Building a Winning Sales Structure for Your Firm

Transcription

1 Building a Winning Sales Structure for Your Firm

2 Today s Learning Points The 6 critical elements of a highperforming staffing sales team Why most staffing companies fail in internal staff selection Attracting and selecting A players Onboard, manage, and retain employees Create goals and incentives consistent with company goals

3 Your most important role as a manager Building a High-Performing Team Identifying new talent Regularly play what if? Focus on retention

4 How Most Staffing Companies Hire Internal Employees Wait until there is an opening Place an ad on a job board (maybe even Craigslist!) Wait for resumes Select the best few to interview Hire the active job seeker you like the best

5 6 Elements of Building a High- Performing Staffing Team Recruitment Selection Onboarding Compensation Goal Setting & Management Training & Coaching

6 Recruitment

7 The Talent Pool Not Moving 25% Unemployed* 4% Active*** 9% Window Shopping Semi-Active** 25% Passive*** 37% Willing to Listen Traditional recruiting sources (job boards, etc.) only reach 13% of the talent pool

8 Why Do Salespeople Fail? Personal Lack of Sales Skills Lack of Motivation Inexperience Poor Time Management Lack of Credibility Lack of Industry or Product Knowledge Ineffective Relationship Building Skills Organizational Lack of Sales Resources Lack of Managerial Direction Uncompetitive Service or Product Lack of Training and Coaching Vague or No Set Sales Goals Metrics not aligned with Company Goals Ineffective Compensation Plan Unrealistic Goals Service Failures

9 $30,000,000 Lifetime Value of a High Performing Sales Rep $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 Difference: $21 mm GP Difference: $10 mm GP $0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Low Performer Average Performer Star Performer

10 Recruitment and Selection Process New Hire!

11 Develop your Ideal Candidate Profile Large account vs. retail Transactional vs. Relationship Staffing Experience? Niche Industry Experience? Cold vs. Warm Market Rookie vs. Free Agent

12 Targeted Recruiting Methodology Who Are They? Where are They? How do we Engage Them? How do we Attract Them?

13 Job Description vs. Posting Description is internal, posting external Posting is a marketing piece Effective Job Postings should: Be Creative Show how the candidate s life will improve Be truthful and realistic Give an accurate depiction of the job responsibilities

14 Trade Shows/Conferences Lunches and Breakfasts Networking Educational Events Networking Events Effective Networking is more than just showing up Fundraisers Job Fairs Volunteer Join a committee Serve on the board Speak Where to Network

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16 Selection

17 It is no longer the candidate s job to sell you It is your responsibility to sell the candidate! Candidates do not behave the way they used to The best candidates have many options You are in serious competition How you interact with the candidate during the recruiting process is critical Be Friendly Be on time Treat them with value

18 I versus We Specific, quantifiable answers What to look for in an interview Thorough knowledge of their past performance Eye contact Sense of Humor Confidence Do they ask thoughtful questions Have they done their research

19 Characteristics of a Successful Sales Rep Goal-Oriented Competitive Good Listener Manages Time Well Financially Motivated Relationship Builder Sense of Humor Problem Solver Trustworthy Confident

20 Sample Interview Questions Walk me through a typical sales day What client are you most proud of? Give me an example of a difficult prospect you converted to a client Talk about a service breakdown that put a client relationship in jeopardy. How did you resolve it? Tell me about your most successful year Walk me through the biggest deal you ever closed What 3 words would you use to describe yourself. What 3 words would your last manager use to describe you? Do you consider yourself a competitive person? How? What was your quota at your last employer and how did you do compared to quota? How do you stay organized? How do you identify prospects?

21 Have them call you Consider a group interview Interview over lunch or dinner Request a written sales/recruiting plan Additional Selection Tips

22 Behavioral Assessments Identifies traits that indicate potential performance Potential red flags and development areas Quantifiable sanity check (yours, not theirs)

23 Onboarding

24 How to Approach Onboarding What will your new employee say to their spouse, significant other, parents, or friends at the end of the first day? Organized or chaotic Welcoming or cold Professional or unprofessional Great choice or what have I gotten myself into to?

25 Create a Structured, Repeatable Onboarding Process

26 Compensation

27 Motivate employees to win new business, retain and grow clients, fill orders, etc. What a Comp Plan Should Do Incent sales reps to bring in the right business, and recruiters to fill orders quickly with quality Reward desired behavior Attract and Retain top-level talent

28 Low base, high commission structure Tiered based on breakeven and quota attainment Kicker based on Monthly GP% $30k base salary Based on GP % $1 100k = 5% $100k - $200k = 15% $200k + = 25% 1-22% = No kicker 22.1% - 28% = 10% kicker 28.1% + = 20% kicker Sample Sales Comp Structure

29 Goal Setting & Management

30 Begin with the End in Mind What is our company growth goal? What % of that goal should rep be responsible for? What types of activities should we measure? (calls, appointments, pipeline, etc) What conversion ratios should we expect (pipeline closing, call to appointment, etc) Create activities that help achieve overall goal

31 Sales Quota Month Quota (GP$) Month Quota (GP$) 1 $0 7 $17,500 Set goals for new business growth Recommended Quota of $300,000 in gross margin First year ramp of $170,000 Based on new clients landed in previous 12 months 2 $0 8 $25,000 3 $2,500 9 $25,000 4 $5, $25,000 5 $7, $25,000 6 $12, $25,000

32 Revenue vs. GP Perm vs. Temp Size vs. Margin Geographic Area Align Activity with company objectives Skill-sets and Industries

33 Sales Goals Planning Worksheet Revenue and GP GP Goal or Quota $ 300,000 Average GP% 25% Annual Revenue Needed to achieve goal or quota $ 1,200,000 What is your average pay rate? $ What is your average markup? 50% Average Bill Rate 18 Hours billed annually to hit goal 66,667 Hours billed weekly to hit goal 1, # of Temps needed weekly Average # of temps on assignment at new client 8 New clients needed to achieve goal for the year 9 Average annual revenue per client $ 288,000 Sales Pipeline Estimated Pipeline Win % 20% Average Sales Cycle (days) 90 Average Pipeline Needed to Achieve Goal $ 3,251,543 # of qualified prospects in pipeline 11 Total prospects annually 46 Sales Activities Sales Goal Planning Worksheet Work back from your goal Based on success rate in each sales step Small improvements create big efficiencies (1% per day) Removes the Guesswork # of phone calls to get one appointment 20 Number of appointments to get one qualified prospect in pipeline 3 % of appointments that are first time meetings 50% Weekly appointments needed to hit pipeline goal 5 Weekly phone calls needed to hit appointment goal 110

34 Sales Metrics Definition Recommendations Activities Sales tasks performed, including phone calls, conversations, networking conversations 150 per week Appointments Face to face meetings to discuss potential staffing opportunities 5 per week Sample Sales KPI s Active sales opportunities where the potential for Pipeline revenue has been qualified and a decision will be made $3,000,000 in the next 3-4 months % to Quota Actual results as a % of Gross Profit goal $300k New GP annually

35 Training & Coaching

36 On-boarding Company Specific Training Industry Specific Training Training and Coaching Focus Sales Skills Training Ongoing Coaching & Training

37 Sales Skills Training Prospecting Appointment Setting Value Proposition Negotiation Closing

38 Weekly Activity Planner One concise place to plan your week Allows you to review prior week goals Quick snapshot of all goals

39 Accountability Manage by Metrics Pipeline Sales Activity Appointments Attainment to Quota Follow an agenda Metrics Pipeline overview Hottest Deals Losses Areas of Support Reinforce Training and Goals Celebrate Successes

40 Coaching helps an employee maximize their performance Counseling helps an employee stabilize their performance Coaching vs. Counseling

41 Recruiting, selecting, and managing our staff should be your #1 priority A successful internal team requires 6 In Closing elements: Recruitment, Selection, Onboarding, Compensation, Goals and Management, and Training and Coaching

42 Tom Erb, SPHR, CSP tallannresources.com blog.tallannresources.com