ZeroChaosCase Study
National Supplier of Telecom Equipment to Small/Medium CompaniesChallenge: The company was experiencing excessive turnover...
(2) Interview and access the recruiting skill level of each branch in addition to conducting asatisfaction survey from can...
their company. These are done both anonymously or identified which had a predominateamount of negative reviews. We contact...
recruiting and training costs that could never be recouped, so there was a significant drop inturnover costs.Employee mora...
of 5

National sales org case study final

Published on: Mar 3, 2016
Published in: Business      Technology      
Source: www.slideshare.net


Transcripts - National sales org case study final

  • 1. ZeroChaosCase Study
  • 2. National Supplier of Telecom Equipment to Small/Medium CompaniesChallenge: The company was experiencing excessive turnover with branch salesrepresentatives to the point it was adopted that turnover was the price you paid to weed out thenon-performers. The problem was it wasn’t necessarily those that were under-performing thatwere leaving, but high potentials were also voluntarily exiting. They kept filling up the bucket,but there was always a hole in the bottom.There were two profiles that they would seek for the sales representatives:  Sales Associate - Recent College graduates with 0 – 2 years work experience.  Sales Consultant - 3 – 8 years sales experience selling products B2B preferably in the Telecom or Cloud Computing industry.Sales metrics were based upon how many people were in the seats doing sales, and theemphasis for recruiters and sales managers was to have a monthly training class filledregardless of skill, ability and past performance due diligence…People numbers vs. pastperformance numbers.To keep up with the frenetic churning, the first initiative was to add more agencies in each of 14regions around the country. The push from an agency point of view, was to send as manycandidates to the client, because they are so desperate they should get at least one hire if notmore.Call to Action: The Company contacted ZeroChaos to assess the turnover situation todetermine what the root cause was, and what could be done to remedy the resource drain.ZeroChaos recruiting process specialists put a discovery plan in place to:(1) Assess the current ATS system and how it was tying to the existing process. The ATSsystem was being vastly underused. The agency portal feature was never activated andconsequently all agency candidates were coming to the recruiters via Outlook. The recruitershad no training on how to use the ATS, so the only candidates that were entered werecandidates that were hired and was done manually. The recruiting history was like footprints inthe sand. 2
  • 3. (2) Interview and access the recruiting skill level of each branch in addition to conducting asatisfaction survey from candidates currently in process. Overall, the recruiting skill was fair, asthe emphasis was on quantity, not quality, and the candidate experience was very poor. Theinterviews were rushed, appeared to be focused on candidate appearance, and the feel thatcandidates were a commodity.(3) Attend sales training to determine quality and interaction with newly hired reps. Weobserved that the training content regarding product knowledge and presentation skills wasexcellent; however, the expectation of the sales cycle and process was misleading based uponreality. The more experienced were mixed in with the ‘rookie’ reps and mixed signals croppedup as to daily routine.(4) Examine the career branding message. The career site landing page was below par inenticing candidates to explore a sales opportunity with the company. There were notestimonials or career potential mentioned. This was a missed opportunity to brand ‘why workhere’.(5) Conduct third-party exit interviews of randomly selected past employees. This was perhapsthe most telling because even though the company conducted exit interviews where possible,most were not telling the full story. Here are some comments, “It was a hell hole where theytreated us like babies. We were required to be at the office every morning at 7:30am, collectour leads and location to cold call, then report back to the office between 6 – 7pm so they couldsee the business cards we had collected. It was terrible to fight commuter traffic just so theycould see evidence we were doing our job.” “I could not believe the hours you had to put inevery day – 12 hours was normal.” “They treat their employees with disrespect. It’s like ‘don’tlet the door hit you on your way out.’” “The morale was so low because you never knew whothe next casualty might be.” “I came home crying every day. My parents couldn’t believe it, andmy father was almost going to buy one of their products for his business, but he backed outafter seeing how they treated their employees.” “I can’t believe that they have not been sued.”(6) Research the ‘street talk’ about the company. We talked to candidates that had beenthrough their interviewing process that did not get the job to learn that there were no mannerswhen it came to the candidate experience. It was typical that candidates were left in thereception area for over an hour and then give them a five minute interview or never contactedthem back after the interview. We researched various websites that give employee reviews of 3
  • 4. their company. These are done both anonymously or identified which had a predominateamount of negative reviews. We contacted many of the recruiting agencies that had workedwith the company and it was said that even though they sent candidates to them, they justhoped that the candidate would last through the guarantee so they could keep their fees.Solutions: ZeroChaos first worked with the client marketing and IT professionals to overhaul thecareer website to build up the employee value proposition and to highlight the fact that thephilosophy is to promote from within as all sales management positions are filled from salesreps starting out in field sales and are rewarded for their performance. It might be tough forsome, but those that make it have a wonderful career in front of them.We also saw ways to optimize the ATS system to work as a valuable tool for the internalrecruiters and a better way to organize their candidate activity. We orchestrated somereconfiguration with the ATS vendor development team and client IT to integrate to the careerwebsite applicant portal, integrate an online assessment tool specific to sales performanceindicators, and to integrate with Cognos to deliver meaningful data and metrics.To better ensure an effective decision making process in hiring the right candidates, weadjusted the recruiting process into four assessment components to vet for former evidence ofperformance, tolerance and resiliency in a tough sales environment, and for a more experiencedprofile, career progression factors. We established ride-alongs with existing sales reps so theycould see ‘a day in the life of a sales rep’.The localized marketplace had been diluted with recruiter agency hyper-activity, and polluted bythe many nay-sayers that turnover had created. ZeroChaos implanted recruiting consultants tosupport the sourcing and recruiting efforts for each regional office to ensure a continued healthypipeline of candidate and ensuring a positive candidate experience. We streamlined therecruiting message to candidates and added extra bandwidth to the core HR team allowingthem time to be proactive in their workforce planning, employee development, and ensuring apositive candidate experience.Results: Turnover was reduced from 55% to less than 30% in six months with the goal andtrend moving in the direction of less than 20% turnover within 18 months. The overt and hiddencost of turnover had been calculated at a minimum of $15,000 per lost employee due to 4
  • 5. recruiting and training costs that could never be recouped, so there was a significant drop inturnover costs.Employee morale improved significantly as initiatives were put into place by the client HR tohelp develop promising new employees so they could get over the ‘hump’ of creating a newcustomer base.ZeroChaos provided a continuous feed of candidates to the pipeline by establishingrelationships with military transitioning hubs, colleges and university career counselors, andoffering learning opportunities that created positive visibility of the client employee valueproposition. In essence, more candidates were initiating contact to seek a job with the clientcompany and were seen as an employer of choice. 5

Related Documents