Part IV SALES FORCE COMPETENCIES Chapter 7: Recruiting and Selecting Sales Personnel

Recruitment And Selection PlanningRecruitment PlanningRecruitCandidatesRecruitCandidatesSelectProspectsSelectProspectsValidating the Process Validating Chapter 7: Outline

Figure 7-1: Sales Force Turnover Rates by Industry 78% 12% 10% 50% 33% 17% 15% 19% 66% Consumer IndustrialServices 0-10% 11-16% More than 16%

Turnover Industry Rates Construction13.8% Office Equipment47.0 Retail51.2 Wholesale (Consumer Goods)18.5 Electronics14.1 Business Services26.2 Pharmaceuticals 8.3 Banking 4.3 Real Estate11.9 Source: Dartnell’s 30 th Sales Force Compensation Survey (1999), p.187. Turnover Rates in Selected Industries

Compensation (trainee average)$35,500 (trainee average)$35,500 Benefits (approx.21.5% of compensation) 7,600 compensation) 7,600 Field Expense 16,000 Direct Expense$59,100 Training Costs 7,100 TOTAL COSTS$66,200 Source: Dartnell’s 30 th Sales Force Compensation Survey (1999). First Year Cost of a Salesperson in the U.S.

Company Culture and the Hiring Process Develop a hiring process related to core culture. Develop a hiring process related to core culture. What are the core cultures of these companies? What are the core cultures of these companies?

Aligning People to Core Job Responsibilities The Chally Group, a sales consulting company, found that matching a person’s skills set with the skills required by the sales job led to higher performing salespeople and greater job satisfaction. The Chally Group, a sales consulting company, found that matching a person’s skills set with the skills required by the sales job led to higher performing salespeople and greater job satisfaction. What skill sets are needed for the following sales positions? What skill sets are needed for the following sales positions? – Missionary? – Sales Support? – New Business?

Aligning People to Core Job Responsibilities Missionary: Missionary: – Technical skills, relationship building skills Sales Support: Sales Support: – Empathy, relationship building skills New Business: New Business: – Assertiveness, persuasiveness, time management, ability to close

What Purchasing Agents Like About Salespeople PERCENT OF RESPONDENTS TRAITS WHO RATED MOST VALUED Willingness to fight for customer: Thoroughness/follow through: Market knowledge/ willingness to share: Imagination: Knowledge of product line: Diplomacy in dealing with operating departments: 0%25%50%75%100%

Recruiting Sources Classified Ads Classified Ads – Reaches wide audience (trade publications may narrow the reach) – Used if high turnover – Tend to over-produce under-qualified candidates Present Employees Present Employees – Familiar w/ company products & procedures – Established job histories – Sales as a promotion – Over-rely on previous experience

Recruiting Sources Referrals/Networking Referrals/Networking – Company executives understand needs, culture and potential fit for sales responsibilities Employment Agencies Employment Agencies – best if company pays Schools & Colleges Schools & Colleges – Poised & easily trained – Lack experience & become bored Customers, Suppliers & Competition Customers, Suppliers & Competition – Good if need w/out much training – Legal & ethical issues – Common: insurance, stock broker, office equipment, clothing

Figure 7-3: A Model for Selecting Salespeople Direct recruit to control location or phone number Direct recruit to control location or phone number Complete application blanks Complete application blanks Conduct screening interviews Conduct screening interviews Check credit and background Check credit and background Complete psychological and achievement tests Complete psychological and achievement tests Secondary interviews Make offer for sales position Make offer for sales position Physical exam Measure subsequent success on the job Measure subsequent success on the job HiringcriteriaforsalesjobsusedtoguideselectionprocessHiringcriteriaforsalesjobsusedtoguideselectionprocess Modify hiring criteria, tests or Interview procedures Modify hiring criteria, tests or Interview procedures RejectReject

1.Account for all dates. 2.Examine the number of jobs and length of time spent on each job. 3.Reasons for leaving job. 4.Is there a pattern of growth? RESUME ANALYSIS

QUESTIONS ABOUT INTERVIEWERS What Research Shows Does extensive interviewing experience help an interviewer to make better judgments? Does extensive interviewing experience help an interviewer to make better judgments? Does pressure to recruit impair the judgment of experienced interviewers less than inexperienced interviewers? Does pressure to recruit impair the judgment of experienced interviewers less than inexperienced interviewers? When interviewing multiple recruits, do interviewers tend to use previous applicants as the standard of comparison for subsequent applicants? When interviewing multiple recruits, do interviewers tend to use previous applicants as the standard of comparison for subsequent applicants? Will the positive effects of good appearance offset an unfavorably rated personal history for a recruit? Will the positive effects of good appearance offset an unfavorably rated personal history for a recruit?

QUESTIONS ABOUT INTERVIEWERS What Research Shows How much of the factual information presented in an interview will the interviewer remember immediately after a short interview if no notes are taken? How much of the factual information presented in an interview will the interviewer remember immediately after a short interview if no notes are taken? How will lack of notes and factual recall affect the interviewer’s rating of the recruits interviewed? How will lack of notes and factual recall affect the interviewer’s rating of the recruits interviewed? How reliably can a group of interviewers rate a recruit’s qualifications for a job? How reliably can a group of interviewers rate a recruit’s qualifications for a job? How reliably can a group of interviewers rate future job performance by a recruit? How reliably can a group of interviewers rate future job performance by a recruit?

1.Failure to establish rapport 2.Lack of plan 3.Insufficient time 4.Not listening 5.Personal bias 6.Questions 7.First impressions COMMON INTERVIEWER MISTAKES

TYPICAL INTERVIEW QUESTIONS What is interviewer trying to determine? 1.What was the most monotonous job you ever had to do? –What are your values and general orientation in life? –How creative were you in eliminating boredom?

TYPICAL INTERVIEW QUESTIONS 2.In thinking about people you like, what is it you most like about them? – Reflects what person is and desires to become 3.Up to this point in your life, what do you consider to be your biggest disappointment? – Have you done anything? -- more active = more disappointments 4.How willing are you to relocate? To what extent are you willing to travel? – Motivation in wanting job -- involves travel

TYPICAL INTERVIEW QUESTIONS 5. How do you feel about the way your previous employer treated you? – How you react to supervision & organizational cultures 6. What are your long-term financial objectives and how do you intend to achieve them? – Are you realistic & mature? – Will this company enable you to achieve these goals? 7. What was the most difficult decision you ever had to make as a leader? – Were the leadership positions in your resume demanding or ceremonial in nature? – What is your leadership style & philosophy?

TYPICAL INTERVIEW QUESTIONS 8. Why should we hire you? – How badly do you want the job? – What do you think of yourself? – Do you believe in yourself? 9. Sell me this pen. – Do you really know how to make a sales presentation? – Did you mention the main product benefits? – Did you ask for the order?

ASKING THE RIGHT QUESTIONS About two weeks after starting a new job, doubts creep into your mind. The gap between what you were told and what’s actually happening gets wider by the day. When you’re on the job for three weeks, you say to yourself, “I think I made a mistake.” One way to avoid making a costly mistake like this is to ask the right questions when interviewing. What questions would you ask when applying for a field sales position to avoid accepting the wrong job?

ASKING THE RIGHT QUESTIONS 1. May I look at your resume? 2. Where will I get my leads? 3. May I review your sales literature? 4. When are your slow times? 5. May I go with you on a sales call? 6. May I visit your marketing department?

PREVIOUS EMPLOYER REFERENCE CHECK QUESTIONS  Dates of Employment?  What was the Job?  What type of selling was involved?  How did the applicant get along with his/her manager? Customers? Fellow salespeople?  How did his/her job performance compare others?  Applicants strongest points? Weaknesses we should help him/her overcome?  Why did s/he leave your company?  Would you rehire the applicant? Why?

Table 7-2 Validity of Predictors for Entry-Level Jobs PredictorValidity Ability composite (tests).53 Job tryout.44 Biographical inventory.37 Reference check.26 Experience.18 Interview.14 Training and experience ratings.13 Academic achievement.11 Education.10 Interest.10 Age.01

What’s in a Signature? Small letters such as “a,” “e,” and “o” are more than ¼ inch in height and farther to the right side of the page. These people tend to be enterprising and are usually risk takers, take charge leaders, and pacesetters. They are your typical salesperson. Small signatures, less than 1/8 inch tall with an upright slant and placed towards the left hand of the page These people tend to be objective observers. They keep cool, don’t get excited under pressure, and in general make good listeners and negotiators. They might be better for high-level sales to established clients. Medium-sized signatures (about 1/4 inch). These people are your team players. Interaction is their byword and they tend to play strictly by the rules. They take calculated risks, with emphasis on the calculations. Not generally sales types.

WHAT MAKES A SUPER SALESPERSON? Personal Computer Manufacturer Photographic Equipment Manufacturer Threshold Competencies CommunicationDecisiveness *Information Collection Personal Sensitivity*Organizational Awareness *Relationship-building Technical knowledgeSystematic thinking Differentiator Competencies Concern for personal impact*Focused achievement Interpersonal diagnosis InitiativeJob commitment *Organizational awarenessPersistence Personal time-planningPresentation skills Quick thinkingStress tolerance Targeted persuasion*Use of influence strategies * These traits were found in salespeople at both companies.

Table 7-5 Typical Interview Questions Why should we hire you? Regardless of the company and type of sales position for which you may interview, there are some interview questions that are typically asked. You may not be asked each of these questions in every interview, but you should be prepared to answer them all. After reading each question, think about what the interviewer’s purpose may be in asking the question. What is he or she trying to determine? What should your response be to each question?

Table 7-5 Typical Interview Questions Why should we hire you? What was the most monotonous job you ever had to do? In thinking about the people you like, what is it you like most about them? Up to this point in your life, what do you consider to be your biggest disappointment? How willing are you to relocate? To what extent are you willing to travel? How do you feel about the way your previous employer treated you? What are your long-term financial objectives, and how do you propose to achieve them? What was the most difficult decision you ever had to make as a leader? Why should we hire you? Sell me this pen.

JOB DESCRIPTION FACTORS Selling Requirements New vs. established account selling Selling through distributors Entertaining customers Level of buying authority Physical activity required Technical knowledge Relocation Written proposals Individual vs. team selling One time vs. systems selling Type of prospects/customers One-on-one vs. group selling Travel: how much & what kind Program or concept selling Nonselling Tasks Reports to management Customer service and training Sales promotion Educational seminars Collecting receivables Marketing plans Degree of Responsibility Negotiations of pricing Travel and entertainment Career Paths Compensation plan Promotion timing Earnings potential Promotion leaders Performance Expectations Activity level requirements Minimum sales volume or profits