Copyright © 2001 by Harcourt, Inc. All rights reserved.

P ART III S TAFFING THE S ALES T EAM

Copyright © 2001 by Harcourt, Inc. All rights reserved. C HAPTER 8 P LANNING FOR AND R ECRUITING S UCCESSFUL S ALESPEOPLE

Copyright © 2001 by Harcourt, Inc. All rights reserved.  What sales human resource management is and what its key relationships are.  The importance of planning for sales personnel needs.  What people planning and employment planning are.  What recruitment means and why it is so important.  The recruiting process: what it is, who does it, and where recruits are sought. L EARNING O BJECTIVES A successful sales force is determined by who is hired; this is the end result of sales human resource management. This chapter should help you understand:

Copyright © 2001 by Harcourt, Inc. All rights reserved. W HAT IS S ALES H UMAN R ESOURCE M ANAGEMENT? Sales human resource management (SHRM) refers to activities undertaken to attract, develop, and maintain effective sales force personnel within an organization.

Copyright © 2001 by Harcourt, Inc. All rights reserved. FIGURE 8.1 ACTIVITIES INVOLVED IN MANAGING A SALES FORCE’S HUMAN RESOURCES

Copyright © 2001 by Harcourt, Inc. All rights reserved. FIGURE 8.2 FROM INTERVIEW TO TERRITORY: A LONG TIME

Copyright © 2001 by Harcourt, Inc. All rights reserved. What’s a salesperson worth? A salesperson’s worth depends on what the salesperson costs to the company and on the profits from the products he or she sells.

Copyright © 2001 by Harcourt, Inc. All rights reserved. Selecting someone who will become an above- average performer improves the overall performance of the sales group. A successful hire is someone who performs above average. Goal: Hire above-average performers.

Copyright © 2001 by Harcourt, Inc. All rights reserved. W HO D OES T HE P LANNING? National sales manager. Field sales managers. Top management.

Copyright © 2001 by Harcourt, Inc. All rights reserved. FIGURE 8.3 SALES FORCE PEOPLE-FORECAST MODEL: FACTORS TO CONSIDER WHEN DETERMINING HOW MANY TO HIRE

Copyright © 2001 by Harcourt, Inc. All rights reserved. D ETERMINING THE T YPE OF P ERSON FOR THE J OB A job analysis refers to the formal study of jobs to define specific roles or activities to be performed in sales promotions. The three steps in the job analysis are to: 1. Examine the total sales force and each job, and determine how each job relates to other jobs. 2. Select the jobs to be analyzed. 3. Collect the necessary information through observation of what people actually do in the jobs, interviews of people in the jobs, and questionnaires completed by job holders.

Copyright © 2001 by Harcourt, Inc. All rights reserved. J OB D ESCRIPTIONS AND S PECIFICATIONS FOR S UCCESSFUL P EOPLE Job specifications convert job descriptions into the qualifications.

Copyright © 2001 by Harcourt, Inc. All rights reserved. TABLE 8.1 FORMAL JOB DESCRIPTION, TRANSTEX AUTOMOTIVE SUPPLY CORPORATION Position: Sales Representive Reports to: District Manager Organizational Unit: replacement Parts Date: ( When Job Was Described) NATURE OF JOB Responsible for developing new accounts and reaching profitable sales goals in assigned territory. PRINCIPAL RESPONSIBLITIES Meeting total sales goals for product lines and individual products. Maintaining an average of six daily sales calls. Maintaining an average of one monthly product presentation to wholesalers. DIMENSIONS Develop strong promotional support from retail and wholesale customers. Plan effective territorial coverage resulting in high sales/call ratio. Inform management of activities by submitting daily and weekly call and sales reports to district manager. SUPERVISION RECEIVED General and specific tasks are assigned for each sales period. Every two months work with supervisor for a minimum of one day. SUPERVISION EXERCISED None

Copyright © 2001 by Harcourt, Inc. All rights reserved. W HAT ARE J OB S PECIFICATIONS FOR S UCCESFUL S ALESPEOPLE? Intelligence Education Personality Experience Appearance

Copyright © 2001 by Harcourt, Inc. All rights reserved. TABLE 8.2 SELECTED CHARACTERISTICS OF SUCCESSFUL SALESPEOPLE 1. High energy level8. Good physical appearance 2. High self-confidence9. Likable 3. Need for material things10. Self-disciplined 4. Hardworking11. Intelligent 5. Requires little supervision12. Achievement oriented 6. High perseverance13. Good communication skills 7. Competitive

Copyright © 2001 by Harcourt, Inc. All rights reserved. P ROFILING THE S UCCESSFUL C ANDIDATE Intelligence Prospecting ability Ability to create a follow-up system Ability to influence people’s decisions and opinions Ability to cultivate long-term client relationships Ability to negotiate contracts and prices Success in a company may include the following:

Copyright © 2001 by Harcourt, Inc. All rights reserved. P ROFILING THE S UCCESSFUL C ANDIDATE continued Ability to determine prospects’/customers’ needs (hot buttons). Computer skills. Selling ability. Conceptual ability.

Copyright © 2001 by Harcourt, Inc. All rights reserved. R ECRUITMENT’S P URPOSE Recruitment is the set of activities and processes used to legally obtain a sufficient number of individuals in such a manner that the recruits’ and the sales force’s best interests are taken into consideration.

Copyright © 2001 by Harcourt, Inc. All rights reserved. FIGURE 8.4 MAJOR INFLUENCES AND COMPONENTS OF SALES RECRUITMENT

Copyright © 2001 by Harcourt, Inc. All rights reserved. Equal Employment Opportunity Commission (EEOC) is the principal governmental agency responsible for monitoring discriminatory practices. L EGAL I NFLUENCES

Copyright © 2001 by Harcourt, Inc. All rights reserved. TABLE 8.4 ANTIDISCRIMINATION LAWS AND ORDERS, UNITED STATES OF AMERICA

Copyright © 2001 by Harcourt, Inc. All rights reserved. TABLE 8.4 ANTIDISCRIMINATION LAWS AND ORDERS, UNITED STATES OF AMERICA continued

Copyright © 2001 by Harcourt, Inc. All rights reserved. TABLE 8.5 INTERVIEWING CAN AND CANNOT DO’S

Copyright © 2001 by Harcourt, Inc. All rights reserved. To be an effective recruiter, a sales manager must have the answer to several questions, including: How many people do I need to recruit? Who does the recruiting? Where do I find recruits? How can I develop a qualified pool of applicants? How can recruiting programs be evaluated? R ECRUITMENT OF S ALESPEOPLE

Copyright © 2001 by Harcourt, Inc. All rights reserved. FIGURE 8.5 RATIO AND DAYS FROM SALES JOB ANNOUNCEMENT TO REPORTING TO WORK

Copyright © 2001 by Harcourt, Inc. All rights reserved. Current Employees. Promotions. Transfers. S OURCES OF R ECRUITS – W HERE ARE T HEY F OUND? I NTERNAL S OURCES Internal recruitment sources come from inside the company:

Copyright © 2001 by Harcourt, Inc. All rights reserved. E XTERNAL S OURCES Walk-ins. The Internet. Employment agencies. Internships. Radio and television. Colleges and universities. Newspaper advertisements. Competitors. Telephone-in advertisements.

Copyright © 2001 by Harcourt, Inc. All rights reserved. R EALISTIC J OB P REVIEWS H ELP B OTH C OMPANY AND R ECRUITS A “realistic job preview” means that a person is given pertinent information about the job without distortion or exaggeration.

Copyright © 2001 by Harcourt, Inc. All rights reserved. Newly hired salespeople have a higher rate of job survival than those hired using traditional previews. Salespeople hired indicate higher satisfaction. Managers can set the job expectations of new salespeople at realistic levels. Realistic previews do not reduce the flow of highly capable applicants. Companies can expect these results from realistic previews:

Copyright © 2001 by Harcourt, Inc. All rights reserved. T HE Q UALIFIED A PPLICANT P OOL The organization should find out: How candidates obtain information regarding job availability. What attracts people to the job. What the likes and dislikes are about the job. Why the person took the job.

Copyright © 2001 by Harcourt, Inc. All rights reserved. T HE B OTTOM L INE Sales human resource management (SHRM) is comprised of two elements: people planning and employment planning. Developing a successful sales team requires the planning of personnel needs and analyzing the sales jobs to achieve more efficient use of human resources. Job analysis is the definition of specific roles or activities to be performed. The goal of managing sales human resources is to hire above- average performers. In order to hire the right person for the job, there must be a recruitment strategy.