1. Salesforce Recruitment and Selection
Sales and Distribution Management
Marketing 3345

2. Sales Force Turnover Rates*
Consumer
Industrial
Services
18%
34%
21%
17%
26%
21%
45%
53%
65%
More than
10%
0-5%
5-10%
*Turnover rates per annum
Source: Dartnell’s 30th Sales Force Compensation Survey (2009), p.187.

3. Turnover Rates in Selected Industries
Industry
Construction %
Office Equipment
Insurance
Retail
Wholesale (Consumer Goods) 18.5
Electronics
Business Services
Pharmaceuticals
Banking
Real Estate
Source: Dartnell’s 30th Sales Force Compensation Survey (1999), p.187.

4. First Year Cost of a Salesperson in the U.S.
Compensation
(trainee average) $35,500
Benefits (approx.21.5% of
compensation) ,600
Field Expense ,000
Direct Expense $59,100
Training Costs ,100
Total Costs $66,200
Source: Dartnell’s 30th Sales Force Compensation Survey (2009), p.187.

5. The Recruiting Process
Mark W. Johnston and Gary W. Marshall, Sales Force Management,
McGraw Hill, 2006

6. Who is Responsible for Recruiting?
Depends on size of sales force and kind of selling involved
First-level sales managers often handle recruiting for:
Straightforward sales jobs
Jobs where new recruits need no special qualifications
Jobs where turnover rates are high

7. Who is Responsible for Recruiting?
When a firm must be selective, a recruiting specialist may assist in the recruitment process
If the sales force prepares individuals to be sales or marketing managers, personnel executives or top-level managers often assist with recruitment

8. Job Analysis and Selection Criteria
Conduct a job analysis to determine what activities, tasks, responsibilities and environmental influences are involved
Write a job description that details the findings of the job analysis
Develop a statement of job qualifications describing the personal traits and abilities needed to perform in the job

9. Who Conducts the Analysis and Prepares the Description?
Current occupants of the job
Sales managers who supervise people in the job
Current staff should be observed and interviewed to determine what they actually do
Use the job description creation process as a means of reaching consensus on job content, activities and training needs.

10. Content of the Job Description
Nature of the product(s) or service(s) being sold
Types of customers
Specific tasks and responsibilities
Relationship between the sales position and other positions within the organization
Mental and physical demands of the job
Environmental pressures and constraints

11. JOB DESCRIPTION FACTORS
Selling Requirements: Degree of Responsibility
New account vs. established and Authority:
account Negotiations of pricing
Selling through distributors
Entertaining customers Career Paths:
Level of buying authority Compensation plan
Physical activity required Promotion timing
Weekends away from home
Relocation
Non-selling Tasks:
Reports to management
Customer service and training
Sales promotion

12. JOB DESCRIPTION FACTORS
Performance Expectations: Performance Expectations:
Activity level requirements Travel and entertainment
Written proposals Earnings potential
Individual vs. team selling Promotion leaders
One time vs. systems selling Minimum sales volume or
Type of prospects and customers profits
One-on-one selling vs. groups
Travel--how much and what kind
Program or concept selling
Technical knowledge
Educational seminars
Collecting receivables
Marketing plans

13. Determining Job Qualifications and Selection Criteria
This is the most difficult part of the recruitment and selection process
Need specific criteria to guide the selection
Methods deciding on criteria include:
Examining the job description
Evaluating personal histories of the current sales force to identify differentiating characteristics among high performers

14. Characteristics of Salespeople who Fail
Instability of residence
Failure in business within the past two years
Unexplained gaps in the person’s employment record
Recent divorce or marital problems
Excessive personal indebtedness; for example, bills could not be paid within two years from earnings on the job

15. Recruiting Applicants
Successful firms depend upon a well-planned and effectively implemented recruiting effort.
Recruiting should be step one in the selection process.
Internal sources of candidates consist of employees in other departments within the firm.

16. Recruiting Applicants
External sources of candidates include:
people in other firms
educational institutions
others attracted through advertising or employment agencies.
Recruiting issues facing sales managers grow exponentially as companies expand globally and seek salespeople in new international markets.

17. External Resources Classified Ads Reaches wide audience
Used if high turnover
Tend to over-produce under-qualified candidates
Internet Resume Sites
Too new for significant data
Will continue to grow in importance because of screening options and ease of access

18. External Resources LinkedIn Employment Agencies best if company pays
Schools & Colleges
Poised & easily trained
Lack experience & become bored
Customers, Suppliers & Competition
Good if need w/out much training
Legal & ethical issues
Common: insurance, stock broker, office equipment, clothing

19. Inside Recruiting Advantages:
Company employees have established performance records and present themselves as a known entity
Recruits from inside require less orientation and training due to familiarity with current products, policies and operations
Recruiting within bolsters company morale because employees see opportunities for advancement
Facilitating internal recruiting starts with fully informing human resources of sales staff needs

20. Selection Tools and Procedures
Application blanks
Personal interviews
Reference checks
Physical examinations
Psychological tests
intelligence
personality
aptitude/skills

21. Selection Tools and Procedures
Composites of psychological test scores offer the greatest assessment validity and predictive value for evaluating a candidate’s potential and possible future job performance.
Personal interviews offer the lowest predictive potential but often carry the greatest weight.

22. Personal Interviews Structured interview
applicants are asked the same predetermined questions
potential weakness is that interviewer may fail to identify or probe a candidate’s unique qualities or limitations

23. Personal Interviews Unstructured interview
induces free discussion on wide ranging topics
afford the applicant opportunity to talk freely with minimal direction and may yield unexpected insight
requires experienced interviewers with interpretative skills

24. Background and Credit Check
Previous Employer Reference Check
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?

25. Physical Examinations
Sales jobs require sound basic health, stamina and the physical ability to withstand stress
Caution should be exercised in requiring medical examinations and other specific tests for such things as drug use or the HIV virus
A physical exam can be performed only after extending a job offer
Managers deem using a standard physical examination for all positions ill-advised

26. Tests
Well designed, validated and administered tests provide a valid selection tool
Possible reasons to use test cautiously
Tests may not validly predict future success in a specific firm
Some creative and talented people may deviate from expected norms
Intelligent and “test-wise” individuals may be able to manipulate results
Some tests may discriminate against people of different races, genders, et al – thus becoming illegal

27. Guidelines for the Appropriate Use of Tests
Test scores should be considered only a single input of several in the selection process
Applicants should be tested only when abilities and traits tested hold relevance to the job
When possible, tests with internal checks for validity should be used
The firm should conduct comparative, longitudinal studies to validate the predictive value in their setting

28. Validity of Predictors for Entry-Level Jobs
TESTING VALIDITY
Validity of Predictors for Entry-Level Jobs
Predictor Validity
Ability composite (tests)
Job tryout
Biographical inventory
Reference check
Experience
Interview
Training and experience ratings
Academic achievement
Education
Interest
Age

29. Legislation Impacting Recruitment
Mark W. Johnston and Gary W. Marshall, Sales Force Management,
McGraw Hill, 2006

30. Illegal/Sensitive Questions
Nationality or race
Religion
Sex and marital status
Age
Physical characteristics
Height and weight
Financial situation
Arrests and convictions

31. Key Terms job description internal sources external sources
selection tools and procedures
structured interview
unstructured interview