Pricing Manager Recruitment: Hiring the Right Pricing Teams
Pricing manager recruitment is finding the right pricing people. What makes a great pricing team? Do companies hire for talent or personality? What are the interview methods used to find that one gem? Many businesses including Fortune 500 and ASX businesses spend millions if not hundreds of millions of dollars on recruiting commercial teams using unreliable interview methods. Results are not always the best.
Our research shows that most interviews are completely ineffective methods of identifying price and revenue management teams. The time spent on interviews almost doubled since 2009, according to research from Glassdoor. Interviews are arguably the most difficult technique to get right because interviewers should be asking relevant questions that predict good pricing and revenues hires. Unfortunately, most questions just don’t hit the mark—mainly because they focus on past behaviour and experience – failing in turn to identify core traits, competencies and capability for new pricing teams and positions.
Losing focus on finding the right team
And getting a product pricing manager to run the interview for you doesn’t seem to be making the problem better either: In fact, our research shows that, even though pricing managers may have some great capabilities, they are not necessarily great at interviewing. Their focus is on finding people that can do the job now – not people who can adapt to the needs of the business now and in the future.
Very often pricing managers lead interviews by focusing on their own needs, rather than on the needs of the business or the candidate. Interviews can go off on tangents and questions do not explore personal traits and attributes enough. Much of the notes produced are often unhelpful to final decision making.
The problem with interviewing people like this is that it’s a big waste of time. It’s a terrible indicator of predicting personality traits and job performance. Interviewers are commonly swayed by their biases as they evaluate the candidate. This further reduces the predictive accuracy of job interviewers. And you don’t get the people you really need in your pricing team.
So which hiring method for the pricing manager recruitment is the best one?
Proponents of informal job interview questions say these are effective at ensuring you hire the right fit for the business. Sure, they may yield some interesting conversations, but what’s more important to you: Someone who can get on with everyone OR someone who can get the job done and make you money?
It’s time to leave interviews behind and use new and more scientific methods instead. And sure, you may be thinking, I want to get to know the kind of person I’m hiring. However, there’s no evidence that interviews will help you to do this. And, even if it were true, the scenario of missing out on great hires because of unreliable and biased interview methods only makes sense if the company isn’t concerned about finding the best pricing talent for the business.
Alternative approaches for the pricing manager recruitment
So, what’s a better way of doing a pricing manager recruitment?
Pre-employment assessment answers – such as work samples, cognitive ability tests, behavioural tests and domain capability assessments – are all good predictors of job performance for pricing team.
Our research shows that domain pricing assessments using a multi-trait assessment model, including General Mental Ability (GMA) Tests is the best way to find people for niche, specialist roles like pricing.
How do we know? We’ve been building pricing, finance and data analytics teams for leading businesses in Australia, EU, US and UK for over 15 years using scientific methods and research.
We are pricing industry experts and psychometricians, we do not ignore the finding that GMA is critical. No, we incorporate this into our assessment model, but we go one if not two or three steps further: We also measure and assess for other important capabilities and competencies related to helping executives build world-class commercial pricing and revenue management.
If you’re thinking of building or re-structuring your pricing team, we recommend that you hire for individual pricing capability, not just experience. Here’s why:
You need a mix of experiences and capability to accelerate profit results. These experiences don’t have to be the same as your business, but some experience of pricing is good. Too much is not good, as it’s difficult to unlearn bad habits. Strong domain knowledge and strategic thinking are also critical to pricing – otherwise, the team won’t be able to solve new problems when they arrive.
Right mix of traits and abilities for pricing manager recruitment to look for
CV star power isn’t everything, you need the right mix of traits and abilities to get a pricing team performing well. And of course, the right team structure, tools, strategy and support from executive management. Culture is the no 1 factor here, you can get a great team, but if they’re set up for failure, they will fail in their mission to drive profitability for the business.
In fact, it’s hard to identify who’s really got what it takes to do the job of a pricing manager or analyst when you haven’t got research, analytics or benchmarks to compare applicants against. How did they acquire their domain expertise? Can they apply and synthesise their knowledge and experience to produce results and make money? Can they solve your problems?
A domain pricing expert is someone who is not related to the technological aspect of your business, but has deep knowledge about the particular industry and discipline: i.e, they understand causal relationships and are great analytical thinkers.
Our domain pricing and commercial testing and evaluation system assesses candidates across many dimensions to ensure you get someone who can drive your strategy and culture while driving EBIT growth safely along the way.
There is no scientific proof that interviews are effective. It has been long regarded as wasteful and costly exercise. Replacing it with a new and more scientific process designed for pricing teams can help you. To keep up with the rapid change in your market; as well as the evolving pricing discipline and talent market.
General problem-solving skills are important in predicting job success. However, the traditional interview has played out its role in identifying these skills in the pricing team.
It’s true some form of an interview can find some of the best there are; but it’s such an enormous waste of money, time, energy and very much down to chance and luck.
Companies have become more specific about the pricing skills they want in pricing roles. Now they’ve almost overlooked the very traits, capabilities and behaviours that really drive high-performance pricing and profitable revenue growth.
It’s time to change old hiring habits and try better ones. And now, for the first time, it’s available to you.
And because we know that anything new creates feelings of scepticism and anxiety. We would like to offer you and your team 1 free trial of our testing and evaluation system. For 1 staff member or candidate, you are considering a strategic pricing role. For free.
This is a time-bound offer.
We are offering this to you because we have proof, research and multiple case studies it works. And we know you need it, and perhaps are not sure about next steps, or don’t know it exists.
Or, feel free to call me on (2) 91994523
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