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You spend thousands more onboarding and training the new rep on product, procedures, policies, and sales process. Besides that, you pile on more money for your field sales managers to travel with, observe, and coach your new rep. The salaries and lost sales associated with hiring and training a new sales person are basically "sunk" costs and are unrecoverable. These "sunk" costs also include the time and money it takes for a new sales representative to move from the conclusion of the onboarding process to the point of full sales productivity. This specific time period is commonly referred to as sales representative "ramp-up" time. The constant objective you strive to achieve with new sales reps is reducing ramp-up time to full productivity, thereby limiting the "sunk" costs. Until recently, the only opportunity for ramp-up time compression occurred during the recruiting process. Many companies try to hire successful industry experienced reps to cut ramp-up time. Most of the time it is costly and industry experienced reps are set in their ways. In a recent survey of global sales executives, representing companies ranging from $100 million to $3 billion (USD), almost 6 out of 10 said one of the major benefits of pre-call planning was reduced ramp-up time. When combined with sound product/service training, pre-call planning can reduce new hire sales rep onboarding time to full productivity by between 30% - 50%. To most businesses, this means:
A Few Questions You Must Ask Yourself When Onboarding New Sales Reps:
Jim Kasper is the Founder and President of Interactive
Resource Group. Mr. Kasper has over 26 years of practical experience in
direct sales, sales management, sales training, and marketing. Contact
him at www.salestrainers.com or call 800-891-7355
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