Effective HiringFor Sales and Sales Executives Mystery Revealed Randall Neal Randall James Monroe, Inc.
Effective Hiring • First get the right people on the bus in the right seat (and the wrong people off the bus), then figure out where to drive it. Jim Collins. Good to Great.
Effective Hiring The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint enough to keep from meddling with them while they do it. ---Teddy Roosevelt
Cost of a Bad Hire • Could be Millions $ for a sales person/sales executive. • 24 X Salary according to Brad Smart, Top Grading The goal is to improve our odds of hiring a “A” player
Search Planning Attracting Great Candidates Interviewing Resume Fraud Culture Fit References Successful Negotiations Counter Offers Dangers Assimilation Effective Hiring Steps
Search Planning • Prepare a Search Specification • Company story • Duties and Responsibilities • Ideal Background and Experience, Be Realistic • Reporting Structure • Resources, People, Budget, Equipment
Search Planning • Expectations -- 6, 12 , 24 months • How will the new executive be measured? • Challenges • Culture and Political Issues
Attracting Great Candidates • Executive Search Firms • Internal • Networking, industry contacts, etc. • Internet Sites, Ltd value at executive sales level
Attracting Great Candidates • Target industries and Companies • Target people doing the job today • Associations • Hoovers, LinkedIN, etc. RJM has researchers who’s job is to find great candidates.
Attracting Great CandidatesCommon Mistakes • Not evaluating enough candidates. • Not developing a compelling story. Rule of Thumb: RJM contacts 100 potential candidates to find one finalist.
Compelling Story • Career advancement opportunity • Industry leader in product or service • Aggressive compensation plan • Fast growth company • Wonderful culture
Candidate Profile • How do they match up with ideal candidate criteria • Resume • Compensation • Personal • Intangibles • Issues; relocation, other offers, etc.
Interviewing • Most relied on candidate selection method. • Maybe the least reliable method. • Interviews rarely reflect real life situations.
Interviewing • Three Basic Styles Emotional – decision in 5 minutes. Intuitive – decision in 10-15 minutes. Technical – decision in 1 hour or more 80% of hiring decisions are made in the first 10 minutes.
Interviewing • Be sure you understand your criteria for candidate selection. • Must haves. • Nice to have. It is okay to change your mind on the importance of the criteria.
Interviewing Methods • Chronological In-Depth Structured. (CIDS) Looking for Patterns. Tenure, Career successes and failures, Boss issues, Peter Principle, etc. Past Behavior is the best Predictor of Future Behavior.
Interviewing We are what we repeatedly do; excellence then is not an act, but a habit. Aristotle Some people change jobs, mates and friends but never think of changing themselves.
Interviewing Methods • Behavioral Method – Explore Successes and Failures What you did? How you did it? Why you did it? What did you learn? Be clear on his/her role. RJM uses a combination of CIDS and Behavioral methods.
Interviewing Common Mistakes • Putting too much weight on the interview. • Not Listening- Listen 70-80% of the time. • Judging to quickly. • Too much weight given to appearance and charisma. • Not preparing.
Resume Fraud • 33% of candidates “enhance” their resume. • 10% seriously misrepresent their background.
Resume Fraud • Bogus job titles. • Fictional degrees. • Inflated responsibilities. • False employment dates. Verify through informal and formal reference and background checks.
Culture Fit • Most difficult aspect to determine. • Maybe the most important fit issue. • Most hiring mistakes are culture issues.
Understanding the Culture • 40 vs. 60 hour weeks • How are decisions made? • What is rewarded? • Stable vs. dynamic environment • Politics and bureaucracy • Corporate vs. family • Accountability and results orientation
Assessments • Personality, Cognitive skills, Interests, Communication style, etc. • Provide unbiased appraisal of candidate. • The best use “bench marked” data. • Can provide important clues as to how best work with candidate. • Should not be used as a “Pass-Fail” test.
ReferencesKey Step Trust yes, but verify. Ronald Reagan References should verify what you believe about a candidate.
References • Prepare questions –plan the call. • Review the key selection criteria. • Allocate 30 minutes per reference call. • Conduct at least 4 reference calls. • 360 degree; bosses, peers, subordinates.
References • Personal References- Waste of time. • Verify successes; who did what? Results? • Reasons for leaving the company? • How would you rate candidates Integrity on a scale of 1-5?
References • Favorite Question- How did you rate Sam at his last Performance Review? Strengths , areas to improve, overall rating? Why? • Would you hire Sam again? Under what circumstances? Do the ideal circumstances match your situation? • The more uncertainty, the more references are required.
References • Your Hiring authority may want to talk with the former boss. • “Google” Sam and his former/current company. • Conduct Background Check. • Don’t expect all perfect references. • 80% of all workers have been fired.
ReferencesCaution Flags • Candidate can’t furnish requested references. • References have a hard time verifying candidates accomplishments. • Overly cautious responses. • All former employers are out of business. • Most former supervisors can’t be contacted.
ReferencesCommon Mistakes • Not checking references. • Calling references without candidates knowledge, if he/she is employed. • Expect all perfect references.
Counter Offer Dangers • Assume your candidate will receive a Counter Offer. • Talk about Counter Offers as soon as your interest is high. • Understand why candidate is interested in your position. • Accepted Counter Offers seldom workout long term. WSJ Article available on dangers of Counter Offers.
Successful Negotiations • Start Compensation Discussions early. First or second conversation. • Understand reasons for leaving and joining your company. • Let Search Consultant Assist. • Allow yourself “Wiggle” room but don’t play games.
Successful Negotiations • Wiggle Room points might include: Sign On Bonus Guaranteed first year bonus Early Review Date
Successful Negotiations • No one gets everything, everyone gets something. • Don’t “win the battle but lose the war”. • If you pay peanuts, expect to get monkeys.
AssimilationHe accepted – Now what? • Assimilation is often the biggest culprit in the failure of a new hire. • Develop a formal orientation program. • Send a welcome letter, small gift to the family. • Send business cards immediately.
Assimilation • Engage him during the transition, send reports, invite to meetings, etc. • Make sure he meets all of his co-workers. • Have a lunch with him during the transition. • Show candidate his new office, computer, etc.
Assimilation • Provide Coaches, Mentors, Confidants. • Provide coaching on culture, politics, etc. • Follow through on commitments, resources, meetings with you, etc.
Conclusion • Effective hiring requires a significant investment of time and effort. • Assembling a team of “A” players may be the highest and best use of a executives time. RJM Rule of Thumb –we budget 20-30 hours with the final placed candidate.