Hiring the right salesperson is essential for business success, and making the wrong hiring decision can have significant consequences. Making a bad hire is a growing challenge, with around 95% of businesses reporting that they make at least one bad hire annually, failing to find the right candidate for two out of every five roles. These hiring mistakes not only lead to financial losses but also negatively impact existing team members, affecting their attitude and overall performance.
Here are the risks of hiring the wrong salesperson:
Upfront costs hit hard
The recruitment process begins with upfront costs such as advertising, hiring fees, and time spent reviewing applications and conducting interviews. Every hour invested in these activities takes time away from your core sales responsibilities, which directly impacts revenue generation. In addition to this, once the hire has been made, the costs continue. Salaries, training, and necessary equipment like laptops and phones are crucial investments – but if the salesperson fails to deliver results, these investments go to waste.
Time is money
Alongside financial costs, time is one of the most valuable resources in the hiring process, particularly in sales. Vacant territories create missed opportunities, and training a new salesperson requires time. If they end up not being the right fit, businesses are forced to start the process all over again, incurring similar costs repeatedly.
According to Select Software Reviews, 81% of managers believe it takes six months or more for new hires to reach optimum productivity. So, if the process needs to be repeated, the cost can easily escalate into thousands of pounds. A poor hire in the UK and Ireland could cost businesses between 15%-21% of the employee’s salary, depending on seniority. These staggering costs combined with the time invested in recruitment make it crucial to get it right first time.
Productivity loss comes with a cost
A poor hire can create a ripple effect on team productivity and morale. Underperforming salespeople often require additional support, placing extra pressure on team members to pick up the slack. Team-based sales targets are particularly vulnerable, as even one weak link can negatively impact the overall results. This disrupts productivity, leading to frustration and resentment within the team.
If the bad hire is eventually let go, remaining team members may feel uncertain about workload distribution, job security, and leadership decisions, which can further affect performance. According to Adecco, three out of four employees have experienced stress due to workplace disruptions caused by bad hires. This suggests that sales managers need to consider the impact this has on their team, especially top performers, who may begin to seek opportunities elsewhere, causing a cascading effect on the entire team.
Clients at risk
Client losses are inevitable in sales, and a bad hire can accelerate this process. According to Workwize, 12% of employees admit to taking sensitive data when they leave a role – a particularly concerning issue in sales, where client relationships and valuable information are critical.
Additionally, a salesperson’s poor performance can harm client relationships. Failing to follow up on leads, mishandling accounts, or neglecting critical sales opportunities can lead to lost deals and decreased revenue. Rebuilding trust with clients after a bad hire is a challenging and time-consuming task.
How to get it right
The high cost of a bad hire highlights the importance of investing in a thought through recruitment process. To improve hiring outcomes, businesses should focus in several key areas:
Define success traits
Start by analysing you top-performing salespeople to identify the specific skills, behaviours, and attitudes that contribute to success. Align these traits with your company’s goals to create a clear candidate profile.
Enhance your interview process
Use insights from past hiring mistakes to refine your interview questions and techniques. Focus on identifying red flags for poor performance and assess candidates for emotional intelligence, teamwork, and the core qualifications needed for the role.
Prioritise training and development
Once a new hire is selected, investing in tailored training and development is crucial. Even less experienced candidates can thrive with the right support, while a promising hire may struggle without proper onboarding and development. Personalised training programmes can significantly impact how new salespeople perform.
Partner with experts
To avoid hiring mistakes, consider partnering with recruitment specialists who understand the sales industry. At BMS, we specialise in finding sales candidates who are not only skilled but also a perfect fit for your team. Contact us today to discuss how we can support you in making your next sales hire.
By focusing on these strategies, you can reduce the risk of bad hires, saving both time and money while building a stronger and successful sales team.