Accelerating the potential of new talent
29th January 2016 | Dr Beth Rogers and Bryan McCrae
Hiring and onboarding is an expensive and time-consuming process. It pays to get it right.
The costs of recruitment are on the rise again, with an increase of around 50% from 24 months ago, according to the Chartered Institute of Personnel and Development; meanwhile, four out of five employers are saying that the competition for well-qualified talent has increased over the same period.
Advertising and agency fees are substantial and obvious; the amount of management time spent on recruitment is also worth tracking. The risks of failed investment and effort are considerable. Voluntary sales staff turnover rates are on the rise too, reflecting the improving economy. When the costs of training, income guarantees and the knock-on effects of a failed hire – such as weakened customer relationships, team disruption and missed opportunities – are taken into account, most sales managers would want to maximise retention of all but their poorest performers. Nevertheless, vacant posts and new opportunities cannot be left untended because recruitment is too hard.
Why do we tend to go straight to recruiting salespeople as if it were the only option available? If there were similar risks in another critical activity, managers might decide to shift the risk to a third party by outsourcing. This is possible for many sales roles. At the very least, engagement of interim or “temp” sales professionals minimises exposure when a territory is not being covered or a new product needs extra effort.