Based on research by Cesar Cedillos, DBA, Rosemary Maellaro, PhD, and Scott Wysong, PhD
While experience is an important factor in hiring, some organizations place a disproportionate amount of weight on certain kinds of experience. Researchers examined a Fortune 500 firm in North America that believed that individuals with prior experience in sales made better managers. Researchers examined whether managers at this firm with prior sales experience produced higher sales revenue, profitability, and return on controllable assets compared to those managers without prior sales experience. The results demonstrate that skill sets other than those provided by prior sales experience are
necessary for managers to generate and manage revenue.
Key Points
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Experience is an important factor in hiring, but some organizations place a disproportionate amount of weight on certain kinds of experience.
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In customer focused businesses, there is a common belief that job candidates with prior sales experience make ideal managers because they have a better understanding of how to increase customer satisfaction, which could lead to increased patronage and revenue.
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The results of this study demonstrate that success in a sales role does not necessarily translate to success as a manager. Specifically, skill sets other than those provided by prior sales experience are necessary for managers to generate and manage revenue.
Why This Matters
Selecting a manager is an important decision for any organization. If done right, the organization should thrive with strong productivity and financial performance. If the wrong person is selected, negative issues such as low employee morale and low productivity can lead to poor sales and profits. Organizations that rely upon standardized hiring practices should continually reevaluate their assumptions and hiring criteria when selecting leaders and managers.
Want to know more?
- How to Spot a Great Manager
- Now Hiring: Selecting and Supporting Managers Who Can Grow With Your Business
Based upon the following peer-reviewed manuscript: Cedillos, C., Maellaro, R., Wysong, S. (2020). To Sell or Not to Sell: The Impact of Managers’ Sales Experience on Organizational Financial Performance. International Journal of Revenue Management, 11(4), 316-330.
