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Recruit2Hire Tidbits
http://www.recruit2hire.com/newsletter/recruit2hire-tidbits.html
Volume IV, Issue 6/7 October/November 2002
Free monthly newsletter -
Keeps you updated on the most advanced strategies for
recruiting, hiring, and employee retention.
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IN THIS ISSUE
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1. Welcome from the Publisher
***QUOTE OF THE MONTH***
2. Calculating the Cost of Hiring Poor Salespeople
3. The News Digest
4. This Month's Web Site Pick
5. Classified Ads
**Resources**
6. Subscription Management
7. Contact Information
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1. Welcome from the Publisher
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Welcome to this month's issue of Recruit2Hire TidBits!
Have you ever wondered exactly how much it costs you
to hire a sales person? Dr. Williams' article will
be a real eye-opener for you as it shows how much it
costs when you hire a poor sales person!
Studies show that 20% of your sales force makes 80%
of your sales. So what would happen if 80% of your sales
team sold as much as that top 20%?
I found some really great books for you this month -
be sure and check out the Resources below.
Enjoy!
Terri
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QUOTE OF THE MONTH
It's not what you pay a man, but what he costs you
that counts.
~Will Rogers~
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2. Calculating the Cost of Hiring Poor Salespeople
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I often take it for granted that people are able to
calculate the cost of hiring poor salespeople, but there
have been several requests to explain how this should be
done.
In technical terms, it is called "utility analysis". It
involves using statistics to calculate means and standard
deviations of performance. However, even though I know of
no medical study that links statistics to cancer of the
eyeballs, I'll defer to public opinion and suggest a way
to calculate production differences that only requires
basic addition, division, and subtraction.
GETTING STARTED
Let's take a company with 10 seasoned salespeople. They
have equal territories, and annual sales ranging from
$1,000,000 to about $250,000.
STEP 1. Rank-order salespeople based on their personal
production (from highest to lowest). Here is our
fictional sales team:
* Bob: $1,000,000
* Carol: $900,000
* Ted: $800,000
* Alice: $700,000
* Fred: $600,000
* Ethel: $500,000
* Ricky: $400,000
* Lucy: $300,000
* George: $200,000
* Martha: $100,000
STEP 2. Add production from all salespeople and divide
by three. This yields three cut-points that allow us
to divide our salespeople into meaningful production
levels, or "tiers."
* Total sales of $5,500,000 divided by 3 equals
approximately $1,800,000 per sales tier.
STEP 3. Start at the top of the list of salespeople and
assign each salesperson to a production level.
* Bob + Carol = $1,900,000 (top tier)
* Ted + Alice + Fred = $2,100,000 (mid-tier)
* Ethel + Ricky + Lucy + George + Martha = $1,500,000
(bottom tier)
STEP 4. Divide production (within each tier) by the
number of people in that level. This yields the average
production per salesperson by tier.
* Bob + Carol = $1,900,000 / 2 = $950,000 average top-tier
production
* Ted + Alice + Fred = $2,100,000 / 3 = $700,000 average
mid-tier production
* Ethel + Ricky + Lucy + George + Martha = $1,500,000 / 5=
$300,000 average bottom-tier production
STEP 5. Calculate the average production difference between
a mid-tier salesperson and a bottom-tier salesperson. Using
a mid-tier sales "target" provides a conservative estimate
of lost production.
* $700,000 average mid-tier - $300,000 average
bottom-tier = $400,000 average production lost per
bottom-tier salesperson.
STEP 6. Multiply this figure by the number of salespeople
in the bottom tier. This represents the total sales lost
each year by the bottom-tier salespeople.
* $400,000 x 5 = $2,000,000/year
STEP 7. Find a bucket and get sick. (Be careful not to get
any on the floor.)
SOME IMPORTANT THINGS TO REMEMBER
* No conscientious manager knowingly hires low producers
(unless they are blood relatives).
* We did not use "top-tier" salespeople as our "target"
because no hiring system is perfect. If we did that,
you would need a bigger bucket. All we want to do is
raise awareness of the high cost of low producers when
they are compared with a reasonable target.
Read full article here
© Copyright 2002, Dr. Wendell Williams
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3. News Digest
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Human resources news
HR and Staffing: Separated at Birth
by Ken Gaffey
When we consider the need for staffing to become a true
strategic partner in the business environments in which we
exist, has the time come for us to start by becoming
orphans? Is there is need for human resources and staffing
to be combined in the first place? Other than for the
astoundingly most-quoted reason, "Because that's the way
it has always been." I have never really heard a
compelling reason that they should....
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***Humor***
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Sleeping on the job
Things To Say If You Get Caught Sleeping At Your Desk
"This is just a 15 minute power-nap like they raved
about in the last time management course you sent me to."
"Actually I'm doing a "Stress Level Elimination
Exercise Plan" (SLEEP) I learned it at the last mandatory
seminar you made me attend.
"I was doing a highly specific Yoga exercise to relieve
work related stress."
"Darn! Why did you interrupt me? I had almost figured out
a solution to our biggest problem."
Seen on
ahajokes.com
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4. This Month's Web Site Pick
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ERI online courses are free!
We are an online salary and benefit pay practice learning
site where professionals may take CPE, CLE, CE, SPHR, and
CAC courses for continuing education credit. Courses cover:
salary administration, incentive pay, executive
compensation, benefit programs, relocation planning,
international remuneration, the DOT & O*Net, and HR tax
and code issues.
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5. Classified Ads
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"Resume and Cover Letter Secrets Revealed," a do-it-
yourself manual that will help you find a job in 30
days ... or your money back. For more information,
please visit
1dayresume
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Are your job ads buried amongst 100 other ads? Are you
getting enough responses to your ad? You can have your
ad on its' own full page sent to cell phones and wireless
devices of "completely" opt-in job seekers.
Rates
or Rates
by e-mail
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If your ad is too late for the current issue, it will be
held over until the following month
mailto:advertising@recruit2hire.com?subject=Free_Ad_r2htidbit
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**********RESOURCES************
*******Books******
Hired Gun: You're #1, and Somebody Hates It
"If you think this book is just for sales people, then think
again. HIRED GUN is for anyone who is the best in their field.
It doesn't matter if you are a computer jock, marketing rep,
or the CEO; the Laws of the Hired Gun apply to you as well.."
Proactive Sales Management: How to Lead, Motivate, and
Stay Ahead of the Game
"All sales managers work like crazy, but few are true
managers. That's because they tend to fall back on the
skills that made them great at sales...instead of adopting
the new skills that will make them great managers.
This essential book, which speaks their language, will
turn them into management pros. It teaches a proven method
for managing the sales process as well as the salespeople.
Packed with specific, field-tested techniques, PROACTIVE
SALES MANAGEMENT shows sales managers how to: ..."
How to Hire and Develop Your Next Top Performer:
The Five Qualities That Make Salespeople Great
"For most companies, hiring the right employee is a
challenge. The Caliper Profile has proved to be over
90% accurate in determining who will become a top performing
salesperson. In this practical book, Herb Greenberg, CEO of
Caliper and developer of the Caliper Profile, arms managers
with everything they need to stop the recruitment revolving
door in their companies and to hire the right people the
first time, every time, by showing managers how to:.."
******Articles********
Demand for sales and marketing professionals takes big leap
"Of nearly 200 executives surveyed, 54.1 percent indicated
plans to increase their sales staffs during the first half
of 2002, up by 12.9 points from the first half of the year.
Another 41.2 percent plan to maintain their current staff
sizes, down by 12.4 points, and only 4.7 percent plan
decreases, down by .5 of a point..."
Turn dreaded review into positive dialogue
The end of the year means more than holidays and resolutions
for many people in the workplace. It signals the end-of-year
performance review. Rather than being rushed and stressed this
year, why not start early and give your employees the review
they deserve?
Work Strategies For Winners
When your company's employees work together as a team, they
multiply their effectiveness. A study of high-tech workers in
a California laboratory showed that the star performers
outperformed their mid-range co-workers by a margin of 8 to 1.
When researchers looked for the reasons, they found that the
star performers were more adept at working with others.
They identified nine work strategies that paid off for
these knowledge workers. They can work equally well for
you. Here are the strategies:....
Hiring The Best Tech Sales Talent
You’ve got sales quotas, plans and deadlines. You can’t
reach your sales goals without a complete staff, so when
someone leaves it’s terribly tempting to hire the first
person available to fill the job......
"Re-Recruiting:" HR's Next Frontier
Recruiting the right person for the right job is always
a challenge, and it's not getting any easier. The deluge
of electronic resumes and Internet job board postings
has created a tidal wave of candidates, many of them not
qualified for the position to which they are applying.
While most recruiting still primarily focuses on external
candidates, Global 2000 companies are increasingly
recognizing that 're-recruiting' is the next HR frontier.
******Job Hunting********
Job Search Lessons From The School of Hard Knocks
Have you been hit hard by the slow economy?
If you're 30 or younger, you've probably never experienced
a recession as a member of the work force. And when
compared to the go-go economy of the late 1990s, the
current rash of job cuts and hiring freezes must seem
especially frightening.
So I tracked down and interviewed James Adams, a 70-year-old
former Minneapolis resident who's seen it all.
He's has held -- count 'em -- 107 jobs in his life. In fact,
Adams became so skilled at getting jobs that the U.S.
government hired him to teach his job search secrets to
others!
Without further ado, here are three job hunting tactics
for hard times, from the school of hard knocks.
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7. Subscription Management
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8. Contact Information
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Terri Robinson, President Robinson & Associates
Helping companies hire "Rainmakers" for their sales force.
http://www.recruit2hire.com/ Telephone: (602) 233-8410
Phoenix, AZ E-mail: mailto:terri-robinson@recruit2hire.com
Member of LEARNING FOUNTAIN NETWORK
*Excellence * Honesty * Ethics
Registered with the Library of Congress, Washington, DC
ISSN: 1528-3240
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All contents Copyright (c)2002 Robinson & Associates. except
where indicated otherwise. All rights reserved worldwide.
Reprint only with express permission from copyright
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owners. All contents provided as is. No express or implied
income claims made herein -- your business success is always
dependent on many factors, including your own abilities.
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