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Archive for June 21st, 2006

Hiring Experience

I’m putting the finishing touches on an article we are going to release next week that deals with hiring salespeople based on experience vs. talent. We advocate sales talent first. A couple of points to whet your appetite:

First, the vast majority of resumes are embellished. We have written about that topic at length. Here’s the rub, if you hire based on experience, I guarantee you are drawing inferences from their embellished resume. You will never truly know the scope of their experience since you cannot reconstruct every aspect of their previous positions. When you interview the candidate, they are going to put as much positive spin on their experience as possible. So you have, at best, a slightly embellished document (don’t know which parts are embellished and which are accurate) which is being undergirded by the author’s overly positive commentary. This approach reeks of trouble.

Second, no two companies compete in the market in the exact same manner. What I mean is that one company’s value proposition is far different than a competitor’s (not talking about price here). The sales skills needed for one company can be far different than another company.

An example: we had a customer who had been hiring based almost exclusively on experience before working with us. They openly discussed this situation. Before becoming our customer, they were able to hire a salesperson from the largest competitor in their industry (at great expense). Our customer’s company was a small, relatively unknown player in that industry. They were ecstatic to land this salesperson and figured he would deliver huge deals for them.

He flopped and was eventually let go. Although he had tremendous industry experience, he lacked the sales skills necessary to sell our customer’s value. First off, the salesperson was not able to prospect. His previous role with the market leader made appointment setting almost automatic. Since our customer was not well known, he had great difficulty securing even marginal prospect visits.

You can guess what the next problem was – he lacked the ability to qualify needs. The market leader actively marketed their value proposition throughout the industry. Our customer relied upon their salespeople to sort out the serious prospects from the tirekickers who were looking for data to plug into their buying spreadsheet. This salesperson was used to selling from a dominant market position so his idea of qualifying was fine wine and country club golf.

Sales process and qualifying are just two points that will be in the upcoming article. I know many of you are thinking that your complex sale requires industry experience. I suspect you have many people within your company who can teach the intricacies to your new salesperson. How many people do you have in your company who can teach them how to effectively sell?

Niche Employment Sites

Sourcing will become the most difficult task in hiring within the next 5 years if it isn’t already. CareerJournal has an informational article today – Niche Sites Catch On With More Job Seekers.

The article basically tracks a handful of higher level employees and their use of niche boards to land their new positions. We have seen a distinct migration to the niche sites and have had success ourselves with them. Dice.com is particularly effective for finding technical talent.

The stat that caught my eye in the article:

Specialized boards today make up some 70% of the roughly 40,000 job sites on the Web, compared with 50% or 55% of the sites in 2001, says Peter Weddle, editor and publisher of Weddle’s Guides, of Stamford, Conn., a series of printed and online guides to Internet job sites.

The major boards are still the de facto standard for resume searches due to the sheer volume of resumes they contain. We typically post positions on one of the major boards and one of the niche boards for any position. This pattern seems to ensure a high quality response rate to the ad.

High D Behavior

A strange story from here in Minnesota is the founder and CEO of Lifetime Fitness. The CEO has had numerous encounters with the local authorities including his latest incident – allegedly harassing a teenager at a local high school parking lot after a driving incident.

I bring this up simply for the fact that I would guess this CEO fits a specific selling style – a very high Dominance factor and a very low compliance factor. This style leads to a rebellious, quick-tempered person. This CEO takes that style to an extreme.

We have a customer who once employed a salesperson with this type of style (we assessed him). He was their top salesperson, but he infuriated as many prospects as he closed. His behavior eventually overwhelmed the internal team – to the point where he used the F-bomb on the CEO. His employment ended and the company has continued to flourish.

My point here is that the extremely high D selling style is the most dangerous style for effective selling . . . and apparently CEOs.