3 years ago
January 6, 2015

How Improving Your Sales Hiring Process Can Generate Revenue

Revenue growth depends on your ability to hire top performers for your sales department.

Rhys Metler

Revenue growth depends on your ability to hire top performers for your sales department, which makes your sales hiring process one of the key ways that your sales and HR departments can generate revenue for your organization. Because sales people are high visibility revenue generators, it is easier to calculate and understand the impacts that your sales hiring process has on revenue compared to hiring for other departments. Recognizing that your sales hiring process is indispensable to generating revenue for the long term is the first step towards creating a well-defined strategy for a successful sales team and future revenue growth.

Top Sales People Generate More Revenue on a Per Hire Basis

It almost goes without saying that a top performer will be better able to generate revenue than an average performer, but occasionally an organization will lose sight of long term revenue in the name of cutting the bottom line costs per hire. However, the revenue results that a top performer delivers can be seen almost immediately once he or she begins making sales. Always consider the impacts of settling for a less expensive, average performing hire against a more expensive, top performing hire on your revenues, and implement the following strategies in your sales hiring process:

  • Marshall your organization’s resources for the sales hiring process when an opportunity to hire a sales star arises, whether or not a position is officially open
  • Use best practices in determining a candidate’s capacity to generate revenue, checking references and administering thorough screening prior to extending an offer
  • Prioritize top candidates in the hiring process so that the best qualified sales people remain in your hiring pipeline and can be on-boarded quickly

Reducing Sales Position Vacancies Helps Generate Revenue

An organization loses opportunities to generate revenue each day that a sales position remains vacant. After all, a vacant sales position is one less person who is generating leads and following up with prospects to make the sales that create revenue in the first place. Your sales hiring process is essential to reducing vacancy days when sales positions are opened or added to your sales department. Make sure that your sales hiring process is generating revenue by reducing vacancy through:

  • Streamlining your requisition practices so that departmental approvals for hiring are timely
  • Following established timelines for screening and making hiring decisions so that unnecessary delays in the sales hiring process are eliminated
  • Using a professional sales recruiter to access highly qualified sales people in less time compared to beginning a sales hiring cycle from step one

Improving Sales Retention through the Sales Hiring Process to Generate Revenue

Retention has a high impact on your organization’s ability to generate revenue and save on costs. Consider the high level cost and revenue impacts that sales longevity has on your organization’s bottom line:

  • The initial costs of hire as well as costs related to training, coaching, equipment, and overhead, duplicated for a replacement hire
  • The increased ability of an individual familiar with your organization’s processes who has developed relationships and contacts in the industry to generate revenue
  • The long term revenue generated by extended sales cycles and repeat business from converted customers working with a long-term sales employee

For an even more accurate picture of how your sales hiring process is performing within the first year of hire, you can also include your costs per hire in common calculations such as payroll to net sales. To improve retention, carefully screen sales candidates for longevity by looking at employment history and asking questions about future career goals to predict the likelihood that an individual will stay with you for at least two years. You may also wish to consider creating retention plans for each individual on your sales team so that sales leaders are encouraged to continue to generate revenue for you, and are not tempted to leave for the competition.

Rhys Metler

Rhys is a tenacious, top performing Senior Sales Recruiter with 11+ years of focused experience in the Digital Media, Mobile, Software, Technology and B2B verticals. He has a successful track record of headhunting top performing sales candidates for some of the most exciting brands in North America. He is a Certified Recruitment Specialist (CRS) and has expert experience in prospecting new business, client retention/renewals and managing top performing sales and recruitment teams. Rhys enjoys spending quality time with his wife, son, and two daughters, BBQing on a hot summer day, tropical vacations and cottaging.