I think we would all agree that Today’s Hiring Managers are literally in a daily battle to hire top talent, especially sales talent.
But does simply filling positions sometimes eclipse the real goal of hiring the best talent available?
Hiring the right employee for the right position is loosely known as “quality of hire”.
Linked in calls it “the magic metric.”
So how do we measure this nebulous, but critically important, metric for new sales hires?
In this post you will learn four essential metrics to utilize when measuring your quality of hire:
- Time To Productivity
- Job Performance
- Employee Lifetime Value
- Employee Retention
Quality is always difficult to measure, so keep it simple, especially when you’re just getting started.
Measure how quickly the new hire started using your CRM for example. How many sales calls were made and when? When did the first opportunity close? How does the new salesperson rank among the sales team?
These are some simple metrics to measure time to productivity.
Job performance is easiest to define for sales professionals. Quotas are the common measuring stick for salespeople. Set interim quotas and work with sales management to monitor them. This simple measurement can become your most useful tool for future comparisons and job performance measurement.
You can measure employee lifetime value, even if the new hire had a short tenure. Sometimes employees simply move on. Contributions to the sales organization can still be measured, however, and lessons learned.
Was there a contribution in terms of suspects/prospects added to the CRM? Was there a revenue contribution? Were sales calls made and are there opportunities in progress?
Keep track of these metrics in the context of the longitudinal employment records for all employees.
Last but not least, look at actual employee retention records. If you’re losing salespeople consistently in less than twelve months, you definitely need to make adjustments to your strategic employee retention plan.
If this is the case, you probably need to consider engaging with a staffing agency. You may not be mining the right talent fields. An agency partner can help you to better target and recruit the right sales candidate for the right position. This will significantly improve your overall employee retention.
Maybe it’s time to change the title “hiring manager” to “top talent acquisition manager.” OK, that may be a bit lengthy, but you get our point.