Would You Hire a Salesperson Lacking Desirable Background but Proven in Capturing Desirable Prospects?

From the perspective of a job seeker, would you hire a salesperson who does not have the background you were seeking but demonstrates the ability to get in front of desirable prospects? The answer is a resounding yes, especially if you were once in that same situation. As a reality check, it's important to consider the various angles, including the employer's viewpoint and potential strategies to mitigate risk.

From the Job Seeker’s Perspective

Entering a new field, I pursued a deal whereby I would accept a lower salary and a higher commission. My new employer recognized the gamble but found it worthwhile. This negotiation strategy can indeed be beneficial for both parties, providing a framework for success while managing risk.

From the Employer’s Perspective

For an employer, hiring a new employee always involves a degree of risk, amplified when the candidate lacks the desired background. The employer must be confident that this risk is worth the potential reward. One way to minimize this risk is for the candidate to negotiate for a lower base salary and a higher commission structure. This arrangement allows the candidate to assume a portion of the risk, which can be a valuable trade-off.

To ensure that the candidate truly brings value to the company, the commission structure must be designed to reward success, not just efforts. Efforts alone do not contribute to the company's bottom line if they do not result in sales. Alignment of goals between the candidate and the employer is crucial. The employer should ensure that the candidate's compensation increases proportionally with sales performance. If the candidate's sales surpass those of colleagues with desired backgrounds, their total compensation should also be higher.

Strategies to Manage Risk

There are effective strategies to manage the risk involved in hiring a candidate with less traditional credentials. One approach is to align the candidate's goals with the employer's. By negotiating a commission structure that rewards success, the employer can ensure that the candidate's success directly benefits the company.

"If your sales are higher than other sales people, your total compensation should also be higher. If your sales only match those with the desired background, then you haven’t really improved the risk/reward ratio for your employer, and you might be let go."

Potential Downside

While negotiation for a lower base salary and a higher commission can be advantageous, it also introduces some downsides. Other average salespeople may perceive this arrangement as a threat. They might feel their commission structures could be adjusted to match, even if it means a potential pay cut. This can lead to resentment and a difficult work environment.

Additionally, a high commission structure and significant sales success might lead to earning more than your manager or even a vice president. Depending on the company culture, this could result in an award or, ironically, in termination. While difficult to manage, awareness of these potential issues is crucial.

One potential solution is to negotiate a temporary lower salary and higher commission arrangement. While initial resistance from employers is expected, they may be more likely to implement this arrangement if the candidate's success leads to dissatisfaction among other employees.

Conclusion

Hiring a salesperson without the traditional background can be highly fruitful if properly managed. By aligning goals, negotiating a fair compensation structure, and addressing potential risks, both the candidate and the employer can thrive. Negotiating a lower base salary and a higher commission can be an effective strategy to balance risk and reward.

Stay informed and proactive in your negotiations, and be prepared to address the potential downsides. With thoughtful planning, you can navigate these challenges and build a successful career.