Reduce Hiring Errors and Boost Sales in 2024 With Pre-Employment Sales Aptitude Tests

Companies need a strong sales team to meet revenue and growth goals. So, it is not surprising that U.S. companies spend $800 billion annually on sales salaries and commissions and $15 billion on sales training. 

There are two keys to growing a strong sales team—hiring the right people and reducing turnover. You win the battle by hiring top sales performers, and you win the war if they stay with your company.

Sales rock stars are always in demand, even when the unemployment rate is high. Their skills are also portable within the same industry, so it is easy to lose them if they are offered better compensation or more lucrative opportunities.

The best way to build and retain a top sales team is to implement an assessment solution like the industry-leading eSkill Talent Assessment Platform^TM and use pre-employment sales aptitude tests to test sales ability.

How Aptitude Tests for Sales Jobs Boost Productivity

Sales representatives with a long tenure with your company are valuable employees because they are ambassadors for your company, brand, and products and because they “own” customer relationships.

Sales managers dread hearing that a star performer plans to move on—they lose the person’s talent and product expertise. The rep has developed a good rapport with customers and is seen as a trusted advisor by many, which means existing orders and future business could be at risk.

Using aptitude tests for sales jobs helps HR teams identify top applicants who are likely to become long-term employees. It also helps them weed out those who lack the required skills and experience so they can focus their efforts on the most qualified candidates.

Once a new sales representative becomes successful, you can expect them to generate around a million dollars in sales once they reach full potential. However, they will cost you money before you realize a return on investment (ROI).

Assuming a six-month ramp-up period, you can expect a minimum of $500K in new business in the first year. However, you will invest a minimum of $95,000 in hiring, training, onboarding, and ramp-up costs BEFORE the new hire has provided any value, and it will cost more if the new hire does not work out.

Pre-employment sales aptitude tests help you expedite onboarding and help new employees assimilate quickly so they become an asset to your company sooner.

How Pre-Employment Sales Aptitude Tests Reduce Hiring Errors

Hiring mistakes are a sales manager’s worst nightmare because they negatively impact productivity and team morale and can lead to loss of customer goodwill. Turnover is expensive, and the cost of sales rep turnover is particularly high because it can directly impact the bottom line.

If a new sales rep leaves or does not work out and you replace them during the first year, you could lose up to $500K of opportunity cost plus the amount you have invested in salary and benefits. You must also consider the potential cost of lost business and the effect on other team members. For instance, if the new hire damaged client relationships and lost business, you must factor in the cost of the lost business.

These are the costs you can expect when you hire a new sales representative:

• Recruiting Costs and Fees: Recruiting costs and fees will be about 25% of a new hire’s first-year salary. So, if you expect the new sales rep to earn $100,000, you can assume the cost will be around $25,000. Interviewing candidates and creating a shortlist typically takes about 25 hours. So, if you interview multiple candidates and there are several interviewers on the hiring team, figure 25 hours at a loaded cost of $100 per hour for a total of $2,500.

• Onboarding and Training: Onboarding and training expenses differ by organization. The cost depends on your company’s requirements, program length, and internal process. Generally, you should expect a minimum cost of $5,000.

• Salary and Benefits During Ramp-Up: New sales reps cost you money until they become productive. So, you need to consider the cost of their salary and benefits for approximately six months. In this case, six months of salary plus benefits will cost $62,500–$50,000 + 25% for benefits.

Add up these costs, and you can see that if your newly hired sales representative does not work out, hiring and training costs could be around $750K to $1 million, not including hiring and onboarding someone new. You must also remember that you are investing the same amount as you did for your initial hire without knowing whether the second new hire will work out.

Aptitude tests for sales jobs minimize the risk of hiring mistakes by helping you get hiring right the first time. By reviewing pre-employment sales aptitude test results, you can see which candidates have the required job skills and determine whether they fit your company culture.

Get Started with Pre-Employment Sales Aptitude Tests

Aptitude tests for sales jobs help organizations build a productive sales team that develops business and closes sales. By assisting organizations with improving hiring outcomes, they reduce turnover and overall hiring costs. Many eSkill clients have decreased hiring costs by up to 70% and reduced time-to-hire by around 60%.

Are you ready to learn how pre-employment sales aptitude tests can help you build a productive sales team and reduce turnover? Contact us to request a demo.