WEEK 9 Recruiting and Selecting the Sales Force

IMPORTANCE OF A GOOD SELECTION PROGRAM u Improves sales force performance u Promotes cost savings u Eases other managerial tasks u Sales managers are no better than their sales forces

PROBLEMS OF POOR SELECTION u Inadequate sales coverage / lack of customer follow-up u Increased training costs u More supervisory problems u Higher turnover u Suboptimal performance

SCOPE OF SALESFORCE STAFFING u Determine the number and type of people needed u Recruit a number of applicants u Process the recruits and select the most qualified

DETERMINING NUMBER OF PEOPLE NEEDED u What should sales managers consider? –Turnover rate –Sales forecasts –Proposed changes in products, markets, and market coverage

TURNOVER Turnover Rate = Separations per year Average Sales Force size

DETERMINING TYPE OF PEOPLE NEEDED u Job analysis u Job description u Job qualifications

JOB ANALYSIS u …a systematic way to describe how a job is to be performed, as well as the tasks that make up a job.

JOB DESCRIPTION u …a written document that spells out the job relationships and requirements that characterize each sales position.

COMPONENTS OF JOB DESCRIPTIONS u Job title u Organizational relationship u Duties and responsibilities u Hiring specifications u Summary: technical requirements and demands of the job

USES FOR THE JOB DESCRIPTION u Selection and hiring u Sales training u Compensation plans u Performance appraisal

JOB QUALIFICATIONS u Aptitudes, skills, knowledge, and personality traits necessary to perform a job successfully u How essential is each quality?

TRAIT CATEGORIES u Mental (intelligence, planning ability) u Physical (appearance, health, speaking ability) u Experience (education, sales, other) u Personality (ambition, interest, tact) u Environmental (membership)

RECRUITING CANDIDATES u Recruit 20 people who are interested u Review of applicants will eliminate 10 u The initial interview will eliminate 6 or 7 u The 3 or 4 finalists are screened by further interviews, tests, etc... u One person is finally hired

SOURCES OF RECRUITS u The present sales force u Other company employees u Other companies –Competitors –Customers u Educational institutions u Advertisements u Voluntary applications u Employment agencies u Internet

ADVERTISEMENTS u Newspapers and trade journals are the most widely used media u Use your ad as a screening device u Ads must attract attention and have credibility

COMPONENTS OF A GOOD RECRUITING AD u Company name u Product u Territory u Hiring Qualifications u Compensation plan, benefits u How to contact employer

FACTORS INFLUENCING CHOICE OF SOURCES u Nature of Product u Nature of Market u Policy of Promoting from Within u Availability u Sales training provided u Is your company hiring career salespeople u Sources of past successful recruits u Money available for recruiting

SELECTION TOOLS u Personal interviews u Psychological tests u References and credit reports u Physical examinations u Assessment centers

RESUME ANALYSIS u Account for all dates u Examine number of jobs and length of time spent on jobs u Reasons for leaving u Is there a pattern of growth?

PERSONAL INTERVIEWS u Get to know the candidate –Determine fitness for job –verify facts on application –two way communication device u Validity

INTERVIEWS: FOUR BASIC ISSUES u Is the individual qualified? u How badly does the individual want the job? u Is there a goal fit? u Will the applicant work to the fullest of their ability?

INTERVIEW QUESTIONS u What was the most monotonous job you ever had to do? u What do you consider to be your biggest disappointment? u What was the most difficult decision you ever had to make as a leader?

PSYCHOLOGICAL TESTS u Controversial u Types –Intelligence –Aptitude –Interest –Personality

WHEN TO USE PSYCHOLOGICAL TESTS u Large number being hired u Hiring inexperienced salespeople u Cost of hiring failure is high

REFERENCES u Employment u Personal u Credit

PREVIOUS EMPLOYER REFERENCE CHECK u Dates of employment? u What was the job? u Type of selling involved? u Get along with mangers/clients/coworkers? u Applicants strongest points/weaknesses? u Why did she/he leave company? u Would you rehire? Why?

PHYSICAL EXAMINATION u Sales jobs are physically, mentally, and emotionally demanding u Medical insurance coverage