Utilizing custom quality of hiring
metrics when hiring sales
professionals can have a dramatic
impact on productivity.
Imagine the impact that a 20 percent sales increase would have on your company's bottom line. Now, imagine a 40 percent increase. With quality hires, your sales team can outperform your sales goals.
In fact, a study by the consulting firm McKinsey & Company reports that superior hires dramatically increase sales productivity by a staggering 67 percent. The difference between an average- and high-performance hire, especially in a sales role, has a significant impact on an organization's revenues. Conversely, think of the adverse effect below-average performers have in your prospective client-facing positions.
Getting recruitment right requires customized quality of hiring metrics tailored to your organization that can be implemented right now, and it's quite likely your competitors don't incorporate the process into their own employment efforts. That's an undeniable competitive edge.
Beyond the basics
Most companies measure quality of hiring by three metrics:
1) Retention of new hires
2) Hiring manager feedback
3) Employee performance appraisal ratings
Those are the basics, but consider what is missing. If retention is a primary factor, your organization may be harboring a contented crop of underachievers. Combining a performance measure with retention metrics can provide a multidimensional view of your workforce.
You can improve quality of hiring metrics by:
- Identifying the qualities inherent in top-tier performers, which can vary by role and organizational segment
- Assessing recruits on more than experience or technical skills
- Determining the right attitude, behavioral and cultural fits required for the highest degree of success
- Cross-referencing financial metrics such as revenue or profit per employee, particularly in sales roles
Less than 14 percent of respondents to a Hudson RPO survey of global organizations reported measuring revenue or profit per employee. In a sales capacity, what could be more important?
Sell me this pen
Years ago, a standard component of a sales interview would be the "sell me this pen" challenge. It seems such a quaint and even laughable process today. But hiring methodologies continue to evolve. Reference checks, resume screening and background interviews are the most common assessment tools used by hiring managers, but they are the least effective in predicting high performance behavior.
Far beyond the "sell me this pen" techniques of the past, today's hiring process can include psychometric testing, verbal, numerical and abstract reasoning assessments, behavioral tests and role-playing simulations. The use of external recruiters and consultants is also gaining broad acceptance.
It's an infinite loop: success breeds success. Seventy percent of respondents to the Hudson RPO survey said that including productivity as a quality of hire metric delivered significant improvement to productivity. In biology, it is known as "the winner effect." A winner keeps on winning, which may perfectly explain the science of making great hires.
Learn how Hudson RPO can help measure your quality hires. Contact us today.