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A Step-by-Step Guide to Hiring the Ideal Sales Manager

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Adelina Karpenkova

Sep 30, 2024
15 minutes read
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A Step-by-Step Guide to Hiring the Ideal Sales Manager

Landing the ideal sales manager can seem tougher than finding a soulmate—and you’re not far off.


Companies fail to choose the right candidates for managerial roles 82% of the time.


The fallout from making the wrong choice can be harsh: disengaged teams, high turnover as employees leave to escape poor management, and a dip in performance to name a few.


You aren’t just looking for a shark who will hit your quotas—you’re seeking a strong sales leader who not only meets the qualifications but also fits into your company culture.


In this guide, we’ll walk you through the entire hiring process and share practical tips for each stage—so you can make a decision you won’t regret.


How to Find and Hire the Best Sales Managers for Your Team

The thing is, it’s not enough to find the right candidate—there are plenty out there. The actual trick is finding someone who fits your budget, aligns with your company culture, and is excited about your offer. Let’s design the recruitment process that tackles these.


Step 1: Understanding the Market

Before you publish that job description on LinkedIn, you need to understand the current job market for sales managers. Start by answering these questions:


  • How many sales professionals are currently looking for new opportunities? 


  • What’s the pay range? 


  • Are there professionals with the skill set and sales experience you need? 


  • Are candidates generally seeking remote positions, or do they prefer on-site roles?


  • What generation is prevailing in the market? 


REMOTE WORK

*Considering the trends, being open to remote applicants may become your competitive advantage in this market.


You may have additional questions based on your specific industry or the role you’re trying to fill, but you got the idea.


The purpose of this research is to help you understand what you need and set realistic deadlines for filling the position. 


You might even want to reconsider hiring externally. As the time to hire keeps increasing across all industries, promoting top performers is becoming a more popular choice. On average, hiring internally can cost 3-5 times less than hiring external candidates when you factor in all related expenses and time.


💡Want to save even more? Hire AI SDRs to automate most of your outbound sales process. Ava, an AI sales agent will take over repetitive SDR tasks, eliminating the need to increase headcount to scale operations.


Step 2: Defining the Role and Responsibilities of a Sales Manager

Now that you’ve got a handle on the market, it’s time to define what you need in your sales manager. 


First, outline their key responsibilities. Again, while these vary by organization, here are some of the most common sales managers’ duties:


  • Setting data-driven sales goals.


  • Creating a comprehensive sales plan.


  • Developing career maps.


  • Aligning the sales team’s activities with other departments and the overall business objectives.


  • Assessing and managing team performance.


  • Identifying successful strategies within the team and replicating them.


  • Providing timely coaching and training for sales reps.



With these in mind, it will be easier to pinpoint the hard and soft skills you need in your sales manager, such as:


  • General sales skills


  • Training and mentoring skills


  • Excellent communication skills


  • Leadership skills


  • Adaptability and flexibility


  • Organizational skills


  • Emotional intelligence



Depending on what you need, you might also look for extra skills, like being a strong public speaker or having experience with certain technologies.


Step 3: Setting a Competitive Compensation Package

This can be tricky. How do you create a compensation package that’s attractive, fair to the rest of the team, and doesn’t stretch your budget too thin?


You likely already have standard policies and benefits in place, and developing a unique package just for one new employee doesn’t seem practical (nor fair to existing employees)


At the same time, you’re hiring for a management role, which carries more responsibilities and has a bigger impact on your business—and the pay and benefits should reflect that. 


Here are a few ideas for how to strike the balance:


1. Research the market if you haven’t done it yet. Check salary surveys, job boards, and industry reports to see what other companies are offering for similar roles. 


2. Understand the role’s impact. The sales manager’s compensation should reflect the level of responsibility they’ll have and the impact they’re expected to make on your business.


3. Choose the compensation type. The base salary is usually just the starting point for a sales manager's compensation. Here are the most common models:


  • Base salary + commission from sales/profits


  • Base salary + bonus compensation for hitting targets


  • Commission-based compensation


  • Any type of compensation + equity


TABLE

4. Create a fair and transparent benefits package. While you may not be able to offer perks like a shorter workweek or unique benefits not shared by the rest of the team, introducing a performance-based benefits system for a management role is a fair approach. For example, you could offer additional insurance coverage after the sales manager has been with the company for a certain period or has achieved specific results.


5. Set clear expectations for performance evaluation. Be upfront about how you’ll measure your new hire’s success. Outline the key performance indicators (KPIs) that will be used to assess their performance and ensure they align with the candidate's expertise.


6.  Map out a clear career advancement path. Show candidates how they can grow within the company. Define specific milestones they need to achieve, outline an expected timeline for these milestones, and perhaps even set a regular schedule for performance and compensation reviews.


Step 4: Writing a Sales Manager Job Description That Stands Out

A great job description needs two things: the candidate’s requirements and what you, as an employer, offer.


Start by building on your existing draft of core responsibilities.


Be specific about what the sales manager will do on a daily basis and provide real examples. Instead of a vague line like “Improve the team’s sales performance,” try something more detailed, such as “Use your expertise in workflow automation to overhaul the company’s lead qualification and scoring system.”


Keep it precise and practical—cut out the fluff and focus on what the role truly involves. For instance, this job ad by Shopify makes it very clear what the day-to-day activities of their future sales manager will look like: 


Secondly, to attract top talent, your job description needs to be more than just a list of requirements. Why would a great sales manager want to work with you? What sets your company apart? 


Besides mentioning the perks and benefits of the role, explain what makes your company a great place to work. Mention unique aspects of your workplace culture, opportunities for growth, and any other incentives that make the position stand out.


We've reviewed over 50 job ads for sales managers, and only two provided a clear list of benefits—beyond the usual "you’ll get to work with the best team on earth." This is an example of one that did it right:


💡 Add consistent processes to the list of your competitive advantages. With Ava, your sales reps won’t get stuck in ineffective manual workflows, which every sales manager will appreciate. Hire Ava to improve your sales workflows today.  


Step 5: Finding Qualified Sales Manager Candidates

When ready, publish your job ad across job boards like Indeed, Glassdoor, and LinkedIn. If you have a strong online presence, post on your company’s career website and social media profiles, too. 


But don’t just sit back and wait for candidates to come to you. While 40% of Americans are actively looking for a new job, a staggering 86% are at least somewhat open to new opportunities. You can massively increase your potential candidate pool by being proactive. 


Here’s how you can tap into that pool:


  • Use LinkedIn to find and engage with potential candidates. Look for those who are active in industry-specific groups or who regularly share insights about sales strategies.


  • Attend industry meetups. These are excellent places to scout top talent in person.


  • Promote from within. Encourage your current employees to refer qualified candidates from their networks.


  • Offer a referral bonus. Announce compensation for recommending a candidate who joins your team. 



Again, don’t limit your candidate pool to those with the "open to work" badge on their LinkedIn profiles. Reach out to people who match your criteria proactively. 


Step 6: Screening and Shortlisting Candidates

The screening process can quickly become overwhelming. Do yourself a favor and make it easier by including clear instructions in your job description.


Right, let’s get a few steps back.


In your application form, ask for: 


  • A resume that highlights specific achievements and experiences.


  • A cover letter that explains how their background aligns with the role. 


  • A proven track record of past successes.


  • Professional references or recommendation letters to validate their qualifications.



Finally, double-check all the must-have requirements, like relocation readiness or language proficiency. Adding a few simple yes/no questions to the application form will save you a lot of time during the screening process.


Job posting checkbox

So, you’ve got your applications—what now?


If you’re dealing with a handful of applications, you’ll manage well with a manual review. However, if you have to sift through loads of candidates, an automation tool like Lever or TestGorilla will be of huge help.


These candidate screening tools can:


  • Filter out candidates who don’t meet your basic criteria.


  • Highlight the most promising candidates.


  • Test shortlisted candidates on various skills.



Pro tip:  Use talent assessments as an additional screening step before the interview. These short tests can help you evaluate various factors, such as cognitive abilities, problem-solving skills, team management capabilities, and even specific sales-related skills like proficiency with certain software.


Based on your initial screening, narrow down the list to candidates who appear to be a strong fit. Notify them that they’ve been shortlisted and invite them to schedule a first-round interview.


Step 7: Preparing Sales Manager Interview Questions

There are at least four types of questions you should cover in your interviews. Let’s quickly walk you through each.


1. Personality assessment questions help gauge a candidate’s personality traits and how they align with your team and company culture:


  • “How would your colleagues describe your leadership style?”


  • “What motivates you in your role as a sales manager?”


  • “Describe a situation where you had to adjust your communication style to work effectively with a diverse team.”


  • “What are your key strengths and weaknesses as a leader?”


  • “How do you maintain a work-life balance and manage stress?”



2. Qualification-based questions mainly help to verify a candidate's CV credentials:


  • “What specific sales management certifications or sales training have you completed?”


  • “Can you provide examples of sales campaigns or projects you’ve led and their outcomes?”


  • “How many years of experience do you have managing sales teams, and in what industries?”


  • “What’s the largest sales team you’ve managed?”


  • “Describe a major sales challenge you’ve faced and how your qualifications helped you overcome it.”



3. Competency questions focus on specific skills and knowledge relevant to the sales manager role:


  • “Can you walk us through your process for developing a successful sales strategy?”


  • “What metrics do you use to evaluate sales performance, and how do you act on them?”


  • “How do you approach forecasting and setting sales targets?”


  • “Describe your experience with implementing new CRM systems or sales technologies.”


  • “What techniques do you use to coach and develop salespeople?”



4. Behavioral questions explore the candidate’s approach to problem-solving:


  • “Tell me about a time when you had to manage a conflict within your sales team. What was the result?”


  • “Describe a situation where you had to meet a tight sales deadline. How did you ensure your team stayed on track?”


  • “Imagine our company is launching a new product in a highly competitive market. What would be your strategy to gain market share?”


  • “How have you handled a situation where your sales representatives weren’t meeting its targets?”


  • “If you had to choose between improving sales performance by 10% or reducing sales team turnover by 20%, which would you prioritize and why?”



There are other types of questions, like brainteasers, that you could use later on. For first-round interviews, though, the questions listed above hit the mark perfectly.


Step 8: Conduct the Interview

You’re hiring for a sales manager position, so your ideal candidate should be quite comfortable with meeting new people—after all, they must have run hundreds of meetings and calls. But it’s still important to create a positive atmosphere and reduce tension from the beginning. An interview that feels like a test won’t benefit either of you.


After a friendly introduction, let a candidate know what to expect during the interview. Give them a quick rundown of the structure so both of you are on the same page.


You’ve got your list of questions—stick to it. Asking everyone the same questions will allow you to fairly compare and score candidates later.


And remember, while you’re looking for the ideal candidate for your team, they’re looking for the ideal place of work. When you’re done interviewing them, give them a chance to interview you.


Step 9: Assess Candidates Post-Interview

Don’t think you’ll cover everything you need in a single interview. A typical hiring process takes at least 2-3 rounds or more depending on the number of stakeholders involved. 


To decide who should move on to the next stage, review your interview notes and score each candidate based on how well they align with your requirements. Compare candidates based on key criteria such as sales leadership, experience, and cultural fit.


You’ll hardly find a candidate who checks all the boxes. So you’ll need to prioritize your criteria and decide where you’re flexible. For example, you may find someone with all the skills you need but who is asking for more compensation than you budgeted. Prioritizing factors like salary expectations, qualifications, and soft skills will help you determine if it’s worth adjusting your offer or if you should consider candidates with slightly less experience.


As a final touch, run reference checks with their previous employers. Ask questions like:


  • “Can you describe the candidate’s leadership style and how they managed their team?”


  • “How did the candidate handle challenges or conflicts in their previous role?”


  • “What were their key strengths and areas for improvement?”


  • “How would you describe their work ethic and reliability?”


  • “Would you rehire this candidate? Why or why not?”



You’ll assess, shortlist, interview, and so on in a circle until you have one ideal candidate you’re ready to make an offer to. 


Step 10: Make the Final Hiring Decision

You’ve found the one—the perfect candidate for your team. Now, how do you seal the deal?


Send them an email with an official job offer. This should include the salary, benefits, and expected start date (which you’ve likely already discussed with each candidate during the interviews). Once sent, the ball is in their court.


EMAIL (1)

Hard truth:  Even if you’re sold on your ideal candidate, they might not feel the same way. A lot of people apply for positions just to explore their options or leverage the offer to get a better deal at their current job. So, have a backup plan with a few other candidates in mind, just in case your top pick turns you down.


Reddit Post

Step 11: Onboard Your New Sales Manager

Congrats! You’ve found the right candidate, and they’ve accepted the offer. Now it’s your job to get them up to speed.


Here are a few points for your onboarding to-do list:


  • Follow up with an email detailing their first day—include start time, office address, and any other relevant information.


  • Coordinate with the IT team or their direct supervisor to set up their accounts and grant access to all the tools and software they’ll need.


  • Introduce your new sales manager to the company through internal communication channels.


  • On their first day, host a team meeting where the new hire can introduce themselves and share their vision.


  • In their first few weeks, schedule one-on-one meetings with key team members and stakeholders


  • Outline specific short-term objectives for their first 30, 60, and 90 days.


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