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Sales Confidence Continues to Rise, Under Looming Sales Talent Crisis, Reports Miller Heiman

RENO, NV -  May 12, 2006  -   The Miller Heiman Q2 Sales Confidence Index, released today, reported surging confidence by sales leaders in the next 90 days' sales performance. The Index rose to 108, in a continuing upward trend from Q3 2005. Three quarters of Index respondents currently see more opportunities and expect to sell more in the next 90 days, while half say the number of leads has increased over last year.

The Index results follow current economic trends, which report consumer confidence at its highest level in four years, and manufacturing growth and durable goods rising beyond expectations throughout the first quarter -- amidst an economic climate that has been described as "torrid." All factors seem aligned to maximize sales productivity, and sales leaders' outlooks are not dampened by widespread speculation that high fuel prices, rising interest rates and a tight job market will cool a burgeoning economy. They maintain high expectations for increasing sales during the next quarter.

This may, however, be a heads-in-the-sand view in light of the looming sales talent shortage. Companies will need to hire additional sales force in order to deliver on expectations and realize potential revenues.

Confirming the talent shortage issue, Miller Heiman's annual research study found a quarter of sales leaders experiencing increasing sales staff turnover, with retention of top performers being a major concern. In a January survey by Manpower Inc., respondents ranked "sales representative" as the toughest job to fill. With the heavy toll turnover takes on everything from recruitment budgets to momentum and productivity, revenue expectations can be severely compromised if the talent issue is not addressed.

"It isn't just the sales talent shortage that companies face, but also the difficulty of placing the right people in the right positions," said Sam Reese, president and CEO, Miller Heiman. "If you don't have the sales talent in place to execute, growth is limited", Reese added. The answer lies in part in an objective assessment of top performers' traits for use in hiring decisions and coaching. Miller Heiman also recommends focusing on retaining top performers and developing a deeper understanding of what makes them successful, to more precisely close the gap between average and star performers.

Companies that address the talent crisis are in a position to take advantage of the current economic upswing and will also provide a buffer for a downturn, should forecasts become reality in Q3.

The Index is comprised of quarterly responses by a balanced group of sales leaders representing small, medium and large companies in various industries throughout North America.

The study analyzes the attitudes and preferences of sales leaders regarding their perception of the selling environment. The scores were calibrated to establish a baseline of 100 for the fourth quarter of 2004, with comparative data available for subsequent quarters.

About Miller Heiman: The Sales Performance Company

Miller Heiman is a global leader in sales performance solutions with more than 30 years of documented results. The company works with leading organizations to improve sales effectiveness through issue-based consulting and training. Headquartered in Reno, Nev., Miller Heiman has additional corporate offices in the United Kingdom and Australia and representation in more than 30 countries. For more information, contact 877.506.2973 or visit www.millerheiman.com.