Hire a Winning Sales Team

How to hire a winning sales team, properly compensate sales people, and motivate employees to exceed sales targets.

It has long been said that “good salesman are born, not made.” Many people believe the skill to sell products with ease stems from some natural, innate skill and not proper training and motivation. Any person can be good in sales, but proper training, direct motivation, and positive rewards are the cornerstone to keeping good sales people. Formal education, though an asset, is not often a definitive way to choose talented individuals. Selection should be based on personality traits, with outgoing personality’s usually performing the best; organizational skills, especially if this position requires a lot of paperwork; and enthusiasm.

Training the Sales Force

Management must consider company goals, methods, location, and individual back ground when training a competent sales staff. Without goals, the program will lack direction and employees may be unsure of their exact job duties. It is important to establish job roles and responsibilities immediately, with a printed job description the employee can refer back to if they have questions.

Training should give the new sales team information about the general rules and techniques of selling in this market, and stress the methods in which sales are achieved at this company. Complete product information is also necessary at this stage; if the employee is intended to sell automobiles for example, he must be briefed on makes, models, yearly differences, gas mileage, engine size, customer needs, etc. Training may include classroom sessions, online training, and job shadowing. Initially, training can last from days to weeks, but continuous training is vital to increasing sales and improving sales staff.

Location can also play a vital role; will the new sales staff operate from a fixed location, such as a new car show room? Perhaps hiring a trained educator to train new employees in the classroom will be the best route. If sales take place on the road, on the job training with a veteran salesman is a great way to train the new sales person with real life experience.

Finally, sales staff should be trained on an individual basis. Those with a degree in business or sales might find the largest challenges exist with communication or interaction, while those with a background in actual sales may struggle with paperwork or technical information. Ensure content is geared towards the understanding and comprehension level of the trainee.

Compensation

One of the strongest driving forces behind sales staff is compensation. Salesman must be constantly motivated to achieve company sales objectives, and compensation policies must be clearly outlined. Management must take into consideration that the compensation program is fair to all those involved, sets achievable goals, and allows flexibility for adjustments and redirection of sales objectives. There are basically two systems of compensation:

Straight Salary

Straight salary provides a guaranteed weekly rate, which reduces turnover and increases customer goodwill. Stability is a large draw for this plan, as it allows for a regular, steady income without performance bias. However, it lacks motivation or incentive for the employee to exceed goals, and is not frequently used.

Commission

In a commission based program, the salesperson is paid a straight percentage of the sales he generates. The obvious advantage is it provides incentives and motivation to exceed sales objectives. On a two tier system, a firm may offer increasing commission rates at each level of sales to drive the sales force even harder. The drawback of this particular program is difficulty in controlling the sales force, and decreased customer satisfaction because sales people are less motivated to use goodwill, and more inclined to push customers into decisions they regret.

Motivation

Outside of commission, employees must feel motivated by outside forces to exceed sales expectations and perform well. Non-financial rewards such as top seller awards, bonus prizes, and recognition can go a long way to motivate employees to stay with your business. Sales force should be evaluated frequently to discover the effectiveness of the continuous training and current commission structure.

Selecting Sales People

There are no hard guidelines that distinguish who would or would not be a good sales person. Different industries may call for different sorts of individuals. Someone who excels in selling cars might not be as effective at selling door to door house ware for example. It’s important to ensure the people you hire are an appropriate for the business you are conducting.

Good traits to look for in potential sales staff include an outgoing personality, organizational skills, previous experience as a sales person, a proven knack for making sales and finding innovative ways to increase business, and education in a related field.

Sources:

Principles of Marking, Timothy W. Sweeney. University of South Carolina, 1994.

The Profit Maximization Paradox: Cracking the Marketing/Sales Alignment Code. Petersen, Glen S. (2008). Booksurge Llc.

How to Master the Art of Selling Tom Hopkins, Warner Books, 1980.

Kelly and her horse, Champ, Maria Martin

Kelly Denine - Kelly Denine works as manager at a Jaguar, Land Rover, Volvo dealership in Newfoundland. She is also the President of the local auto ...

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