Of course this problem is getting worse, there are charlatans everywhere and usually their best sales is to employers.
Hiring the wrong sales leader is the single easiest bad decision you can make. Regardless of whether you are looking to hire a Sales Manager, Director of Sales, VP of Sales, CRO, CSO, etc. Don’t matter if it’s 100% commission, $80k base, $400k Base, $350k OTE, 7 figure comp package, you will be wildly surprised at the lack of talent on the market. When we say lack of talent, we mean actual ability to do the job. Most will impress you during the interview process, but their ability to deliver results is astonishing. A study by SalesHacker revealed that in 2018 average sales leader tenure had dropped to 19 months, compared to 26 months in 2010. That’s enough time ramp, miss targets, be put on a PIP, miss the PIP and then the awkward dance between you, HR and the sales leader for you to get them gone with minimal collateral damage.
Just in case you don’t know about turnover costs, the average senior sales leader has about $97k in turnover costs. From, recruitment, severance, time-cost and opportunity costs. So you better get it right.
In a study by Vantage Point Performance, they found that the cost of a bad sales manager on average is $3.5M in out of pocket cash, opportunity cost, team performance, and team morale/turnover.