Effective Recruitment and Selection Strategies for Sales Force Optimization

1. CHAPTER NINE Recruiting and Selecting the Sales Force

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

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

4. LEGAL CONSIDERATIONS • Laws emphasize two concepts in employment: • nondiscrimination • affirmative action • EEOC <http://www.eeoc.gov/index.html> • OFCC <http://www.nau.edu/~affirm/ofccp.html> • ADA <http://www.adata.org/>

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

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

7. TURNOVER Turnover Rate = Separations per year Average Sales Force size

8. FIRST YEAR COST OF A SALES PERSON

9. NUMBER OF APPLICANTS • R = H / S x A • R = number of applicants • H = number of hires • S = % of recruits selected • A = % of those who accept

10. DETERMINING TYPE OF PEOPLE NEEDED • Job analysis • Job description • Job qualifications

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

12. FROM THE INTERNET • “Analyzing an Existing Job” <http://www.toolkit.cch.com/text/p05_0230.asp>

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

14. FROM THE INTERNET….. • Writing an Effective Job Description: http://www.onlinewbc.org/docs/manage/ descriptions.html

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

16. USES FOR THE JOB DESCRIPTION • Selection and hiring • Sales training • Compensation plans • Performance appraisal

17. JOB QUALIFICATIONS • Aptitudes, skills, knowledge, and personality traits necessary to perform a job successfully

18. ISSUES CONCERNING JOB QUALIFICATIONS • Uniqueness • Degree to which each trait must be possessed • How essential is each quality?

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

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

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

22. THE PRESENT SALESFORCE • Why should the salesforce be consulted? • Use of incentives

23. OTHER COMPANY EMPLOYEES • Why look elsewhere within the company?

24. COMPETITORS • Should a firm hire salespeople from the competition? • 68 percent of sales managers stated that the first place they look is to the competitors’ sales force!

25. CUSTOMERS • Can purchasing agents become sales people? • What are the risks associated with hiring from your customer’s company?

26. EDUCATIONAL INSTITUTIONS • Types of positions? • Placement centers • Relationships with professors

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

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

29. FROM THE INTERNET... • Advertising Media for Job Ads<http://aol.toolkit.cch.com/text/P05_0640.asp> • Read the associated materials onnewspapers, trade journals, television and radio, and online posting.

30. VOLUNTARY APPLICANTS • Record retention system

31. EMPLOYMENT AGENCIES • “Recruit” the agency • Agencies can perform initial screening • Compensation

32. INTERNET • Employers can post their jobs on-line or search one of the many resume databases.

33. FROM THE INTERNET... • The Job Factory <http://www.jobfactory.com/>

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

35. SELECTION TOOLS • Graphology • Application blanks • Personal interviews • Psychological tests • References and credit reports • Physical examinations • Assessment centers

36. SELECTION PRINCIPLES • Least costly tools first • A series of tools should be used • Tools aid managerial judgment; are not substitutes

37. GRAPHOLOGY • Graphology (a.k.a. Handwriting Analysis) is the art of interpreting a person's character from his/her personal handwriting.

38. FROM THE INTERNET…. • Graphology / Handwriting Analysis FAQ <http://web.singnet.com.sg/~tjlow/gclub/ grapho.htm>

39. APPLICATION BLANKS • Serve as an initial screen • Basis for probing in an interview • Ask for information you intend to use • Experience (education and work) • Environmental qualifications

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

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

42. COMMON INTERVIEWER MISTAKES • Failure to establish rapport • Lack of a plan • Insufficient time • Not listening • Personal bias • Questions • First impressions

43. OVERCOMING INTERVIEW SHORTFALLS • Standardized rating form • Train interviewers • Patterned interviews/multiple interviews

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

45. INTERVIEW QUESTIONS • What was the most monotonous job you ever had to do? • What do you consider to be your biggest disappointment? • What was the most difficult decision you ever had to make as a leader? • See text, page 436

46. OTHER INTERVIEW ISSUES • Non directed interviews • Interviewing the spouse • Stress interviews

47. PSYCHOLOGICAL TESTS • Controversial • Types • Intelligence • Aptitude • Interest • Personality

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

49. FROM THE INTERNET... • Lee Resources <http://www.leeresources.com/pages/ psyctest.html>

50. REFERENCES • Employment • Personal • Credit