Revolutionized Assessments for Business

How to Avoid the High Cost of a Bad Sales Hire

SkillSurvey PreSkillSurvey Pre‐‐Hire 360Hire 360™™

What is the Problem?

• Salespeople are terrific at presenting themselves during interviews

• No Salesperson has ever missed a quota

• If so successful, why leave?– “…Leaving because reorganizing territories”

– “….Won’t be successful because of lack of leads/marketing spend”

– “…Quota to commission is out of whack”

The Problem ‐ Lots of Stats 

.

.

Of Sales VPs surveyed, 44% believe that they could 

have avoided hiring over two‐fifths of their under‐

performing Sales Leaders if a better selection and 

promotion process had been in place.”

Of Sales VPs surveyed, 44% believe that they could 

have avoided hiring over two‐fifths of their under‐

performing Sales Leaders if a better selection and 

promotion process had been in place.”

“Top sales performers will typically 

bring in between four to five times as 

much profit as the lower end of your 

sales personnel.”

“Top sales performers will typically 

bring in between four to five times as 

much profit as the lower end of your 

sales personnel.”

“A white paper entitled Pre‐Hiring Assessment 

of Salespeople, says that a bad sales hire costs 

between two and three times their annual 

salary.”

“A white paper entitled Pre‐Hiring Assessment 

of Salespeople, says that a bad sales hire costs 

between two and three times their annual 

salary.”

“Your sales force is your single biggest investment, and it is 

imperative that your team has the competencies and skills to 

successfully convert prospects into customers and to build lasting, 

profitable business relationships. 

“Your sales force is your single biggest investment, and it is 

imperative that your team has the competencies and skills to 

successfully convert prospects into customers and to build lasting, 

profitable business relationships. 

• Poor hiring = Missed forecasts and revenue plans

• Poor hiring = Internal team turmoil 

• Poor hiring = Turnover = Poor customer perception

• Poor hiring = Lost time – sales’ only asset  

Impact of a Poor Hiring

Let’s Look at the Statistics

• 2011 – SkillSurvey Customers had 3,500 + sales candidates

• Evaluate competencies and behaviors 

• Scientific and predictive

• 11 % or 386 candidates were high risk and potentially avoided

Not Just Individual Contributors – Managers too

.

• 2011 – SkillSurvey Customers had 1,200 + sales manager candidates

• 14.4 % or 171 candidates were high risk and potentially avoided

What is the Solution?

Imagine a tool so reliable that you could eliminate 

10 ‐15 % of the mistakesmade when hiring 

salespeople (and sales managers too) and never 

again be fooled by an individual's charming 

personality, perfect track record or exaggerated 

resume.

Imagine a tool so reliable that you could eliminate 

10 ‐15 % of the mistakesmade when hiring 

salespeople (and sales managers too) and never 

again be fooled by an individual's charming 

personality, perfect track record or exaggerated 

resume.

1 minute

5 minutes

10 minutes

2 seconds

Phone interview

Face to Face

Personality / Behavior Assessments

Resume

From Candidate Perspective – Today’s Approach

I’m terrific

I work really hard, weekends too!

I interview well

I’m a Team Player

Recruiter Candidate

Phone interview

Face to Face

Personality / Behavior Assessments

Resume

From Reference Perspective – Today’s Approach

She’s terrific

I would hire her again, yes!

She works hard

She’ a Team Player

Recruiter Reference

Phone interview

Face to Face

Personality / Behavior Assessments

Resume

A New Perspective – The New Paradigm

References

Recruiter Dependability

Interpersonal Skills

Personality

Work Ethic

Teamwork

Integrity

QUOTA!!

ComparisonSkillSurvey Solution Typical Phone Check

More references 5+ business references50% of which are former or 

current Supervisors

2 to 3

Faster 1 to 2 days 5 to 10 days

Guide Hiring Managers Previous managers assisting in leading interview

No

Pauses a hiring decision 5% ‐ 10% of candidates < 1% of candidates?

Passive sourcing tools 5 references per candidate –warm leads 

Not Applicable

Compliant/Legal Risk Supports compliance with EEOC and OFCCP

Uncertain/Inconsistent

About Us: SkillSurvey

• Providing Reference Solutions since 2002

• 247,000 + Candidates in 2011 – 93% Increase

– Candidates in 2010 – 119,000+– Almost 1,500,000 people experienced the SkillSurvey process

• 500+ customers

• 270+ surveys in current inventory – Cynthia Hedricks, PhD, Chief Analytics Officer

– 12 for Sales roles, 68 Surveys for Healthcare, 18 Surveys for IT roles, 9 for Customer Service roles, 19 for Finance roles

• Inventor of web‐based reference checking with a patent pending

Financial Services & Insurance

Engineering & Construction

Consumer Products & Retail

Energy & Utilities HR Related

Gov, Non-Prof & Edu Services & IT Pharma & Medical

Manufacturing

Healthcare

Sample Clients

Customers for Today’s Audience

Benefits Seen by Customers

• Reduction in time spent on task from 70% to 92%– Recruiters now working on sourcing, evaluating, execution

• Quality of hire and cost avoidance– Endo Pharmaceutical – 3 positions with salaries of $100,000 + for total 

savings of $460,000

– Kohl’s – 3 finalists avoided with savings of well over $200,000

– HealthSouth avoided 20 finalists with savings of over $910,000

• Sourcing benefits– eBay added over 16,000 to their passive candidate database

– Chapters Health (FL) found 4 finalist for hard to fill jobs – hired 2 with no 3rd

party agency fees

Why You and SkillSurvey?

• Improve– Quality of Hire

– Hiring Manager’s Interview Effectiveness

– Efficiency

– Passive Sourcing

• Drive – Compliance and Consistency

• Elevate Recruitment’s Role

Improve Quality of Hire

Avoidable, High Risk Candidates = over $400k + in savings annually (see next slide)

Coachable, Moderate Risk Candidates = Interview and on‐boarding assistance

Hard ROI Example

Johns Manville, a Berkshire Hathaway company, is a leading manufacturer and marketer of premium-quality building insulation, commercial roofing, roof insulation, and specialty products for commercial, industrial, and residential applications.

293 Candidates30.33% with a moderate or great developmental need – medium

or lower scoringWith SkillSurvey, avoided 6 hires at $70,000 salaries Bad hire avoidance of a little less than 5% of external hiresApproximate $420,000 Cost Savings

Improve Hiring Manager’s Interview Effectiveness

• Lack of consistency for hiring managers• Managers looking for differences in candidates• Probing questions driven by previous managers’ comments

Low Scores Guide Targeted Questions

Improve Efficiency – Time and Money

Recruiters Sou

rce Cand

idates

Screen to top 3 candidates 

• Improve efficiency – time and money

• Six Sigma From 60 work weeks to 4.8

Improve Efficiency – Time and Money

Passive Sourcing by the Numbers

Job opening

100100

Candidates

300300

References

1,5001,500

An organization has 100 job openings

3 candidates apply on average for each job = 300candidates

3 candidates SkillSurveyed and provide 5 references each = 1,500 potential contacts

65% of the 1,500 contacts opt in to learn about future career opportunities. 1,500 x .65 = 975 + passive candidates

11 22 33 44

Talent Pipeline and Funnel• Multiplier Effect Based on Number of Candidates Screened

• Builds Automatically

Industry Professionals with Whom To Network and Source

• “Great People Know Great People”

• “Warm Lead” vs. “Cold Lead”

Increase Compliance and Consistency

• SkillSurvey reference feedback shows no differences between sub‐groups– Helps support your efforts to remain EEOC and OFCCP compliant 

• Standardized process 

• Eliminates risk– In a decentralized environment, recruiters tend to do things their own way

Why You and SkillSurvey?

• Clear ROI for Finance and Budgets– Quality of Hire

– Turnover

– Efficiency

– Passive Sourcing

• Elevate Recruitment’s Role

1 minute

5 minutes

10 minutes

2 seconds

Step 1: Enter Candidate Data

Step 1a: Select Survey

Send email to candidate

Survey AvailabilityJob Level ►

▼Job Family Entry-Level

Hourly Clerical Professional Supervisor Manager Executive

General

Production

Sales

Marketing

IT

Operations

CustomerService

R&D

Admin

Finance

Legal

HR

Engineering

Education

Healthcare

Step 1a: Select Survey

Send email to candidate

From: Your Company Name Recruiting Sent: Thursday, June 6, 2011To: Patrick TSubject: Your Company Name Selection Process Information

Dear Patrick T, Thank you for your continued interest in the Major Account Sales position with your co name. As already explained to you, a critical step in the selection process is reference checking. org name uses web-based reference checking for this purpose.

Please click on the link below. It will open a web page where you will input your reference. You will also be able to review a sample of the questions being asked and the email that will be sent to your references. Your references will be emailed a reference survey and their responses will be submitted directly back to SkillSurvey. No one will see your references' individual responses because all responses are electronically aggregated together to produce one summary report.

Note that all references will be responding as individuals, not as representatives of any company or organization.

Please click on the following link (URL) to begin: http://eref.skillsurvey.com//CandidateUtilities/EOC.aspx?

Step 2: Candidate Enters References

Automated Email From Recruiter to Candidate Explaining the Process

Automated Email From Recruiter to Candidate Explaining the Process

Step 2b:  Candidate Inputs References

Step 2c: Candidate Confirms References and Signs Legal Waiver

Proof of Consent“…I hereby release any such person, their company, and any affiliated officers, directors, agents, and employees from any and all claims I may have arising out of the disclosure of such information…”

Proof of Consent“…I hereby release any such person, their company, and any affiliated officers, directors, agents, and employees from any and all claims I may have arising out of the disclosure of such information…”

From: Patrick TSent: Thursday, June 6, 2011To: Scott DaviesSubject: Patrick T Reference Request

Dear Scott Davies,

I am pursuing a professional development opportunity and I'd like to use you, as well as several other individuals, as a professional reference. All you need to do is complete a short (less than 30 questions), confidential, web‐based survey regarding my skills. 

No one will see your individual responses because the system averages the responses from all of my references together to produce one summary report. To further ensure confidentiality, no report will be produced unless at least 3 people respond.

Please note that you will be responding as an individual, not as a representative of any company or organization. Also, I have executed a legally binding agreement that releases you as well as any organization with which you are now affiliated or have been affiliated in the past, from any potential liability for providing this information.

The process is quick and easy. Please click on the following link to begin: http://eref.skillsurvey.com/SS.WebUI/RefSurveyDetails.aspx?

If you have any questions, you can email me at patrickt@gmail.com.

Thank you for your time,Patrick T

Step3a:  Automated Email Sent to All References

Step 3b: References Receive Automated Email

Dear Scott Davies,

Thank you for taking the time to respond to Patrick T’s reference request. Before you take the survey, please take a moment to review the information in the form below. If any information is incorrect, please select the appropriate field and make the desired changes. When you are finished, click the continue button at the bottom of the page to save your changes and access the reference survey.

The Surveys: Job‐Specific, Behaviorally‐Based Questions

Job‐Specific, Behaviorally‐Based

38

Would you like to learn more about job openings at Your Co name?

Drive Warm Candidates to Career Page

SkillSurvey Goes Mobile

SkillSurvey Mobile• On‐the‐go access anytime, anywhere

• Use your iPhone, BlackBerry, Droid, or Windows‐enabled Smartphone

• No hassle for recruiters, candidates, or references

Step 4: Aggregate References into a PreHire 360

Validated Candidate – Good Fit

Validated Candidate – Good Fit

Pause or Avoid this Candidate – Low Scoring

Professionalism

Interpersonal Skills

Problem Solving and Adaptability

Personal Values

Verbatim Comments

Verbatim Comments

Candidate Comparison Report

Business Intelligence Dashboard

Specific Ongoing ROI

Passive Candidate Compiler

Integrated Link to LinkedIn, Zoom info

Passive Candidate Compiler – Daily Sourcing Update

Quick Startup and ROI

• Solution up and running in less than 2 hours– Setup, training, launch

• No need for IT involvement

• Not a long and complex project

• Provides a quick and easy “win” for recruiting and HR

Why You and SkillSurvey?

• Clear ROI for Finance and Budgets– Quality of Hire

– Turnover

– Efficiency

– Passive Sourcing

• Quickly Implement and Easy “Win” for HR

• Elevate Recruitment’s Role in the Organization

Contact SkillSurvey

www.skillsurvey.com

Mike Bartkus, Vice President

mbartkus@skillsurvey.com

215‐493‐0110