Is 28 Years Long Enough for a Sales Assessment Trial ?

Posted by Dave Kurlan on Mon, Sep 19, 2022 @ 07:09 AM

long-time

The Sony PlayStation, Gorilla Glue, Aquafina, and The George Forman Grill were all introduced in 1994.  You've heard of those but have you heard of Vamp Nail Polish or KoronaPay?  They were also introduced in 1994.

Objective Management Group's Sales Candidate Assessment was also introduced in 1994 and while 35,000 or so companies are raving fans, that represents less than 1% of the potential B2B market.  As successful as OMG is, and as legendary as our sales candidate assessment is, the reality is that relative to the potential size of the market, hardly anyone uses it.

Isn't 28 years long enough for us to prove ourselves?  

Clearly OMG is not for everyone. Companies that sell at the lowest price, companies that are the brand leaders, and companies that have a transactional sale don't need to hire good salespeople because their salespeople are order-takers.  But what about everyone else?

After consistently proving its legendary predictive accuracy making it a no-brainer to use OMG, there are five possible reasons why companies didn't use OMG  to assess their sales candidates over the past 28 years:

  1. They perceive OMG to be an inferior assessment.  I have never heard anyone say that and none of our partners have ever heard anyone say that but maybe some people feel this way and keep their thoughts to themselves.  In this day and age?  Are you kidding me?

    Based on all of the awards OMG has earned, its raving fans, and strong renewal rate, I don't believe this is ever the reason.

  2. Sales Leaders and sometimes even HR Directors, believe their gut instinct, experience, skills and expertise can out-perform OMG.  While the science disproves this, it is a common reason as to why companies don't use OMG to hire salespeople.  Even worse, some Sales Leaders feel that if they have to rely on a tool to hire salespeople it will make them appear weak.  It's an ego problem. 

    One Sales Leader had turned over 50% of his sales team and the other 50% were underperforming.  He had failed to hit forecast for 4 consecutive quarters but instead of blaming it on sales selection and/or training and coaching, he was blaming the company's pricing model and didn't believe salespeople could succeed with the current pricing.  While the right salespeople would perform fine with their pricing model, he didn't know how to identify the right salespeople and wasn't willing to spend money on an assessment that would effectively do that.

  3. "Legal" doesn't allow for the use of assessments.  Legal as a reason (LaaR) only occurs in large companies, and because the market is flooded with personality assessments that are not role specific or predictive.  Disgruntled candidates, who are not selected, could potentially blame their failure to land a job on a personality assessment, leaving companies potentially vulnerable to a law suit.  On the other hand, a role-specific assessment, like OMG, creates no such liability for a company so this line of thinking is very difficult to understand.  It's worth noting that Legal doesn't even get involved until either the CEO, HR Director and/or Sales Leader decides to utilize OMG. 

    One company was having trouble hiring 300 salespeople.  They had already hired 500 salespeople but 350 had quickly turned over and only 150 were actually selling for them.  They had a huge problem getting sales selection right so they gave OMG the verbal go-ahead but Legal put the kibosh on it.  The ill-conceived fear of a law suit outweighed the fact that their revenue generating car had its gears in reverse.  I think the weak CEO should have been fired for allowing legal to override his decision-making.

  4. HR is married to another assessment and feels it would be too difficult to learn a new assessment.  As Dave Mantel pointed out, HR is measured on their cost per hire and time to hire; not on sales performance. Unfortunately, these HR professionals believe selecting the most accurate and predictive sales assessment is not as important as their level of comfort, even if it will make their job easier.

    Why use a personality assessment to determine if they have the sales capabilities required to succeed in a particular sales role at the company?  As Aaron Prickel of Lushin & Associates put it, "You wouldn't give your son a pregnancy test to determine if he's using drugs!"   

  5. A Sales Candidate Assessment is not in the budget.  So?

    One company was paying their two worst salespeople a $60,000 base salary and those two salespeople were at 50% of quota.  In addition to the $120,000 the company was throwing out the window on two losers, they were failing to generate $1 million in revenue!  They needed to hire salespeople this year and only had to spend $7,500 with OMG to hire 6 ideal salespeople.  Somehow, they didn't have $7,500 to spend, but were OK throwing $120,000 out the window and accepting a $1 million short-fall.  Math does not seem to be a strong suit at this company.

Circling back to how the article began, isn't 28 years of helping companies improve their sales selection effectiveness a long enough trial to prove to the masses that OMG is a game changer for sales?  Consider these statistics:

Do you see it?  44% more salespeople achieve quota at companies that use OMG compared to companies that use another assessment, and 80% better than companies that don't use an assessment.  And sales attrition is 75% lower at companies that use OMG compared with companies that use another assessment and 237% lower than companies that don't use an assessment.  So much for gut instinct, experience, expertise and skills.

And this?  When a company hires a sales candidate that OMG doesn't recommend, 75% of those salespeople fail within 90 days.  When a company hires a sales candidate that OMG does recommend, 92% of those salespeople rise to the top half of their sales teams within 12 months.  So much for legal, ego, budgets, and comfort level.

There are 21 Sales Core Competencies, each with an average of 8 attributes, and OMG measures every single one of them.  Depending on the role, some attributes and competencies are more important than others.

Put science to work and rely on it to hire your next group of salespeople.

Request a sample Sales Candidate Assessment.  
Download free White Paper on Sales Selection.   
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Let us know you want to Get Started. 

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Topics: Dave Kurlan, sales recruiting, hiring salespeople, Personality Tests, sales hiring test, sales assessments, OMG Assessment

Top 10 Sales Videos and Rants From Dave Kurlan

Posted by Dave Kurlan on Mon, Mar 21, 2022 @ 07:03 AM

video

From time to time I record impromptu unscripted rants as well as some that are more well thought-out videos.  From among the collection presented below, most are rants so the rants are much more popular.  The most-watched (I have added to the list so there are more than 10 now!) videos are shown below in order of popularity and while I like all of them, I indicated my personal favorites with an asterisk.  All but three of the videos are three-minutes or less, one is six-minutes, one is ten-minutes and one is eight-minutes.  Topics include:

1. Revenue Sensitivity - a rant on the lack of correlation between top salespeople and revenue

2. On Sales Process and Methodology - the difference between popular sales processes and methodologies

3. Why Your Prospects Won't Talk with You and What to Do About it - a rant

4. On Attracting Salespeople When Recruiting - a rant on the Two Keys to Attracting More of the Right Sales Candidates

5. Transactional versus Consultative Selling - a rant

6. Why Forecasts are Always So Inaccurate - a rant on why it's not the forecast!

7. Dinger's Listening Skills - how my Dog's Listening Skills are better than those of most salespeople

8. Protect Your References - a rant on why you shouldn't give out references unless it's the perfect time

9. Why People Should Consider a Career in Sales

10. On Cold Calls - a Rant

11. Nothing has Changed in 35 Years - a Rant

12. On Not Getting Distracted

13. How to Shorten and Speed Up the Sales Process

14. Why Sales Training Doesn't Work

15. The Importance of Momentum in Sales

16. Momentum Part 2 - The Importance of Discipline and Consistency and Why You Need Both

17. Don't Make This Critical Mistake as We Move Forward into the Recession

18. Sales and the Importance of Having a Quality Conversation

1.  On Revenue Sensitivity *

2. On Sales Processes and Methodologies

 

3. Why Your Prospects Won't Talk with You and What to Do About it

 

4.  On Attracting Salespeople When Recruiting

 

5. Transactional Versus Consultative Sales

 

6. Why Forecasts are Always So Inaccurate

 

7. Dinger's Listening Skills *

 

8. Protect Your References

 

9. Why People Should Consider a Career in Sales *

 

10. On Cold Calls

 

 

11. On How Nothing Has Changed in 35 Years.

12. On Not Getting Distracted

 

13. On How to Shorten and Speed Up the Sales Process

14. On Why Sales Training Doesn't Work

15. On The Importance of Momentum in Sales

16. Momentum Part 2: The Difference Between Discipline and Consistency - You'll Need Both!

 

17. Don't Make This Mistake as We Move Forward Into the Recession

18. Sales and the Importance of Having a Quality Conversation

Image copyright 123RF

Topics: Dave Kurlan, sales process, sales methodology, sales recruiting, top salespeople, tips on selling, listening skills, sales forecasts, best sales video, career in sales

Sales Selection Tools: Do You Get What You Pay For?

Posted by Dave Kurlan on Thu, Dec 09, 2021 @ 09:12 AM

fraud

Perhaps you've heard the advertisement while listening to a SiriusXM radio station.  It's for Home Title Lock.  They scare you by mentioning that some bad people can commit fraud by going online, claiming your home's title, taking ownership of your home, and borrowing against your home's equity without you knowing it.  Home Title Lock prevents this from happening.  Maybe.  I don't know enough to say whether this fraud actually happens and whether their service works.  But I do know this.  I've been trying to cancel my business internet with Verizon for two months and I can't prove to them that it's my account.  If the legitimate account holder, with credentials (account numbers, invoices, names and address), is unable to cancel my own business internet account, how can someone casually take over your title and suddenly own your home?  It doesn't make sense to me!

Here's another thing that doesn't make sense. 

If you have used Indeed to hire salespeople, they will offer to have your candidates take a free sales assessment.  Doesn't that sound great?  It is great if the assessment is helpful but it happens to be a useless piece of crap.  Why would anyone think, for even a moment, that there is any value in their lame, assessment-in-name-only test?

In this article we'll explore how Indeed's sales assessment compares to the gold standard in sales candidate assessments from Objective Management Group (OMG).

Indeed offers several conclusions about each candidate:

  • Expert
  • Highly Proficient
  • Proficient
  • Familiar
  • Completed

By comparison, OMG offers three recommendations:

  • Recommended
  • Worthy of Consideration
  • Not Recommended

Indeed measures what candidates know about selling but doesn't tell us what it is that they actually know!  Indeed measures their general knowledge of selling.  

This statement by Indeed is very telling:  "Indeed makes no statement as to the skill level of a candidate."

So they administer a sales skills assessment, provide one of five scoring ranges, but don't back it up:  

 

OMG measures a candidate's capabilities in 21 Sales Core Competencies, each consisting of 6-12 attributes, and then calculates whether they have the necessary attributes and competencies required to succeed in the selling role for which they are being considered, in that company's marketplace(s), against their competition, at their price point and with the challenges which their company and salespeople face. OMG factors in the difficulty of the sales role and measures how closely the candidate's capabilities fit that sales role. This is OMG's dashboard, which is followed by around twenty pages of scoring and details about the attributes from each competency.  You might notice that under the recommendation, this company used OMG's multi-role assessment where candidates are  evaluated for fit to multiple selling roles at the company.  This candidate was recommended for an Account Executive role and a Specialty role, but only worthy of consideration for a Senior Account Executive role which is more difficult than the other two roles:

Do you see the subtle difference between the two assessments?  You get what you pay for which, in Indeed's case, is nothing.

If you aren't using the Gold Standard in sales candidate assessments, why are you attempting to outsmart the world's most accurate and predictive sales selection tool

Image copyright 123RF

Topics: sales assessment, Dave Kurlan, sales hiring, sales recruiting, sales selection, sales test, indeed

Can You Find The Perfect Sales Candidates for Your Sales Team?

Posted by Dave Kurlan on Wed, Dec 01, 2021 @ 12:12 PM

recruiting

Have you tried recruiting salespeople lately?

It's a lot like it was in 2019, pre-pandemic, only different.

From time to time, I help clients recruit for key roles.  Unlike recruiters, I don't work on a contingency because I take responsibility for the entire recruiting process from soup to nuts and then the client makes the decisions on who to hire.  They pay a fee for services.  I specify the requirements, write the job postings, attract and source candidates, take the initial application, get them through Objective Management Group's (OMG) accurate and predictive candidate assessments, review resumes, conduct the first interview and then recommend candidates who are perfect fits for the roles.

With that for context, consider these two contradicting projects.   I am helping one company find a single needle-in-a-haystack sales leadership candidate and it has taken nearly six months.  I am helping another company find 3 sales leaders and received 3,765 applications.  What's the difference?

For the answer to be meaningful, we have to look at the entire job market, not just sales candidates.

According to this Reuters article, while the number of new US jobs ticked upwards in October, the US labor force has four million fewer workers than in 2019.  That could explain both the shortage of candidates and the skewed unemployment numbers.  [Update - US jobs report from November shows sharp decline in new jobs created.]

Yet, according to this article in TheBalance, there are still 7.4 million workers in the US who are unemployed.  7.4 unemployed plus 4 million fewer workers means that 11.4 million workers are at home despite there being reports of 10 million available jobs!

And according to this post from Statistica.com, the unemployment rate in the US has dropped by only 2.3% in the past 12 months.

The Wall St. Journal said that nearly 20 million US workers resigned during the spring and summer of 2021.

At the same time, this post from Statistica.com shows that there are nearly 2 million MORE workers in the US than in 2019!

And finally, this article from Verizon.com says that there are more than 91 million people in the US who are not working.

So if we combine all of these data points and place them in the context of hiring salespeople, we can draw some interesting conclusions:

The candidates may or may not be currently working.  They may have temporarily retired, be working but ready to leave for a better offer, or not looking to leave at all.

They are out there, but they are being flaky.  29% of the candidates who applied for the jobs I posted did not respond to calls, texts or emails, and 31% of the group that did respond would not take the time to complete online applications and assessments.

I looked at the variables for the two companies I was helping.  I was able to eliminate a lot of them because I was running both campaigns, used the same job sites, used similar job postings, engaged the same way, made the same two asks up front, and conducted similar video interviews.  The only two variables that were different were location and compensation.

There was MUCH more interest in the opportunity where remote or an hour from a major airport were the criteria, as compared to the requirements of a specific locale and in-office presence.

Base salaries were NOT factors but there was MUCH more interest when total compensation exceeded $200,000-$300,000 as compared with total compensation that would reach $100,000-$200,000.  

So sales, sales management and sales leadership candidates are fickle right now, will apply if the total compensation is a no-brainer, and if they don't have to commute to an office.  Otherwise, they'll stay where they are or stay home.

Image copyright 123RF

Topics: Dave Kurlan, sales recruiting, HR, sales leadership, hiring salespeople, OMG Assessment

Most Salespeople are Underdogs Like the Boston Red Sox

Posted by Dave Kurlan on Wed, Oct 13, 2021 @ 16:10 PM

Kiké Hernández's dream postseason continues for Red Sox: 10 things we  learned from ALDS-clinching walk-off win - masslive.com

Anyone who has followed this Blog over the past 15 years knows that other than sales, the only thing I write about nearly as much is baseball.  A Google search from within the Blog yields 605 results, and a search on my son playing baseball over the past twelve years yields 208 results. I haven't really mentioned baseball 605 times, but I have probably written about it 150 times!

For non-baseball fans, the regular season ended last week and two teams - the Boston Red Sox and the New York Yankees - finished in a tie for the wild-card spot, requiring a one-game playoff.  The Red Sox were the best team in baseball during the first half of the season and one of the worst teams during the second half.  I've been cheering on the Red Sox for 65 years and despite that, was very confident they would succumb to the Yankees in last Tuesday's one-game wild-card playoff.  If they somehow managed to beat the Yankees, which it turns out they did, I was even more certain they would fall to the Tampa Bay Rays in the American League Division series.  I was wrong again and the Red Sox not only won, but they won the best of five series decisively, winning the last three games in a row.  Now they will take on the Houston Astros in the best of seven American League  Championship Series, with the winner moving on to the 2021 World Series.  Despite the fact that the Red Sox are now playing in a manner consistent with their first half identify, they will be underdogs for the rest of the post season because of their second half identify.

How does that tie into sales?  Easy!

If your company is not the brand leader, market leader, or price leader; if you have a complex sale, a story to tell, a new technology, a new brand, a new product, a much higher price or a much tougher sale, then you are an underdog too.

Brand leaders, Market leaders and price leaders have it easy.  There is no true selling involved.  They show up, write proposals, provide quotes, conduct demos and take orders. They get what they get.

Underdogs must not only sell their way in, but they must also sell their value to justify the higher prices, differentiate themselves to prove their value, and use a consultative approach that supports selling value.  On top of that, they must follow a proper milestone-centric sales process that supports a consultative approach for selling value.

Most salespeople simply can't do this.  The data in the table below, from Objective Management Group (OMG) and their assessments of more than 2 million salespeople, shows the percentage of salespeople who are strong in the three competencies I just mentioned.  

It's not very difficult to grasp the takeaways from this data.  Even some of the best salespeople struggle to take a consultative approach to sales but compensate with their adherence to sales process and their ability to sell value.  The worst salespeople aren't capable of much more than a transactional sale described earlier in the article.  The best salespeople score, on average, 4823% stronger in these three competencies.  There are actually a total of 21 Sales Core Competencies and you can see the data for all of them right here, play with the data a bit, and filter by industry and company!

The top 5% and the bottom 5% represent only the extreme examples of 10% of all salespeople.  The other 90% are represented in the "All Salespeople" column.  We can filter the numbers some more if we break down the other 90%.  Wait until you see these numbers!

As you can see, there is a significant drop off from the top 5% to the next 15% and an even greater drop off to the 30% after that.  The big takeaway is that in these three competencies  the bottom 50% are nearly as weak as the bottom 5%. They all suck.  As a matter of fact, once you get past the top 20%, the picture is bleak.

What can you do about this? 

Use OMG to Evaluate your sales force so you can see what the capabilities are at your company.

Use OMG to Assess your sales candidates so that you can be assured of hiring only those who will succeed in the role.  

Train, train, train, coach, coach, coach, drill, drill, drill, role-play, role-play, role-play.

Join me on October 26 for a free 45-minute introduction to Baseline Selling and learn how to avoid the mistakes that most salespeople make, shorten your sales cycle, differentiate from the competition, and improve your win rate.  Register here.

Image copyright MassLive.com 

Topics: Dave Kurlan, Consultative Selling, Baseline Selling, sales process, sales training, sales recruiting, Sales Coaching, Baseball, Boston Red Sox, value selling,

Key to Successfully Hiring Salespeople: Getting it Right Versus Getting it Over With

Posted by Dave Kurlan on Mon, Dec 21, 2020 @ 08:12 AM

8 Ways You May Be Washing Your Hair Wrong | Shape

I'll get to the content related to the title, but first, some context.

In March, at the beginning of the pandemic, I wasn't paying attention to where I was walking and slammed my big toe into a door.  I destroyed the nail. Not wanting to lose it I superglued it back in place and several months after it turned black, it fell off, revealing an emerging new nail that had grown half way to the tip of my toe.  It took 8 months for a new nail to fully replace the old nail but my replacement nail was perfect and clearly an upgrade over my tired, old, destroyed nail.  

Let's discuss what that has to do with hiring salespeople.

There are typically two approaches to hiring salespeople: choosing between getting it over with, or getting it right. 

Getting it over with involves a lot of short cuts, and in more than 50% of the cases, disappointment and frustration because you got it wrong.  If you got it wrong there are two more options: living with it or taking the shampoo approach: rinse and repeat.

It's a vicious cycle of hiring the wrong way, making the wrong decisions, needing to start over, and repeating the process again and again and again. Groundhog day.  It can take months or even years before you get the right salesperson into that role.

On the other hand, what would happen if you took the broken nail approach?  Sure, it might take longer, but instead of just getting it over with and dealing with the consequences of your choice, you choose getting it right and being done for the long term.

What does getting it right involve?

  • A well thought-out repeatable sales recruiting process
  • Role Specific criteria for success
  • Well-worded job posting on the right job sites using the right parameters (like Indeed)
  • Applicant Tracking system (like RecruiterBox for hiring  up to a few or the BigGuys for bigger projects)
  • Accurate and Predictive sales-specific assessment that is customized to your criteria (like OMG)
  • Scoring system (for objectivity)
  • Great interviewing skills (to challenge every claim on their resume)
  • Patience (waiting for the ideal candidate rather than the first one you like enough to hire)
  • Discipline (no skipping steps)
  • Thorough onboarding (a formal 90-day onboarding program)

A sales manager at an OMG client told a candidate they were going to move forward subject to the results of the OMG assessment.  The sales manager's approach was a huge mistake.  He interviewed prior to assessing when he should have assessed first. He fell in love with a candidate, but still had to assess because it was company policy. That suggested to the candidate that the assessment was the defining criteria when in reality, the assessment is one of around a dozen additional data points that all matter, including, but not limited to cover letters, resumes, experience, expertise, fit, phone presence, interviews, references, intelligence, professionalism, respect, employment tenure, and background checks.  The sales manager raised the candidate's expectations only to destroy those expectations and get upset when the assessment did not recommend the candidate.  You must know that BEFORE you waste everyone's time interviewing and getting emotional!  

Recruiting salespeople doesn't need to be difficult or complicated, but it is a process and needs to be completed thoroughly and correctly.  Ask yourself this question: eighteen months from now, would you prefer to have spent five months to get it right and have a productive new salesperson, or three months getting it over with, only to have to do it again four months later, and again four months after that.  Choose getting it right over getting it over with.

Topics: Dave Kurlan, sales hiring, sales recruiting, HR, human resources, sales leadership, hiring salespeople, sales assessements

New Data Shows an Overlooked Finding Correlates to Sales Effectiveness

Posted by Dave Kurlan on Thu, Oct 15, 2020 @ 09:10 AM

compatibility

We use remote deposit, a terrific convenience for depositing checks from the desktop without going to the bank.  The only problem is that the software that runs the check scanner isn't compatible with the Mac OS.  It only runs on Windows so we have to remotely connect to an old Dell that takes up unnecessary space. Oh, if only the software for the check scanner was compatible with the Mac.

My wife and I were friends with a couple that argued ALL the time. They argued when they were alone, they argued when they were with us, they argued when they were with their kids and they were just brutal to each other.  If only they were more compatible.

Compatibility is not only important, it could be one of the most overlooked criteria in hiring sales candidates.  Let's do a deep dive! 

Most sales leaders think that industry experience is the most important criteria for evaluating the fit of a potential sales hire but they couldn't be more wrong.  Compatibility with the selling environment is far more important.  For example, if you sell payroll services, is it more important that the sales candidate came from the payroll industry or is it more important that they have great selling skills and called on the same HR professionals that a payroll salesperson would need to call on?  In other words, is it more important that they know stuff, or is it more important that they have a built-in network of customers to sell to? 

There's more to compatibility than who they sell to.  Factors like the length of the sales cycle, how many calls/meetings that entails, your price point relative to the competition, the amount of money they'll be asking for, the quality of the competitor's offering, the effectiveness of the competition's marketing and sales, whether they've worked for a sales manager with a similar management style, how much pressure they'll be under, whether they'll get the coaching and training they require, if they've worked under a similar compensation plan, and more should be considered.  There are nearly 30 variables that help to determine whether a salesperson is compatible for the role. 

At my weekly meeting with Objective Management Group's (OMG) COO, John Pattison, we discussed compatibility in the context of another finding we call FIOF or "Figure it Out Factor."  Candidates that have a FIOF score of 75 or better ramp up more quickly than other candidates.  Compatibility is weighted pretty heavily in the FIOF finding because of how it influences the ramp-up time of new salespeople.  The more compatible a salesperson is with your selling environment, the more quickly they should ramp up because they've "done this before."

OMG measures 21 Sales Core Competencies as well as 9 other competencies that are important but not core.  An additional finding is a score for compatibility.  

Out of curiosity, we wondered what the average score for compatibility was because we haven't looked at that before.  He asked me to guess and I said "somewhere between 60 and 80."  It turns out that the average compatibility score for all sales candidates is 70.  Not bad!  For kicks, we ran the analysis for the four levels of Sales Percentile which include Elite (top 5%), Strong (the next 15%), Serviceable (the next 30%), and Weak (everyone else - the bottom 50%).  This is what the analysis showed:

Who knew that compatibility would correlate to Sales Percentile? I certainly didn't think that the distribution of scores would show this kind of correlation.  After all, when we score compatibility, we aren't measuring any of the sales competencies that make up Sales Percentile; only prior selling environments. The top 5% of all salespeople are 41% more compatible with their selling roles than the bottom 50% and it left me wondering, "Why?"

Three theories came to mind and perhaps you can add some additional theories!

Theory 1: The best salespeople naturally identify good fits for themselves so that they can thrive.  We could guess that elite salespeople seek out the greatest selling challenges - something beyond their comfort zone - but perhaps they are simply too smart to sabotage themselves.

Theory 2: The worst salespeople don't pay any attention to fit because to them, selling is just spouting off features and benefits, doing demos, generating quotes and proposals, and taking orders.  Maybe they simply gravitate to wherever they are wanted?

Theory 3: The best sales leaders, in hiring only the best salespeople, are rewarded with salespeople that can handle their selling environment. It's worth noting that the best sales leaders hire salespeople who are more talented than they are while average and weak sales leaders hire salespeople who are weaker than they are.

I haven't written about compatibility before but it's worth spending a few minutes to understand the role it plays in sales success.

What plays an even more important role in sales success than compatibility?  It's the 21 Sales Core Competencies and configuring OMG's accurate and predictive sales candidate assessment to recommend those candidates that score well in the competencies that are crucial to success in the role you are hiring for.  Learn more about the 21 Sales Core Competencies.

Image copyright 123RF

Topics: Dave Kurlan, sales hiring, sales recruiting, HR, human resources, sales performance, Personality Tests, sales selection, sales assessments, sales test

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's the mantra for COVID-19.  But lots of people are getting tested.  In the USA, 345 out of every 1,000 people have been tested as of the end of September.  Compare that with Mexico where only 12 out of every 1,000 people have been tested.  That could explain the difference in positive test rates in these two countries with the US rate being less than 5% and Mexico's rate close to 50%.  More tests = well, something.

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 2,017,367 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

Masks and Sales Assessments - You Lose a Little Freedom and Control for Safety and Confidence

Posted by Dave Kurlan on Fri, Sep 18, 2020 @ 13:09 PM

mask-in-public

A short end-of-the-week post.

Earlier this week I wrote this article about correlation versus causation.  I compared analyzing restaurant dining and positive Covid-19 tests, and assessment findings and results.  This article will depart from correlation and causation but we'll still use the Pandemic as a metaphor for certain sales assessment experiences.  

I wear a mask whenever I leave the house or the car.  As someone in the vulnerable age group for Covid-19, a mask makes me feel much safer and more confident when I encounter other people.  When I wear my mask, I lack some of the freedom I previously had and I lose some control because I can't see where my feet are when I'm walking down a flight of stairs!  Of course that's only problematic if I miss a stair and knock on wood, that hasn't happened in the first 6 months of the Pandemic.

You lose a little freedom and control but you feel a lot safer and more confident when going out in public.

The same thing happens when clients use Objective Management Group's (OMG) accurate and predictive sales candidate assessments.  They lose a little freedom because they no longer arbitrarily interview salespeople who they feel like interviewing, and refrain from simply offering positions to people because they have a gut feeling about a candidate.   However, they lose some control because one half to two-thirds of the candidates will not be recommended when they aren't great fits for the particular sales role for which the company is hiring, or simply aren't very good salespeople - period.

HIRING-PANDEMIC

Companies that use OMG sales candidate assessments for sales selection are seeing huge improvements in applications, assessments completed (the candidate pool), and a sharp decrease in recommended (more lousy sales candidates and/or imperfect fits for the role) candidates, cost per assessment, days to hire and compensation.

quota-attrition

Companies that use OMG for sales selection have 80% higher quota attainment, and 238% lower attrition. 

You lose a little freedom and control to feel a lot safer and more confident when offering sales candidates a position.

Image copyright 123 RF

Topics: sales assessment, Dave Kurlan, sales recruiting, hiring salespeople, OMG Assessment, sales selelction

Using the Power of a Duracell to Help You Hire Perfect Salespeople

Posted by Dave Kurlan on Thu, Apr 25, 2019 @ 12:04 PM

duracell-9-volt

Apparently, Duracell 9 volt batteries are the picture of consistency. 

Last night, all 7 of our upstairs smoke detecters starting squawking within about 30 minutes of each other to indicate that their batteries needed to be replaced.  Given that the Duracells were installed in those units on the same day 4 years ago, one would hope that there are more things that we could rely upon to be as consistent and predictable.

One of those things is Objective Management Group's sales candidate assessments.

What could bring more peace of mind to the sales hiring process than knowing that it's already been used on 1,853,846 salespeople, from 1,853,847 companies, in industries, and in countries to hire salespeople.  Of the sales candidates who were not recommended by the assessment, but were hired despite the warning, 75% of them failed within the first six months.  That's predictive!

Statistics are great, but what you really want to know is, how hard is it to use, how complicated will it make my sales hiring process, what if a candidate I like isn't recommended, what if a candidate I don't like is recommended, and how do you make it fit my world?

The only people that don't love OMG's sales candidate assessments are recruiters - because the assessment makes recruiters work a lot harder to deliver quality sales candidates.  And today, with so few sales candidates proactively looking for work, it's even more important that you get it right.  After all, you're working from a position of weakness.

Sales leaders, HR directors, CEO's and COO's love the OMG assessments because they are sales specific in that they measure the 21 Sales Core Competencies instead of personality traits and behavioral styles.  Traits and styles are nice to know, fun to have, warm and fuzzy, but they are not predictive of success in sales, and especially not any specific sales role.

Because the assessment measures 21 Sales Core Competencies, there is nothing to interpret making it very easy to use.  And since you'll assess all of your candidates, not just the ones you like, you can focus your time on the candidates who are most likely to succeed in the sales role for which you are hiring.  When it comes to those sales roles, there are 30 variables you can customize to help the assessment identify the right salespeople for the role, and another optional layer of customization allows you to fine-tune another 15-20 requirements.

In companies today, those who hire salespeople using their gut, other assessments, or desperation, tend to get it right about half the time and the cost of getting it wrong has skyrocketed.  Companies that use OMG's sales candidate assessments have found that of the candidates who are recommended for the role and eventually hired, 92% move to the top half of the sales force within 12 months.

If you aren't already using OMG, what's holding you back?  It's not expensive, it's not difficult, it's not scary, and it's not risky. You'll easily be able to hire better salespeople!

You can checkout a sample sales candidate assessment here

You can request a free trial here

You can checkout pricing plans here.

And if you like stats and data, checkout some of the datasets in the 21 Sales Core Competencies here.

Topics: Dave Kurlan, sales recruiting, sales talent, sales assessements, sales hiring tools

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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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