The Pareto Principle, also known as the 80/20 rule, suggests that 80% of outcomes are typically driven by 20% of causes. In sales, this means that a significant portion of sales revenue often comes from a relatively small number of customers. By focusing on this "vital few," financial firms can optimize their sales efforts and maximize profits. This same principle applies to the makeup of sales teams. In most cases, 80% of a bank or insurance firm’s sales are coming from 20% or less of the sales team. So how do organizations go about finding, hiring & retaining top sales talent in order to drive consistent sales growth?
Some of the factors that are limiting success in hiring & retaining top sales talent for many financial firms include:
-
You are reactive in your recruiting – you only recruit when you need someone
-
You transfer the entire responsibility of finding candidates to a search firm
-
You don’t have a candidate pipeline
-
You aren’t getting enough of the right candidates to interview
-
The candidates that you interview and fall in love with fail to pass your evaluation process
-
You interview quality candidates, but cannot attract them to join your company
-
Candidates use you to improve their current position after you make an offer
-
Your evaluation process is inconsistent
-
You don't have a way to compare one hirable candidate against another
-
You don’t have multiple candidates to choose from
-
You pay “A” compensation to “B” hires
-
Your new hires are failing to succeed quickly enough due to weak onboarding
There are three key steps to ensure that your bank or insurance firm recruits quality candidates that will maximize your organization’s revenue potential. Step 1 focuses on preparation. Step 2 will focus on building a candidate pipeline, and Step 3 will conclude with recommendations for screening those candidates.
Step 1: Define Your Sales Candidate Profile & Hiring Standard
The first step in your sales force recruiting process is to establish a profile of the ideal candidate for your specific position. Do not settle for a candidate who fails the criteria. And when you are evaluating resumes, pre-hire evaluations, and your interview notes, ensure that you are consistently comparing potential candidates to the hiring profile that you have established. This is the first step to help your organization refrain from hiring your next “average” salesperson.
Here are some questions to consider to avoid settling for average in the hiring process:
-
Do you describe the job… or do you detail what it takes to be extraordinary in the sales role?
-
Do you describe what your candidates will be selling… or do you detail what kind of competition they must be successful against?
-
Do you make it clear that your organization puts high pressure on someone to perform? And do you find out if your candidate can survive in that kind of environment?
-
Do you create the same environment when interviewing candidates that they will encounter when they are in the field? For example, do you challenge candidates by being difficult on the phone? Do you make them establish rapport with you in the initial interview? Do you make them try to close you in order to reach the next step of your hiring process?
Here is a sample outline for establishing your ideal hiring profile. Customize this to your objectives:
If you are committed to hiring & retaining top sales talent, your first step is to define your sales candidate profile & hiring standard by:
-
establishing the right candidate profile for your specific situation,
-
making sure that your screening process is consistent with identifying the right candidate profile, and
-
preparing to challenge your prospects to meet exceptional standards rather than settling on “adequate.”
Stay tuned for Part 2 and 3 of Hiring & Retaining Top Sales Talent!
