Top Line Tips
When to Cut the Cord with Struggling Sales People
Jan Foster photo
If you're a sales leader, this question is on your mind daily.  You may have hired them, trained them but if they fail to perform, when do you cut the cord?  To find the best thinking on this issue, I asked expert Jan Foster who has over 30 years of experience working with all types and sizes of sales organizations to share her perspective.

Question: What are signs that it isn't working out with a current sales rep?

It's important to keep in mind that a top performer will produce 3-6 times more than a mid-level performer. And production is even lower for low performers. Do you want to invest more in a low performer or should you go find a top performer to replace them?

First, I'd ask if they're happy. If not, perhaps they just aren't cut out for this type of work and you can help them exit gracefully.

Second, do they show integrity by working hard to be successful? If they lack integrity, it's time to move on.

Third, are your customers reacting negatively to them? If their relationships are bad, you will do more harm than good by keeping them.

Sales Leader Gut Check
I've created a Sales Leader 'Gut Check' to help evaluate a few critical success factors:

1. Are results trending up or down?
2. Are referrals and appointments trending up or down?
3. How would you rate their desire, enthusiasm and work ethic?
4. Would their customers consider them an expert on communicating the value of your products and services?
5. Are they resourceful, building internal and external relationships and leveraging all resources?

On the flip side, I sometimes see sales people let go too early. It takes time to build a prospect base, get budget approval, wait for contracts with other vendors to expire and move prospects through the sales process. In complex sales, it takes more than six months to deliver results. If the prospect list is growing and prospects have been vetted for quality and are moving through the sales cycle, then a little more time might be a wise investment.

Question: What are the rock solid predictors of success for a sales person?

Many years of research and statistical analysis show us there are three key areas that are predictive of who will succeed in a particular role. These are far more important than industry knowledge and skills. If they fit the criteria below, they can learn the rest.

1. Learning and cognitive abilities:
How do they learn and process information? Are they able to communicate at a level that your clients understand? When a rep isn't able to communicate at the appropriate level (too high or too low), their results will be less than optimal.

2. Behavioral factors: 
  • What pace of work is appropriate: is this a fast-paced/multi-tasking environment or is it a more measured pace type of sale?
  • Are they comfortable working independently: are they suited as remote sales people or do they do better with more oversight?
  • How assertive are they (not just when trying to get a job, but innately)?
  • How much do they like to engage with other people: will they network or work trade shows effectively if needed?
  • How accommodating are they: is it "my way or the highway" or do they bend too far to please everyone?
  • How do they make decisions: based on facts and data or more intuitively?
  • Do they make decisions quickly (or too quickly) or take a long time to make decisions?
There is no good or bad here, but there is an optimal level for each of these for sales in your company.

3. Occupational interest:
Is this what they want to be doing with their life or is this just a job for a paycheck until something better comes along? Look for a passion for selling.

Question: As a sales manager, how can you reduce poor hires in the future?

Analyze the job and consider the factors above. So many organizations hire because they like the person, they were a referral or they've been successful in another industry. It is a fallacy that "if you can sell, you can sell anything". Every organization and culture is different.

Gather the right data to make an informed decision. Reference checks are essential. Talk with people who know your candidate beyond those they gave as references: former clients, coworkers, bosses. Use LinkedIn and your network to find them.

Hiring assessments are a great way to add data to what is often a subjective decision. Good assessments provide statistically valid data to help you know who your candidates really are rather than how they portray themselves in their resumes and in interviews. They guide you with specific benchmarks for your organization and good interview questions to help you understand your candidate better.

About Jan Foster:
Jan Foster of Performance Resources has over 30 years experience providing services to all types and sizes of organizations. She provides employers tools that allow them to make better and more informed hiring decisions for sales and all levels of employees through the use of valid assessments and actionable data, including specific interview questions and coaching guides. Jan also works with developing an organization's leaders through 360 feedback and guidance on how to improve key leadership skills. She provides an online hiring system that posts jobs to job boards and a company's website and manages the hiring process and candidate communications.  Contact Jan at jan@prol.ws.


About Lisa Magnuson:
Lisa Magnuson is an expert in corporate strategic sales and TOP Line Accountâ„¢ revenue building. As a respected sales consultant and author, Lisa works with clients to build successful strategic sales programs that drive revenue from large new accounts and enable growth from existing high value customers. Learn more at www.toplinesales.com 
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Lisa D. Magnuson
Corporate Sales Strategist
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