Using The Power of AI to Find Sales Winners

The Science Of Hiring Great Salespeople

2THE SCIENCE OF HIRING GREAT SALESPEOPLE

Human Resource (HR) teams and hiring managers have limited interaction with job candidates, but must make critical determinations about whether the candidate is a good fit for the position, the organization, and the workplace culture. That’s a difficult task.

Intuitions about candidates tend to be inaccurate and subjective. Research shows that phone screens predict only about 3% of job performance variations, and resume screens are even less reliable predictors.

Why do these methods perform so poorly? Given how short these initial interactions are, it is easy to miss traits that may be markers of poor fit — or overlook fantastic candidates due to a lackluster resume.

To make matters worse, these error-prone selection methods are commonly utilized at the front end of the hiring pipeline. When poor selection methods are used early in the hiring funnel, strong potential employees may be screened out while weak candidates move forward.

Missing the Mark on Hiring for Sales Success

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Hiring top-performing salespeople has far-reaching impact on overall company revenues and profitability. On average, higher performing salespeople generate 58% more revenues than average salespeople and 113% more than the lowest performing employees.

The Consequences: Impacting Your Bottom Line

Furthermore, salespeople that stay with the organization reduce turnover costs (e.g., re-staffing and training, losses in revenue and productivity). Experts estimate mis-hire costs (e.g., onboarding, compensation, severance, opportunity loss, disruption) can amount to 50%-200% of sales employee annual salary.

Therefore, one of the greatest advantages a sales organization can have is a hiring approach that consistently identifies high-performing employees who will last.

Sales Rep Performance Impact (illustrative)

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Cangrade’s scientists have developed complex analytics that predict real-world job performance about ten times more effectively than common pre-employment criteria such as college GPA, employment history, or results of a telephone screening.

AI-powered Hiring Assessment: A Game Changer for Sales Success

3% 3%5% 5%

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19%

36%

How can you tell if a salesperson will perform well?

Assessment Predictive Validity

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THE SCIENCE OF HIRING GREAT SALESPEOPLE

Our analytic approach is founded on the recognition that each person has a unique set of characteristics that make them successful and happy in a job. Likewise, each job has a unique set of characteristics that make people successful in it.

We have studied more than 10,000 unique employees and close to a million data points to develop our AI models. Our AI-based technology uses iterative heuristic algorithms to deepen the power of a more traditional multivariate approach. As a result, our technology is able to learn from each round of data collected to optimize the model of the traits that ensure the highest likelihood of sales success.

We used these results to refine our analytic approach, validate our predictions against real performance reviews, and more accurately match candidates to specific industries and sales positions. We continue to conduct studies and benchmarks with a range of organizations to ensure that our approach stays valid and accurate.

What Makes it Work? Sharing Our Secret Sauce

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Correlation of Method with EthnicityOur assessment and approach are continuously tested to ensure the models we build are not biased against any group. This means that both our assessments and algorithms show no adverse impact against any legally protected demographic group (e.g. ethnicity, gender, age).

Since part of our core mission statement is striving towards hiring equity, we are continually adding identifiers to our big data to ensure there is no bias across a range of classes that not yet protect by the EEOC.

This is a strong differentiator from other employment screening techniques. Cangrade‘s methodology is 10-50 times more effective removing race-related bias compared with conventional assessment methods.

A Bias-Free Promise

0.5 IQ Test

0.4 College GPA

0.15 Unstructured Interview

0.1 Structured Interview

0.01 Cangrade’s Methodology Personality

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Generic indicators of fit by industry and job function tell only part of the story and are not accurate enough to be reliable. Our research shows that unique models tailored to your organization and roles perform significantly better than generic solutions.

Cangrade’s benchmarking process allows you to leverage the traits measured by our standard assessment to quickly and easily build a customized model of what success looks like in your sales organization.

This is done by using machine learning to link current employees’ assessment responses to their performance metrics and work histories. This predictive model can then be used to highlight scales integral to successful job performance and accurately weigh their influence.

Candidate responses to assessment questions are then evaluated on their degree of fit for the job, by comparing them to current employees’ benchmarks. For each candidate and each job, a fit score is calculated, and the list of job candidates is ranked by score. This allows for an unbiased, even-handed assessment of both internal and external candidates.

Focusing on You: Customizing Your AI Model

Current Employees

Applicants

High PotentialApplicants

Assessment

Employee Success Metrics

Success Model

Personality Attributes

Success Model

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A high-performing salesforce is the key driver behind any company’s success, but recruiting and retaining sales talent with the right fit remains a serious challenge.

Cangrade’s cutting-edge technology leverages data from your organization and our proprietary big data to provide a business intelligence tool that can inject higher levels of precision and sophistication into your talent management decisions.

Getting Started: Can You Afford to Wait?

You do not need to be an expert in this cutting-edge science to take advantage of its potential.

Cangrade’s cloud-based analytic solution delivers years of scientific research and industry experience in an actionable and easy-to-use package. Moreover, Cangrade analysts will be with you every step in the way to ensure that the assessment solution is tailored precisely to your needs, and that you get the most reliable results to drive the success of your sales organization.

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Trusted by Fortune 500companies for

their critical talent management decisions

Our models were developed using over a million data points and

thousands of employees.

Our Machine Learning engine is powered by

iterative heuristics that harness multi- variate regressions to ensure

Our Bias-Free Guarantee means that every single

item, scale, and model we output has no significant

adverse impact.

The average predictive validity of our assessment is twice as powerful as a skill test and ten times more powerful than a

phone screen.

Our assessment science has been tested in over

30 empirical studies across industry and role

types.

Our success models are built on your unique success data and 50 personality variables

to make sure they are customized to your needs.

Our AI technology learns as you grow, ensuring the

solution is flexible and adaptive to changes in your

organization.

Our assessment is more efficient too – with a 15

minute average completion time and an enjoyable applicant experience.

500 1MM+

ML Zero

2-10x

30

50 Variables

AI

15 min

The Science By The Numbers

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Cangrade uses the power of AI to make talent management more predictable – allowing organizations to measurably increase the success of new hires in roles ranging from sales and support to retail and shop floor workers. By analyzing the success of the current organization’s workforce, Cangrade provides robust and bias-free AI-models for selecting, developing and retaining high-performing employees. Cangrade solutions are integrated into major Human Capital Management (HCM) systems, delivering measurable benefits that include improved employee performance, higher sales, better NPS scores and lower turnover. Founded by Harvard researchers with a strong sense of social responsibility, Cangrade’s guiding principle is that objective talent management strategies provide the foundations to a productive and equitable workplace. Key customers include Wayfair, Unum, Applied Industrial Technologies, FDNY and JBS.

About Cangrade

For more information:

www.cangrade.cominfo@cangrade.com

1-888.254.8394

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