We’ve all made a bad sales hire. And the truth is, it’s costly — not only in terms of money but also in time and resources.
Not convinced? Let’s break down some of the costs associated with a bad sales hire:
- Lost revenue: A bad sales hire probably does not generate the same revenue as a top performer. In fact, they may not generate any revenue at all, leading to missed sales opportunities and lost deals.
- Wasted training and onboarding costs: When a bad sales hire doesn’t work out, you’ve wasted the time and resources spent on training and onboarding them. This can add up quickly, especially if your company invests in specialized sales training programs.
- Negative impact on team morale: A bad sales hire can bring down the energy and motivation of your entire sales team. This can lead to a decrease in overall performance and even cause good team members to leave.
- Damage to your company’s reputation: If a bad salesperson represents your company, they may harm your brand image with poorly executed pitches or unprofessional behavior. This could lead to lost customers and a damaged reputation in the market.
Does this scenario feel familiar?
Your company has invested significant time and resources in hiring a new salesperson. You had high hopes for their success, but as weeks turn into months, it becomes painfully clear that they are not the asset you envisioned. Your sales figures stagnate, team morale declines, and your reputation takes a hit.
Now, ask yourself, can you truly afford the cost of a bad sales hire? The wrong hire can be disastrous, yet it happens more often than we’d like to admit.
While you might think you’re aware of the costs associated with a bad sales hire, you’re likely underestimating just how significant those costs can be. Some costs, such as lost revenue or training expenses, are easy to quantify, while others may be more difficult to measure.
The wrong hire can have far-reaching effects that impact your company’s success in the long term. That’s why it’s crucial to have a thorough, sales-specific hiring process in place to ensure you’re bringing on the right people for your sales team.
How to Calculate the Cost of a Bad Sales Hire
A bad sales hire is one of the most expensive mistakes a company can make.
But how can you calculate the specific cost of a bad sales hire for your company? Don’t worry — we’ve got you covered. We created an interactive calculator to help you determine how much an ineffective hire can affect your bottom line.
Using this calculator may be painful. You may find out you are wasting an incredible amount of money, leaving your hiring to chance. The pain is supposed to create a sense of urgency that can lead to change. Change is good.
