{"id":1426,"date":"2016-10-14T11:12:21","date_gmt":"2016-10-14T15:12:21","guid":{"rendered":"https:\/\/www.peaksalesrecruiting.comblog\/mistakes-offer-stage-sales-candidates\/"},"modified":"2019-08-01T19:40:09","modified_gmt":"2019-08-01T19:40:09","slug":"mistakes-offer-stage-sales-candidates","status":"publish","type":"post","link":"https:\/\/www.peaksalesrecruiting.com\/blog\/mistakes-offer-stage-sales-candidates\/","title":{"rendered":"The 7 Biggest Mistakes Made at the Offer Stage"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><img alt=\"optimized-istock_16721780_medium\" class=\"aligncenter size-full wp-image-14420\" decoding=\"async\" fetchpriority=\"high\" height=\"400\" sizes=\"(max-width: 600px) 100vw, 600px\" src=\"https:\/\/media.peaksalesrecruiting.com\/wp-content\/uploads\/2024\/01\/Optimized-iStock_16721780_MEDIUM.jpg?strip=all\" srcset=\"https:\/\/media.peaksalesrecruiting.com\/wp-content\/uploads\/2024\/01\/Optimized-iStock_16721780_MEDIUM.jpg?strip=all 600w, https:\/\/www.peaksalesrecruiting.com\/wp-content\/uploads\/2024\/01\/1_Optimized-iStock_16721780_MEDIUM-300x200.jpg 300w, https:\/\/www.peaksalesrecruiting.com\/wp-content\/uploads\/2024\/01\/Optimized-iStock_16721780_MEDIUM-500x333.jpg 500w\" width=\"600\"\/><span style=\"font-size: 14pt;\"><em><strong>According to the <\/strong><\/em><\/span><\/span><span style=\"font-size: 14pt;\"><em><strong>Boston Consulting Group, of every HR practice, recruitment processes have the most significant impact on revenue. Companies that effectively recruit the best candidates exhibit 3.5x the revenue growth of competitors that poorly manage their recruitment efforts. This article will break down the biggest mistakes hiring managers make at the offer stage \u2013 and explain best practices to avoid them.<\/strong><\/em><\/span><\/p>\n<p>A company\u2019s ability to find, recruit, and hire the ideal candidate for every sales role can make or break its long-term growth prospects. For organizations that have found the ideal candidate for their unique selling environment, nothing is more important to this process than the offer stage. It\u2019s the culmination of time, money, and resources that are allocated to finding the best possible salesperson to help execute the sales strategy.<\/p>\n<p>Some organizations consistently reach this pivotal stage without successfully enticing their best recruits to sign on the dotted line. With that in mind, this article details the biggest mistakes hiring managers make during the offer stage of the recruitment process. By incorporating the accompanying suggestions, your company can greatly enhance its sales talent acquisition efforts:<\/p>\n<h3><strong>1. Not Previewing an Offer<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Over the course of the recruitment process, the hiring manager should have collected information on the current salary of the rep, as well as their compensation expectations for a new role. Previewing an offer \u2014\u00a0or sharing high-level elements of what an offer would look like before extending one \u2014\u00a0verifies that the hiring manager is aligned with the salesperson\u2019s career expectations. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Specifically, previewing an offer has several benefits: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It gives candidates a sense of how serious the hiring company is about bringing the candidate onboard without the formality of a written document; <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It speeds up the process, ensuring that the company is well-positioned in the case of multiple offers; <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It leaves room for further negotiation for both parties. If the hiring manager shoots too low, it gives them the opportunity to reassess compensation before a formal offer. <\/span><\/li>\n<\/ul>\n<h3><strong>2. Lowballing the Salary<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Salary negotiations are complicated in sales, but one thing is clear: below and at-market compensation packages never incentivizes the best recruits to join your sales team. In fact, Peak\u2019s internal figures suggest that 93% of companies who lowball a candidate during the offer stage fail to hire the candidate. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Offering a low or average salary sends the signal that the company doesn\u2019t value the candidate or the sales function as a whole \u2014 it\u2019s one of the most likely ways to end a negotiation before it starts. The quality of the salespeople on a team is directly correlated to the salary they are offered. Top salespeople know their value to an employer, and they expect a competitive offer that recognizes the ROI they deliver. Therefore, to recruit the best candidates and consistently grow your company\u2019s revenue stream, sales leaders need to understand that offering compensation packages that are above market is a strategy to build a high-performance sales organization . <\/span><\/p>\n<h3><strong>3. Taking Too Long<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">\u201cA\u201d players are highly sought after in the marketplace. These top performers regularly receive multiple offers from employers competing for their services. If one hiring process takes much longer than another, chances are the candidate will go with the first option. A fast offer, one that is presented within 48 hours after the final interview, demonstrates to the candidate that the company is committed to bringing the individual onboard. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Top performers want to work for companies with effective, efficient business practices that cut through the red tape rather than adhering to them. A recruitment process that places a high-emphasis on presenting offers in the \u2018two day window\u2019 shows candidates exactly who they will be working for \u2014\u00a0a driven, dynamic company that\u2019s willing to speed things up to get them on the team.<\/span><\/p>\n<h3><strong>4. Overcomplicated Compensation Plan<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Some compensation plans include tiered reward levels, with multiple and varied financial incentives for different kinds of sales. Although these plans reflect the intention to motivate the salesforce to overachieve their sales targets, they can confuse, rather than clarify, the expected income. When a candidate struggles to identify what their on-target earnings will be in the first 180, 360, and 540 days, these types of plans can discourage candidates from joining your organization. In fact, our data suggests that 4 out of 5 candidates agree that overly complicated compensation formulas discourage them from accepting an offer of employment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead, the best employers construct a simple compensation plan that can be built out over time and that is tailored to the individual\u2019s motivations and needs. A compensation formula that links financial rewards to the sales activities that brings in the most profitable revenue for the company is a comp plan that both a candidate and their future employer can agree upon. This approach ensures clear alignment between the effort of salespeople and their income, which gives candidates an accurate image of their earning potential, and one that puts them in control of the value they will deliver to the company over time. <\/span><\/p>\n<h3><strong>5. Small Territory<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">One of the <\/span><a href=\"https:\/\/hbr.org\/2012\/04\/fixing-salespeoples-biggest-co\" rel=\"noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">biggest complaints<\/span><\/a><span style=\"font-weight: 400;\"> of sales reps is that their sales territory is too small. Talented salespeople will not leave their current roles unless it\u2019s clear to them that they\u2019re taking on a territory that gives them the bandwidth to surpass quota, earn accelerators, and continually drive profitable revenue for their employer. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">We see sales leaders \u00a0frequently make the fatal mistake of not giving enough attention to this aspect of their sales force design and the impact assigning small territories has on their talent acquisition efforts. The reality is that it\u2019s a major contributor to why companies fail to incentivize top salespeople to sign their employer offer. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">To mitigate the risk of territory size becoming a point of contention during the offer stage, hiring managers need to: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Describe the size of the territory\u2019s potential customer base and profitability, <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Emphasize the company\u2019s process for evaluating the local market potential and it\u2019s impact on what candidates care about: earning potential, account value, and travel requirements. <\/span><\/li>\n<\/ul>\n<h3><strong>6. Failing to Provide Details <\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">When salespeople weigh a new opportunity against their current role, they don\u2019t make the decision solely based on their salary and on-target earnings. Instead, they take a holistic approach when thinking about their choice. They want to know specific details about the comp package. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Specifically, candidates expect an offer to include the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Health Insurance Plan<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Vacation Days<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Retirement Plan<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Company Car<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Commission Plan with Assigned Quota<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Covered Expenses<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Existing Account Base<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Other less tangible benefits, such as flexibility and autonomy, can make a significant difference on the decision of a candidate too. Depending on a salesperson\u2019s priorities, these attributes can tip the scale in the direction of a new job. By giving a comprehensive picture of each aspect of employment, you can maximize your likelihood of hiring your top candidate(s). <\/span><\/p>\n<h3><span style=\"font-weight: 400;\"><strong>7. Not Selling the Opportunity<\/strong> <\/span><\/h3>\n<p><span style=\"font-weight: 400;\">High-performing salespeople are standouts at their current companies because they\u2019re surpassing quotas, growing their market base, and cultivating strong relationships with prospects that can be leveraged in the future. To recruit these candidates, companies need to put themselves in the candidate\u2019s shoes and sell them on why they need to join the company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At each stage of the recruitment process, and specifically during the offer stage, you need to give ideal candidates compelling reasons to change jobs. Bestselling authors Geoff Smart and Randy Street have identified five things that candidates care about the most \u2013 the \u201cfive F\u2019s of selling\u201d \u2013 when considering signing\u00a0on the dotted line. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The five F\u2019s of selling a candidate to join your company include: <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Fit: The alignment between the company\u2019s vision, needs, and sales culture with the candidate\u2019s values, goals, and selling abilities. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Family: The impact changing jobs has on the candidate and their family.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Freedom: The autonomy granted to a candidate. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Fortune: The territory, market opportunity, earning potential, and specifics on the financial standing of the company.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Fun: The sales culture, working environment, and personal relationships the candidate will make.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If your company isn\u2019t a brand name in the market, prospective salespeople will hone in on the \u00a0specifics on the financial standing of your company; they want to shift to a company that exhibits consistent growth or strong financial backing. Don\u2019t breeze over these details \u2014\u00a0hiring managers need to provide solid evidence that by joining the team, a candidate is positioning themselves for continued growth moving forward. The most successful companies always frame a new position in this way, with clear information on the promotion track at the organization. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">These seven offer-stage mistakes can damage even the most effective recruitment processes. <\/span><\/p>\n<h3>To ensure you don\u2019t make these mistakes, download the comprehensive offer stage checklist by filling out Peak Sales Recruiting\u2019s\u00a0form below:<\/h3>\n<p> relpost-thumb-wrapper <\/p>\n<div class=\"relpost-thumb-wrapper\"><!-- filter-class --><\/p>\n<div class=\"relpost-thumb-container\">\n<h3>Related posts<\/h3>\n<div style=\"clear: both\"><\/div>\n<div style=\"clear: both\"><\/div>\n<p><!-- relpost-block-container --><\/p>\n<div class=\"relpost-block-container\"><a class=\"relpost-block-single\" href=\"https:\/\/www.peaksalesrecruiting.com\/blog\/quicker-hiring\/\"><\/p>\n<div class=\"relpost-custom-block-single\" style=\"width: 150px; height: 215px;\">\n<div aria-label=\"Feet of people waiting to be interviewed for a job.\" class=\"relpost-block-single-image\" role=\"img\" style=\"background: transparent url(https:\/\/g9d6c5a5.rocketcdn.me\/wp-content\/uploads\/2023\/11\/quicker-hiring-150x150.jpg) no-repeat scroll 0% 0%; 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height: 215px;\">\n<div aria-label=\"Team meeting to discuss employee retention\" class=\"relpost-block-single-image\" role=\"img\" style=\"background: transparent url(https:\/\/g9d6c5a5.rocketcdn.me\/wp-content\/uploads\/2023\/12\/top-performers-quitting-150x150.png) no-repeat scroll 0% 0%; width: 150px; height: 150px;\"><\/div>\n<div class=\"relpost-block-single-text\" style=\"font-family: ProximaNova, sans-serif;;  font-size: 15px;  color: #6eba57;\">5 Reasons Your Top Employees Quit (Stop Doing This to Stop Them Leaving)<\/div>\n<\/div>\n<p><\/a><\/div>\n<p><!-- close relpost-block-container --><\/p>\n<div style=\"clear: both\"><\/div>\n<\/div>\n<p><!-- close filter class --><\/div>\n<p> close relpost-thumb-wrapper <\/p>\n<div class=\"abh_box abh_box_down abh_box_business\">\n<ul class=\"abh_tabs\">\n<li class=\"abh_about abh_active\"><a href=\"#abh_about\">About<\/a><\/li>\n<li class=\"abh_posts\"><a href=\"#abh_posts\">Latest Posts<\/a><\/li>\n<\/ul>\n<div class=\"abh_tab_content\">\n<section class=\"vcard abh_about_tab abh_tab\" style=\"display:block\">\n<div class=\"abh_image\"><img decoding=\"async\" alt=\"\" class=\"avatar avatar-80 photo\" height=\"80\" src=\"https:\/\/media.peaksalesrecruiting.com\/wp-content\/uploads\/2024\/01\/1cfb2152f763e6118839d97c16339339s80ampdmmamprg.png?strip=all\" srcset=\"https:\/\/www.peaksalesrecruiting.com\/wp-content\/uploads\/2024\/01\/1cfb2152f763e6118839d97c16339339s160ampdmmamprg.png 2x\" width=\"80\"\/><\/div>\n<div class=\"abh_social\">\n<div style=\"clear: both; font-size:12px; font-weight:normal; width: 85px; margin: 0 0 2px auto; line-height: 20px;\">Connect:<\/div>\n<p><a class=\"abh_twitter\" href=\"https:\/\/twitter.com\/eliotburdett\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Twitter\"><\/a><a class=\"abh_google\" href=\"https:\/\/plus.google.com\/+EliotBurdettPeakSalesRecruiting?rel=author\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Google Plus\"><\/a><a class=\"abh_linkedin\" href=\"https:\/\/www.linkedin.com\/in\/eliotburdett\" rel=\"nofollow noopener\" target=\"_blank\" title=\"LinkedIn\"><\/a><\/div>\n<div class=\"abh_text\">\n<h3 class=\"fn name\"><a class=\"url\" href=\"https:\/\/www.peaksalesrecruiting.com\/author\/eliotburdett\/\">Eliot Burdett<\/a><\/h3>\n<div class=\"abh_job\"><span class=\"title\">CEO<\/span> at <span class=\"org\">Peak Sales Recruiting<\/span><\/div>\n<div class=\"description note abh_description\">Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.<\/p>\n<p>Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.<\/p>\n<p>He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.<\/p><\/div>\n<\/div>\n<\/section>\n<section class=\"abh_posts_tab abh_tab\">\n<div class=\"abh_image\"><img decoding=\"async\" alt=\"\" class=\"avatar avatar-80 photo\" height=\"80\" src=\"https:\/\/media.peaksalesrecruiting.com\/wp-content\/uploads\/2024\/01\/1cfb2152f763e6118839d97c16339339s80ampdmmamprg.png?strip=all\" srcset=\"https:\/\/www.peaksalesrecruiting.com\/wp-content\/uploads\/2024\/01\/1cfb2152f763e6118839d97c16339339s160ampdmmamprg.png 2x\" width=\"80\"\/><\/div>\n<div class=\"abh_social\">\n<div style=\"clear: both; font-size:12px; font-weight:normal; width: 85px; margin: 0 0 2px auto; line-height: 20px;\">Connect:<\/div>\n<p><a class=\"abh_twitter\" href=\"https:\/\/twitter.com\/eliotburdett\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Twitter\"><\/a><a class=\"abh_google\" href=\"https:\/\/plus.google.com\/+EliotBurdettPeakSalesRecruiting?rel=author\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Google Plus\"><\/a><a class=\"abh_linkedin\" href=\"https:\/\/www.linkedin.com\/in\/eliotburdett\" rel=\"nofollow noopener\" target=\"_blank\" title=\"LinkedIn\"><\/a><\/div>\n<div class=\"abh_text\">\n<h4>Latest posts by Eliot Burdett <span class=\"abh_allposts\">(<a href=\"https:\/\/www.peaksalesrecruiting.com\/author\/eliotburdett\/\">see all<\/a>)<\/span><\/h4>\n<div class=\"abh_description note\">\n<ul>\n<li> <a href=\"https:\/\/www.peaksalesrecruiting.com\/blog\/books-about-sales-management-and-sales-leadership\/\">20 Of Our Favorite Books About Sales Management and Sales Leadership<\/a><span> &#8211; October 20, 2023<\/span> <\/li>\n<li> <a href=\"https:\/\/www.peaksalesrecruiting.com\/blog\/how-to-make-progress-on-your-sales-goal-without-a-sales-leader\/\">How To Make Progress On Your Sales Goal Without A Sales Leader<\/a><span> &#8211; September 15, 2021<\/span> <\/li>\n<li> <a href=\"https:\/\/www.peaksalesrecruiting.com\/blog\/how-cmos-can-retain-talent-during-the-great-resignation\/\">Augment Your Recruiting Strategy During \u201cThe Great Resignation\u201d<\/a><span> &#8211; July 26, 2021<\/span> <\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<p><span class=\"et_social_bottom_trigger\"><\/span> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to the Boston Consulting Group, of every HR practice, recruitment processes have the most significant impact on revenue. Companies that effectively recruit the best candidates exhibit 3.5x the revenue growth of competitors that poorly manage their recruitment efforts. This article will break down the biggest mistakes hiring managers make at the offer stage \u2013<\/p>\n<div><a class=\"text-primary mt-2\" href=\"https:\/\/www.peaksalesrecruiting.com\/blog\/mistakes-offer-stage-sales-candidates\/\">&#8230;continue reading <span class=\"sr-only\">&#8220;The 7 Biggest Mistakes Made at the Offer Stage&#8221;<\/span><\/a><\/div>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"limit_modified_date":"","last_modified_date":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[14],"tags":[],"class_list":["post-1426","post","type-post","status-publish","format-standard","hentry","category-sales-hiring-recruiting"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/posts\/1426"}],"collection":[{"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/comments?post=1426"}],"version-history":[{"count":0,"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/posts\/1426\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/media?parent=1426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/categories?post=1426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.peaksalesrecruiting.com\/wp-json\/\/wp\/v2\/tags?post=1426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}