LSA Global Insights Newsletter: 4 Smart Steps to Determine When to Hire or Fire Salespeople

8.31.2014

4 Smart Steps to Determine When to Hire or Fire Salespeople


One of the most important sales leadership decisions is who to hire and when.

How do you know when to grow, expand, hire, develop or fire? There are so many variables to consider...not least of which is determining what it will take to recoup any investment.

Typically sales managers wait to add a new salesperson until the current level of sales justifies the added expense. Some use a cost-to-sales ratio. Others just wait until they land a big deal to add more headcount. Unfortunately many of these strategies can backfire for different reasons. So how should you determine the best size and configuration of your sales force?

Thankfully, professionals who specialize in sales force effectiveness have come up with 4 proven guidelines to help with this challenging decision.

  1. Watch for indications that the size of your sales force is skewed, either up or down.
    While it may seem obvious, you need to pay attention to early warning signs. Are your salespeople complaining that they don't have enough opportunities? Are they being ignored by their customers? Is too much time spent on non-revenue producing sales activities? And what about your competition...are they downsizing?

    These are all clues that you may need to decrease the size of your own sales team.

    Conversely, are your salespeople complaining about their travel or workload? Are competitors ramping up their sales teams? Do you hear from customers that they are dissatisfied with their level of service? Are your salespeople only re-actively taking orders with little time to prospect and fill the pipeline with target accounts?

    These are signs that your sales team is understaffed.
Read the Remaining 3 Tips For Growing and Shrinking Your Sales Force

About LSA Global
Founded in 1995, LSA Global is a leading performance consulting and training firm that helps high growth technology, services, and life-science companies create a competitive advantage by powerfully aligning their culture and talent with their strategy. Learn more about getting aligned