Sales Force Recruitment and Sales Force Recruitment and SelectionSelection

One of the most significant tasks of a sales One of the most significant tasks of a sales managermanager

Staffing is the crucial first step in building an Staffing is the crucial first step in building an effective sales organization effective sales organization

About half of the people working in sales should be About half of the people working in sales should be doing something else doing something else

About 20/25% of salespeople employed are selling About 20/25% of salespeople employed are selling products not suited to their products not suited to their personalitypersonality

Recruitment & Selection- Recruitment & Selection- SalespeopleSalespeople

Recruitment & Selection- Recruitment & Selection- SalespeopleSalespeople

Successful Hiring Requires Sales Managers to Follow a Successful Hiring Requires Sales Managers to Follow a ProcessProcess

Why?Why?– Every competitive advantage can be duplicated by Every competitive advantage can be duplicated by

competitors — except, competitors — except,

““high-performing high-performing employeesemployees””

Turnover Rates

Industry 1999

Construction 13.8%Office Equipment 47.0Insurance .8Retail 51.2Wholesale (Consumer Goods) 18.5Electronics 14.1Business Services 26.2Pharmaceuticals 8.3Banking 4.3Real Estate 11.9

Turnover Rates in Selected Turnover Rates in Selected IndustriesIndustries

Reasons for TurnoverReasons for Turnover

Controllable Controllable UncontrollableUncontrollableRetirement MovingRetirement Moving

Promotion MarriagePromotion Marriage

Transfer DeathTransfer Death

Termination QuittingTermination Quitting

Territory changes Returning to collegeTerritory changes Returning to college

Changing careerChanging career

The Recruiting ProcessThe Recruiting Process

Establish policy concerning responsibility for recruiting and hiring Establish policy concerning responsibility for recruiting and hiring – who will participate in the – who will participate in the process? – who has authority to take hiring process? – who has authority to take hiring decision? decision?

Analyze the job and determine selection criteria Analyze the job and determine selection criteria – Conduct a job – Conduct a job analysis - Write a job descriptionanalysis - Write a job description

Find and attract a pool of application sources Find and attract a pool of application sources – Internal – Internal sources – External sourcessources – External sources

Develop and apply selection procedures to evaluate applicants Develop and apply selection procedures to evaluate applicants – Application blanks - – Application blanks - Interviews – Reference checks – Formal tests Interviews – Reference checks – Formal tests

Who is Responsible for Recruiting?Who is Responsible for Recruiting?

Depends on size of sales force and kind of selling Depends on size of sales force and kind of selling involvedinvolved

First-level sales managers often handle recruiting for:First-level sales managers often handle recruiting for:– Straightforward sales jobsStraightforward sales jobs– Jobs where new recruits need no special Jobs where new recruits need no special

qualificationsqualifications– Jobs where turnover rates are highJobs where turnover rates are high

When a firm must be selective, a recruiting specialist When a firm must be selective, a recruiting specialist may assist in the recruitment processmay assist in the recruitment process

Job Analysis and Selection CriteriaJob Analysis and Selection Criteria

Conduct a job analysis to determine what activities, Conduct a job analysis to determine what activities, tasks, responsibilities and environmental influences are tasks, responsibilities and environmental influences are involved involved

Write a job description that details the findings of the Write a job description that details the findings of the job analysisjob analysis

Develop a statement of job qualifications describing the Develop a statement of job qualifications describing the personal traits and abilities needed to perform in the personal traits and abilities needed to perform in the jobjob

Who Conducts the Analysis and Prepares the Who Conducts the Analysis and Prepares the Description?Description?

Current occupants of the jobCurrent occupants of the job Sales managers who supervise people in the jobSales managers who supervise people in the job Current staff should be observed and interviewed to Current staff should be observed and interviewed to

determine what they actually dodetermine what they actually do Use the job description creation process as a means of Use the job description creation process as a means of

reaching consensus on job content, activities and training reaching consensus on job content, activities and training needs.needs.

Content of the Job DescriptionContent of the Job Description

Nature of the product(s) or service(s) being soldNature of the product(s) or service(s) being sold Types of customersTypes of customers Specific tasks and responsibilitiesSpecific tasks and responsibilities Relationship between the sales position and other Relationship between the sales position and other

positions within the organizationpositions within the organization Mental and physical demands of the jobMental and physical demands of the job Environmental pressures and constraintsEnvironmental pressures and constraints

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.8-8-1212

Sample Job Description Sample Job Description

Qualification & experience

Profile

Environmental Factors

Specific Task

Responsibilities

JOB DESCRIPTION FACTORSJOB DESCRIPTION FACTORS

Selling RequirementsSelling Requirements::New account vs. established New account vs. established account account Selling through distributorSelling through distributorEntertaining customersEntertaining customersLevel of buying authorityLevel of buying authorityPhysical activity requirePhysical activity requireWeekends away from homeWeekends away from homeRelocationRelocation

Degree of Responsibility and Authority

Negotiations of pricing

Career Paths:

Compensation planPromotion timing

Non-selling Tasks: - Reports to management - Customer service and training - Sales promotion

1. Written Form 2. Understood & accepted 3. Specific 4. Inclusive 5. Detailed But Terse

Recruitment & Selection

Characteristics of a Good Job Description

Recruiting ApplicantsRecruiting Applicants

Successful firms depend upon a well-planned and Successful firms depend upon a well-planned and effectively implemented recruiting effectively implemented recruiting effort.effort.

Recruiting should be step one in the selection Recruiting should be step one in the selection process.process.

Internal sources of candidates consist of Internal sources of candidates consist of employees in other departments within employees in other departments within the firmthe firm..

Recruiting ApplicantsRecruiting Applicants

External sources of candidates include:External sources of candidates include:– people in other firms people in other firms

– educational institutionseducational institutions

– others attracted through advertising or others attracted through advertising or employment agencies.employment agencies.

Recruiting issues facing sales managers grow Recruiting issues facing sales managers grow exponentially as companies expand globally and exponentially as companies expand globally and seek salespeople in new international markets.seek salespeople in new international markets.

External ResourcesExternal Resources

Classified AdsClassified Ads– Reaches wide audience Reaches wide audience – Used if high turnoverUsed if high turnover– Tend to over-produce under-qualified Tend to over-produce under-qualified

candidatescandidates Internet Resume SitesInternet Resume Sites

– Reaches wide audienceReaches wide audience– Too new for significant dataToo new for significant data– Will continue to grow in importance Will continue to grow in importance

because of screening options and because of screening options and ease of access ease of access

External ResourcesExternal Resources

Employment AgenciesEmployment Agencies– best if company paysbest if company pays

Schools & CollegesSchools & Colleges Customers, Suppliers & CompetitionCustomers, Suppliers & Competition

– Good if need w/out much trainingGood if need w/out much training– Legal & ethical issuesLegal & ethical issues– Common: insurance, stock broker, office Common: insurance, stock broker, office

equipment, clothing equipment, clothing

Selection Tools and ProceduresSelection Tools and Procedures

Application Application Personal interviewsPersonal interviews Reference checksReference checks Physical examinationsPhysical examinations Psychological testsPsychological tests

- Intelligence - Personality - Aptitude/skills- Intelligence - Personality - Aptitude/skills

Personal InterviewsPersonal Interviews

Structured interviewStructured interview– Applicants are asked the same Applicants are asked the same

predetermined questionspredetermined questions

– Potential weakness is that interviewer Potential weakness is that interviewer may fail to identify or probe a may fail to identify or probe a candidatecandidate’’s unique qualities or s unique qualities or limitationslimitations

Unstructured interview Unstructured interview

– induces free discussion on wide induces free discussion on wide ranging ranging topics topics

– afford the applicant opportunity afford the applicant opportunity to talk freely with minimal to talk freely with minimal direction and may yield direction and may yield unexpected insightunexpected insight

– requires experienced interviewers requires experienced interviewers with interpretative skills with interpretative skills

Personal InterviewsPersonal Interviews

Background and Credit CheckBackground and Credit Check

Previous Employer Reference CheckPrevious Employer Reference Check• Dates of Employment?Dates of Employment?• What was the Job?What was the Job?• What type of selling was involved?What type of selling was involved?• How did the applicant get along with his/her How did the applicant get along with his/her

manager? Customers? Fellow salespeople?manager? Customers? Fellow salespeople?• How did his/her job performance compare others?How did his/her job performance compare others?• Applicants strongest points? Weaknesses we should Applicants strongest points? Weaknesses we should

help him/her overcome? help him/her overcome?• Why did s/he leave your company?Why did s/he leave your company?• Would you rehire the applicant? Why?Would you rehire the applicant? Why?

Physical ExaminationsPhysical Examinations

Sales jobs require sound basic health, stamina and Sales jobs require sound basic health, stamina and the physical ability to withstand stress the physical ability to withstand stress

Caution should be exercised in requiring medical Caution should be exercised in requiring medical examinations and other specific tests for such things examinations and other specific tests for such things as drug use or the HIV virus as drug use or the HIV virus

A physical exam can be performed only after extending A physical exam can be performed only after extending a job offer a job offer

TestsTests

Well designed, validated and administered tests provide a valid Well designed, validated and administered tests provide a valid selection toolselection tool

Possible reasons to use test cautiouslyPossible reasons to use test cautiously– Tests may not validly predict future success in a Tests may not validly predict future success in a

specific firmspecific firm– Some creative and talented people may deviate Some creative and talented people may deviate

from expected normsfrom expected norms– Intelligent and Intelligent and ““test-wisetest-wise”” individuals may be able to individuals may be able to

manipulate resultsmanipulate results

Illegal/Sensitive QuestionsIllegal/Sensitive Questions

Nationality or raceNationality or race ReligionReligion Sex and marital statusSex and marital status AgeAge Physical characteristics Physical characteristics Height and weightHeight and weight Financial situationFinancial situation Arrests and convictionsArrests and convictions

Selection ProcessSelection Process

Education Age Grade point Work experience Work record

Initial interview

Personal characteristics, dress, appearance, cleanliness

Personality – interactive skills, verbal ability

Motivation Interest in company

Offensive personality Low grade point Insufficient work experience Poor work record

1 2Preliminary Screening resumes/applications

Insufficient education Over age Low grade point Insufficient work

experience Poor work record

Offensive personality Low social ability Low test score Poor health condition Unrealistic career goals

Selection decision

Make offer Postpone until further

required information

Personal characteristics (still under observation) Personality (further assessment) Group interaction (social ability) Mental aptitude for position Physical health (medical examination) Career goals

Selection ProcessSelection Process

3

Making the Job Offer the Job Offer Job Offer Follow up with first-class letter containing

formal offer of employment, should include

Deadline for accepting the position Info about responsibilities Starting salary Allowable moving expenses Formal training dates Probation period Time before first performance review When rep will first be eligible for a raise Number of vacation days