Sales Roulette: Why Hiring Salespeople is a High-Stakes Game (And How to Win)

Let's face it, hiring a new salesperson is a bit like spinning the roulette wheel. You put your chips down, cross your fingers, and hope for the best. Unfortunately, the odds are often stacked against you. Nearly half of all sales hires never hit quota, and the average tenure of a sales role is just 18 months. For many businesses, sales is the largest operating expense, making these hires critical yet risky investments.

Consider this: the cost of recruiting, training, and onboarding a new sales professional can easily surpass $80,000. But that’s just the tip of the iceberg. When you factor in the lost opportunity cost of underperforming sales hires, the impact can exceed $250,000, and in some cases, even reach a staggering $1 million. Yikes!

So, as an executive leader, what are you supposed to do? Here’s how to stack the odds in your favor.

Top 10 Reasons Why New Sales Hires Fail (and How to Avoid These Pitfalls)

1. The Wrong Fit: Sometimes, it's just not meant to be. Whether it's culture, skills, or personality, not every hire is a match made in heaven.

2. Lack of Training: Throwing them into the deep end without a life jacket is a surefire way to watch them sink.

3. Unrealistic Expectations: Expecting them to move mountains in the first week? Give them time to learn the ropes.

4. Poor Onboarding: If your onboarding process is as exciting as watching paint dry, don't be surprised when they disengage.

5. Micromanagement: Breathing down their neck won't help them grow. Give them some space to shine.

6. Insufficient Support: They need the right tools and resources to succeed. Don't leave them stranded.

7. Lack of Feedback: If you don't tell them where they're going wrong, how will they ever improve?

8. Mismatched Goals: Align their targets with the company's objectives. Clear, achievable goals are key.

9. Overpromising: Selling them on a dream job that turns out to be a nightmare is a quick way to lose trust.

10. Inconsistent Processes: Standardize your sales processes to give everyone a fair shot at success.

Now, you might be wondering, "How can I combat this sales hiring risk without losing my mind?" Great question! Here are the two most important things we've observed that can keep executive and sales leadership from going off the deep end:

1. Use Assessment Tools BEFORE Hiring

No disrespect, but us sales leaders tend to overestimate our ability to pick the winners and losers. We can get caught up in the hand-waving of a really flashy salesperson.

Think of assessment tools as your secret weapon. They help you learn more about the candidate before hiring. Understanding their strengths, weaknesses, and potential fit with your company culture can save you a lot of heartache (and money) down the road.

2. Implement a First Milestone

Set a clear, attainable first milestone for the sales professional. For example, aim for 12 sales in 5 months. This key performance indicator (KPI) helps gauge whether the salesperson is likely to meet or exceed quotas in the long run. Be radically transparent about this goal from the get-go. It aligns the salesperson with what the definition of early success is, and it gives you a measurable way to assess their performance early on.

In conclusion, hiring a salesperson shouldn’t feel like a game of chance. By using assessment tools and setting clear milestones, you can improve your odds and ensure that your new hires are more than just a roll of the dice. So next time you’re about to bring a new salesperson on board, remember these tips and bet on a brighter future for your team. Here’s to better hires and fewer headaches!