Find that needle in the haystack
October 1, 1997 4 minutes read
Find that needle in the haystack
Hiring a salesperson may be easier than you think
(Editor’s note: Last month, Home Infusion Therapy Management looked at ways to motivate staff and optimize sales. But maybe you are starting from scratch and want to hire an experienced salesperson rather than converting a current employee. This month, HITM tells you just what to look for and where when searching for a salesperson.)
You’d think finding such responsible individ-uals would be difficult, but both Zachary Tinkler, the director of marketing for Carter Health Care in Oklahoma City and Michael Tortorici, RPh, MS, president of AlternaCare of America in Dayton, OH, say that’s not the case.
"I could turn my sales force over today and still have quality people," says Tinkler. "In the medical community everybody knows somebody looking for an opportunity."
But the key to finding the diamond in the rough is simple: You’ve got to ask.
"No one ever knows anyone until you come out and ask," notes Tinkler, "but everyone knows somebody that is sharp."
Tinkler says criterion number one in a Carter sales candidate is a medical background.
"My perfect new hire would be someone with two to three years medical sales experience who has a base knowledge of home health and managed care and how Medicare and the various HMOs are involved," he says.
However, sales experience isn’t a prerequisite. As a director of marketing, Tinkler says he can teach sales, but the intricacies of the medical industry are another story.
Pharmaceutical background is a plus
Carter has recruited several of its professional service coordinators (PSCs) Carter’s name for its sales representatives from other organizations, often from a physician, nurse, or receptionist. One industry you might want to consider looking into, and which you probably have plenty of exposure to, is pharmaceutical sales.
"We’ve been hiring people [for clients] from the pharmaceutical industry," notes Tortorici. "They have the training and background, they are articulate and professional, and have a proven track record of success."
However, because of their experience and training, you’ll likely have to pay a good salary of about $40,000 base. Tinkler starts PSCs in the $30,000-range, depending on experience. Both Tortorici and Tinkler say the base salary should be the tip of the iceberg for sales staff.
"You should build in incentives because the more money your sales people make, the more money the company makes," says Tortorici.
A strong incentive plan for sales staff can lead to a highly motivated staff.
However, an incentive program for your sales staff alone could alienate the rest of your employees. That’s why Tortorici recommends a company-wide bonus program, particularly for small agencies.
"If you’re going to have salespeople and incentives, have an incentive program for the operational people whereby if someone knows they’re staying until 6 or 7 at night to take care of a patient, they’re going to be rewarded for that," says Tortorici.
Creating such an incentive program is actually quite simple. The easiest method is to create a bonus pool worth amount of dollars, depending on the size of your agency. Then, set up various criteria that must be met to attain the bonus.
Tortorici provides the following example. For an agency with 10 people, you could establish an operational bonus pool of $5,000, which all 10 employees will share equally if the company reaches the predetermined goals.
Such goals can be weighted. For example, achieving a certain quality indicator, such as 95% of patient satisfaction surveys coming back positive, could be one factor. Another could be to reduce the cost of goods by a certain percentage or to a predetermined level, such as expenditures on courier services.
Don’t be afraid to change the criteria each year to fit your agency’s needs. If you’re up for the Joint Commission on the Accreditation of Healthcare Organizations accreditation, achieving accreditation or accreditation with commendation could be given significant weight for that year. The total of each criterion’s "weight" should add up to 100%. When setting goals, Tortorici highly recommends participative management, where the entire staff sits down with management to establish the goals.
$5,000 split among 10 employees
At the end of a given time period, if 100% of the goals were met, the $5,000 would be split among all 10 people, so each individual, from the receptionist and secretary on down the line each receives $500. If all but one of the criteria, which happened to carry a weight of 25%, were met, then 75% of the $5,000 would be split among the 10 employees.
"This way, if you have a salesperson and they’re successful and the operational people can join in that success, you’re going to have a successful team," says Tortorici.
[Editor’s note: For more information on AlternaCare of America’s consulting on interim sales management and marketing strategies, call (800) 433-9503.]
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