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 | SalesVantage.com >> Article Archives >> Management Insights >> Design An Offer That Commences The Sales Marriage
The offer stage of the hiring process parallels the proposal phase of sales. Best practices in sales say that you don't present a proposal until a thorough needs analysis has been completed. If a sales person is presenting a proposal to a prospect, he has acquired the information needed to design a solution, has discussed budget, has a full understanding of their solution requirements, and has set an expectation on pricing. This is certainly the case if the sales person is going to be successful in winning the account. Looking at this process in contrast to the offer stage of the sales talent screening program, many of the same best practices from sales hold true. During the screening program, information needs to be gathered from the candidate to determine their financial requirements. Unfortunately, many sales talent screening programs focus exclusively on screening the candidate for fit, but do not consider the needs for the offer phase of the process. This leads to a last minute scurry to mine the information from the candidate or they design the offer blindly. Neither of those are best practices for the offer stage. In sales, it is said that if you are going to lose, lose early. This prevents you from making a huge investment in a relationship that will not generate revenue. The parallel to screening sales talent is understanding the financial requirements of the candidate early enough to stop the process before over-investing in the relationship. There is no point in continuing a process with a candidate that requires a compensation level 25% above what you can offer. This probably seems logical, but hiring executives rarely focus on this as a de-selection element early in the process. Just like discussing pricing with a prospect, the financial needs discussion requires finesse. The candidate knows that you are asking questions about their financials, just like a prospect knows a sales person is fishing for budget information. The better-skilled sales people tell their prospects, "I don't want to waste your time by getting you excited about a solution that will not fit in your budget constraints…" In much the same way, this discussion can be had with the candidate, "I don't want to excite you about an opportunity that might not be a match for your financial needs. As you look at making a change in position, what thoughts have you given to your compensation requirements?" With continued finesse, you can dig further into the mix of salary versus commission. Some candidates may rebuff this discussion as they feel the information will be used against them. In some instances, they are justified for having that concern. Hopefully, that is not the case in your company. We'll come back to this point later. The bottom line is that the two goals of this phase are to gather information that allow you to formulate an offer and to de-select those candidates whose requirements exceed your financial package. In sales, the proposal phase should not be like a magic show. The prospect should not be shocked by what is included in the proposal. In essence, the proposal is the documentation of what has already been discussed. No surprises. The same holds true for candidates. The time to review the compensation plan details is not after they are hired, or even at the offer stage. The compensation plan should be reviewed at the point where you have a genuine interest in pursuing the candidate and they have a complete enough understanding of the company that they will be able to comprehend the compensation plan. One of the core requirements associated with any process is that it is measurable. The offer phase of the sales talent screening program should be measured statistically to determine effectiveness. The key statistic is number of offers made versus ones that are accepted. If the acceptance level is less than 80%, the process should be reviewed by asking the following questions.
Consider this when making an offer to the sales candidate. Develop an offer based on what was learned from the candidate that represents the best offer you are willing to make. Early in the process, tell the candidate that you don't negotiate offers, but rather put your best offer on the table upfront. It demonstrates a professional message to the candidate and reduces their fear of attempts to lowball them. When companies negotiate offers, while they may "win" the candidate, they damage the relationship. This person is on-boarded with the worst scar tissue of all, a lack of trust. The sales person will always be on the look out for the company to try to cheat them. As with any component of the sales talent screening process, preparation is the key to success. Organize your team and design a process that achieves your desired results. This will allow you to create longlasting, fruitful sales marriages. Lee B. Salz is a sales management guru who helps companies hire the right sales people, on-board them, and focus their sales activity using his sales architecture® methodology. He is the President of Sales Architects, the C.E.O. of Business Expert Webinars and author of “Soar Despite Your Dodo Sales Manager.” Lee is an online columnist for Sales and Marketing Management Magazine, a print columnist for SalesforceXP Magazine, and the host of the Internet radio show, “Secrets of Business Gurus.” Look for Lee's new book in February 2009 titled, "The Sales Marriage” where he shares the secrets to hiring the right sales people. He is a passionate, dynamic speaker and a business consultant. Lee can be reached at lsalz@SalesArchitecture.com or 763.416.4321.
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