Gallup and Harvard Business Review assert that most hiring companies have a tendency to grossly underestimate the negative consequences of a bad sales hire. Some of the costs include, but are not limited to:
Direct Costs
Lost Revenue (lost and delayed business)
Extra training and management required
Costs of turnover (firing and replacement – from both time and direct hiring costs)
Long-term impact on market share and brand: lost customers and brand loyalty
Impact on morale, leading to lower overall performance of other team members and higher turnover
Ultimately the loss of your best salespeople
Interviewing tip: Ask your sales candidate to describe their first selling experience! Watch whether their eyes sparkle; how animated the become; how engrossed they get into their story or the inner groan that makes them slump a bit. Please let me know what you experience with this question!
