadership
  3. Opportunities to lead projects

 

are as effective or more effective than…

…the top three financial incentives

 

  1. Cash bonuses
  2. Salary bumps
  3. Stock or stock options

 

McKinsey Quarterly

For seasoned managers and leaders, the non-financial incentives listed above should not be surprising. Praise and personal attention, particularly in times of uncertainty, matter to reps. And from an employee performance perspective, it needs to matter to leaders too. Just take recent research from Harvard Business School and Microsoft, which found that employees who received twice the number of one-on-ones with their manager relative to their peers were 67% less likely to be disengaged

Disengaged employees do not feel valued, supported, respected, or secure. According to studies run by the Queens School of Business and the Gallup Organization, disengaged workers were found to have:

  • 37% higher absenteeism
  • 49% more accidents
  • 60% more errors and defects 

Organizations with low employee engagement scores also revealed diminished business results:

  • 18% lower productivity
  • 16% lower profitability
  • 37% lower job growth
  • 65% lower share price over time

Take Action Now

High team morale is a driving force of top line revenues, customer satisfaction and the bottom line. But in times of uncertainty and restrained budgets, sales team morale can plummet. For leaders, this requires changing their playbook to accommodate the selling relaties faced by their teams. That requires building a plan that their team believes in, changing the sales strategy to focus on long-term value creation, and ensuring that basic management principles are being followed. Combined, these factors will help sales leaders overcome the fact that few prospects are buying and impacts this has on their team’s morale.  

To help put these plans into action, consider reaching out to the Peak Sales Recruiting Hotline. This free resource has been established to help sales and business leaders navigate through the pains of today’s selling and hiring environments. Simply dial 1-800-964-0946 and follow the prompts. 

Sales Morale

Brent Thomson

Co-Founder at Peak Sales Recruiting
Before Peak, Brent worked in sales and sales-leadership positions for 18 years. He has considerable experience building and running high-performance teams, which consistently won awards and exceeded sales targets. He was Vice President of Sales for a financial management consulting company, and served with Borland Software as a Regional Sales Manager.

Building a Virtual Sales Team: 7 Considerations

There has been a definitive change to the structure and organization of today’s sales team – they are now virtual. While COVD-19 has accelerated the adoption of virtual sales teams, companies have long leveraged  the underlying benefits of this workforce design. Virtual teams and teleworking scenarios offer a scalable mechanism through which organizations can broaden their geographic presence and reach into its target markets, without the need for capital intensive investments. These financial efficiencies are complimented by the fact that sales force productivity can actually increase in a work from home (WFM) or work from anywhere (WFA) arrangement. 

Regardless of what is driving a business implement a virtual sales team structure, there are several factors that managers need to consider: 

1. Infrastructure set-up 

First, ensure your sales team has the necessary equipment to set-up a comfortable work from home space. This may require you to allow them to take basic equipment from the office home. It may also be a good idea to provide additional monetary subsidies to help your team set-up quickly. Small gestures indicate that the organization supports the work from home setting and is ready to support their revenue generation department.

2. Set-up procedures

Operational procedures can either make or break your team dynamic. Research shows that simple procedures like daily check-ins and team meetings which can contribute positively to organizational culture and strategic alignment. Leveraging project management tools, customer relationship management platforms and/or an internal communications tool like Slack can help organize workflows and communication channels. For a list of the latest tools and resources, read “Why Building a Remote Sales Team Matters: 20+ Tips, Tools, and Resources”

3. Promote information and knowledge sharing

Teams that work remotely have no water cooler chats or impromptu lunch time discussions where individuals can bounce ideas off one another. That’s why the best virtual teams have built a culture where information and knowledge sharing is the norm. For sales leaders, this accelerates new rep development while giving established sellers access to emerging selling methods, channels, and techniques.

4. Build trust & reduce frustrations

Individual productivity is the most common concern that managers have with remote working. Research, however, suggests that employees often over-work to mitigate managerial concerns and influence peer perceptions. Breaking these misconception presents a tremendous opportunity for managers to build trust amongst the team, which can be facilitated through effective one-on-one meetings.  

5. Promote employee engagement

A virtual working environment can increase the risk of employees feeling isolated. Advocating engagement between the team members will help dispel these feelings. Activities like video calls help to ignite the feeling of being physically present in the office, while hosting virtual meet-ups and online games can boost competitive spirits and morale. 

6. Set realistic expectations

Set expectations with your team about goals, effective communication, and information sharing from the beginning. Communicate to your team how their performance will be measured and how frequently. Transparency and honesty are the key to success. If your team is making a transition to a remote setting, recognize that your team members may have families and are also adapting to the newly evolving situation just like you. Give your team the time to find their footing and not expect the same level of productivity from day one. 

7. Think about yourself too

Last but one of the most important – look out for yourself! Setting-up a remote team (in most occasions) is not a one-person task, it takes collaboration with various stakeholders (IT, HR, Finance, etc.). Make sure you have the resources for the set-up or transition and reach out to the appropriate personnel as needed. Communicate your goals and limitations to the team, and ask for support when required. Top performers will acknowledge the importance of team support and step-up to the occasion! 

virtual sales team

Why Building a Remote Sales Team Matters: 20+ Tips, Tools, and Resources

Global issues such as COVID-19 have accelerated the adoption of remote sales teams in companies across the world. Giants such as Google, Microsoft, and Amazon have all encouraged teams to work from home and as cities and states across North America shut down, many other companies are rapidly moving 100% of their collaboration and operations online.

Now may be the time for sales, human resource, and operational leaders who have been considering the addition of remote salespeople to make the leap—after all, companies that still require all sales reps to work in an office are compromising their ability to scale.

Many organizations are ahead of the curve when it comes to implementing successful remote work policies; tech companies like Zapier, Mozilla, Buffer, and Basecamp have been demonstrating them for a long time. And PwC has an “everyday flexibility” policy of letting teammates work where they choose, and have been listed on Fortune’s 100 Best Companies to Work For list for 15 years in a row.

We have compiled some resources to guide your company’s transition to remote work, with particular focus on your sales team. We will share guidance from those who have already figured it out, as well as a list of tech tools to adopt. Ultimately, sales teams that work remotely are sales teams that can grow and perform better in today’s new climate.

Want to not just mitigate risk, but scale? Embrace remote work.

At Peak Sales Recruiting, we believe that requiring all reps to come into a physical office every day hurts the team’s—and company’s—ability to scale. Why?

    • It makes it difficult to hire top talent. Today, reps expect the flexibility of working remotely and consider it an asset when choosing an employer. In addition, hiring only in one’s physical town restricts the talent pool significantly.
    • It increases risk and lowers resilience in the face of disasters, such as COVID-19. Teams that are well-practiced at remote collaboration can more easily adapt to remote-mandated working conditions. 
    • It is less cost-efficient. The need to pay for office space in expensive metropolitan areas is significant.
    • It is not in line with today’s global political climate. Increasing immigration restrictions are making it difficult to hire foreign talent and relocate them to a physical headquarters.

There is already a talent shortage and the refusal to adopt remote working simply makes it worse. Hiring remote-working sales talent in other locations can add extremely high-quality to a team’s ranks. Companies can tap into a new pool of top salespeople, sometimes for more affordable compensation, and it is actually a value-add for A-players, making them more likely to choose your company over others.

It is such a value-add that in a 2017 Stanford study, the average worker was willing to accept 8% less pay just for the option to work from home. Flexible remote work is not just a cherry-on-top; people give it a monetary value. 

And employers are using it as a way to attract talent. LinkedIn’s Global Talent Trends 2019 report shows that since 2016, there has been a 78% increase in job posts on LinkedIn mentioning work flexibility.  This is a valuable offering for many types of employees and, for millennials in particular, flexibility in work correlates to loyalty to their employer, according to The Deloitte Global Millennial Survey 2019.

Virtual teams are more productive

Managers are often concerned that remote working will bring about a decrease in communication, or a degradation of culture and organic, informal connection. And, of course, they worry about a decrease in individual productivity due to multitasking, or the blurring of lines between personal and work time.

But remote workers are just as, if not more, productive than in-office teams:

Of course, a team needs the right leadership, software tools, and protocol to enjoy remote-work success. There are plenty of challenges—the FYI’s The Remote Work Report lists the top three as communication, social opportunities, and loneliness/isolation. These are followed by setting boundaries, visibility in the organization, time zones, team culture, and more.

Luckily, sales teams have access to a slew of tools built just for supporting remote and hybrid-remote teams. And there is plenty of guidance from those who have already paved the way.

Guides and resources for remote sales teams

GitLab’s Remote-Work Resources

GitLab is the world’s largest all-remote company, with team members located in more than 65 countries around the world. They have published an end-to-end toolkit for going remote.

Zapier’s Guide to Working Remotely

Zapier is a B2B SaaS company that has been 100% remote since its founding. They published a handbook that shares everything they’ve learned about running a remote team.

FYI’s The Remote Work Report

An in-depth survey of 486 people about remote working. It provides insights into the daily experiences of people currently working remotely and what they need to thrive.

Five things I learned building a remote sales team

In this article, WeTravel’s Zaky Prabowo collects his advice for hiring and running a remote sales team, including: invest in a strong CRM, hire very organized salespeople; do a daily team call for 15 minutes; use remote work as a value proposition for hiring; and use alternative, niche hiring channels to find salespeople.

5 Powerful Strategies for Managing a Remote Sales Team

Peter Banerjea highlights smaller, creative tools for collaborating as a remote team and staying accountable, building trust, and executing sales processes just as accurately as if the team were all in one building.

Virtual work software 

There is a rapidly growing, ever-shifting cloud of tools that serve remote teams. This is by no means a comprehensive list, but it is a good starting point for leaders looking to support remote employees—or taking the leap to 100% remote.

Project Management

  • Asana – Easily organize and plan projects, workflows, and more 
  • Basecamp – The calm and organized way to manage projects and people
  • Trello – Trello is a visual Kanban board tool for organizing work
  • 10000ft – High-level project and resource management software
  • Teamwork – A work and project management tool that helps teams

improve collaboration, visibility, and accountability

Videoconferencing and telework communication

  • Slack – Slack brings team communication and collaboration into one place
  • Zoom – An easy, reliable cloud platform for video and audio conferencing, chat, and webinars
  • Google Hangouts Meet – Video meetings for your business
  • World Time Buddy – A convenient world clock, a time zone converter, and an online meeting scheduler
  • Twist – A distraction-free teamwork app

Documents and cloud storage

  • Google G Suite – An integrated suite of secure productivity apps including Docs, Drive, Calendar, Meet, and Gmail 
  • Office 365 – Collaborate for free with online versions of Microsoft Word, PowerPoint, Excel, and OneNote.
  • Dropbox – Store and access team files on any computer or mobile device
  • Box – Cloud content management and file sharing service for businesses
  • Notion – A new editor that blends notes, tasks, and wikis into one app

CRM & sales tools

  • Salesforce – Unify marketing, sales, service, commerce, and IT teams
  • HubSpot – A full platform of marketing, sales, customer service, and CRM software
  • Marketo – Marketo’s powerful marketing automation software helps marketers master the art and science of digital marketing
  • Chorus.ai – The leading conversation intelligence platform for sales teams

Productivity and time management

  • Todoist – 20 million people and teams use Todoist to organize, plan, and collaborate on tasks and projects
  • Time Doctor – employee time tracking software that helps you and your team get a lot more done each day
  • iDoneThis – I Done This helps track your own progress, understand what your team is working on and stay in sync

Team morale and happiness surveys 

(Measuring sales team morale and gathering feedback in a structured way is important for remote teams, where this happens less organically.)

  • Chimp or champ – A weekly anonymous employee happiness meter for you to check your team’s pulse
  • TINYpulse – The world’s leading employee engagement platform

Companies who refuse to take a remote or remote-hybrid approach to their sales teams are hurting their ability to scale. A distributed workforce allows employers to hire more and better talent, save costs, and respond to global unrest and pandemics.

Luckily, this is the perfect time to make a transition to more flexible work policies. An entire industry of software tools and thought leaders are here to help you join the ranks of those who are already benefiting from having “remote control.”

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Connect:

Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

Connect:

How Manufacturers Can Recruit the Sales Staff They Need to Grow

Finding talented salespeople in the manufacturing sector is now more difficult than ever. However, hiring managers can tip the scales in their favor during an industrial salesperson search by shaking up their approach to recruitment.

The US manufacturing industry continues to expand, with smart manufacturing expected to grow at a compound annual growth rate of 15% between 2018 and 2023.

To live up to the promise of smart manufacturing and capture the new value being created, manufacturers need to upgrade their salesforce with top-quality, digital-savvy salespeople. In addition, they need to boost their appreciation of the hiring process simply to keep up with filling vacancies while their industry grows, baby boomers retire, and the United States faces a countrywide talent shortage.

Unfortunately, the manufacturing industry faces stiff competition for top sales talent. Seventy-three percent of manufacturers report that attracting and retaining a quality workforce is their top challenge—and according to Deloitte, 2.4 million manufacturing vacancies could go unfilled between now and 2028.

Companies are having difficulty filling manufacturing sales roles because of:

  • Competition from other industries, such as tech and finance, which have been more successful at recruiting or poaching top talent
  • Outdated perceptions of manufacturing jobs
  • Shifting skill sets needed on the job due to the introduction of advanced technologies and digitization.

To compete with Silicon Valley tech companies and New York finance firms, manufacturing and industrial businesses need to update the way they hire. This article will provide tips for manufacturers on how to revamp hiring processes so they can recruit and retain the salesforce they need to remain competitive in the age of digital manufacturing.

It’s time for manufacturers to change the way they recruit and hire

The industry’s inability to attract millennials contributes to the current talent gap. Millennials make up the largest working population of the US economy, and as baby boomers continue to retire, any company that fails to aggressively employ millennials and generation Z will have little hope of longevity.

To keep up with shifting market demographics and the talent demands of industrial digitization, manufacturers need to:

  • Recalibrate the competencies they look for in candidates
  • Cultivate a workplace culture that’s attractive to a younger generation of workers
  • Create paths for experienced career changers and industry-swappers to join their ranks.

Let’s look more closely at each of these strategies.

Recalibrate competency requirements for the digital era

The competencies that salespeople need in manufacturing today differ greatly from those needed ten or twenty years ago, according to research by HBR. “Competencies that, only a decade ago, were considered essential are now lower in priority,” they note.

The digitization of manufacturing and sales processes requires workers with problem-solving and critical-thinking skills. They need to feel comfortable analyzing data and learning a business’s space quickly—they need to be strategists rather than simply tactical executors. Their work is now augmented by software, algorithms, tools like Salesforce and other CRMs, business intelligence data, and personalization technologies.

Manufacturers can reflect these new sales tasks and desired competencies in their hiring criteria, job postings, interview rubrics, and even online aptitude tests. Recruiting firms can help crystallize these requirements and ensure that they are reflected in all assessments.

Cultivate your workplace culture

Candidate evaluation is a two-way street—as a company evaluates potential employees, it is being sized up as well. To recruit the sales staff needed to drive business, manufacturers need to cultivate an appealing work culture and improve their employer brand.

This is especially true when it comes to recruiting millennial workers. To attract the right talent, manufacturers should build a company that aligns with typical millennial values, which, according to Gallup, include:

  1. Purpose and meaning in their work
  2. Development and growth opportunities
  3. Managers who value them as people and develop coaching relationships—rather than “command-and-control” bosses
  4. Ongoing performance conversations instead of annual reviews
  5. An environment that lets them develop their strengths instead of focusing on “correcting” weaknesses.

These values—and a company’s unique culture—should permeate the workplace as well as its online presence, so it shines through to candidates. Hiring teams should work with marketing and public relations teams to develop a strategy for communicating company culture through all candidate touchpoints, including the company website, videos, employee testimonials, fairs and events, and direct communications with candidates—before, during, and after interviews.

Create paths for experienced professionals of different backgrounds

To deepen the talent pool, manufacturers should look to candidates with the relevant skill sets in different markets and from different backgrounds. Salespeople in adjacent industries may not be able to come into a role with a big rolodex of potential clients for their new company. But when vetted properly, they may have sales experience that can be easily adapted to manufacturing products and client profiles.

Manufacturers should look for candidates from other sectors that have characteristics in common with their own company. For example, a salesperson selling to enterprise clients at a large tech company will likely find it easier to transition to a similar role in a large manufacturing company—even if the products are very different. Similarly, an executive with only startup-level experience in manufacturing may have a much harder time adjusting to a large company environment compared to someone from an equally large company with no direct manufacturing experience.

A great way to tap into talent from different industries is by partnering with a recruitment firm with visibility into neighboring talent pools.

Create and refine a recruitment structure

The best way to put these principles into action is through a structured recruitment process.

Structure allows companies to start recruitment early—it is important to develop a pipeline of sales talent long before the need to fill a vacancy arises. Reaching out to potential candidates early and building a relationship with them over time can be crucial. This is known as the candidate nurture strategy and it should involve targeted, personalized messaging to prospects through email, text, and social media. To organize candidate nurture campaigns, many employers make use of CRMs or applicant tracking systems.

Structured recruitment also means involving the relevant stakeholders at the right time. C-level executives in finance, marketing, and HR—as well as sales managers—should all be aligned on which candidates will be brought in for interviews. It is also wise to involve sales staff in interviews and invite their input on candidates. After all, this is the team your candidate will eventually join, and your existing staff will arguably be the biggest influence on the successful integration of a new hire.

Interview processes should be rigorous and well-planned to avoid “gut feel” hires. Vetting should include a quantitative screening process to test for the specific traits needed for a sales position, as well as phone and in-person interviews. This should be supported by a structured rubric, in which each candidate is asked the same questions, to compare answers. Decision makers should reference the rubric to understand hiring objectives and see which questions were asked.

Follow-up between and after interviews is key. Early in the process, there should be a delegated point of contact who will always be available to answer candidate questions swiftly. After interviews, candidates should be followed up with in a timely fashion without undue delays between their second or third interviews. If candidates feel they have been left hanging, they may take their skills elsewhere.

Offer competitive compensation, which is a must-have to convince top talent to join a new firm or switch to a new industry. Salaries should be in line with, or above, industry benchmarks. According to a survey we conducted at Peak Sales, the average base salary of manufacturing sales managers is $102,843, with $134,373 OTE (in 2019).

Invest in retention

Once the right talent is on board, it’s vital to retain them. Turnover is costly, and replacing an employee costs an average of one-fifth of their salary. In sales, the problem of turnover is particularly acute, with the average sales rep remaining at their post for only eighteen months. Considering recruitment fees, onboarding, and potential lost revenue from missed leads, it costs upwards of 115K to replace a sales rep.

Retaining staff is the cheaper alternative. To make that happen, it’s helpful to first understand why sales reps might leave their current position. According to SiriusDecisions research, the top three reasons are:

  • Inadequate compensation (89%)
  • Lack of connection with leadership or incompetence of leadership (60%–80%)
  • Concerns about the company’s ability to meet market needs (75%)

Given that the top reason for voluntary departure is insufficient compensation, industrial companies need to pay careful attention to payment structures and employee expectations. They should design compensation packages that reward good performance through bonuses, raises, and quotas.

Beyond the salary investment, companies need to show sales staff that they are valued through opportunities for career development and engaging with company leadership. This involves regular check-ins and feedback from management, periodic training and coaching, mentorship programs that pair senior and junior team members, and clear paths to promotion. Manufacturers can also offer flexible work hours to accommodate professional conferences or training programs and improve work-life balance.

Sales staff can also be supported by investing in up-to-date sales technology. Sales reps spend only 41% of their time selling—the rest is spent on admin activities, like data maintenance. The proper sales operations teams, alongside top-of-the-line CRMs, video conferencing, business intelligence data, and integrated systems, can save time and give reps more energy for their clients and strategic work.

Finally, the most motivated sales staff want to see that their company is doing well and has a plan to do even better. Sales leaders should use data-backed insights to improve operations and sales strategy, strengthen the sales playbook, communicate it, and create the resources for sales staff to execute it.

Final Thoughts

To win the battle for top talent, manufacturers need to adjust their recruitment tactics to match the current talent pool characteristics and market demands.

Some specific actions manufacturers can take to develop the ideal sales team include:

  • Recalibrate candidate competency requirements to screen for salespeople who have technical and critical thinking skills
  • Cultivate a workplace culture that appeals to a younger generation of workers, and communicate it to candidates in person and through online touchpoints like the company website
  • Expand the talent pool by recruiting salespeople with transferable experience from outside the manufacturing industry
  • Create a systematic and repeatable recruiting framework with structured assessments, interviews, and intentional follow-up processes
  • Retain sales talent by supporting them with the right compensation, professional development, technology, and a winning sales strategy.

There is no one-size-fits-all when it comes to recruiting. Rather, each company should craft a recruiting process to match their company culture and talent needs. At Peak Sales, we help employers do this with our proprietary P95 Assessment Process, which fills critical roles faster and reduces ramp-up time and training requirements.

Want to learn more about staffing your team with the best salespeople? Contact Peak Sales Recruiting today.

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How to Fill Your Sales Manager Vacancy

If a business needs a new sales manager or executive, it has a choice: hire an external candidate or develop talent from within the company. 

A growing organization is bound to face this decision sooner or later, due to the following factors:

  • Team growth: A sales team becomes large enough to require a manager.
  • Expansion: A company plans a move into new markets, audiences, and products and needs a new leader to spearhead the efforts or manage a new sales team.
  • Replacement: A previous manager is not a fit or moves to a different company, and someone else must take over.
  • Retirement: A manager or leader exits the workforce due to retirement.

  • Succession planning: A forward-looking company wants to prepare a roster of people who are ready to take over key roles that are vacated for any reason.

Promoting managers internally and hiring externally are both valid approaches. 

Hiring internally can be cost-effective. It also provides a career trajectory for current employees and it extends the longevity of company culture and key sales relationships. 

But there are risks. Companies are more likely to promote their top salespeople than promote their lower-performing counterparts, but when they do, they often find that they’ve lost a good salesperson and gained a bad manager. A study found that teams led by their (newly promoted) top salesperson see sales drop by 7.5% on average.

For these reasons, hiring externally can be helpful when a seasoned manager is needed, when it is important to avoid promotion politics, in an emergency situation that requires accelerated placement, or simply if the pool of internal talent has been tapped. After all, LinkedIn found that AEs are the #2 most-recruited role in business across all industries—and they are #1 in the tech industry. This doesn’t make finding great potential managers any easier.

An external hire can bring in new perspectives and help a company level up during moments of strategic change, such as when it expands into new markets, launches new products, shifts sales strategy, or doubles its staff. The talent available in the company at the time may not have exposure to the information and experiences needed to succeed during these shifts. And, in a mature business, internal talent may be stuck in a traditional or “groupthink” mentality that prevents them from innovating. 

Whether a company decides to promote internally or hire from the outside, it’s important that they take a step back to make the right hire. Great managers directly impact a company’s revenue, while mediocre managers can artificially cap the performance of even the best sales teams. 

So when it comes to finding the next great sales leader, preparation can make all the difference.

Promoting internally: how to lead a successful transition

Create formal succession plans

Companies with formal succession plans that include metrics, processes, and official stakeholders are far more likely to see success than companies who take a lighter, informal approach, according to research from the Society for Human Resource Management.

However, many companies fail to develop a formal process. Poor succession planning can result in lost revenue, organizational confusion, and an underperforming sales team. Peak’s Guide To Sales Succession Planning is a thorough guide covering methods for evaluating internal candidates and how to pull off successful transitions.

Free eBook Download: 

Peak’s Guide To Sales Succession Planning

Do not simply promote the best salespeople on a team into management

One reason this transition doesn’t always yield positive results is that a salesperson is primarily focused on individual performance, while a leader is focused on performance through others. The skills, characteristics, and viewpoints needed for success are different. 

When companies promote from within, they must look for sales leaders who can deliver on:

  • hiring initiatives
  • salesperson development
  • coaching
  • metrics-based performance reviews
  • compensation package design
  • team morale and culture
  • relationships with leadership counterparts in marketing, product, finance, and other departments
  • sales strategy for the company’s current position in the marketplace
  • the management of infrastructure that powers all sales operations, from support personnel to technology, systems, and documentation

In some cases, lower-performing salespeople may actually be more suited for a management role. Companies should orient their search toward screening for these leadership characteristics rather than simply evaluating sales performance.

Mentorship and self-development resources can also be very useful for cultivating internal talent. 

Create a sales mentorship program

We encourage companies to design a mentorship program specifically for sales. HubSpot shares 7 Steps to Establish a Successful Sales Mentorship Program, which details how a sales manager can pair two employees with mutually beneficial skill sets and roles. 

This type of mentorship program not only develops more junior reps, but it also helps cross-train reps on different sales areas and allows mentors to test their leadership skills. Setting up a mentorship program requires some structure, such as defining roles in advance, tracking performance metrics, creating an incentive structure, and agreeing on an “exit strategy” for the relationship.

Provide reps with resources to develop themselves 

Motivated salespeople can also prepare for a potential promotion to a leadership role. Ideally, they will begin to demonstrate their ability to deliver on a manager’s responsibilities while still in an individual contributor role. We collected advice from 20 sales coaches, executives, and authors to help reps make the shift. Suggestions included: 

  • Develop and demonstrate your leadership abilities on the job 
  • Understand the skills, traits and behaviors required for success
  • Establish yourself as a lifelong learner
  • Demonstrate your ability to assist and coach team members

Identify motivated sales staff that show an aptitude for these leadership qualities to guard against a failed internal hire.  

Hiring externally: how to attract and identify quality candidates

Develop a formal hiring plan and start early

Just like internal succession planning requires a formal structure to work well, so does external hiring. 

It begins with a process for sourcing and systematically building familiarity with candidates. Whenever possible, companies should start their hiring search early by reaching out to their ideal candidates and then building a relationship with them over the long term. 

This approach is called “candidate nurture,” and it’s designed to attract top performers who are in high demand, gainfully employed, and will only move to a new company if trust is in place. This can take timeorganizations should use candidate trackers and regular check-in milestones.

Once a candidate is ready for an interview, they should go through a quantitative screening process that tests for the traits needed in the leadership position, as well as an interview process with a structured rubric. This formality protects hiring managers from unsuccessful “gut feel” decisions.

For help with developing a hiring plan for a sales leader, Your Next VP Sales: The Complete Interview Question Guide covers key responsibilities, traits to screen for, and interview questions for an in-depth assessment. 

Prepare to be evaluated by candidates

Leadership should work on their employer brand to become an attractive option for quality managers. Great candidates will scrutinize a company, its sales organization, and its leadership team. What Every Great VP Sales Wants in a Job covers 10 characteristics that outside talent will likely screen for. 

This includes opportunities for growth, the autonomy to tackle challenges and provide real value, a proven leadership team with colleagues who share their vision, and competitive compensation. Companies should use benchmarks such as Peak’s Sales Compensation Report to ensure that they don’t disqualify themselves by offering too little, too late.

Partner with a recruitment firm

When the talent pool is low or a company needs outside expertise, they can turn to a talent firm. It’s important that a recruiting firm specializes in sales and also provides a holistic service where success is measured by a candidate’s fit and performance in a role, not just the quantity of candidates they source. 

A sales recruiting firm can help a company:

  • Determine which qualities to screen for to match their unique sales environment
  • Administer quantitative psychometric tests to assist in screening
  • Develop behavioral interview rubrics
  • Scalably source candidates from within and without the company’s industry
  • Verify track records, including proof of selling performance, reasons for leaving, and reference quality
  • Formalize a sustainable hiring process for the future

Companies can work with a firm like Peak Sales Recruiting to accelerate and de-risk the hiring process. At Peak Sales, we leverage our proprietary P95 Assessment Process to design a recruiting framework that sources the best management talent for companies and their specific sales needs.

The right hire is key to sales success

Companies in need of a new sales manager have plenty of work to do, whether they choose to develop leadership talent from within or attract new faces from the outside world. They must start their search or development efforts as early as possible, create an enticing employer brand, and put formal evaluation processes in place so that they are not misguided by gut feel. 

A powerful engine for systematically attracting and evaluating sales managers can help companies successfully install the leadership they need to meet sales objectives and beat competitors.

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Sales Team Scaling: Building the Team You Need to Hit Your Targets

Correctly sizing and structuring a sales team is a high-stakes challenge. It can significantly contribute to a company’s growth—or irreversibly hinder it. 

An undersized sales force with overstretched reps, whether across the entire company or in a specific territory, can cause a business to grow less effectively than its competitors and fail to serve customers well. Conversely, if a team is too large, the costs of maintaining salaries and supporting the team can eat into profits and resources.

Sales leaders whose targets feel out of reach—or who are expanding into new markets or launching new products—should consider resizing or restructuring their sales force. This can help to bring the right amount of coverage to each customer segment and maximize returns on their salespeoples’ work. A right-sizing project includes understanding the shortcomings of a current team’s size and coverage, then identifying opportunities for increasing, reducing, or shifting resources.

Unfortunately, many companies use management’s “gut feeling” to determine the size of a sales team, or how many reps to assign to a territory. Wisdom and experience certainly come into play when right-sizing, but relying solely on the intuition of a few people is unwise when their decisions are so central to a business’s growth and profits.

Instead, leaders can use data-driven methods. We will review several frameworks,  caution against common mistakes and share pointers to ensure that new hires are successful . . . because hiring poorly often costs more than hiring right the first time.

Frameworks help companies avoid “paying as they go” or staying too small

For companies in a young growth stage, or in a rapidly growing market, we caution against keeping a sales team too small or using budget as a sole basis for restructuring decisions. It is what sales consulting firm ZS Associates calls a “pay as you go strategy,” or a “budget approach”: sales force size is predicated on budget, and only as many salespeople as can be afforded at a given moment are hired. The main priority is to limit headcount costs and only grow the sales force when profits increase—sales is not seen as an investment, but as a cost center alone. 

For companies in a growth environment, this puts market share at risk. It anchors a sales force to the previous year’s budget and limits growth, while competitors may invest in their own sales force earlier and capture more market share. 

Research from ZS Associates supports this idea. Its studies suggest that an understaffed sales force limits both short-term and long-term revenue. They have found that

“the sales force size that maximizes companies’ three-year profits is 18 percent larger, on average, than the size that maximizes one-year profits.” 

Growing a sales force may not be right for every team at every time. But these findings challenge the idea that a “pay-as-you-go strategy” is a wise choice, especially for growth startups.

Rather than making sizing decisions based on an inflexible budget, or the intuition of a few managers, companies should use frameworks and data to help them become more objective about their investments in a sales force.

The data-driven approach to right-sizing

Right-sizing frameworks take into account the needs of customers, their sales potential, and resourcing costs. They create various scenarios that balance profit and customer coverage, allowing sales leaders to choose—and test—the optimal setup.

There are several methods and models to try, but here is a broad-strokes approach:

  1. Segment prospects and existing customers into meaningful groups.
  2. Calculate the sales potential of each segment.
  3. Estimate the minimum sales coverage required to meet the needs of each segment (for example, in hours).
  4. Estimate the average selling capacity (hours) of each sales rep.
  5. Calculate the number of salespeople needed to meet the coverage in step #3.
  6. Determine the fully-loaded cost of a salesperson, and calculate the cost of the entire sales force counted in step #5.
  7. Estimate the expected deal size and annual revenue for each customer segment. Expert judgment and intuition can be helpful here to adjust historical deal size data if a market is changing.
  8. Use the costs in step #6 and the revenues in step #7 to estimate profit.
  9. Tinker with this formula by increasing or decreasing coverage in different customer segments, shifting resources from one to the other and observing how profits change.
  10. Test a scenario and monitor data over time to adjust and iterate on the model.

Two data-driven frameworks, the Return on Sales optimization method and Efficient Frontier Benchmarking, provide detailed formulas for right-sizing.

Return on Sales optimization (ROS) 

ROS is a simple yet powerful calculation that optimizes profits. It compares the increase in profit that comes with each salesperson to the incremental cost of employing each of those salespeople. When the marginal profit equals the marginal cost, the total profit is maximized.

Efficient Frontier Benchmarking (EFB)

EFB is a detailed formula that helps leaders calculate the ideal size for sales teams in specific districts or regions, taking into account local salary and differences in regional market potential and performance. It uses linear regression to find the ideal resource split across an entire team. EFB needs around 10 or more distinct districts, as well as other data, to be effective. 

Making right-sizing work

Before restructuring or resizing a sales team, leaders can take steps to ensure all hires are productive and stay around for the long term.

Understand where a company is in the business cycle

Is a company in a Growth stage, Maturity stage, or on a Decline? Companies in growth should be careful not to under-size their sales force (and it’s worth noting that very young startups should have a solid go-to-market and sales strategy in place before scaling up). Companies at the peak of their business cycle, on the other hand, must be sure not to overestimate market potential and hire too many salespeople, because they risk the need to fire the same salespeople soon after. This is a pricey mistake.

Reduce risk by transitioning gradually into a new sales force size and allocation

We advocate for data-driven right-sizing methods, but, of course, data is not perfect. For this reason, companies should be careful not to quickly and blindly follow a model’s recommendation to downsize or scale up all at once. Rather, they should collect data as they change their sales team structure and feed it back into the model. This can support previous calculations, or prompt leaders to shift strategy if needed.

Invest in sales support

Calculations of the total cost of a sales rep must include managers, sales technology, administrative support, coaches, and more. Sales support must also increase as a company scales up its sales team. Even the best sales hires are much more effective with the right support; this ratio can differ from industry to industry.

Invest in good hires the first time around

For many companies, right-sizing means that more hiring is around the corner. It’s imperative to learn how to hire well because an underperforming sales hire is extremely costly. Our back-of-the-envelope calculation puts the price of a poor hire at about $700k in lost cash cost, not to mention reputational damage with customers and the negative impacts on morale and team culture.

Companies should invest in a solid sales hiring process to ensure that they attract A-players from the start. Top talent will support each other and improve the entire team’s performance through a better culture and the referral of other top performing hires.

Like Goldilocks, get the sales force size just right

Right-sizing a sales force, and allocating it well across customer segments, is critical for a company’s profit potential. Sales leaders can take a more objective approach to these decisions by relying on data-driven frameworks. Data isn’t perfect, so companies can increase the accuracy of these models over time by incorporating new information as a team grows, shrinks, or shifts. With enough iterations, it will soon be just right.

Want to learn more about B2B sales team structures? Visit our article here

The State of Sales Staffing in 2020:Hiring, Training, and Retention

Sales talent has always been hard to find and keep, but now it’s tougher than ever. Sales reps are the second most in-demand candidates across all job functions globally, according to The Manpower Group. LinkedIn names “Enterprise Account Executive” as its second-most-recruited role in all industries, and in the tech industry, it has even ousted engineers for the #1 spot, with “SDR” at #3. 

This sales talent shortage will only get worse in the coming years, as the US labor market tightens and the growing tech industry gobbles up all the great salespeople from traditional industries like manufacturing. However, there are several effective hiring, retention, and succession planning strategies that companies can adopt to withstand the challenging sales staffing climate in 2020.

At our sales recruiting firm, we work with companies searching for salespeople, while evaluating thousands of candidates and what they’re looking for in an employer. We’ve seen that sales positions are remaining vacant for longer while the cost of sales talent continues to rise; companies are lowering the experience bar to boost their headcount, only to struggle with churn a few months later. We also see competitors poach sales talent from one another, which increases the cost of each hire.

But before discussing the protective measures companies can take, let’s examine the broader issues that are making 2020 a candidate’s market. 

The tightest labor market Alan Greenspan has ever seen

Salespeople may be some of the most difficult people to hire right now, but it’s no cakewalk to hire for most positions.

For context, the US unemployment rate officially hit a 50-year low of 3.5% in September 2019, and at the end of 2018, the unemployment rate for white-collar workers—those with a bachelor’s degree or above—

stood at 2.1%. Former Federal Reserve Chairman Alan Greenspan has noted that this is the tightest labor market he’s ever seen.

Unfortunately, the labor force currently isn’t growing quickly enough to keep up with demand;  it is predicted to grow by just 0.4% per year through 2020 and level off in the long term. Compare this to the annual growth of 2.6% seen in the 1970s. 

Furthermore, a generation of sales professionals is preparing for retirement. Baby Boomers began retiring in 2011, and for the following 19 years, 10,000 Baby Boomers will retire each day. Companies need to prepare for retirement events in their sales force and key sales leadership roles.

The forecast is even harsher for sales hiring

In this context, sales positions are difficult to fill. But to understand the full challenge that employers face, it’s also important to note that retention in sales is difficult as well. 

In 2018, the average tenure of an SDR at a B2B company was just 1.5 years, which is half of what it was in 2010, according to a Bridge Group study of 434 B2B companies. These companies saw a 39% attrition rate among their SDRs. One-third of that turnover was voluntary but two-thirds was involuntary (for example, via termination).

This data suggests that junior B2B sales roles experience significant turmoil and team attrition, possibly due to underperformance, which is expensive for companies to manage and backfill. Additionally, the Bridge Group study found that companies seem to be hiring increasingly inexperienced SDRs—the average required experience was just 1.4 years, a 45% fall since 2010. Companies may be lowering their bar in response to the demands of scaling and the restricted supply of talent, but the study suggests that more churn can result.

Regardless, we’ve noted that sales professionals tend to switch jobs every few years, with salary increase being a top driver. Studies show that:

The average job-switch salary increase is between 10% and 20%—significantly above the annual US median base salary increase of 3%.

Compensation in general is an important factor in the recruitment and retention of salespeople. We surveyed over 1,000 sales professionals from across North America and found that 38% of respondents felt that their compensation was below their industry average. Such poor perceptions doesn’t support retention, and when we zeroed in on the top performers—salespeople who met or exceeded their quota in recent quarters—we found that 29% were not satisfied with their current compensation and 54% were dissatisfied with their employer overall. Companies need to address these perceptions if they want to retain their best salespeople.

How to prepare for sales hiring in 2020 and beyond

Luckily, companies can buffer against sales talent shortage with a few strategic shifts in their hiring, retention, and succession planning.

These are particularly important for traditional industries like manufacturing and industrial businesses, which need to make their workplaces appealing for a whole new generation of talent as Baby Boomers retire and tech companies create attractive working environments with high compensation. 

Craft strategy around top performers

It may be tempting to quickly staff up a sales force by lowering the bar to entry. But we’ve seen that it’s more lucrative in the long term when companies set their sights on A-players and adapt their recruiting and compensation strategies to the requirements of top performers. Unsurprisingly, for each additional year of a salesperson’s experience, their on-target earnings increase (Bridge Group), and companies that hire less-experienced reps are more likely to see higher turnover.

Recruit passive candidates

To craft a strategy around top performers, companies need to recruit passive candidates—salespeople who aren’t actively job-hunting because they are already busy meeting their quotas. Simply posting a job opening and waiting for candidates to apply is no longer enough, because top performers won’t be the ones engaging. Companies need to assume an active role and go after top talent directly.

Create a candidate pipeline

The best approach for directly seeking top talent is to design and fill a candidate pipeline. This is similar to a customer funnel—prospects are found and nurtured as they move through the funnel, eventually becoming buyers. It’s the same for hiring. Companies must fill a pipeline and give candidates a long runway, because it can take months or years to woo a top performer away from their current job. 

The candidate funnel should include an initial sourcing or “prospect identification” stage, then have regular touchpoints of online or in-person communications, to familiarize a candidate with the company, convey the employer brand, and build a trusting relationship over time. Notice again how this is different from the old paradigm of posting a job and waiting for responses. Instead, it takes advance work and planning so that when a position becomes available, good candidates have already been primed.

Improve compensation packages

It is imperative that compensation is slightly above industry standards to successfully attract top-performing candidates. Companies should use compensation studies to benchmark their base salary and OTE (2019 Sales Compensation Report). It’s also about the broader package, such as sales incentives (like bonuses and no-cap commission) and workplace perks. Employer branding is part of the non-monetary benefits and companies should review their online presence to see if it appeals to top performers—does it reflect a positive work environment, a culture of success, and showcase opportunities for long-term career growth?

 

Consider recruiting from adjacent industries

If a company is experiencing a severe shortage of qualified talent in their own industry, one tactic we successfully use in our recruiting work is to explore similar industries. Companies in unrelated industries may share aspects of their business models. So we have found it is less important that a sales candidate has industry-specific experience, and much more important that they have the specific skills and aptitudes needed to succeed in a certain function. These skills tend to generalize, and they are more valuable than if a hire were to enter a new job with a Rolodex of contacts from the same industry.

Make use of recruitment process outsourcing (RPO) 

If a company is struggling with a talent shortage, they can transfer their sales recruiting efforts to RPOs. This is different than hiring traditional recruiters, because RPOs specifically take ownership of the design of the entire recruiting process, tracking metrics and taking responsibility for the results. These services can include unique candidate sourcing methodologies, such as sourcing through social media, and introducing quantitative applicant screening through aptitude tests. This can assist companies when they begin to search for sales talent in adjacent industries, because good RPOs will have a birds-eye view of candidates in many firms and verticals.

Gear up more training for an existing sales force

We see many companies that are overdue on providing sales training. Such training should be ongoing as a company grows and adapts to new challenges. We also see opportunities to introduce leadership training programs, coaching, and mentorship. Investing in an existing sales force not only uplevels their skills, it also helps with retention by demonstrating the potential for career growth with their current employer—reducing the need to move jobs for that growth.

Make a rigorous sales succession plan

Companies need to consider their sales leadership as well. Are they ready to fill executive positions quickly after a retirement or other succession event? Many of the companies we work with have an inadequate plan and plenty don’t have one at all. Succession plans are most effective when they are formal. They should use frameworks to evaluate current employees for their management potential, then provide adequate training, development, and mentorship when a transition takes place. 

A critical part of a succession plan is the tracking of key metrics, such as:

  • The number of executive-level sales positions that will need to be filled by succession candidates
  • The number of candidates identified for succession
  • The number of candidates being actively developed for succession
  • The number of executive-level positions that have been successfully filled 
  • The percentage of positions that were filled with internal promotions over external candidates
  • The percentage of promotions that came from the high-potential succession pool

Monitoring these metrics helps companies understand the scope of their succession needs and recognize whether they are prepared.

Looking ahead to 2020

In 2020, North American companies will likely experience a talent shortage, simply due to economic growth and a slowing supply of labor. But it will be all the more difficult if those companies require sales talent.

Experienced salespeople are in high demand, and the best candidates are not typically looking for new jobs.

This is why businesses must revisit their sales hiring strategies and ask whether they fit the 2020 hiring paradigm: companies now need to go after top talent directly, instead of waiting for applicants to come to them. They need to nurture passive candidates over months or even years, building trust in their employer brand, as well as offering competitive compensation and demonstrating opportunities for career growth. 

They must also empower their current sales staff. Are they investing in training, development, and competitive compensation? Do they have a formal succession plan in place to backfill sales leadership? These retention activities are just as important as hiring strategies, because if companies want to fuel their growth with sales in the next decade, they need to hang on to every salesperson they’ve got.

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How do you achieve the perfect sales climate?

Energy management system innovator Pelican Wireless Systems discusses the formula for success

Can climate and temperature be life-changing to your work day? If you ask the nationwide customers of Pelican Wireless Systems, yes. And that’s the response you would expect as Pelican sets the highest bar for design, innovation, and service for its energy management systems (EMS) products. Powered by scalable and secure wireless technology, Pelican EMS products put customers fully in control of their workplace climate and energy usage.

As Mark Willens of the business development team explains, “We are literally changing lives through climate control, enabling people to be comfortable in their work environment. Customers call us and are amazed at the results as they had never thought about climate and its impact inside offices and facilities. It’s very satisfying to see the results of your work having a real impact on lives.”

Mark joined Pelican Wireless Systems nine years ago, and says, “We are really an engineering company that is taking commercial climate management to another level with technologies that add advanced logic, new capabilities, and better information and control for clients at a fraction of the cost of traditional companies.”

Teams with Peak to find unique talent for key territories

Two years ago, Mark turned to Peak Sales Recruiting with a goal of growing Pelican’s direct involvement in its Midwest, Southeast, and Southern California territories by adding business development talent. 

As Mark explains, Pelican is focused on managing growth and the bottom line carefully. “As a private company, we need to be smart about how we spend our money and grow at a rate that keeps us profitable. At the same time, our culture is very empowering here. We have open communication throughout the company and move forward and get things done without office politics getting in the way,” says Mark.

Serving every type of commercial market across the U.S., major corporations across America use Pelican EMS products to control their climates every day.  Offering the first true wireless zone control solution for these markets, Pelican’s advanced analytics, intuitive scheduling, simple design, and anywhere mobile access are just a few features that put its customers firmly in control of their company’s climate and even the way energy is consumed. 

“We weren’t looking for traditional sales people roles or customer relationship people. We needed specific skills with the ability to think on both a business and a sales level and be just as involved in the strategy behind how the company moves into territories as how we sell and generate demand,” he says. “It’s a challenging candidate profile and on top of this, there are technical aspects about the products and our markets that candidates need to come up to speed on.”

Three reasons for choosing Peak

Mark chose to work with Peak for three key reasons — proven process, enthusiasm, and commitment to understanding Pelican’s business.

“Number one, when I first spoke to the Peak team, they discussed their hiring recruitment process with me in detail. I was immediately interested. Peak’s services go beyond recruitment, they are not just recruiters, they want you to have a better hiring process,” he shares. “The Peak team also took a genuine interest in our business. They wanted to thoroughly understand the complexities of our market and were focused on taking the right steps to find the best fit.” 

Known for its structured talent acquisition process, Peak relies on an approach with a 4-step sales recruiting methodology that determines corporate objectives, identifies the profile of an ideal candidate, uses targeted headhunting to find the top candidates, and adds scientific assessment.

“I have worked with multiple recruiters and can tell you that Peak’s hiring process ensures the fit is right and saves me considerable time, Mark adds.

Peak’s enthusiasm was the second factor. “I actually talked to the owner of Peak Sales Recruiting and realized this was coming from the top down and it was similar to the empowerment and motivation we foster at Pelican. Peak’s owner was excited about our unique hiring needs and the challenge. There was no hesitation about the goal, just confidence.”

And last on Mark’s list, Peak was committed to do the work required.  Mark says, “Peak was willing to dig into what we do and why we do it, and learn about our culture. The team explained exactly how they will tap into this and bring me people that align and fit with our culture.  That was a dramatic difference in contrast to the past recruitment firms I have worked with.” 

One hire leads to three

Training and shaping a sales hire to adapt to a new selling environment and achieve results quarter after quarter is the ultimate challenge. Yet Pelican and Peak make it look easy — today, three hires were made by Peak and each team member is contributing at a high level at Pelican. 

Also important for Mark, the hires were very positive about their experience working with Peak.  “Peak was able to articulate our vision to these candidates and the uniqueness about our company and the advantages of working here,” he says. 

After hiring Daniel Diaz in early 2017, Mark worked with Peak again in the last quarter of 2017 and Colleen Nolan joined the Pelican team. The third and newest hire, Jamie Gorbenko, joined Pelican in late 2018. 

Pelican’s approach isn’t focused on growth in numbers and setting and meeting quotas. Instead the team looks at factors like how they can generate demand and how this contributes to business growth. “These team members have enabled us to enter and succeed in our U.S. markets and far outdo what has been done. They all bring unique and compelling skills and that’s what our company looks for — positive, diverse views and ways of doing things.  Every team member has continually exceeded its goals in their territories — all have been great additions to our company,” Mark adds.

“When it comes time to recruit new business development team members, there is never a discussion about who we will partner with. We continually turn to Peak and they have always done a great job of finding the candidates we should be talking to,” he explains.   “At Pelican, when we hire new team members, we have very specific criteria and standards and expect a lot from our recruiting partner. That’s why we continue to work with Peak.”

Are you ready to take your talent acquisition to the next level? Learn more about Peak’s services or contact us today to recruit top sales talent.

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New York Sales Salaries: Benchmarks for Sales Reps, Managers, and VPs

To attract—and retain—top sales talent, sales leaders must develop a competitive compensation strategy. We surveyed sales reps, managers, and VPs across industries to understand the sales landscape in the New York area and to provide benchmarks for salary and OTE, as well as insights about compensation plan structure and incentives.

For a deeper look at sales compensation insights across the United States and Canada, visit our 2019 Sales Compensation Study.

Why sales compensation matters

Compensation is the top driver in attracting sales employees (Gartner 2019), and high performing salespeople are paid above the market average. 

Companies can easily disqualify themselves as desirable employers of high-performing salespeople if they don’t provide a competitive compensation package, and such a lack can also negatively impact retention. In a survey of top performers, 79% said that compensation was very or extremely important in their decision to stay with an employer, yet 43% of them also believed their current salary to be below market average.

43% of top performing respondents believe their compensation plan is below the industry average.

Employee perception of compensation plans is a key lever of employee satisfaction and employers should investigate the issue thoroughly—the average cost of turnover per sales rep is $97,690 (DePaul University), and it can be higher for managers and sales executives. Benchmarks can be used to understand what a competitive salary looks like, but it is also important to discuss other factors that sales professionals care about, such as quota structure and incentives.

New York Sales Salaries

About the survey participants

Sales professionals in the New York area

Roles

  • 67% quota-carrying sales professionals
  • 22% front-line managers
  • 11% Vice President of Sales.

Gender

  • 82% male 
  • 18% female

Industries 

  • Respondents came from the Software, Industrial or Manufacturing, Professional Services, Information & Technology, Healthcare, and Other industries.

Base Salary and OTE

When compared with other states in the US, New York’s sales professionals reported the fourth-highest average base salary and third-highest OTE. These are the high-level compensation numbers across all roles—reps, managers, and executives. Role-specific figures are discussed separately. 

For all respondents across sales roles (reps, managers, VPs), New York:

Average Base Salary: $93,000

Average OTE: $150,000

When the responses for only the highest performers—defined as salespeople who have exceeded their quotas—were examined, a modest lift in base salary and OTE was observed.

For high performers across sales roles (reps, managers, VPs), New York:

Average Base Salary: $97,000

Average OTE: $155,600

Base salary and OTE of all respondents

Base salary and OTE of top performers

Separated by role, the average base salary and OTE are as follows. 

Quota-carrying sales reps:

Average Base Salary: $84,000 

Average OTE: $133,000

Front line manager: 

Average Base Salary: $110,000  

Average OTE: $171,000

Vice President of Sales: 

Average Base Salary: $130,000  

Average OTE: $216,000

Average OTE by role

Average base salary by role

The highest-paying industry is Professional Services, with the others ranked as follows:

  1. Professional Services
  2. Software
  3. “Other” industries
  4. Industrial or Manufacturing
  5. Information Technology & Services
  6. Healthcare

Compensation split

The split between base salary and quota is another important factor in attracting and retaining the right talent, yet over half (53%) of respondents said they didn’t have their ideal compensation split. 

The ideal balance depends on the company’s strategy and individual responsibilities. The respondents surveyed showed a wide range of splits, but base salary typically formed the larger portion of their total compensation package. 

50% base / 50% commission:

25% of respondents

80% base / 20% commission:

25% of respondents

60% base / 40% commission:

24% of respondents

100% base salary:

18% of respondents

0-40% base salary (commission-heavy):

8% of respondents

Respondents’ compensation split between base salary and commission

Incentives

In examining the incentives included in respondents’ compensation packages, it was found that 82% had uncapped commission, letting them earn in a way that reflected the value they brought to a company. In addition, 53% had accelerators, and some respondents enjoyed team bonuses and recognition programs. Only 16% of respondents were compensated with equity.

Incentives in respondents’ compensation packages

Compensation’s role in retention

Competitive compensation is a major factor in retention, and 79% of respondents said it was very or extremely important when deciding whether or not to stay with their current employer.

43% of high performers believed their compensation plan was below industry average, while another 43% believed it was at industry average; only 14% believed it to be above average.

In order to lower turnover rates, employers should have annual compensation plan reviews to bring more of their top performers into the group who believe they are being paid competitively—and above the average.

Top areas for improvement

Survey respondents reported their top concerns about their total compensation package and sales support structures.

The main concerns reported were:

      • Having a fair and achievable quota
      • Improving incentives
      • Having an easy-to-understand compensation plan

Not only do employers need to pay a competitive base salary, they also need to consider the design of their plans, to make them easily understandable and clear on how success and increased earnings can be achieved.

Other factors that can be examined and improved upon include: 

  • providing better sales support 
  • designing territories effectively 
  • paying in a timely matter
  • improving the companywide sales strategy, to instill confidence in the sales force 
  • providing non-monetary benefits (typically vacation, healthcare, work-from-home time, mentorship, and perks)

Respondents cited a number of concerns about their current compensation packages and the support provided for their sales role

Developing a competitive sales compensation plan

Compensation is a key driver of quality hiring and retention, yet top performers may not perceive their packages as properly reflecting the value they bring to their teams. This jeopardizes their relationship with their employer, and turnover is costly to a company’s revenue, brand, and morale. 

Leaders should use industry benchmarks to ensure above-average compensation for sales professionals and to develop a well-rounded package that not only reflects the right numbers, but is also structured in a clear way with advantageous quota splits and incentives.

For more information about sales compensation, including additional data from sales professionals across the US and Canada, download the Peak Sales 2019 Sales Compensation Study.

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Connect:

Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

Connect:

How to Hire A Salesperson Who Truly Delivers

Hire A Salesperson

Making a bad hire is a huge cost to a company. How can teams ensure they’ll attract and filter the right candidates for a sales role? (10 minute read)

One of the hardest roles to fill is that of the sales rep. Today, sales professionals hold the #1 most in-demand role out of all job functions, surpassing even engineers (according to LinkedIn research; Manpower Group ranks them as #2). Overall talent shortages are at their highest since 2006, which is a dire situation for employers.

Not only is it difficult to get salespeople in the door, but their success isn’t guaranteed. Nearly 50% of sales reps don’t meet quota, and a bad hire can be extremely costly in terms of lost revenue opportunity, external brand damage, and the negative effects on team morale. 

This is why it is so important for companies to learn how to attract top salespeople, and to design an appropriate hiring process to do so. In this article, we will share insights about how to find higher-quality candidates and vet them in a way that increases their chances of sustained success. 

A real hiring process includes much more than a simple job posting and interview. There’s much behind-the-scenes preparation that hiring managers can undertake to increase the chances of success before a candidate even comes in for a conversation. We’ll cover:

  1. Preparing for the hire: Gathering resources for compensation and support
  2. Defining the ideal hire and writing the job description
  3. Building a candidate pipeline
  4. Interviewing with a guide and rubric
  5. Beyond the offer letter

Sales hiring requires a unique approach and we will offer sales-specific insights into the hiring processes we’ve helped to build at hundreds of companies across North America, with thousands of candidates evaluated.

Preparing for the hire: Gathering resources for compensation and support

There’s more to employing a successful salesperson than just the hire itself; salespeople also need the right environment and support systems to deliver on their goals. Before creating a job description or speaking with candidates, the company—and the existing sales team— must be ready to receive them. This means ensuring that such executives as the CFO, Head of HR, CMO, and CEO (the key players for scaling a sales team) are all on board, to allocate the necessary resources: sales operations support, technologies, training, and compensation.

Allocate competitive compensation 

Top performers are not easy to find, nor are they easy to attract; typically, they are already gainfully employed and delivering results in their current role. But they are worth the effort and the budget, because they are much more likely to deliver on revenue goals, to inspire customer confidence and brand appreciation, and to contribute significantly to positive team culture.

An attractive compensation package can help bring in this top talent. It can also increase retention and incentivize desired behaviors. Companies need to understand the compensation package required to attract top candidates and to make sure the team has budgeted accordingly; this means knowing the current market base salary and on-target earning (OTE) rates, as well as bonuses and accelerators. It also means considering which non-monetary benefits can be offered, including vacation, flex time, training, mentorship, and prospects for career advancement. 

In our 2019 Sales Compensation Study, we have found that 29% of top sales performers are not satisfied with their current compensation, and 54% are dissatisfied with their employer. Among all respondents—not just the top performers—38% felt that their compensation was below the industry average.

This gives employers an opportunity to differentiate themselves, and suggests that compensation should be thought of as not just a standalone financial incentive, but as leverage for a broader initiative to increase employee satisfaction and retention. It is a strategic lever that should be considered at the beginning of the hiring process, budgeting appropriately and allocating resources before setting out to interview candidates.

Prepare sales process documentation and operational support 

When a top candidate comes in for an interview, they will be evaluating a new workplace for indicators that it will support their ongoing success. 

Consequently, a sales team should check for the following things, which a candidate will also be looking for:

  • Are there onboarding processes, playbooks, and documentation set up and ready for the candidate to ramp up? 
  • Is the sales process itself well documented and successful? Top candidates will often look at a new employer’s sales process as a key indicator of whether to take the sales organization seriously. A properly implemented sales process can improve win rates by 24%, reduce sales cycle length, and increase average sale price. 
  • Is the sales and marketing automation technology up to date? 
  • What systems are in place to minimize administrative and customer support work that is beyond the scope of the job role?
  • How many people are dedicated to sales support functions, including territory creation, forecasting, funnel management, coaching, admin work, technology management, and culture building? (Research suggests that to optimize sales team ROI, 50%–60% of sales employees should be dedicated to support functions.)

If the proper sales process, training, and onboarding resources are unavailable, consider adjusting the hiring timeline.

Defining the ideal hire and writing the job description

The next step is to define exactly what type of hire is needed, and to establish the evaluation methodologies that will screen the right people in or out. 

Understanding why a new hire is necessary helps pinpoint the exact characteristics and experience the ideal candidate should have; brainstorming sessions with the team can help clarify the intrinsic characteristics required for the job. Does the team need someone to generate new business, or upsell existing customers? Is the business looking to enter a new market this year, or perhaps a new market segment that requires a focused and dedicated salesperson? Is the business rolling out new products or services?

If possible, conversations with customers can also be helpful. Understanding the successful and unsuccessful relationships that customers have had with salespeople can give valuable insights into specific requirements and expectations for the job description. What has helped customers make a decision to buy? What has resonated? What was the frequency and nature of the communication? 

Teams should look for candidates that possess the general traits we call Sales DNA. These are the typical characteristics that drive high-achieving salespeople and are excellent predictors of success. They include ambition, competitiveness, a sense of urgency, confidence, perseverance, optimism, resilience, ability, and the desire to influence others. 

Sales DNA traits, as well as team-specific traits, tend to predict success much more reliably than “gut feel” or even a candidate’s resume. (We have seen that Sales DNA beats the resume.) 

Take an example from one of the most noteworthy contemporary sales leaders in tech, who uses quantitative measures to predict performance and hire accordingly. Mark Roberge scaled his sales team at HubSpot by running a regression analysis. He found the candidate traits that correlated with sales success at his company, based on 500 interviews and 12 hires over a year. By pinpointing these characteristics and creating a quantitative hiring process around them, Roberge was able to predictably hire the same (successful) salesperson over and over. 

“Gut feelings” tend to be poor predictors of long-term sales performance and are vulnerable to unconscious bias. For this reason, sales hiring should be objective and quantitative wherever possible. Codify your requirements into scoring rubrics to make interviews structured and objective (rather than open-ended). Seek out quantitative psychometric tests and assessments which identify a candidate’s aptitudes, key motivators, and behavioral skill sets, and which help a team home in on the true predictors of success.

Companies that use hiring tools to assess candidates have a higher percentage of reps that meet quota, have more confidence in their sales organization, and show higher rates of retention, according to research by CSI Insights. In fact, research shows that unstructured hiring methods are so poor at delivering high-caliber salespeople that companies may be better off selecting candidates at random. 

Once the specific needs for the position are identified, it’s time to write the job description. 

Writing the job description

The job description should give a sense of the culture and values of the business and sales team, integrating the brand voice and tone rather than being just a cut and dried list of responsibilities. 

It should include a comprehensive list of perks and benefits to provide an idea of the company’s environment, values, and positive attitude toward employees. This is part of the jobs’ non-monetary offering; top performers want to be in a positive environment surrounded by excellence and opportunities for advancement, and the job description is a good way to show this off.

See an example of an Account Executive job description.

Specificity is key. Instead of stating that a team seeks an “energetic” candidate—a term that really is just filler material—the exact responsibilities, duties, and expectations in a typical sales cycle should be addressed. Will the sales rep be tasked with generating new business and hitting a quota of new sales? Are their core success metrics centered around client retention or upselling existing clients? How many calls or site visits does the role require?

And, of course, the description should be free from grammatical errors.

Once the job requirements are created, it’s time to hunt for great candidates.

Building a candidate pipeline

The trick to great sales hiring is to start early and nurture candidates over months or years—just like a salesperson might nurture a customer. If a company uses a sales funnel for customers, it should use a recruiting funnel for candidates. A recruiting funnel allows teams to systematically find leads and build relationships until they’re ready for an interview. 

This is the best way to attract top performers, who usually are not searching job boards for open positions because they’re busy performing well in their current job. This is why companies who want A-player talent must hunt them proactively and take time to nurture them over the long term, engaging them with events, content marketing, and one-on-one outreach over time. 

If this nurturing is done correctly, top candidates will be ready for more serious conversations when a job position opens, avoiding a last-minute scramble for B- or C-grade performers. It’s similar to a soccer coach who has great players on the bench, ready to jump into a game when they’re needed. 

Companies can search for candidates on alternative channels such as social networks like LinkedIn, conferences, and industry events. (Here’s a guide to using online social networks to find top talent.) 

Teams should also mine their own networks for referrals, which are the #1 source of high-quality hires. In particular, the current top performers at a company tend to have deep networks of other excellent salespeople. Companies can also extend their reach with recruiting firms.

Hiring managers should use an applicant tracking system (ATS) or even a simple Google spreadsheet tracker as a CRM, to keep tabs on candidates and the outreach they have received. They can refer to it periodically and reach out at regular intervals to nurture relationships.

Part of the nurture process is the slow task of communicating the benefits and selling points of the team to a candidate. In other words, it can require content marketing and employer branding

To improve employer branding, a company can think about candidate touchpoints—like the hiring pages on their website—and update them to highlight a desirable work-life balance, the benefits of the working environment, the company vision, and the opportunities for a candidate to contribute to a growth story.

New touchpoints can be added as well, such as an email newsletter specifically for candidates, retargeting ads, and in-person events.

Content marketing for candidates can include:

  • Job opportunity alerts for candidates who subscribe to them
  • Newsletters aimed at candidates or interested followers
  • Stories that profile outstanding employees at the company
  • Stories about culture and team events
  • Glassdoor ratings
  • Invitations to in-person events
  • Industry news
  • News about a company’s high-visibility partnerships and customers

This type of content can educate a candidate about team culture, build interest and trust, and keep a company at the top of their mind over the long term. 

If done correctly, the recruiting funnel will produce prospective candidates that are ready to become interviewees as positions open.

Interviewing with a guide and rubric

The interview stage is the final filter for candidates. 

Create an interview guide and rubric 

As previously mentioned, it’s important to keep interviews as objective and structured as possible, with the same set of criteria used in the evaluation of all candidates. 

A set of interview questions should be developed in advance and the core set of questions maintained for each candidate, no matter who the interviewers are. Role-playing can be used to test a candidate’s responses to objections, their needs-finding abilities, and their customer empathy.

A rubric can be used to score the answers. For a sample rubric and interview template, as well as a list of core questions, legal guidelines, and common pitfalls, see our guide to conducting successful sales interviews. Psychometric assessments can be used to test for Sales DNA and other required traits, and a search firm can assist with setting them up.

Ultimately, a salesperson is being hired to sell products and services that will solve client problems, so the interviewer should notice how the candidate seeks to understand the business problems facing the hiring company and its competitors, and the skills they can bring to solve them. If the candidate is simply listing out their skills and past performance metrics, that’s a red flag. Candidates should know their business impact and numbers cold, but they must also have outstanding storytelling skills to sell themselves and be able to relate their experience to the company’s position in the marketplace.

Meanwhile, interviewers and the hiring manager should be selling the company, the team, and its values to the candidate. Star sales reps are likely to have multiple offers, and they will be using the interview as an opportunity to determine which company is the right fit for them.

Beyond the offer letter

If a candidate makes it through the interviews and scores well on the assessment rubrics, it’s time to make an offer. Ideally, a competitive compensation package is ready to go.

Hiring managers should ensure that an effective onboarding process is in place to get the new salesperson up to speed and delivering value quickly. Onboarding plans should map out a new hire’s first 90 days, with 30-, 60-, and 90-day goals that use metrics to define what success looks like at each milestone. (For guidance on what to include in a sales onboarding plan, read more at Faster, Better Sales Onboarding and The Six Elements of an Effective Sales Onboarding Program.)

It can be tempting for hiring managers to jump into interviews as soon as a job position opens, but they should first take the time to prepare an end-to-end recruiting process. This upfront work includes:

  • Gaining organizational alignment
  • Understanding and securing appropriate compensation for a top performer
  • Identifying specific requirements for the position as opposed to casting a wide net
  • Creating a rigorous, codified, structured candidate evaluation system for interviews and other assessments
  • Building a recruiting funnel with a great employer brand 
  • Nurturing top-performing candidates over the long term until they are ready for an interview.

A well thought out process attracts higher-quality candidates who will be more likely to succeed over the long term. When a top-performing candidate steps into a company’s universe—whether for an interview or simply to visit the company website—they will scrutinize it carefully. And the sales team should be ready. 

With these preparatory steps, hiring managers can avoid spinning their wheels and losing time, or worse, attracting costly, poor performers. Sales talent is costly either way, so it’s worth concentrating only on the top-drawer variety.

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close relpost-thumb-wrapper

Connect:

Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

Connect: