Sales Assessments for Selection for a Manufacturing Company
Business Case
The Vice President of Sales of a $400+ million manufacturing company with an international sales organization wanted to know if using CMA’s selection process was yielding results for the company.
The company had previously used CMA’s assessment process and selection system, but did not always follow CMA’s recommendation on whether or not to hire specific sales representatives.
The company conducted research to determine how sales representative performance lined up with CMA’s hiring recommendations over a three-year period. The results were as follows:
- Sales candidates recommended by CMA exceeded sales expectations, with an average of 108% of the quota.
- Sales candidates recommended with reservation by CMA met sales expectations, with an average 100% of the quota.
- Sales candidates not recommended by CMA (but hired anyway by the company) fell short of sales expectations, with an average of 88% of the quota.
Outcome
Assuming a conservative estimate of a net margin of 4% in this high-margin industry, and given the $60,000 investment made by the company for all assessments, the ROI for CMA’s assessment service exceeded 200% in the first year alone.
