Do You Think a Base Salary Attracts Better Competitive Sales People? Think Again. [PDF]
Posted by John Marshall on August. 7, 2015
If you’re looking to improve the quality and retention of candidates for a competitive sales role, you might think adding a base salary to the commission will sweeten the pot and attract the best of the best.
While you’re right about sweetening the pot, research shows starkly different results for retention and performance than what you may think.
Here’s the take-away from the research: offering base salary plus commission will attract more candidates but they will be of worse quality and ultimately less suited for a competitive sales role.
Significant Statistics for Attracting Top Performing Competitive Salespeople
- 5X greater performance at year-end by salespeople without a base salary
- 3X more applications are submitted with the introduction of a base salary but 105% drop in salespeople rated as “suitable”
Why do we see these trends? Competitive salespeople who are attracted to commission only positions may be of higher caliber than those who want the security of a base salary. In fact, some of the best salespeople don’t want a base salary, as that can sometimes put a cap on their income.
As these results go to show, when it comes to hiring, retention, and performance, we can’t always rely solely on our instincts. Real data can reveal counterintuitive trends that make a big difference for ensuring an optimal outcome; whether it is for hiring and attraction or retention and coaching, research provides the basis for an effective talent management process.
>> SMG offers selection tools and profiles based on 35 years of research and statistics. POP™ is our most popular employee selection tool, specifically designed for selecting competitive salespeople. Contact us today to discuss how we can help your organization.
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