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Archive for September 12th, 2007

Sandbagging

We’re working through some commission plans with our customers and one of the plans has a function to where the salesperson has to clear a certain quarterly revenue level before the commission plan kicks in.  This approach is somewhat common and has its merits.  Personally, I am not a fan of it for one reason.

Sandbagging.

I’m not talking about preparing for a flood (though there was plenty of that activity up here this summer).  I’m talking about getting a deal to the point where it can close today, but the salesperson holds it until the beginning of next quarter, month, week – whatever constitutes the commission time frame.

I know salespeople sandbag deals because I have done it plenty of times in my sales career.  And it only stands to reason – if I can frontload my commission plan at the beginning of the period, I have a better chance of exceeding my quota and accelerating my commission rate.

Keep that move in mind and you develop your sales commission plans. 

9 Most Common Hiring Mistakes

Relying on the interview, benchmarking top performers, cloning yourself…these are all common mistakes that lead to bad sales hires.  These 9 mistakes are provided by ManageSmarter.com’s article:

Mistake 1:Relying only on interviews to evaluate a candidate

Mistake 2: Using successful people as models

Mistake 3: Too many criteria

Mistake 4: Evaluating “personality” instead of job skills

Mistake 5: Using yourself as an example

Mistake 6: Failure to use statistically validated testing to predict job skills most critical to success

Mistake 7: Not researching the reasons that people fail

Mistake 8: Relying on general “good guy” criteria

Mistake 9: Bypassing the reference check

That is a solid list of common mistakes.  You can learn more about each one by reading the entire article.  I want to zero in on Mistake 2.  From the article (emphasis mine):

Duplicating success may seem like a good idea, but the reasons people succeed are not clear from just measuring the characteristics of top performers. More important are the differences between top performers and low achievers. For example, a comprehensive study of more than 1,000 sales superstars from 70 companies showed that the top three characteristics shared by high achievers were (1) the belief that salesmanship required strong objection-answering skills, (2) good grooming habits, and (3) conservative dress€”especially black shoes. Oddly, a study of the weakest performers at those same companies revealed that the same three characteristics were their most common traits as well.

We ran a similar test on a large sales team years ago and found a similar result.  Another factor is a simple one – no two people are the same.  The better bet is to identify top traits, skills and motivations and then hire to those factors.  This means that the salesperson could have a completely different style, approach and experience.  They can still be successful, they will just go about it in a different manner.

Sometimes this difference is too much for hiring managers which leads to this mistake.  I have seen the hiring manager then reduce his or her decision to the salesperson’s style.  That could be Mistake 10 in this list.

Gen Y’s Favorite Cities To Work

The Herman Group’s weekly newsletter (sorry, no link) covers what young jobseekers want and that is a specific urban area.

A just-released study from the Segmentation Company, a division of the market research firm Yankelovich reports that 65 percent of 1,000 respondents aged 24 to 35 said they preferred to “look for a job in the place that I would like to live,” rather than “look for the best job I can find; the place where it is located is secondary.”

The most popular qualities of a city (78 percent) were tidiness and attractiveness; the characteristic €œwill allow me to lead the life I want to lead€ was a close second (77 percent). Young jobseekers want the cities they live in to be safe, clean, and green.

Over the last 10 years, only 14 urban areas across the United States saw increases in this segment of workers.

Those cities are:

Las Vegas; NV
Austin, TX
Phoenix; AZ
Atlanta, GA
Raleigh-Durham, NC
Charlotte, NC
Salt Lake City, UT
Portland, OR
Denver, CO
Orlando, FL
Nashville, TN
Dallas-Fort Worth, TX
Miami-Fort Lauderdale, FL
Greensboro-Winston Salem, NC