The Imperative Shift to Competency-Based Hiring for SDR Positions

Stop winging it. Stop relying solely on your gut. If you’re a sales and/or sales development leader, this message is not just a gentle nudge; it’s a wake-up call to a pivotal aspect of your role—one that can make or break your team’s success. 

Here’s The Problem

Research shows that the cost of a bad hire can be substantial, encompassing expenses related to recruitment, training, lost productivity, and potential impacts on team morale. Some studies suggested that the cost of a bad hire could be as much as two or three times the individual’s salary.

Welcome to the world of competency-based hiring for Sales Development Representatives (SDRs), where decisions are rooted in skills, abilities, and potential rather than instinctive feelings or outdated practices.

As a manager, this isn’t just another task to check off your list; it’s arguably the most crucial aspect of your job. Whether you’re a seasoned leader or someone climbing the managerial ladder, adapting to competency-based hiring is not optional—it’s essential. In an ever-evolving business landscape, relying on ‘that’s how you’ve always done it’ won’t cut it anymore. Let’s explore why embracing competency-based hiring is not just a trend but a strategic imperative for anyone steering a sales team in the 21st century.

This Is an 8-Step Guide To Help You Make The Shift

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Let’s Start With Understanding What Core Competencies Are

A core competency is the result from a specific set of skills or techniques. They are the resources and capabilities that comprise the strategic abilities and advantages of a specific function. A modern management theory argues that a business must define, cultivate, and exploit its core competencies in order to succeed against the competition.

This is a general concept and perspective within the field of management theory and is often associated with the resource-based view which emerged in strategic management literature.

The resource-based view suggests that a firm’s unique and valuable resources and capabilities, known as core competencies, are critical for achieving and sustaining a competitive advantage. 

While various management scholars and researchers have contributed to the development of these ideas, it’s not linked to a single study or source. The concept has become widely recognized and discussed in the broader field of strategic management.

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Following are the eight (8) comprehensive steps to incorporating a core competency-based approach with your SDR hiring.

Step 1: Create Your Ideal Candidate Profile

Others in the industry might refer to this as the Ideal Team Member Profile.

It’s essentially a brain dump of all ideal attributes you can think of.

When putting this together it is imperative that you are inclusive in this process by conducting internal and external interviews with cross functional team members as well as existing customers. It’s a crucial step in the hiring process and one that a lot of companies skip in the interest of speed which leads to increased false-positives.

Following are the ABCs of defining your SDR ICP. It really shouldn’t take much time if you and your team just lock in and get it done.

A) Conduct a Job Analysis

Start by conducting a comprehensive job analysis for the specific position. This involves gathering information about the duties, responsibilities, and key deliverables associated with the role. The skills/background needed can vary based on various factors. 

Following are ten (10) elements to factor in when you’re scoping an SDR position:

1. Your sales process and the the hand-off from SDR to AE is going to work
2. Target personas and the buyer’s journey
3. Your Total Addressable Market (TAM) vs. Total Serviceable Market (TSM)
4. Complexity of the product/services
5. Qualification expectations
6. How competitors are positioned in the market
7. Your Tech Stack & the SDR workflows
8. Strategy: Inbound/Outbound/Hybrid/PLG
9. KPIs and Pipeline Contribution expectations
10. The SDR Variable Compensation Plan

Once you have flushed out all the specifics you should be able to hone in on the core competencies, skills, and qualifications required for success in the position based on what you scoped above.

B) Collaborate With Stakeholders

It’s important that you take an inclusive approach and engage with relevant stakeholders as Sales Development at its core is cross-functional. This needs to include an Account Executive, other SDRs if applicable, Sales Operations, and Marketing. This way you gain a holistic understanding of the ideal candidate profile.

The process of gathering these insights can vary. It all depends on how the teams are set up. Try to host meetings or workshops to gather input on the characteristics, traits, and skills that are deemed essential for the role. 

I recommend using an AI-based meeting note taker during these sessions if you can to help streamline the process of distilling the details.

Being sure to take an inclusive approach like this helps to ensure alignment between the identified criteria and the organization’s overall goals and values.

C) Prioritize Key Criteria

Once you have gathered information from the job analysis and stakeholder input, prioritize the key criteria in a spreadsheet to sort what is most critical for success in the position. Consider both hard skills (technical qualifications, certifications, etc.) and soft skills (communication, teamwork, problem-solving, etc.).

Create a comprehensive list of must-have and nice-to-have qualifications, allowing for flexibility in candidate evaluation.

These steps will help create a well-rounded and accurate representation of the ideal candidate profile. By involving various stakeholders and conducting a thorough analysis of the position, a company can ensure that the candidate profile reflects the specific needs of the role and the organization. This, in turn, contributes to a more effective and targeted hiring process.

Step 2: Write the Job Description

Writing an effective job description is crucial for attracting the right candidates to your organization. It can be tempting to copy one that you found online and maybe swap out a few things but it really makes a difference when you take a tailored approach like this. 

Remember, the job description isn’t just for finding new hires. It’s also the general guidance and expectations in which your employees operate under. 

There’s a ton of information online on how to write a compelling SDR job description so I won’t go down that path.

The one thing I will highly suggest is to include the pay structure and potential earnings. Providing a salary range and information about benefits can make your posting more appealing. It sets clear expectations and may attract candidates who are a better fit for your compensation structure.

Remember, an effective job description not only attracts candidates but also helps them make an informed decision about applying for the position. It sets the foundation for a positive candidate experience and can contribute to the long-term success of the hiring process.

Step 3: Select Your Core Competencies

This is where we put the “core” in Core Competencies.

The list should be not more than 6 or 7 elements. Not too many as to over structure the process but not too little either where you’re unable to render a sufficient amount of useful insights.

Once you settle on your core 6 or 7, create a 1-2 page document with definitions and why each competency is required. Tie together why these are the core competencies for your company at this time. They should be specific to the function and required skill set as well as specific to the environment/culture.

Narrowing down the list of core competencies to 6 or 7 key elements is essential for several reasons:

1. Clarity and Focus: A concise list of core competencies provides clarity on what is truly essential for success in the role. This helps both the hiring manager and potential candidates to focus on the most critical aspects of the job.
2. Efficiency in Recruitment: A shorter list streamlines the recruitment process. It enables recruiters to quickly identify suitable candidates, saving time and resources. This is crucial, especially in competitive job markets where top talent is often quickly snapped up.
3. Alignment with Business Objectives: Focusing on a handful of core competencies ensures that the hiring criteria align with the broader goals and objectives of the organization. It helps in selecting candidates who not only possess the necessary skills but also fit well into the overall strategy of the company.
4. Better Candidate Experience: Candidates appreciate clarity about what is expected from them. A concise list of core competencies helps candidates understand the key skills and attributes required for success in the role. This transparency contributes to a positive candidate experience.
5. Effective Evaluation: During the interview and assessment process, a smaller set of competencies allows for a more in-depth evaluation of each criterion. This ensures a thorough examination of candidates’ abilities in the areas that matter most to the job.
6. Flexibility and Adaptability: A focused list of core competencies provides flexibility for candidates to demonstrate their adaptability and versatility. It allows room for candidates to showcase related skills and experiences that may not have been explicitly listed but are still relevant.
7. Ease of Communication: Communicating the key competencies clearly to both internal stakeholders and potential candidates is simpler when the list is concise. This ensures everyone involved in the hiring process is on the same page and understands the key criteria for success
8. Reduced Bias: A shorter list of core competencies can help reduce unconscious bias in the hiring process. With fewer criteria, there is less room for subjective judgments, and evaluations can be more objective and based on measurable skills and experiences.

A primary focus on 6 or 7 key elements is about strategic thinking, efficiency, and ensuring that the hiring process is effective in identifying candidates who not only possess the required skills but also align with the organization’s goals and values.

Step 4: Craft Your Sourcing Plan

First, choose your sourcing channels. Determine the most effective channels to reach your target candidates. This may include job boards, social media platforms, industry-specific websites, networking events, online communities, or professional associations.

Utilize both traditional and innovative sourcing methods. For example, while job boards are conventional, leveraging social media and professional networking platforms like LinkedIn can help you tap into passive candidates who may not actively be seeking new opportunities.

Utilizing Employee Referral Programs is a great way to find talented people. Current employees can be valuable sources for finding candidates who are a good cultural fit and may not be actively job searching. Referral bonuses have worked for me several times in the past. Especially when you’ve created a great place to work and have an attractive bonus amount. 

In terms of creating more passive candidate engagement, LinkedIn Recruiter Lite has been a great tool for me. I have connected with and hired very talented people using it.

When you’ve done the preliminary work mentioned above and have a clear understanding of your requirements, it’s easy to set some filters in this premium version of LinkedIn and narrow down to the folks you want to reach out to.

Budget permitting, I recommend leveraging an applicant tracking system (ATS) to streamline the sourcing process. These tools can help manage candidate pipelines, track the effectiveness of different sourcing channels, and automate certain aspects of the recruitment process. Not every company can opt for a sophisticated ATS but they can still create a structured process with G Suite and other tools. Even for things like the Interview Feedback Forms which we will cover later.

Remember that a well-thought-out sourcing plan is dynamic and may need adjustments based on feedback, changes in the job market, or shifts in organizational priorities. Regularly review and refine your approach to ensure ongoing success in attracting top talent.

Step 5: Create Your Interview Track

Continuing with the ‘inclusive’ theme, it’s also essential that cross functional team members participate in the interview process. Determine who will be your interviewers, their assigned competencies, and how many total interviews candidates will need to go through. Try to keep each interview to under 40-mins.

We’re not trying to wing it here so be sure to meet with each interviewer ahead of the actual interviews. You’ll find that some folks on your team won’t have a ton of experience in interviewing so you might want to consider providing some training. Even consider a practice run or two. Give interviewers guidelines for providing feedback, including what types of comments are helpful and what kind of language to avoid.

Speed is usually important here so no more than 4 interviews and try not to book the interview dates too far out. You might not be a big rush but believe it or not, top candidates don’t stay available for very long. You might have to change the order of the interviews a bit from time to time. And you might want to try panel style interviews which allows you to consolidate interviewers while gaining more perspective. As an example, I like to have 2 existing SDRs meet with the candidate and when possible I like to group Sales Operations with the Account Executive. 

Nearly every interview track I have developed includes this as the final step in the process. I call it The Capstone Exercise. It’s basically a 2-part interview with the hiring manager and their boss (i.e., SDR Manager and CMO). Instructions are sent to the candidate ahead of time because there’s some simple homework which involves researching target companies and target contacts in those companies. When we meet the first part of the interview is spent discussing why they made the selections that they did. And the second part is a roleplay (or two) with one of the interviewers playing as if they were one of the contacts that were selected.. The interview wraps with a round of feedback and that’s it.

Following is a copy of the prompt I send out to the interviewee for the homework:

As long as the candidate fills it in anytime before the interview, we’re good to go.

Step 6: Prepare Your Competency Based Interview Questions

Let’s be clear, this is arguably the most important part of this process.

Your ability to assess a candidate and how they might be rated in a certain area relies on you being able to prompt that skill or competency during the interview with a question that would elicit a response that can be evaluated effectively.

If you’re always asking random questions and/or maybe you do the majority of the talking, you’re not going to be able to execute an interview that allows you to prevent a bad hire. 

Competency-based interview questions serve as the lynchpin in a competency-based hiring process because they are designed to assess a candidate’s specific skills, knowledge, and abilities that are crucial for success in a particular role. 

Here are seven (7) reasons why competency-based interview questions are essential in this hiring approach:

1. Focus on Relevant Skills and Behaviors: Competency-based interview questions are tailored to the key competencies required for a specific job. These questions are designed to elicit responses that provide insight into the candidate’s past behaviors, experiences, and achievements related to these competencies. This focus ensures that the interview is directly aligned with the skills and behaviors critical for success in the role.
2. Predictive Validity: Competency-based interviews have been shown to have higher predictive validity in assessing future job performance compared to traditional interviews. By asking candidates to provide specific examples from their past experiences, employers can gain a more accurate understanding of how candidates are likely to perform in the future. 
3. Behavioral Indicators: Competency-based questions often ask candidates to describe specific situations they have encountered, the actions they took, and the results achieved (the STAR technique: Situation, Task, Action, Result). This approach provides behavioral indicators of a candidate’s ability to apply their skills and competencies in real-world scenarios.
4. Objectivity and Consistency: Competency-based interviews promote objectivity and consistency in the evaluation process. By using a standardized set of questions based on specific competencies, all candidates are assessed against the same criteria. This reduces bias and ensures a fair evaluation of each candidate’s suitability for the role.
5. In-Depth Exploration: These questions often require candidates to provide detailed responses, allowing interviewers to delve deeper into a candidate’s thought processes, decision-making abilities, and problem-solving skills. This in-depth exploration provides a more comprehensive understanding of the candidate’s capabilities.
6. Alignment with Organizational Goals: Competency-based hiring ensures that candidates possess the skills and attributes aligned with the organization’s goals and values. By focusing on competencies that are directly relevant to the job and organizational objectives, companies can make strategic hires that contribute to long-term success.
7. Feedback and Development: The insights gained from competency-based interviews can be valuable for providing feedback to candidates, both successful and unsuccessful ones. Additionally, organizations can use this information for ongoing employee development, helping individuals enhance their competencies and contribute more effectively to the organization.

In summary, competency-based interview questions are pivotal in a competency-based hiring process because they provide a structured and effective means of assessing candidates’ abilities and ensuring that the chosen candidates possess the specific competencies needed for success in the role and alignment with the organization’s goals.

Here are three (3) competency-based interview questions tailored for an SDR position:

1. Competency: Effective Communication
   • Question: “Can you provide an example of a time when you had to communicate a complex product or service to a potential client? How did you ensure that your message was clear, and how did you handle any questions or objections from the prospect? What was the outcome of this communication?”
   • This question assesses the candidate’s ability to articulate information clearly, adapt their communication style to the audience, and address challenges or objections effectively.
2. Competency: Goal Achievement & Sales Acumen
   • Question: “Describe a situation where you had to meet a challenging sales target or quota. What strategies did you employ to prospect and qualify leads effectively? How did you prioritize your efforts to achieve your sales goals, and what was the result?”
   • This question evaluates the candidate’s sales strategy, goal-setting, and execution abilities. It helps assess their understanding of the sales process and their proactive approach to achieving targets.
3. Competency: Resilience & Adaptability
   • Question: “In a sales role, rejection is inevitable. Can you share a specific instance where you faced rejection from a prospect? How did you handle it, and what steps did you take to bounce back from the setback? Did you adjust your approach, and if so, what was the impact on your subsequent interactions with prospects?”
   • This question gauges the candidate’s resilience and ability to cope with the challenges and setbacks commonly encountered in a sales role. It also assesses their capacity to learn from rejection and adapt their approach for future success.

These competency-based interview questions are designed to elicit detailed responses that provide insights into the candidate’s past behaviors and experiences relevant to the SDR role. The STAR (Situation, Task, Action, Result) method can be encouraged for candidates to structure their responses effectively.

Step 7: Create Your Candidate Ranking Sheet

This will serve as a way to stack rank your candidates in a fair and consistent manner. It’s separate from your candidate tracking sheet where you might maintain where each candidate is in the interview process including dates and interviewers. Often this Ranking Sheet is another tab in the same workbook.

It’s here where you will input the averages from feedback forms which will enable the ranking system. This doesn’t mean you must select the person who ranks the highest but in my experience that is almost always the case.

This provides a structured and systematic approach to evaluating job candidates during the hiring process. This tool helps ensure objectivity, consistency, and fairness in the evaluation process. 

Make a clone of that sheet and it doubles as a Team Depth Chart to help with employee evaluations. The core competencies should be at the center of your focus with regard to ongoing coaching, annual reviews, deciding on raises, promotions or even separations.

Step 8: Design & Deploy Your Interview Feedback Form

Use an applicant tracking system (ATS) if you can. 

Otherwise I suggest just using Google Forms which has worked well for me over the years. This should include the same questions and rating scales for every candidate, which will make it easier to compare feedback across candidates. Once you’ve built the template you just need to create a new one for each candidate and send one to each interviewer. 

Yes, it’s work but the whole thing falls down if you’re not making decisions based on clear insights and data gathered during these interviews. 

To promote a rapid interview process, it’s crucial that you establish clear deadlines for when feedback is due from each interviewer. This will help ensure that everyone is on the same page and that the process moves forward efficiently.

Once all the feedback has been collected and the ranking sheet has been updated, hold a debrief meeting with the hiring team.  This is a chance to discuss each candidate’s strengths and weaknesses and to make a decision about who to move forward with.

This type of feedback loop provides valuable data that can be analyzed to identify patterns and trends in candidate performance. It minimizes the reliance on subjective judgments and personal biases while contributing to a positive candidate experience. It shows that the organization values transparency and communication. Even if a candidate is not selected, providing constructive feedback can help them understand areas for improvement and enhance their future job search efforts.

Keeping detailed records like this is also essential for legal compliance. It helps demonstrate that hiring decisions are based on job-related factors and not discriminatory practices.

In Closing

Thank you for reading along and exploring the vital shift towards competency-based hiring for Sales Development Representatives (SDRs) which emphasizes the need for sales leaders to move beyond gut instincts. 

We covered an eight-step process for incorporating a competency-based approach to hiring SDRs, starting with creating an ideal candidate profile through comprehensive job analysis and collaboration with stakeholders. 

We discussed the importance of a focused core competency list (6-7 key elements) to align hiring criteria with business goals. 

And I’ll leave you with this reminder:  An organized approach to competency-based interview questions, collecting feedback, and ranking candidates in an objective manner are the linchpins in this method.  

Happy hiring!

Derrick Williams, Founder & Principal at 3Link Consulting