Understanding Competency Based Assessments - What Ditch Diggers and Salespeople Have in Common!

Posted by Dave Kurlan on Fri, Jun 24, 2022 @ 13:06 PM

I use a tool called Zapier to create zaps that automate some of the tasks that I do.  Zapier's newsletter had an article on 11 tech tools you need during economic uncertainty or in other words, during a recession. I clicked on the article and the first tool recommendation was written by Linda Scorzo, CEO of Hiring Indicators on the topic of competency based assessment technology. She wrote the following:

"Using competency-based, job-specific assessment technology is an absolute must for anyone looking to up-level their hiring. Getting beyond the interview and into the heart and soul of your candidates can give you a truer gauge of can they do the job and thrive as a member of your team.
With a recession comes an increased need to hire and to protect every dollar by lessening the risk of turnover. Assessment technology...has shown time and time again how you can get in front of the eight-ball and hire qualified and dynamic candidates."

Do you have any idea how many assessments are actually job specific?

The assessments that companies most commonly use are personality and behavioral styles assessments and as such, are not job specific.  Cue Objective Management Group (OMG).  Its assessments are not only specific to sales but also role specific, as in outside roles like account executive, account manager, and channel manager, as well as inside roles like BDR, SDR, and account manager.

OMG's sales assessments measure candidates against 21 Sales Core Competencies (and several additional sales competencies) and compares candidates to the more than 2.2 million other sales candidates that OMG has assessed. This measurement standard is "normative" while personality and behavioral styles assessments tend to be "ipsative."  Ipsative scores provide a comparison within an individual and are NOT recommended to be used for recruitment and selection purposes because they don’t make a comparison between individuals.

Each OMG Sales Core Competency has an average of 8 attributes for a total of approximately 200 sales specific findings, customized to the specific role for which the candidate is being considered.  OMG adjusts the requirements for a positive recommendation based on the difficulty of a specific sales job and role.  Various industries, businesses, sales roles, complexities, sales cycles, price points, territories, markets, audiences and decision makers are not remotely similar so a sales assessment is only useful if those factors are considered in the scoring criteria and subsequent recommendation.

As an example, let's say you were seeking to hire a ditch digger.  While you must identify someone who is strong, can use tools and dig holes, the width and depth of the hole, as well as the difficulty of the digging is more important.  Will this individual dig in sand, screened loom, compacted soil, clay, gravel, or rock?  If an assessment, even one that was specific to ditch-digging, only looked at the tools they had available and their ability to dig in general, it would not necessarily identify someone who could dig monumentally huge holes in soil with large rocks.

It's the same with a sales assessment.  A sales assessment that scored a territory salesperson who takes orders from plant managers for industrial supplies equally with a salesperson who sells multi-million dollar capital equipment to the C Suite of the Fortune 500 enterprises, is of limited value.  When the assessment can be configured to specify the requirements for those two sales roles and distinguish between the candidates applying for those two sales roles, we have perfection.

Let's return to part of the the quote at the beginning of this article where Linda writes, "Getting beyond the interview and into the heart and soul of your candidates can give you a truer gauge of can they do the job and thrive as a member of your team."  You do need a gauge, but the gauge should not be if they can do the job, but whether they will do the job.  OMG effectively distinguishes between can sell (you've met those ghosts - candidates you hired who are no longer with you but they still haunt you!) versus will sell (they are your top performers).  The other part of that quote which needs to be modified is where she says "getting beyond the interview."  You shouldn't be wasting time interviewing those candidates who can sell when you can focus only on those candidates who will sell in the specific role for which they are being considered.  Use the assessment early in the sales recruiting process to identify and disqualify the candidates that are not recommended.

OMG's sales, sales management and sales leadership candidate assessments are legendary for how accurate and predictive they are.  Want to learn more?

Download a sample.

Sign up for a free trial (you must be a CEO, President, VP, GM, HR Director, Sales Leader or Sales Manager)

Start using OMG with Help! (An OMG Expert will contact you to walk you through the customization process and pricing options)

Start using OMG Right Now on Self-Serve (limited customization, limits on quantity, no portal access, no complimentary upgrades)

 

Topics: sales assessment, Dave Kurlan, hiring salespeople, sales test, personality test, zapier

Found! The Caliper vs OMG Comparison: Which Sales Candidate Assessment is More Predictive?

Posted by Dave Kurlan on Tue, Dec 01, 2020 @ 09:12 AM

lost-and-found

When are you most likely to find the item you lost or misplaced?  Immediately after you purchase its replacement, of course! 

I just found an article that I wrote in 2012 but forgot to click the publish button!  Almost nine years in the making, this article compares OMG with Caliper and I did update it so that the information on both assessments is current.

I compared two assessments for the same candidate: one from Objective Management Group (OMG) and one from Caliper.  Not being one to pass up opportunities like this, I conducted another comparison where OMG recommended this person for the role and Caliper did not. 

OMG's assessment is sales specific - built for sales.  Caliper is a personality assessment adapted for sales.  Caliper asks the same questions as in their traditional personality assessment, but modifies the findings based on the personality traits they believe are associated with sales.  Some of Herbert Greenberg's (Caliper founder) earliest research on salespeople appears in my classic white paper, The Science of Salesperson Selection.

It is not unusual for OMG's findings to contradict the findings of even the most reputable of all personality assessments because OMG measures different things than everyone else.  Most of the sales-specific competencies and attributes that OMG measures are not measured by personality assessments, including Caliper.  OMG measures 21 Sales specific Core Competencies that no personality assessment - even Caliper, can touch.

Additionally, personality tests are not able to provide insight into other important areas like:

  • Longevity - likelihood that the candidate will stick to produce 5x ROI,
  • Skill Gaps - the sales-specific skills that have not yet been developed,
  • How the Candidate Thinks about Selling - their specific beliefs that support or sabotage the sales process,
  • Ramp up - whether they will achieve success more quickly than other candidates,
  • Selling Skills - the specific skills they have learned and actually execute to fill their pipeline, close business, manage accounts, and sell to major accounts.
  • Will to Sell - the combination of sales-specific competencies that determine whether the salesperson has the grit to succeed.  This is the difference between can sell versus will sell.
  • Sales DNA - the combination of strengths that support sales process, sales strategy, sales methodology and sales tactics.
A large insurance company recently stopped using Caliper for pre-employment assessments because it failed to differentiate between successful and unsuccessful salespeople.  For comparison, 75% of the candidates that OMG does NOT recommend, but who are hired anyway, fail within 6 months; 92% of the candidates that OMG recommends, who are eventually hired, rise to the top half of their sales forces within 12 months.
 
These are some of the personality traits that Caliper measures and reports on.  How many of them sound sales-specific? How many of them have anything to do with sales success?
 
One could argue that assertiveness, empathy, gregariousness, level-headedness, skepticism, sociability, thoroughness and urgency are useful traits for a salesperson to have - and they are.  The problem is that they don't differentiate strong salespeople from weak salespeople.
 
By contrast, OMG reports on 21 Sales Core Competencies as well as an additional 8 sales competencies not considered to be core.  Each of the competencies have an average of 10 attributes that make it easy to see what is being measured, and what a competency is all about.  Notice the ten tactical selling competencies that are blocked in red below.  I'll share the attributes for two competencies so you can see that the attributes are selling attributes, not personality traits. 
 
 
In a previous article I compared OMG to Extended DiSC and showed the attributes in the Hunting and Qualifying competencies.  This time around, let's look at the attributes from the competencies, Selling Value and Reaching Decision Makers to show how different this is from what a personality assessment like Caliper measures.
.

As you can see, these attributes define and complete each competency.  You may have also noticed that we show the percentage of attributes as well as the weighted score as some attributes are more important to the competency than others. That made a huge difference for this candidate when it came to the Reaching Decision Makers competency where despite having 57% of the attributes, he was missing the most important attribute. When you compare sales-specific competencies that drive sales performance and success, to personality traits that are not specific to sales and which fail to differentiate strong from weak salespeople, it's clear that OMG is both miles and decades ahead of any and all other assessments.

So which assessment - OMG or Caliper - is more predictive?  That answer is so obvious that it doesn't even require me to answer it!

Sales Candidate Assessments are extremely important because they prevent hiring mistakes and remove bias from your hiring process.  However, if you don't choose the right assessment, configure it correctly for each role, use it at the right time in the process, or heed its advice, don't count on any assessment to make a meaningful difference!

Topics: sales assessment, Dave Kurlan, Sales Candidate, omg, caliper, sales assessment test, personality test, pre-employment test

The Difference Between OMG and Extended DISC Assessments

Posted by Dave Kurlan on Wed, Oct 07, 2020 @ 12:10 PM

Legendary guitarist Eddie Van Halen is dead at 65 - ABC News

This is gonna be fun!

In 2005, GM produced four mini-vans known as the Buick Terraza, Chevrolet UplanderPontiac Montana SV6 and Saturn Relay.  These four cars were exactly the same, with the brand logos being the only differentiators.

Today, some Luxury car companies dress up the cars from their primary brands as Toyota is known to do with its Lexuses, Nissan with its Infinities, Honda with its Acuras, and Ford with its Lincolns.  But we all know this. 

What about something you might not know?  With Eddie Van Halen's passing yesterday, I was thinking about great guitarists and that led me to who actually manufactured your well-known Japanese guitar brand?

And then there are the cheap Chinese rip-offs of quality American products.

When it comes to sales assessments, things are also not what they appear to be.  For example, take the FinXS Extended DISC which, at first glance, appears to have much in common with Objective Management Group's (OMG) Salesperson Evaluations and Sales Candidate Assessments.  But are they the same, similar, or is it more like the Chinese rip-off?

Let's take a look under the hoods of both assessments and then you can decide.  We'll begin with a comparison of the two respective dashboards.

 

                                                       FinxS Extended DISC                                                                             Objective Management Group Salesperson Evaluation

While they don't look the same, the FinxS Extended DISC has copied 8 of the 21 Sales Competencies that OMG measures, as well as 5 of the underlying attributes from other competencies.  So on the surface it appears to measure 13 of the competencies that OMG measures.  But does it really?  Let's dig deeper.

DISC assessments have four dimensions, one for each letter in its name.  For those who aren't familiar, they include Dominance, Influence, Steadiness and Compliance.  While there are some variations to the questions and formats of the various DISC tests, what they all have in common is that the questions are asked in a social context.  This particular assessment also asks some questions in the context of selling.  You can see some DISC questions here.

All of OMG's questions are asked in the context of selling; what you do, how you do it, when you do it, what causes you to do it, how you think about it, what you believe, etc. None of the questions are in a social context because people act and behave differently in social settings than they do in business settings.

From 30,000 feet, the first question that must be asked is how in the world does the FinxS Extended DISC arrive at findings like Prospecting, Qualifying, Handling Objections or Sales Process from a DISC assessment with only the four dimensions? 

The quick answer is that they can't!  If you dig deeper into the FinxS Extended DISC report, they actually measure something quite different from what their summary says.

For example, look at this description of the prospecting finding:

See it?  Whether one scores low or high, it's about a mindset, not a sales capability or competency.  So what does FinxS Extended DISC mean when they refer to a prospecting mindset?  Let's dig further!  This is their description of the Hunter mindset.

Huh?  It's instant gratification!  I'm not kidding!  It gets worse.  Let's dig further!  This is their description of what the Prospecting score actually measures:

That's right - it has nothing at all to do with prospecting.  They are lying to you in their dashboard summary! 

For comparison, look at what OMG measures for the Prospecting or, as OMG calls it, the Hunting competency:

 

 

 

 

 

 

 

 

 

It should be obvious that OMG's prospecting competency is all about hunting for new business, right?  So you might be thinking I picked Prospecting because that's the FinxS Extended DISC score that's easiest for me to debunk. Think again.

What if we repeat this process with Qualifying?  This is the Qualifying score in the FinxS Extended DISC:

Whether the salesperson has a high or low score, they are telling you that it's about uncovering whether the prospect is a good fit through questioning and listening.

They are talking about a mindset again - this time it's about finding the truth:

Okay.  So in a social setting, perhaps that's asking a question like, "Where are you?"  "Who are you with?"  "When will you be home?" Is that really the same as Qualifying an opportunity?  And what are they actually measuring?

Once again, what they can actually measure has nothing to do with qualifying a sales opportunity. And the best part is that they are reusing Hunter! Remember? Instant gratification! You can't make this stuff up!

And what does OMG measure and report on for the Qualifying competency?

Does that look like finding the truth?  It looks exactly like what a salesperson must do when qualifying an opportunity.

I can do this for all 18 of their supposed sales scores but all you need to know is this.  As with ALL personality and behavioral assessments passing themselves off as sales assessments so as to compete with OMG, they lie.  They have no ability to measure a sales competency.  You can't report on what you can't measure and personality and behavorial styles assessments simply can't measure sales capabilities. 

The assessment business has much in common with both the Chinese rip-off model as well as the Japanese guitar manufacturing model.  The FinxS Extended DISC is like the Chinese rip-off because it appears to be measuring the same things, but upon closer inspection it measures little of what it purports to measure.  Other assessments fall under the Japanese model. For example, 16PF is an assessment that most people haven't heard of yet they produce more assessments than anyone else, but under different brand names!  Consultants can design an assessment and use the underlying 16PF, choose which of their findings to include, and then call those findings whatever they choose!  The lie!

If you want to evaluate your sales force and learn why they aren't performing as well as you need them to, or assess your sales candidates to identify those who will succeed in your business, stop messing around with imposters and get the real deal.  Objective Management Group (OMG) has been named the Top Sales Assessment in the world for nine straight years.  It's hard to argue with that. It's even harder to argue with the science.  It's the only sales assessment that has been validated using predictive validity.  That means that OMG's findings have been correlated to on the job performance.  Try doing that with a personality or behavioral styles assessment!

Knowledge is power.  Now you have the knowledge to choose the proper tool to evaluate your current sales team for development purposes, and to assess sales candidates for selection purposes.

Topics: Dave Kurlan, assessment, sales evaluation, improving your sales team, personality test, DISC, sales selelction

Top 10 Reasons Not to Test Your Sales Candidates

Posted by Dave Kurlan on Mon, Oct 05, 2020 @ 06:10 AM

testing

Testing.  Testing 1234.  Testing.  Check, check, check. How do I sound?  Testing 12345.  

Anyone who has conducted or listened to a sound check should be familiar with those words.  More testing = better audio.

If you're feeling ill, get tested.  That was the mantra for COVID-19.  But lots of people were getting tested.  In the USA, 345 out of every 1,000 people had been tested as of the end of September 2020.  

Those aren't the only two examples of testing being an obvious no-brainer.  Doctors test our vital signs - temperature, blood pressure, heart rate, blood and for some, EKG, and prostrate.  More thorough testing = more healthy.

Testing is not only normal, it's expected.

So why in the world is it so difficult to get Sales Leaders and HR professionals to test sales candidates?

We hear everything, including this week's top 10 reasons for not assessing:

  • "I hire using my gut feel"
  • "HR is not comfortable using assessments"
  • "We don't want to be bound by the recommendation"
  • "We don't want to spend the money"
  • "We don't want to change our hiring process" 
  • "We don't want to inconvenience our recruiters"
  • "What if I get a false positive?"
  • "Legal won't go for it".  
  • "Turnover is baked into our process". Consider this internal note from today: "[He] has a potential client who hires 150 reps/week with 300% turnover! Wanted to know how to price that 7,000 hire license. I suggested we take a different approach and determine the real cause of the turnover problem and then look at how many they really need to hire."  Anytime I read that turnover is greater than 100%, that's an example of baked-in turnover.
  • We don't believe in assessments". Consider this email I received today: "Nice to e-meet you.  [He] sings [OMG's] praises, but up front you should know that I have always been somewhat skeptical of Myers Briggs or personality profiling type exercises, so I'm the one you have to convince."  Bad experiences with assessments that weren't designed for sales creates biases.

These excuses are total BS.  Consider the following 4 facts:

  • Average sales turnover is now 34% and in some industries and companies it is much higher.  source
  • The average cost of sales turnover is 1.5 times compensation.  If average sales compensation is $95,000 that's a cost of $142,000.  source.
  • Fewer than 50% of salespeople will hit quota this year.  Do you think that's because of the pandemic?  Think again.  It's been that way for years!  source
  • Average ramp-up time is 5 months.  This varies wildly across industries but here's a formula to calculate what yours should be:  Length of Learning Curve + Length of Sales Cycle + 30 Days to transition.  If you have a six month sales cycle and it takes 3 months before a salesperson can have an intelligent conversation with a prospect, the ramp-up time - the time it takes for business to begin closing - is 10 months!

Let's be conservative and say that for every ten salespeople, the average company turns over 3 per year at $142,000 each.  The $426,000 cost is nothing compared to these other three problems:

  1. The distraction of having to hire 3 more salespeople
  2. The disruption in the territory or vertical,
  3. The lost opportunity of having an under-performer representing you.

Consider 8 more facts:

  1. Companies that use Objective Management Group's (OMG) sales candidate assessments have average turnover rates of just 8%.  That's 425% better than average.
  2. Companies that use Objective Management Group's sales candidate assessments have quota attainment of 88%.  That's 205% better than average.
  3. When companies hire salespeople that were not recommended by OMG, 75% of them fail within 6 months.
  4. When companies hire (after doing their due diligence) salespeople that were recommended 92% rise to the top half of the company's sales force
  5. OMG has been voted the Top Sales Assessment Tool in the World for 9 consecutive years
  6. OMG is customizable, incredibly accurate and predictive of sales success right down to the sales role for which you are hiring
  7. OMG has assessed 2,306,313 salespeople in - companies.
  8. OMG lowers recruiting costs and saves time - it's not expensive.  Depending on the number of hires and the size of the candidate pool, assessments could cost as little as $8 each!

You would think that these 8 facts would thoroughly and completely rule over the top 10 reasons for not assessing. But every minute of the day, seven days a week they don't.  People are stubborn. They don't know what they don't know while believing that they know everything.

This is my call to action.   Grab a sampleTry it for freeRegister to begin using OMG's Sales Candidate Assessments.

Image Copyright 123RF

Topics: Dave Kurlan, sales hiring, sales recruiting, HR, hiring, recruiting, assessment, omg, sales test, personality test

How the Correlation Between Restaurants and Covid 19 Applies to Sales Assessments

Posted by Dave Kurlan on Thu, Sep 17, 2020 @ 06:09 AM

wearing masks

Do you hate meetings as much as I do?

They're the worst.  But I have one weekly meeting that's always uplifting and productive.

I'm talking about my weekly meeting with John Pattison, COO of Objective Management Group (OMG). He happened to mention a report released by the Centers for Disease Control (CDC) pointing to the correlation between people who recently dined at a restaurant and later tested positive for Covid-19.  Of course the media was doing its best to spread misinformation as the article titles below suggest:

The report actually included facts they didn't share in their titles, like:

  • It was not known whether they dined inside or outside
  • It did not say that they contracted Covid-19 at the restaurant or because they ate at a restaurant

restaurants

John pointed out that this is a clear case of correlation, but not causation.  In other words, there is no proof that eating at restaurants caused anyone to contract the virus.  He said there could be many reasons why people eating at restaurants also have higher rates of infection.  For example, people who don’t like to wear masks might be more likely to eat at restaurants.  Assuming that is true, the cause is more likely to be a lack of mask wearing, not eating in the restaurant.  

But does it really matter whether this is causation?  Is there that big of a difference?  Is correlation enough?  It depends on what you are trying to show.  Let's take sales assessments for example.

All assessments produce a number of findings and scores, most in the context of personality or behavioral styles.  When used to assess salespeople, they can make a case that there is a correlation between a finding like drive, and sales success.  Correlation, not causation.   Why?  because drive does not cause sales success.  There are lots of people with drive who were epic failures at selling!

Personality and behavioral styles assessments are not sales specific, even when their publishers refer to them as sales assessments.  They were not built to measure sales competencies, but instead attempt to correlate personality and behavioral findings to sales.  None of the assessments in this category are sales specific, they don't measure actual sales competencies, and there is no causation. The information they provide is simply nice to know, but unfortunately, not predictive of sales success.  

OMG's sales assessment was built for sales, is used only for sales, measures all 21 Sales Core Competencies, has 280 sales-specific findings and is extremely predictive of sales success.  For an assessment to have predictive validity though, its findings must correlate to on the job performance.  There's that correlation word again.  Since there only needs to be correlation, does that mean that causation isn't important?  Causation is not required, but it is vitally important.  

For example, one of the differences between sales producers and sales imposters is the difference between whether they can sell versus whether they will sell.  Can vs. Will. Who needs another salesperson whose best sales call is the one where they convince you to hire them?  You want salespeople who will find and close new business.  There is causation between Will to Sell and sales success.

Of course there are other examples.  A candidate who scores high in OMG's Consultative Seller competency and Value Seller competency will perform successfully in a complex sales environment.  There is causation. 

A candidate who scores high in the Hunter competency will succeed in a cold-calling sales environment.  Causation.

Here's another way of looking at correlation and causation.  Someone who scores well in a personality assessment will generally do quite well at developing, building and maintaining relationships.  It's a one-way correlation.  Why?  Because someone who is good at developing, building and maintaining relationships is not necessarily a good salesperson.  There is no causation.

Back to my meeting with John.  While we were meeting, Guy Kawasaki's twitter post appeared.

The OMG Sales Candidate Assessment is a really great cake but John and I agreed that despite a visual dashboard that tells the story of the candidate and effectively illustrates the scores for all 21 Sales Core Competencies, it has dog poop for frosting compared to the look we believe we can create.  We agreed to reimagine the dashboard and how we visually show each of the 21 Sales Core Competencies throughout the report so that we have the sweetest, most beautiful looking frosting ever spread on an assessment.  Stay tuned for an all-new look to the OMG Sales Candidate Assessment coming in early 2021.  In the meantime, it would be malpractice to hire salespeople without taking advantage of the most accurate and predictive sales candidate assessment on the planet.

Images copyright 123RF and 123 RF

Topics: Dave Kurlan, recruiting salespeople, Sales Candidate, hiring salespeople, Correlation, personality assessments, personality test, coronavirus, covid-19, causation

One Thing Your Company Must Do Right Now to Increase Sales

Posted by Dave Kurlan on Wed, May 13, 2020 @ 12:05 PM

cherry-picking

Most in the cherry-picking news media are continuing to pound us with bad stuff: record unemployment, 80,000 dead, lockdowns into August, 30 trillion in debt, economy will be slow to recover, you'll be jailed if you open your business too soon, schools to remain closed in September, people will die, etc.  But there is good stuff going on that they aren't talking about because, for the most part, the media doesn't care about sharing the good stuff.  It's bad for ratings.   

For example, since the 30 million who temporarily lost their jobs are receiving unemployment at more than 100% of what they were earning before, they aren't facing the hardship the media would lead you to believe and the money is there for a reboot when it comes.  But the really good news is for companies that are able to hire salespeople.  Consider this!

Do you have cash on hand?  Do you have access to cash?  Money is almost free right now so don't discount traditional borrowing!  If you can invest some money, now is definitely the time to hire salespeople.  Whether you want to expand your geographical coverage, the verticals you call on, the audience you sell to, the products you offer, want more saturation in your existing space, or want to upgrade the quality and performance of your existing sales force, THERE WILL NEVER BE A BETTER TIME TO HIRE SALESPEOPLE.  EVER.

Consider the following statistics from Objective Management Group (OMG), who have assessed 1,972,665 salespeople.HIRING-PANDEMIC

You are looking at historical shifts in statistics!

If you can find a way to spend the money now (cost of tools and 3-months salary), and you use OMG'S predictive sales candidate assessment, you will see some incredible swings:

Your sales candidate pool will increase in size by 600.  Yes.  They are out there!

The number of sales candidates completing their sales candidate assessments will increase by 958% because it is an employer's market.  Just three months ago it was a candidate's market.

The overall assessment recommendation rate will decrease by 45% because there are a lot of crappy salespeople out there right now. Also, you will be able to raise the bar on the minimum requirements for a recommendation because there are a lot of good salespeople out there too.

Because of all the available sales talent right now, you will be able to identify and hire your salespeople 450% more quickly.

While the fixed cost for a sales candidate assessment license remains the same, the relative cost per assessment decreases by 958% and your annual compensation drops by 11% due to supply and demand.

Even if the market you sell to is sluggish right now, that won't be the case by the end of the summer.  Don't wait until then to hire!  Everything will shift again by Labor Day.  Both supply and quality of available sales talent will decrease as demand increases, the time to hire will increase, and the time to onboard your new salespeople will take longer as well.  DO. THIS. NOW.

Your current and new salespeople will face unprecedented challenges in the form of delayed closings, resistance to being sold anything at all, and resistance to spending more money than anyone has to.  This resistance will come in the form of stalls, put-offs, objections, excuses and sob stories.  Your current and new salespeople must have the skills to differentiate, take a consultative approach and sell value if you are to have any chance of maintaining your margins.  If your salespeople move forward armed with only the limited skills they had prior to the pandemic, your win rate and margins will be crushed.  YOU MUST EVALUATE YOUR EXISTING SALES FORCE, DETERMINE HOW BIG THE SKILLS GAPS ARE, AND PROVIDE THIS CRUCIAL SKILLS TRAINING NOW.  If you wait, you will find yourself fighting to survive from the back of the pack.

Image copyright 123RF

Topics: sales assessment, Dave Kurlan, grow sales, recruiting salespeople, hiring salespeople, sales test, personality test, recovery

Applicant Tracking and Sales Candidate Assessments Fit Like Ducks Take to Water

Posted by Dave Kurlan on Mon, Nov 21, 2016 @ 06:11 AM

duck.jpeg

I was reviewing this page which shows the market share for most of the known applicant tracking systems.  I was impressed with the analysis and with how much of the market share is held by Taleo.  I was also disappointed that there isn't a comprarable study available on sales candidate assessments.  But that's a rant for another day.  Back to the Applicant Tracking analysis.  My first takeaway is that it validated what I knew only anecdotally -that just about every mid-market and large company are using cloud-based applicant tracking systems and smaller companies are quickly moving in that direction too.  It makes sense. If companies are using cloud-based job sites to source candidates, then it only makes sense that they would be integrating applicant tracking as well.

My second takeaway is that with all of these companies sourcing from the cloud and tracking from the cloud, why aren't more of them using the best sales candidate assessment in the cloud?  I have 4 possible answers to that question:

(1) Legal groups in some companies warn against using an assessment for selection puproses.  In an effort to protect their company and its CEO from legal action, they fail to recognize that role-specific assessments do not present any vulnerabilities.  While personality assessments present a legal risk when used for selection, role-specific assessments, like Objective Management Group's (OMG) Sales Candidate Assessments, do not present a risk because they assess to determine whether the candidate has the necessary skills for that specific role.  You can't say that about personality assessmenta.

(2) Some Sales Leaders don't utilize sales candidate assessments because they believe their own instincts and experience will outperform an assessment.  And Sales Leaders do get selection right - about half of the time.  Unfortunately, getting it right doesn't mean that they didn't have turnover. Getting it right should mean that the new salespeople met or exceeded quota.  Using that criteria, 50% right would be a generous number. Ironically, sales leaders could get selection right close to 90% of the time if they used OMG's accurate and predictive Sales Candidate Assessments.

(3) Some HR Leaders won't use sales candidate assessments because they have a sense of familiarity with some of the popular personality and behavioral styles assessments.  Ironically, they don't need to stop using those assessments as they do provide some nice information about candidates.  However, those assessments weren't built for or intended for sales and they aren't predictive of sales performance.  Using a predictive sales candidate assessment along side of a familiar personality or behavioral styles assessment will vastly improve sales selection accuracy.

(4) Some CEO's don't use any assessments because they don't belive in them!  I can understand that.  If their only experience with assessments was with a "lighter" assessment - like one of the many versions of the popular DISC behavioral styles assessment, it makes sense that they don't believe that one of those will help improve selection.  But they need to look beyond what they themselves are comfortable with and have experience with and trust their HR and Sales Leaders and do what's best for their company, not what's best for themselves.

Why should a company use applicant tracking and sales candidate assessments to improve their sales selection consistency?  To avoid the cost of a hiring mistake.  For sales hiring mistakes, estimates run from between $100,000 to over $1,000,000. Of course it depends on the role, salary, length of the sales cycle, recruiting, training and development costs, and whether or not a company includes lost opportunities in its calculations.  If you don't know how much a sales hiring mistake costs at your company, you can use this free sales hiring mistake calculatorto figure it out.

Our statistics show that just one hiring mistake will cost between 20 and 50 times the investment you made in a predictive sales assessment.  

For example, let's say that you were going to hire one salesperson.  If you get selection right half of the time, you'll actually hire 2 salespeople to get the 1 that performs.  Your cost to use the assessment was no more than $2,500 and your cost to recruit, hire, train, develop and compensate the salesperson who failed was $65,000 for six months - 26 times the cost of the assessment.

Let's try it with 10 salespeople.  Let's say that you are better than average and only 3 of the 10 didn't make it.  You paid no more than $10,000 to use the assessment and your hard costs for the 3 salespeople who failed totaled $195,000 - 20 times the cost of the assessment.

There really aren't any good reasons to avoid using a proven, accurate, customizable, predictive sales candidate assessment.  What's holding you back?

Topics: Dave Kurlan, sales candidates, sales assessements, hiring mistake, sales selection, personality test

Top 5 Keys to Select and Hire Great Salespeople in 2015

Posted by Dave Kurlan on Mon, Dec 08, 2014 @ 06:12 AM

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Copyright: swingvoodoo / 123RF Stock Photo

I'm always amused when an email comes through with a message that says something like, "Maybe we should target candidates that aren't recommended" or "Why do so many candidates lack Commitment?" or "Your assessments are only recommending 1 out of every 5 candidates!" or "The questions don't fit the role!" or "Thanks for saving us so much time - we would have hired some of these losers last year!"

I can usually determine, just from the comment of the email, exactly who, by title, must have sent it to us.  Here are some funny examples:

If it's a comment about how few candidates are being recommended, then the message is probably from an internal or external recruiter. 

All but the savviest of recruiters hate Objective Management Group (OMG) because we make their jobs more difficult.  Their job is to find great sales or sales management candidates and OMG only recommends those who are most likely to succeed in the role so, from their perspective, we are "knocking out" too many of their "awesome" candidates.  We do help them succeed at their jobs, but they must deliver more candidates than before to achieve that success.

A comment about how much time we have saved them is usually from the HR Director or VP.  Those Individuals easily recognize how good the recommended candidates are and really appreciate how much time they saved by not having to engage with undesirable candidates.  We make their jobs much easier!

When we read a comment about the assessment questions not fitting a sales role, the email is definitely from a candidate that is either a fish out of water, very inexperienced, or very misguided about professional selling.  Good salespeople never have a problem with fit or context.

Sarcastic comments, like the one above about targeting 'not recommended' candidates, usually come from frustrated CEOs that haven't met with enough good candidates.  Of course, it's easy to place the blame on OMG for quality of candidates because, well, who are they going to blame, their own people?  The quality of the candidates is directly related to the effectiveness of their job posting, where they placed their ads, and how well those postings are working.  OMG assessment recommendations essentially become the feedback on the quality of their sales candidate pool.

Testimonials often come from Sales VPs or Directors that have begun to hire great salespeople.  They recognize how good the candidates have been, they have made their first hires, and the new salepeople that OMG recommended have gotten off to great starts.

Depending on their roles and whether or not achieving their goals has become easier or more difficult, everyone has a different context and perspective of the exact same instrument.

As of this writing, there are some indisputable conditions that everyone must contend with:

  • There is a shortage of good candidates, but they do exist.
  • The more difficult the role and the more capable and expert the salesperson must be, the harder it will be to find "the one".
  • It is taking between 60-90 days to complete the hiring process.
  • The best job sites depend on a combination of geography and the desired capabilities of the salespeople you are hoping to hire.
    • The best candidate, who I personally interviewed in the past 30 days, was sourced from Craigslist.
    • The best overall candidates for a specific geography, that I interviewed in the past 90 days, were sourced from Indeed.
    • The best overall candidates for a non-specific geography, that I interviewed in the past 90 days, were from LinkedIn.
    • The best overall value for sourcing candidates was from ZipRecruiter.
  • You may conduct 5-minute phone interviews with ONLY the candidates that were recommended for the role by the OMG Assessment.
  • You may interview only the best of those candidates from the phone interviews.

Managing your own expectations is key to making this process work.  You must exercise:

  • Patience.  You may have to repeat the process several times to find who you are looking for.
  • No Compromises. If you compromise, you'll be starting all over again in 6 months.
  • Discipline.  Never consider a candidate that is not recommended by the OMG Sales Candidate Assessment regardless of fit.  
  • No Exceptions.  Exceptions compromise the integrity of the sales recruiting process.
  • Speed. Once you have identified a desirable candidate, act swiftly or you will lose that candidate!  I interviewed a great candidate at 2PM on Thursday and recommended him to my client at 3 PM.  At 5:45 PM I received a call and learned that my client had already contacted, met with, interviewed the candidate, and presented a job offer that the candidate accepted.

Finding, selecting, hiring and onboarding great salespeople is more difficult than at any time in the past 20 years.  The only thing that will make it easier is something for which you absolutely won't want to be wishing - a huge economic downturn.  As long as the economy is growing and things are going relatively well, we can deal with it being more difficult to hire.  After all, what good is a glut of candidates if you can't afford to hire them?

Finally, don't forget about EEOC Guidelines.  if you are using OMG's Sales Candidate Assessments, current guidelines require you to assess all of your candidates.  Clients simply purchase a flat-fee license for unlimited use and send the link to every candidate that submits a resume.  Easy!  You're EEOC compliant.

Sales Candidate Assessment Free Trial

Want to hear more?  Listen to this BizTalkRadio interview of me talking about getting sales selection right.

Topics: sales assessment, Dave Kurlan, sales recruiting, Sales Candidate, hiring salespeople, sales test, personality test, interviewing salespeople

Keys to Improved Sales Performance - Part 2 of 4

Posted by Dave Kurlan on Wed, Sep 03, 2014 @ 07:09 AM

sales potential

This is the second in a four-part series that will run this week.

See Part 1 here. This is Part 2.

If you are like most folks, you were away for at least part of the summer, took as many long weekends as you could, and worked fewer hours on the days you actually did work.  As part of getting the work done, you deleted as many emails as you could where a reply wasn't required and visited fewer websites and blogs.

That means you missed a lot of what we were discussing this summer.  This series will catch you up in a hurry.

Four days, four categories, with related articles.  Easy.

The Sales Recruiting and Selection Articles

Sales Selection and Recruiting remain a crucial function in improving sales performance.  After all, don't most of the sales performance problems just go away when you get hiring right?  And if that's true, why are so many leaders and companies so resistant and cautious about employing time-tested and proven best practices to improve in this area?  Read on for more...

Top 10 Reasons Why Your Great New Salesperson Might Fail 

Top 10 Sales Recruiting Lessons to Hire Great Salespeople 

What Percentage of Sales Candidates Are Hired? 

Look for Potential in the Next Generation of Sales Hires 

As Good as Your Last Successful Hire - 10 Tips for Consistency 

Share your opinions and let us know what you think about the challenges of recruiting and selection, the shortage of candidates, and the importance of getting it right.

 

Image Copyright: iqoncept / 123RF Stock Photo

Topics: sales assessment, Dave Kurlan, sales hiring, sales recruiting, Sales Candidate, sales test, personality test

What Percentage of Sales Candidates Are Hired?

Posted by Dave Kurlan on Sun, Jul 20, 2014 @ 21:07 PM

sales selection

 

Do you know what percentage of sales candidates eventually get hired?  I posed that very question to Google search and none of the results, that appeared on the first page, answered my question.  Two results pointed to my article from earlier in 2014 that answered the question, "How Many Sales Candidates are Worthy of Being Hired?"

That article addressed several classifications and roles and revealed that, on average, 28% of all sales, sales management and sales leadership candidates assessed were recommended using Objective Management Group's (OMG) assessment.  

 

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It's not quite as simple to figure out how many were actually hired, but we have our ways.  I'll spare you our steps and calculations, but when all was said and done, the data showed that 6% of all candidates assessed were hired.

What Does 6% Mean for You?

In very simple terms, 6% means that 20 candidates must be assessed for each one who is hired.  With an overall recommendation rate of 28%, those 20 assessments will yield approximately 6 candidates who are worthy of your time.  But there is much more to consider.

In order for 20 candidates to take the assessment, you'll probably need 40 to submit their resumes and at least 30 of them to complete an online application.  

We instruct our clients to run a 5-step process where the first 2 steps are to follow a link to an online application, and after completing that, follow another link to the online sales assessment.  The most casual of the applicants will drop out at the online application.  Too much work.  If they can submit a resume and get an interview, they'll take it, but any more effort than that and they'll remain with the company for which they are currently working.  The least qualified will drop out at the online assessment.  Too role-specific.  When they begin to complete the assessment and have difficulty answering all sales-specific questions, they quit, knowing they aren't qualified.

What if You Don't Get 40 Resumes Per Role?

If your flow of resumes is poor, you are probably doing several things wrong.  It's likely a combination of things including, but not limited to your ad title, the ad itself, the compensation, the geography, too much information, the wrong information, who you are targeting, where you are targeting them, etc.  The assessment is only as good as the pool of candidates you find and attract.  That's why a lot of recruiters become frustrated with OMG.  

Why Do Recruiters Get So Frustrated When Their Clients Use OMG?

Recruiters don't want to work any harder than they need to and when an OMG Candidate Assessment is involved, they quickly learn that, of the candidates they send to their clients, the majority (72%) are not recommended.  Recruiting is a lot like real estate sales.  Recruiters tend to send candidates who have curb appeal and a relevant resume, as opposed to candidates who have the required skills and competencies, but might be a harder sell because they lack curb appeal or their resume doesn't scream "hire me!"  The OMG Candidate Assessment differentiates between those candidates quite well, and its accuracy and predictive qualities are legendary.

Sales Candidate Assessment Free Trial

What is the Most Effective Way of Using the Assessment?

The assessment is most effective when used very early in the process - as a first or second step prior to reviewing a resume or speaking with a candidate by phone.  Years ago, I observed that most employers used assessments incorrectly.  They were using personality and behavioral styles tests which are not in any way, shape or form predictive of sales success, and they were not being utilized until after they had narrowed the field down to the final 5 candidates.  Unfortunately for them, the 5 they identified were usually not the best 5 to consider.

Used early in the process, companies eliminate the candidates who won't succeed, don't waste time talking with them, and can invest all of their time speaking with and interviewing the strongest sales candidates.  Best of all, those top candidates are identified using a customized, scientific and objective analysis, not one based on resumes and industry experience.  As a bonus, companies who assess all of their candidates are EEOC Compliant, while companies who cherry-pick to assess are being discriminatory.

Isn't it Expensive to Use That Many Assessments?

Several years ago, OMG moved to a subscription model that offered unlimited assessments, providing employers with a financial incentive to use the assessments correctly and efficiently at the beginning of the process.  Subscriptions control costs, get the actual per assessment price to a ridiculously low number, and allow companies to assess every candidate.

Companies, who use OMG for sales selection, enjoy incredible consistencies, reduce their turnover, improve their on-boarding time, and significantly increase their success rate.  That could be you...

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Topics: Dave Kurlan, sales hiring, sales candidates, sales selection, sales assessments, sales test, personality test

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Best-Selling Author, Keynote Speaker and Sales Thought Leader,  Dave Kurlan's Understanding the Sales Force Blog earned awards for the Top Sales & Marketing Blog for eleven consecutive years and of the more than 2,000 articles Dave has published, many of the articles have also earned awards.

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