I was recollecting about a job I took in which I felt I did everything right.  It is doubtful I did, but it is my recollection so bear with me.  I qualified the opportunity, the sale, the expectations and the ramp time.  All of the responses were a good fit to my abilities.

The ramp time was 6 mos. before getting to a steady revenue stream according to the hiring manager.  I knew I could beat that and I did by cutting it in half.  I had closed a handful of fairly sizeable deals within 3 mos. and was chasing a handful of large deals.

And then I was laid off less than 6 mos. into my employment.  There were other factors involved including the company losing some large customers, but I never even got through the ramp-up time.

The company got it wrong – they should have never hired me.

I’ve seen companies hire salespeople simply because they were from their industry, not because the salesperson was a good fit.  I’ve seen companies hire salespeople for one position and then try to force them into a different position once they start.  I’ve seen companies hire hunters and give them farmer tools.

The key is to prepare for your next sales hire.  I tell companies not to hire a hunter unless you are prepared for one to join your team (read: most companies are not ready).  The little things should be handled before the salesperson arrives (business cards, laptop, email, CRM, etc.).  The big things like product training, key accounts, support people, etc. should be the initial focus.  Finally, call reports, travel, presentations, etc. should be the last piece of the ramp-up piece.

Unfortunately, companies often fail at setting these targets up.  It is usually at this point that the compass starts spinning and the salesperson is in trouble.

Comments(0)

I have noticed this of late – salespeople are having more discussions on their cell phone while in the office.  Maybe they go into a conference room, a hallway, lunch room, etc.  Is there a greater clue that they may be looking for  a new opportunity?  Granted, these calls may be nothing more than a personal call and not an employment opportunity.  However, I always become suspicious when I see that behavior inside an office.  Just an observation.

Comments(0)

These are skittish times, aren’t they?  I have seen this among reps and myself – every little item is scrutinized.  Communication, email, reports…I find myself looking for subtle clues in all of them.  Is a layoff coming?  How bad is it?  What is going to happen next?

These are not productive thoughts.  As a manager, how do you quell these fears?  There isn’t one move, tool or approach that will cure it, but a concerted effort will help to minimize your team’s anxiety.

Selling Power offers up an article that has some feel-good points that I question.  However, there is something in the article that caught my eye:

Don’t make promises you can’t keep. Your mother probably told you this growing up and it’s just as important today. Manning says she often sees managers make the mistake of promising a desired outcome rather than acknowledging uncertainty. For instance, don’t tell your staff there won’t be any layoffs at your company because you can’t possibly make that guarantee. “Make no promises,” says Manning. “Don’t build up false expectations because that just creates more fear.” Instead, be honest about what you know, even when – especially when – the news isn’t good. Your reps would rather have the hard truth than a pleasant lie.

Those last two lines are straight-up truth.  The best way to allay these fears is to be forthright with your team.  I believe managers often error in thinking their employees cannot handle the truth of the present situation.  This is a leadership mistake that creates distance between the manager and the employee.

I will close with the next suggestion from the article – it is a good one:

Start a blog. Blogging is a great way to keep your people updated because it has an informal, conversational feel and reps can check it at their convenience. Manning says she knows of several CEOs who are having “tremendous success” with blogging right now, using it as a vehicle to keep employees posted on what’s going on, answering their questions and correcting rumors. Sales managers, she says, could expand those topics to include sales successes, news about products and so on.

Comments(2)

In sales there has always been career movement.  Most successful salespeople have a “hunting” ability for closing deals.  They also use this ability to close new deals for themselves in terms of a new job.

I believe this approach is intensified in the younger generations – Gen X and Gen Y.  This current economy is going to erode much of their loyalty as they watch companies shed employees.  This downturn is far worse than that of 2001, but it is two career-altering downturns in less than 10 years.  That has to have an effect on younger workers.

Some of this movement can be seen in this article from Managesmarter.com:

Even though it is a lower number than in years past, 16 percent of sales employers plan to increase the number of full-time employees on their payrolls in 2009, indicating that there will be movement in the industry this year.

That movement will be happening despite the market conditions. One-in-five sales workers said they will actively look for a new job in 2009, citing better pay and more career advancement opportunities as their primary motivators for hitting the pavement. In addition, 81 percent of sales workers said that they are passive job seekers, those that are not actively seeking a new opportunity, but would be open to one if they came across the right opportunity.

I always laugh at “passive job seekers.”  Who wouldn’t be open to the right opportunity?

Back on topic – I think we are heading for a tremendous jump in jobseekers once this economy recovers (in spite of what the media says, the economy will recover).  Retention is going to be far and away the top topic for all companies as they face the prospect of losing their top salespeople.

Comments(0)

The Herman Trend Alert offers up some expected predictions, some insightful ones and some surprising ones for 2009.  Here is one that falls in the expected/not surprising category:

1. Certain Skill Sets Continue to be in Short Supply.

In spite of the global economic slowdown and massive layoffs, certain skill sets are in short supply. All but the most short-sighted employers will continue to respect talented workers in all fields for their contributions.

I don’t think that is surprising at all, but not all companies subscribe to that approach.

Here is an insightful prediction:

3. Fear and Apprehension Reduce Productivity.

As we have written about some months ago, there is a significant percentage of employees who are worried about the future. Unless addressed, this fear will reduce productivity and employee morale. Wise employers will show their appreciation for their workers and reignite passion and excitement with activities and contests that challenge employees to achieve high performance levels.

Absolutely true.  I have seen this bunker mentality developing over the past few months and it definitely impacts productivity in a negative way.  The consistent “depression” drumbeat of the hyperbolic mainstream media doesn’t help.

And here’s one that will make recent Gen Y grads groan:

10. Older Workers will be Particularly Valued this Year.

To get the work done without resorting to hiring expensive contract help, some employers will begin mining the rolls of their retired workers and hiring them back on a part time basis. These seasoned professionals have a lot to offer their former employers. The companies will probably need to conduct less training and most certainly will have a more reliable workforce than recruiting Millennials.

What do you think of that last line?  I would say that is a bit of a shot, and not a fair one at that.  I understand the approach of rehiring retired workers and it that is a valid approach.  However, I have seen companies that are set in their ways – the energy, vitality has almost disappeared from their company.  The culture has settled into this lethargic, phlegmatic style…and it is dangerous in a slow economy.

My experience has been that young workers help change this culture.  They bring energy, ideas and, well, a fresh approach.  I’ve seen younger workers invigorate a stale company.  Yes, you have to train young employees, but I think this prediction greatly discounts the upside of hiring Millennials in this economy.

Comments(0)

The Herman Trend Alert has a surprising report on a survey looking at employee perks for 2008.  The economy may be tanking, but employers are aware of the need to retain talent.

In spite of the drastic effects of the economy on the labor market with announced workforce reductions up 30 percent, a surprising majority of companies (66.7 percent) have chosen to preserve their employee perks. Ten percent of those employers said they had considered trimming perks, but decided to leave them at current levels.

Despite their need to reduce their expenses, almost 55 percent still plan to distribute year-end bonus checks this year (2008). Only 20 percent of the companies surveyed said they had cut or eliminated perks to contain costs. At the same time, 35 percent reported they had to cut these extras to save jobs.

…

The destabilized economy has led to major reductions in force. According to Challenger’s estimates, through September 2008, employers have announced plans to cut a total of over 750,000 jobs. Yet in spite of the softer economy, another survey conducted by a business research firm in Arlington, Virginia and ADP, the payroll provider, found that 34 percent of their respondents reported “recruitment and retention” as their top priority.

Looking at the findings from both of these studies, we can infer that a large percentage of employers understand the value talented workers provide to the organization. They know that if they do not take care of their employees during this difficult time, when the economy improves, those employees might leave.

Wise employers will hunker down and engage their associates to help them streamline processes, market smarter, and cut expenses. They will continue to resist reducing bonuses and perks, because they know the future dangers and choose to think long-term.

Remember Clark Griswold in Christmas Vacation receiving his Christmas bonus of a one-year membership in the jelly-of-the-month club?  I guess that would not be a good option in this instance.

Comments(0)

ManageSmarter has a good article that provides 10 ways that you can help your employees through the economic crisis.  There are some simple ideas on the list that a manager should do regardless of the economy.  What better way to retain your employees than to show your appreciation for their efforts?

1. Shortening the work week to four days with extended work hours will increase productivity and give a welcome break for people.
2. Consider giving turkeys to employees for Thanksgiving and accompany the gift with a card expressing appreciation for what everyone is doing.
3. Facilitate a car pool, coordinating rides or give a gas cards.
4. Hold regular one-on-one meetings with employees to learn of their financial situation and their stress levels.
5. Giving employees movie passes or restaurant certificates for excellent work.
6. Boost morale by having senior leaders conduct regular communication meetings with all employees to share what is going on with the company and to solicit ideas on how to help each other deal with economic uncertainties.
7. Bring in childcare services or set up a day care opportunity close to the office to lessen child care travel time and expenses for employees.
8. Make exercise programs and gym equipment available so they can stay trim and fit without paying monthly membership fees.
   Work with your downtown business association to see what after-hours shopping discounts can be arranged to assist employees with saving money.
9. Take some time now to write an individual thank-you card to each employee expressing sincere gratitude and appreciation for sticking with the company and thank them for their contributions.

Comments(1)

The economy is foremost on almost every business leader’s mind right now, and rightly so.  Many leaders look to entrench their company in a full defensive posture.  This approach has to be incorporated, to some extent, during these economies.  However, this is an excellent time to be aggressive in the market and to cut against the grain of conventional wisdom.

BusinessWeek.com offers up specifics of this approach in their article Managing Employees in a Downturn:

For many managers, recessions prompt a near-autonomic reflex: Hunker down, reduce head count, and cut every cost you can. While a certain dose of those bitter pills is unavoidable, smart leaders see downturns as having plenty of upside, too. Talent is cheaper. Companies can gain market share as others cut back. And savvy investments give bold players a head start when the economy picks up.

I remember going though this same discussion back in 2001 before we were blogging.  We talked to companies about the opportunities that existed in a sliding economy.  One thing that is certain – talent is cheaper during an economic downturn.  That is why it is often a good time to upgrade your salesforce during these times.  For that matter, it is a good time to upgrade any position for which you feel there is a need.

There is an emotional component to monitor among your sales team that is quite important during this time and the article points out these items.  Retention is still a key focal point for any sales manager during uncertain times:

Amid pressure to downsize, it’s easy to forget that talent retention is a critical concern during a recession. Michael Kesner, a principal at Deloitte Consulting’s human capital practice, notes that “companies who took advantage of employees in past downturns were rewarded with people bailing when things turned around.” To avoid that, some of Kesner’s clients are adding more weight to factors employees can control—such as customer-satisfaction scores or production levels—when deciding on bonuses.

The key item to remember is that strong salespeople are always in demand no matter what the economy.  We have seen many good salespeople jump to a new opportunity during a downturn, especially when they perceived their current employer’s future as being in doubt.  Stay close to them and make sure you are still finding rewards for them.

Comments(0)

Proprietary information is a nuclear topic when dealing with salespeople who are leaving a company.  Product info, service plans, actual costs vs. pricing are all hot topics.  But for sales, the one thing that keeps managers up at night is the security of the customer list.

We see many companies who desire to hire a salesperson from the competition with the expressed hope that the salesperson will bring customers with them.  Quick note-it rarely happens, but that doesn’t stop companies from focusing their hiring strategy.

CNNMoney.com provides an article that discusses the legalities of this approach.  In the article is a phrase that I have not encountered before – garden-leave clause.  The explanation:

Greco also advises anyone changing jobs to read the paperwork carefully – both what they signed at their old job and what a new employer is asking them to sign. A growing trend: So-called garden leave (or gardening leave) clauses, which require an employee to give at least 90 days’ notice of his or her departure, during which time the employee must stay home and avoid all contact with customers. (Hence the name: You’ll have time to do plenty of gardening, or whatever else floats your boat.) The purpose of a garden leave is to give your employer a head start in trying to hold on to your clients before you begin working at a different firm.

Interesting approach and one that seems to have some legs based on this generational point:

Young people especially now have an expectation of moving around a lot from one firm to another,” notes Greco. “So it’s important to be aware of these kinds of employment agreements that can really slow you down.”

In sales, we often see the 1 year non-compete agreement which has some impact, but truly is difficult to enforce.  This garden-leave clause, if enforceable, should give companies the time they need to solidify their customer list before competitive pressure from the departed salesperson begins.

Comments(1)

Listen, according to this Selling Power article:

“One of the mistakes companies have made in the past is that they make decisions without real input from the people who are most affected by the hiring decisions,” says Opton. “Companies need to realize that they always have two sets of customers – internal and external. The minute that someone comes to work for them, that person becomes an internal customer to the organization. The organization needs to listen to what their needs are and act on those needs.”

The article references a survey regarding executives’ wants, but it is representative of employees also.  The interesting stat that always seems to come out of these surveys:

“Just 12 percent pointed to compensation as the reason why they leave companies,” says Opton. “We see this year after year – money will motivate people to come on board, but it can’t make them stick.”

Excellent point, can’t make them stick.  Many managers assume a decent paycheck (the manager gets to define “decent”) will keep most salespeople happy.  But look at these numbers:

“Nearly half of the dissatisfied executives reported limited advancement opportunities; lack of challenge; a desire for more managerial responsibility, autonomy or technical improvement; or dislike of the work as the reasons they were ready to bolt,” states the study. “Issues relevant to lifestyle – work/life imbalance, commute, relocation, and business travel – became deal breakers for another 21 percent. Difficulty with the culture and the boss accounted for 13 percent of executive dissatisfaction.”

I suspect the commute topic will become more prevalent in the next study thanks to the gas price trend.

Comments(0)