Every leader knows that having the right talent in place can make or break your sales team, but when is the best time to scale that team? The more reps the better… right? Not so fast! Let’s take a look at the ideal time to grow your team – and when your focus may be needed elsewhere.
When underlying issues are stalling sales… Red Light
While it may seem obvious, many companies make the mistake of jumping the gun on a big hiring push hoping that more reps will automatically equal more revenue. But if sales are stalling due to an underlying reason, bringing on more reps may do more harm than good. Take a look at the 3 Ps to determine if hiring may need to be on the backburner:
Position: The easiest factor to identify and simplest to determine is cash position. Without a stable cash position, hiring should be on hold.
Product: Even with all the most stellar reps in place, if customers aren’t staying happy with your product or service, sales will suffer alongside your reputation. Focus resources on client success and ensuring your product is at the top of its game.
Performance: Before bringing in new talent to boost sales, be sure that your existing team is firing on all cylinders. If your team consists heavily of new reps, they may be struggling to get fully ramped, or be lacking resources for the utmost success.
When turnover is high and morale is low… Yellow Light
If you’re dealing with a period of high turnover, a hiring push to backfill talent isn’t the solution. Bringing on new reps to maintain headcount might be a necessity, but quality over quantity will matter more than ever. Resources should go into rebuilding your team’s confidence with themselves, their team members, and management. Investing in your team will build the strong foundation that will turn into a springboard for growth when the light turns green.
When your cash position is strong and goals are on the horizon… Green Light
If your company has just received a round of funding, or your cash position is otherwise strong, hiring can and should be at the top of your list . With a strong cash position, successful product, and good team morale, all the tools are in place for massive growth and skyrocketing sales – and building a robust sales team is the last piece of the puzzle for success. Working backwards from your quarterly or yearly goals is a great way to find a structured timeline for hiring. Utilizing what you know about ramp up time for your team’s reps, the length of your sales cycle, and your macro-level goals, you’ll be able to determine the best time to bring on new reps.
“Forever Green” Light: The Rockstar Rep Emergency Fund
While there are signals and guidelines to know when it’s the right time to bring on reps, you should always be prepared to pounce on an opportunity to bring on a Rockstar. In a market where talent is a hot commodity and stellar reps are rarely up for grabs, your team should always be in a position to bring on a rep that simply can’t be passed up. At ISG Partners, we take the guesswork out of both when and who to hire, helping you find the premier talent you’re looking for, exactly when you need it.
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