A forum thread on a LinkediN group noted a recent NADA-funded study reported a 62% turnover rate among sales staffs at automotive dealerships. McKinsey reported an even higher turnover rate which was 70%.
Imagine losing 70% of something you invested in. If you bought a stock that lost 70% or your home went down 70% in value, how would that feel? While other industries don't have turnover this high, they do have turnover. Insurance companies and retail can have high sales turnover, companies who hire independent contractors or distributors in outside sales will see high turnover as well.
QUESTION: What's the difference between investing in a home or stock and investing in a new employee?
Essentially, management is taking a gamble when they hire someone. And ultimately, just like an investment in a stock or property, there is risk involved. But can you hedge the bet somehow?
Here's 3 strategies from NY Times Best Selling Author and business expert Grant Cardone on how to hire the right people and then set them up for success.
1. Pre-test. Cardone Training Technologies has two online, cloud based sales training programs. One is called Cardone On Demand and has been specifically tailored for the auto industry. The other is called Cardone University and we tailored for sales teams outside the car business. A good majority of Cardone On Demand and Cardone University clients will give their applicants access to the program and a 48-72 hour trial period. Managers will ask the potential employee to log in to the online training program from home after their interview, then watch and test out on 10 short videos from the training center. Later and before the next meeting, management can then quite literally look at the reporting in the system and determine multiple things about the sales persons ability to take instruction, their hunger, drive, motivation and even character. (see slide show for examples)
2. Fundamental Sales Training. The military and first responders have basic training for a reason. Mainly, they will die without training. If the military didn't train their soldiers, their "turnover" rate would actually be causalities. Fortunately for sales people, lives are not on the line. Livelihoods, however are on the line. Turnover is expensive business. What is the cost of hiring someone only to have them quit after 90 days. A house cannot stand without a solid foundation. All new hires should not only be trained on the workings of the location and how to fill out paperwork but also on how to serve and sell to the customer. Effective sales training should enable and empower the new employee to produce and create revenue. Using a program like Cardone On Demand or Cardone University you can create a training program to cover the fundamentals, the road to the sale and closing the deal so that the new hire spends his or her first two to three weeks preparing to hit the ground running rather that being thrown in the deep end and sinking or swimming.
3. On going sales training. Sale people just like great athletes need consistent daily training to stay sharp. In Tim Grover's book RELENTLESS, Tim talks about his client, Michael Jordan. "For all of Michael's amazing moves and unforgettable moments, he knew none of that could happen without the fundamentals. Those basic moves he practiced over and over again since he was a kid made everything else possible. He didn't work on being flashy, he worked on being consistent." Arguably the greatest basketball player of all time and he practiced harder and trained harder on the basics then the rest. Make sure your sales team first has a sharpening stone like Cardone On Demand or Cardone University and then like the great coach that knows how to make the player great, guide them and push them to use the gym to practice their craft and hone their skills and bring out their talents.
For more information on Cardone On Demand or Cardone University, contact David Bradley - Sales & Marketing Manager for Cardone Trainng Technologies 310.777.0352 or by email at firstname.lastname@example.org