When To Fire A Salesperson

Firing someone is a big decision, and one you'll almost never feel certain about, but sometimes you have to do it, and these guidelines should help.

by Brock Henderson Principal, Henderson & Associates [August 12, 2008]

Salespeople have a tough job . . . they get to face constant rejection, and hearing "you're fired" is the ultimate rejection. But sometimes it needs to be done. The prospect for a sales position can walk in and look and act like the ideal candidate, but they are salespeople and they should be able to sell themselves. They need to be able to sell your product and services too, but if they can't, you will need to send them on their way.

Regardless of the salesperson's familiarity with the industry, they should be given at least six months to learn your products and services, what makes you special, and to start developing the contacts needed to make sales.

Unfortunately, the sales cycle (the time from initial customer contact to the closing of the sale with a signature on the contract) can be a long one, especially for the big ticket items like T-1's. If the prospect is currently under contract to a competitor, it could be a year or more before they are able and/or willing to sign with you. During that time, your salesperson should be checking with the prospect to insure that they don't change their mind, or are "sweet-talked" away by another competitor.

If your salesperson is selling a variety of services besides connectivity, such as webhosting, co-location, web site design, VoIP, or other services, then evaluation of their effectiveness is much easier. These non-connectivity services have a much shorter sales cycle, which allows both you and them to earn income from sales while waiting for those T-1 sales to finally close.

Salespeople need to be evaluated by the Sales Manager every month to help the salesperson keep on track towards sales goals, identify shortcomings, work on potential deficiencies, maximize strengths, and to keep the individual motivated. This is doubly important for new hires.

At the end of the first six months comes a critical review of the salesperson.

• Are they networking and making contacts?
• Are they making sales?
• What are they selling the most of and why?
• What are they selling the least of and why?
• Are sales (based on revenue to the company) as generally expected?
• Are their customers happy, or are they complaining that they were over-promised?

Are they networking and making contacts? Salespeople need to be constantly networking through networking groups such as (but not limited to): BNI, Chamber of Commerce meetings and events, community activities, and church and social activities.

Are they making sales? If all they have to sell is T-1 connectivity then after six months they may have only one or two sales—if that. The more services they have to sell, the easier it will be for them to be successful. Now that may sound painfully obvious, but by having a variety of services to sell they are able to sell more and stay motivated. Those last two words are key. It is tough to stay motivated if all you have to sell are T-1s, which have a long sales cycle.

What are they selling the most of and why? Along with: What are they selling the least of and why? Are they selling one service most of the time because it is an easy sale, or because they just happen to be very good at selling that particular service? Are they not selling a service because people don't want it, or because they are uncomfortable with the product and don't bring it up?

Salespeople will sell products and services they are comfortable with, so if they aren't selling a specific product or service, then perhaps they need more training in the service so that they will feel more knowledgeable and comfortable.

Are sales (based on revenue to the company) as generally expected? Notice I said "based on revenue", not number of sales. You may want T-1 sales, but if they are bringing in more revenue by selling other services, then let them at it. Remember that revenue generation is more important than what specific product or service is being sold.

Are their customers happy, or are they complaining that they were over-promised? It is understandable that a salesperson, especially a new one, might accidently over-promise to a prospect; but by the end of six months this should not be happening. Salespeople are notorious for over-promising in an effort to get the sale, and Sales Managers need to keep a sharp eye out for anyone showing signs of this habit. Customers want honesty, not broken promises.

If customers are complaining about a salesperson, that is an important danger signal, and the individual in question needs to be immediately informed and corrective action taken. Should the complaints continue, the salesperson could either be given one last opportunity to improve, or let go. It really depends on a the situation.

It is one thing to over-promise to make a sale, but it is an entirely different issue if the salesperson is making false statements about the company's capabilities or about the competition. Lying is never acceptable, and no reputable salesperson would intentionally do it, but it does happen.

Your policy on intentional misrepresentation (lying) should be clear: lie and you are terminated immediately. Period. You cannot afford to have someone like that on your staff representing you and your good name, get rid of them the instant you verify the intentional misrepresentation.

Following these guidelines will help you decide if and when a salesperson needs to be terminated.

—End