Profiling and Recruiting Salespeople Chapter 5

Learning Objectives Sales force selection and strategic planning Scope of sales force staffing process

Recruiting and Selection Problems Lack of resources Lack of job specification and qualifications Qualifications not objectively established Lack of managerial training Personal prejudices Search for managerial talent

Key Laws and Regulations Affecting a Sales Force Civil Rights Act of 1964 –prohibit discrimination Federal Contract Compliance, Executive Orders –comply with federal legislation and affirmative action plan (50 or more). Age Discrimination in Employment Act (1967)-prohibit age discrimination Fair Employment Opportunity Act (1972)-equal employment Rehabilitation Act of 1973-hire people with disabilities (50 or more) Vietnam Era Veterans Readjustment Act (1974) –hire Vietnam and disable veterans Uniform Guidelines on Employment Selection Procedures (1978)-prohibit discriminatory practices in hiring. Americans with Disabilities Act (1990) –prohibits discrimination based on disabilities.

Scope of sales force staffing process Five major activities: Plan the recruiting and selection process Recruit an adequate number of applicants Select the most qualified applicants Hire those people who have been selected Assimilate/integrate the new hires into the company

Recruit Applicants Hire the People Fig. 5-2 Sales Force Staffing Process: Plan for Recruiting & Selection Establish Responsibility for Recruiting, Selection and Assimilation Determine Number of People Wanted Conduct Job Analysis Prepare Job Description Determine Hiring Qualifications Recruit Applicants Select Applicants Measure Applicants Against Hiring Qualifications Design a System For Measuring Applicants Make Selection Decisions Hire the People Assimilate New People into Sales Force

Workload Analysis Number of reps needed = Total workload in market Workload one rep can handle Market workload: Customer Number of Calls Total class accounts per year calls x = A 400 20 8,000 B 600 10 6,000 14,000 One rep’s workload: Calls/day x Selling days/week x Working weeks/year = Annual workload 5 x 5 x 50 = 1250 Number of reps needed = = 112 reps 1250

Factors to consider in hiring applicants Management should consider these factors: Reps needed for changes in the development of salespeople: new territories, eliminated territories, realigned territories. Promotions out of the sales force. Expected retirements form the sales force. Expected turnover, including terminations and resignations.

Fig 5-3 Determining the Number of Salespeople Needed Strategic Plans New - Eliminated/ + Promo- + Retirements + Terminations/ = Total new territories combined tions resignations reps needed territories Expansion MN and RI 2 promo 2 retirements 1 termination New reps into Texas. Territories expected expected expected needed 4 - 1 + 2 + 2 + 1 = 8

Content of Job Description Title The nature of the product or service to be sold Type of customers to be called on, frequency of calls, and types of personnel to be contacted Specific tasks and responsibilities to be carried out-planning activities, actual selling activities, customer servicing task. Organizational relationships – to whom to report Mental and physical demands of the job – (e.g., travel, stress level) Environmental pressures and constraints that might affect the job

Ten Traits and Abilities of Top Salespeople Fig. 5-4 Ten Traits and Abilities of Top Salespeople Trait Related Ability Ego strength To handle rejection Sense of urgency To complete the sale Ego drive To persuade people Assertiveness To be firm in negotiations Willingness to take risks To be innovative Sociability To build relationships Abstract reasoning To sell ideas Sense of skepticism To question, to be alert Creativity To sell complex products and ideas Empathy To understand customer needs Source: Erika Rasmusson, “The 10 Traits of Top Salespeople, “ Sales & Marketing Management, August 1999, pp. 34-37.

Recruiting for the Team Willingness to share Cooperative Trusting Empathetic Accepting of others Receptive to others ideas Selflessness Leadership skills

Recruiting Sources of Sales Reps Source Comment Referrals: Candidates and position are known to person making referral. Existing sales force is an excellent source for referrals as they know their job requirements and can identify good matches. Current employees Company employees know the company and its products. Other Companies: Competitors Competitors know the customers and are familiar with your products. Customers Customers know your products and your company. Suppliers Suppliers know your company and your products. The Internet Recruits may come through the company’s own website – or through specialized Internet recruiting sites, such as Monster.com. Educational institutions Primarily used when recruiting inexperienced people. Students are usually actively involved in a job search, and this provides an efficient place to screen large numbers of available candidates. Advertisements Produces the greatest number of candidates, but the average quality is sometimes lower. Employment agencies The agency is often more costly than other methods, but it will do a large part of the initial screening. Part-time workers These workers are easy to contact, readily available, and can work flexible hours. This is a good source for in-home selling. Voluntary applicants These applicants are interested in your firm and probably possess a high degree of self-confidence, self-reliance, and initiative.

Attributes as selected by the: Fig. 5-7 Differences in Student and Recruiter Perceptions of Important Attributes for Selecting a Sales Position Attributes as selected by the: Importance Rank Student Recruiter 1 Job satisfaction Training Program 2 Advancement opportunity Advancement opportunity 3 Company financial stability Salary 4 Recruiter shows interest Employee morale 5 Employee morale Job satisfaction 6 Fit with goals Company financial stability 7 Job Security Job security 8 Company reputation Company growth potential 9 Training program Employee voice own views 10 Company growth potential Task variety 11 Recruiter friendly Company reputation 12 Geographic location Non-monetary benefits 13 Non-monetary benefits Recruiter friendly 14 Salary Fits with goals 15 Recruiter personality Recruiter shows interest Source: Michael A. Wiles and Rosann Spiro, “Attracting Graduates to Sales Positions and The Role of Recruiter Knowledge: A Reexamination,” Journal of Personal Selling & Sales Management, Winter 2004, pp. 39-48.

Fig. 5-8 Recruiting Evaluation Matrix Evaluation Criteria Consistent with strategic planning? Number recruits Number hired Percent retained after 3 years Cost Frequency of use Percentage successful after 2 yrs. Recruiting sources Within company: Sales force Other departments Competitors Customers Noncompetitors Educational institutions Advertisements Employment agencies Voluntary applicants Computerized databases Other companies:

In-class discussion