Relatively sophisticated statistical models exist to demonstrate the value of using the Banks & Weitzul Salesperson Selection System. Such (Cassio) models readily demonstrate the value of using the system to select sales personnel. However, a far simpler example is also available. The actual numbers in any particular situation may vary, but this model can be easily used to evaluate the potential value of using our services.
Assume that executives at Acme Manufacturing estimate that they lose approximately $40,000 on each terminated salesperson. This figure is composed of salary, training time, managerial involvement, lost sales opportunity, etc.
Further, assume that Acme interviews about 500 candidates per year of which they actually hire 100 salespeople. Even with their careful selection methods, Acme terminates about 10 salespeople per year at a total cost of $400,000 (10 terminations @ $40,000 each).
In order to attempt to improve their turnover costs, Acme hires Banks & Weitzul to assist in the selection process. Now, assume that Acme continues its normal selection procedure but requires the top 200 candidates to complete the B&W (120 and 320) Questionnaires at a cost of $200 each. (The actual cost may vary depending on volume and length of Banks & Weitzul report) So, in this example, the total additional selection cost is $40,000 (200 candidates @ $200 each). In order to justify this additional Acme cost, Banks & Weitzul needs to reduce the turnover from 10 salespeople to 9 salespeople in a single year.
This is a very easy goal for Banks & Weitzul to attain and surpass. (For another example, see the Insurance Industry Comparison.) Why? Our studies show that once we are involved in the selection process:
1. With no direct involvement from Banks & Weitzul, the quality of the candidates almost automatically improves. The reasons for this are not verifiable, but it appears that whenever the hiring person (Human Resources, Administrative Manager, Sales Manager, etc.) knows that his/her candidates will be reviewed by an outside professional, the hiring person raises his/her own level of selection criteria and chooses better people.
2. With nominal involvement from Banks & Weitzul, we can teach (via our interviewer training program) the hiring person to screen for better people. We teach the interviewer to look for specific traits. We provide examples of exact questions and answers that successful sales people provide in interviews. The interviewer then has the option to hire or refer the candidate on to Banks & Weitzul for additional review.
3. The candidate profile prepared by Banks & Weitzul suggests ways to improve the salesperson’s performance once they are hired. Recommendations for training, coaching, and supervision among other topics, are included in the report. Our research shows that Sales Managers who better understand their subordinates are more successful in developing them.
4. Banks & Weitzul can provide recommendations for "matching" certain salespeople with given sales managers in order to maximize the sales productivity for both the salesperson and sales manager. Again our research shows that some Sales Managers are better suited to supervise and motivate some types of sales representatives. If a salesperson can be matched with an appropriate Sales Manager everyone’s productivity will improve.