Effective HiringEffective HiringFor Sales and Sales For Sales and Sales

ExecutivesExecutives

Mystery RevealedMystery Revealed

Randall NealRandall Neal

Randall James Monroe, Inc.Randall James Monroe, Inc.

Effective HiringEffective Hiring

First get the right people on the First get the right people on the bus in the right seat (and the bus in the right seat (and the wrong people off the bus), then wrong people off the bus), then figure out where to drive it.figure out where to drive it.

Jim Collins.  Jim Collins.  Good to Great.Good to Great.

Effective HiringEffective Hiring

The best executive is the one who has The best executive is the one who has sense enough to pick good men to do sense enough to pick good men to do what he wants done, and self-what he wants done, and self-restraint enough to keep from restraint enough to keep from meddling with them while they do it.meddling with them while they do it.

---Teddy Roosevelt---Teddy Roosevelt

Cost of a Bad HireCost of a Bad Hire

Could be Millions $ for a sales Could be Millions $ for a sales person/sales executive.person/sales executive.

24 X Salary according to Brad 24 X Salary according to Brad Smart, Smart, TopTop

GradingGrading

The goal is to improve our The goal is to improve our odds of hiring a “A” playerodds of hiring a “A” player

Effective Hiring StepsEffective Hiring Steps

Search PlanningSearch Planning Attracting Great Attracting Great

CandidatesCandidates InterviewingInterviewing Resume FraudResume Fraud

Culture Fit Culture Fit ReferencesReferences Successful Successful

NegotiationsNegotiations Counter Offers Counter Offers

DangersDangers AssimilationAssimilation

Search PlanningSearch Planning

Prepare a Search SpecificationPrepare a Search Specification Company storyCompany story Duties and ResponsibilitiesDuties and Responsibilities Ideal Background and Experience, Ideal Background and Experience,

Be RealisticBe Realistic Reporting StructureReporting Structure Resources, People, Budget, Resources, People, Budget,

EquipmentEquipment

Search PlanningSearch Planning

Expectations -- 6, 12 , 24 monthsExpectations -- 6, 12 , 24 months How will the new executive be How will the new executive be

measured?measured? ChallengesChallenges Culture and Political IssuesCulture and Political Issues

Attracting Great Attracting Great CandidatesCandidates

Executive Search FirmsExecutive Search Firms InternalInternal Networking, industry contacts, etc.Networking, industry contacts, etc. Internet Sites, Ltd value at executive Internet Sites, Ltd value at executive

sales levelsales level

Attracting Great Attracting Great CandidatesCandidates

Target industries and CompaniesTarget industries and Companies Target people doing the job todayTarget people doing the job today AssociationsAssociations Hoovers, LinkedIN, etc.Hoovers, LinkedIN, etc.

RJM has researchers who’s job is to RJM has researchers who’s job is to find great candidates.find great candidates.

Attracting Great CandidatesAttracting Great CandidatesCommon MistakesCommon Mistakes

Not evaluating enough candidates.Not evaluating enough candidates. Not developing a compelling story.Not developing a compelling story.

Rule of Thumb: RJM contacts 100 Rule of Thumb: RJM contacts 100 potential candidates to find one potential candidates to find one finalist.finalist.

Compelling StoryCompelling Story

Career advancement opportunityCareer advancement opportunity Industry leader in product or serviceIndustry leader in product or service Aggressive compensation planAggressive compensation plan Fast growth companyFast growth company Wonderful cultureWonderful culture

Candidate ProfileCandidate Profile

How do they match up with ideal How do they match up with ideal candidate criteriacandidate criteria

ResumeResume CompensationCompensation PersonalPersonal IntangiblesIntangibles Issues; relocation, other offers, etc.Issues; relocation, other offers, etc.

InterviewingInterviewing

Most relied on candidate selection Most relied on candidate selection method.method.

Maybe the least reliable method.Maybe the least reliable method. Interviews rarely reflect real life Interviews rarely reflect real life

situations.situations.

InterviewingInterviewing

Three Basic StylesThree Basic Styles

Emotional – decision in 5 minutes.Emotional – decision in 5 minutes.

Intuitive – decision in 10-15 minutes.Intuitive – decision in 10-15 minutes.

Technical – decision in 1 hour or moreTechnical – decision in 1 hour or more

80% of hiring decisions are made in 80% of hiring decisions are made in the first 10 minutes.the first 10 minutes.

InterviewingInterviewing

Be sure you understand your criteria Be sure you understand your criteria for candidate selection.for candidate selection.

Must haves.Must haves. Nice to have.Nice to have.

It is okay to change your mind on the It is okay to change your mind on the importance of the criteria.importance of the criteria.

Interviewing MethodsInterviewing Methods

Chronological In-Depth Structured. Chronological In-Depth Structured. (CIDS)(CIDS)

Looking for Patterns.Looking for Patterns.

Tenure, Career successes and failures, Tenure, Career successes and failures, Boss issues, Peter Principle, etc.Boss issues, Peter Principle, etc.

Past Behavior is the best Predictor of Past Behavior is the best Predictor of Future Behavior.Future Behavior.

InterviewingInterviewing

We are what we repeatedly do; We are what we repeatedly do; excellence then is not an act, but a excellence then is not an act, but a habit.habit.

AristotleAristotle

Some people change jobs, mates and Some people change jobs, mates and friends but never think of changing friends but never think of changing themselves.themselves.

Interviewing MethodsInterviewing Methods Behavioral Method – Explore Successes Behavioral Method – Explore Successes

and Failuresand FailuresWhat you did?What you did?How you did it?How you did it?Why you did it?Why you did it?What did you learn?What did you learn?Be clear on his/her role.Be clear on his/her role.

RJM uses a combination of CIDS and RJM uses a combination of CIDS and Behavioral methods.Behavioral methods.

Interviewing Common Interviewing Common MistakesMistakes

Putting too much weight on the Putting too much weight on the interview.interview.

Not Listening- Listen 70-80% of the Not Listening- Listen 70-80% of the time.time.

Judging to quickly.Judging to quickly. Too much weight given to Too much weight given to

appearance and charisma.appearance and charisma. Not preparing. Not preparing.

Resume FraudResume Fraud

33% of candidates “enhance” their 33% of candidates “enhance” their resume.resume.

10% seriously misrepresent their 10% seriously misrepresent their background.background.

Resume FraudResume Fraud

Bogus job titles.Bogus job titles. Fictional degrees.Fictional degrees. Inflated responsibilities.Inflated responsibilities. False employment dates.False employment dates.

Verify through informal and formal Verify through informal and formal reference and background checks.reference and background checks.

Culture FitCulture Fit

Most difficult aspect to determine.Most difficult aspect to determine. Maybe the most important fit issue.Maybe the most important fit issue. Most hiring mistakes are culture Most hiring mistakes are culture

issues.issues.

Understanding the Understanding the CultureCulture

40 vs. 60 hour weeks40 vs. 60 hour weeks How are decisions made?How are decisions made? What is rewarded?What is rewarded? Stable vs. dynamic environmentStable vs. dynamic environment Politics and bureaucracyPolitics and bureaucracy Corporate vs. familyCorporate vs. family Accountability and results Accountability and results

orientationorientation

AssessmentsAssessments

Personality, Cognitive skills, Interests, Personality, Cognitive skills, Interests, Communication style, etc.Communication style, etc.

Provide unbiased appraisal of Provide unbiased appraisal of candidate.candidate.

The best use “bench marked” data.The best use “bench marked” data. Can provide important clues as to how Can provide important clues as to how

best work with candidate.best work with candidate. Should not be used as a “Pass-Fail” Should not be used as a “Pass-Fail”

test.test.

ReferencesReferencesKey StepKey Step

Trust yes, but verify.Trust yes, but verify.

Ronald ReaganRonald Reagan

References should verify what you References should verify what you believe about a candidate.believe about a candidate.

ReferencesReferences

Prepare questions –plan the call.Prepare questions –plan the call. Review the key selection criteria.Review the key selection criteria. Allocate 30 minutes per reference Allocate 30 minutes per reference

call.call. Conduct at least 4 reference calls.Conduct at least 4 reference calls. 360 degree; bosses, peers, 360 degree; bosses, peers,

subordinates.subordinates.

ReferencesReferences

Personal References- Waste of time.Personal References- Waste of time. Verify successes; who did what? Verify successes; who did what?

Results?Results? Reasons for leaving the company?Reasons for leaving the company? How would you rate candidates How would you rate candidates

Integrity on a scale of 1-5?Integrity on a scale of 1-5?

ReferencesReferences

Favorite Question- How did you rate Favorite Question- How did you rate Sam at his last Performance Review? Sam at his last Performance Review? Strengths , areas to improve, overall Strengths , areas to improve, overall rating? Why?rating? Why?

Would you hire Sam again? Under Would you hire Sam again? Under what circumstances? Do the ideal what circumstances? Do the ideal circumstances match your situation?circumstances match your situation?

The more uncertainty, the more The more uncertainty, the more references are required.references are required.

ReferencesReferences

Your Hiring authority may want to Your Hiring authority may want to talk with the former boss.talk with the former boss.

““Google” Sam and his Google” Sam and his former/current company.former/current company.

Conduct Background Check.Conduct Background Check. Don’t expect all perfect references.Don’t expect all perfect references. 80% of all workers have been fired.80% of all workers have been fired.

ReferencesReferencesCaution FlagsCaution Flags

Candidate can’t furnish requested Candidate can’t furnish requested references.references.

References have a hard time verifying References have a hard time verifying candidates accomplishments.candidates accomplishments.

Overly cautious responses.Overly cautious responses. All former employers are out of All former employers are out of

business.business. Most former supervisors can’t be Most former supervisors can’t be

contacted.contacted.

ReferencesReferencesCommon MistakesCommon Mistakes

Not checking references.Not checking references. Calling references without Calling references without

candidates knowledge, if he/she is candidates knowledge, if he/she is employed.employed.

Expect all perfect references.Expect all perfect references.

Counter Offer DangersCounter Offer Dangers

Assume your candidate will receive a Counter Assume your candidate will receive a Counter Offer.Offer.

Talk about Counter Offers as soon as your Talk about Counter Offers as soon as your interest is high.interest is high.

Understand why candidate is interested in your Understand why candidate is interested in your position.position.

Accepted Counter Offers seldom workout long Accepted Counter Offers seldom workout long term.term.

WSJ Article available on dangers of Counter WSJ Article available on dangers of Counter Offers.Offers.

Successful NegotiationsSuccessful Negotiations

Start Compensation Discussions Start Compensation Discussions early. First or second conversation.early. First or second conversation.

Understand reasons for leaving and Understand reasons for leaving and joining your company.joining your company.

Let Search Consultant Assist.Let Search Consultant Assist. Allow yourself “Wiggle” room but Allow yourself “Wiggle” room but

don’t play games.don’t play games.

Successful NegotiationsSuccessful Negotiations

Wiggle Room points might include:Wiggle Room points might include:

Sign On BonusSign On Bonus

Guaranteed first year bonusGuaranteed first year bonus

Early Review DateEarly Review Date

Successful NegotiationsSuccessful Negotiations

No one gets everything, everyone No one gets everything, everyone gets something.gets something.

Don’t “win the battle but lose the Don’t “win the battle but lose the war”.war”.

If you pay peanuts, expect to get If you pay peanuts, expect to get monkeys.monkeys.

AssimilationAssimilationHe accepted – Now what?He accepted – Now what?

Assimilation is often the biggest Assimilation is often the biggest culprit in the failure of a new hire.culprit in the failure of a new hire.

Develop a formal orientation Develop a formal orientation program.program.

Send a welcome letter, small gift to Send a welcome letter, small gift to the family.the family.

Send business cards immediately.Send business cards immediately.

AssimilationAssimilation

Engage him during the transition, Engage him during the transition, send reports, invite to meetings, etc.send reports, invite to meetings, etc.

Make sure he meets all of his co-Make sure he meets all of his co-workers.workers.

Have a lunch with him during the Have a lunch with him during the transition.transition.

Show candidate his new office, Show candidate his new office, computer, etc.computer, etc.

AssimilationAssimilation

Provide Coaches, Mentors, Provide Coaches, Mentors, Confidants.Confidants.

Provide coaching on culture, politics, Provide coaching on culture, politics, etc.etc.

Follow through on commitments, Follow through on commitments, resources, meetings with you, etc.resources, meetings with you, etc.

ConclusionConclusion

Effective hiring requires a significant Effective hiring requires a significant investment of time and effort.investment of time and effort.

Assembling a team of “A” players Assembling a team of “A” players may be the highest and best use of a may be the highest and best use of a executives time.executives time.

RJM Rule of Thumb –we budget 20-30 RJM Rule of Thumb –we budget 20-30 hours with the final placed candidate.hours with the final placed candidate.