Recruitment Recruitment and Selection of the Sales Force
Sales Force Selection & Strategic Planning
The sales force is the one group that directly generates revenues for the organization by executing the Cos strategic marketing plans. The selection process should be consistent with the Cos strategic marketing planning & its sales force force planning. ±
±
Existing account maintenance v/s new account development.(Experienced v/s Freshers) Strategy trategy of promoting from within for the development of future executiv executives es as opposed to hiring older,experienced older,experienced sales reps reps at high salaries.
Sales Force Selection & Strategic Planning
The sales force is the one group that directly generates revenues for the organization by executing the Cos strategic marketing plans. The selection process should be consistent with the Cos strategic marketing planning & its sales force force planning. ±
±
Existing account maintenance v/s new account development.(Experienced v/s Freshers) Strategy trategy of promoting from within for the development of future executiv executives es as opposed to hiring older,experienced older,experienced sales reps reps at high salaries.
U pstarts
& New entrants
Most of the
late entrants entrants hire experienced sales personnel from incumbents to jumpstart their sales & kick in revenues. They avoid the costly process of initial screening of the applicants,in applicants,intervi terviewing,ma ewing,making king job offers, offers, on the job training before before inducting into the salesforce.
I m portance of
a Good Good Selection Program
1. Qualified Sales peo ple are scarce ±
Selling does not have the high
social prestige prestige of some other careers e.g. Brand Management
±
BAs view selling selling in a ve way way,associa ,associating ting it Most MBA with door-to-door activities or with less than desirable personal personal traits traits,such ,such as being pushy pushy,beg ,beg or obnoxious obnoxious..
2.
Good Selection im proves Sales Force Performance ±
b etween a salesperson salesperson whose Making a choice between performance is just acceptable v/s outstanding.
3.
Good Selection promotes cost savings ±
Substantial direct cost savings are often generated
when sales force turnover is reduced, as significant costs are incurred before a salesperson reaches productive status v/s plug & play a pproach.
4. Good selection eases e ases other managerial tasks tasks ±
Easier to train,supervise train,supervise & motivate motivate right people for the sales job.
5.
Sales managers are no better than their sales force ±
One of the ways a manager can outwit the
competition is by having better salespeople.
T he
Law and Sales Force Selection
legislation and related regulatory guidelines emphasize two concepts in employment: GOI
±
Nondiscrimination
±
Affirmative action.
1. Non Discrimination
Nondiscrimination requires employers to refrain from discriminating against anyone with regard to age, race, religion, sex, national origin, disability, or status as a veteranand to eliminate all existing discriminatory conditions, whether intentional or inadvertent. Discrimination charges can also be filed against a firm that uses recruitment sources with few people from the protected classes.(Minorities,OBC,Women )
2.
Affirmative Action
Affirmative action requires employers to do more than ensure neutralitythey must make additional efforts to recruit, employ, and promote qualified members of groups formerly excluded. These efforts must be made even if that exclusion cannot be traced to discriminatory actions of the employer.
Sco pe of Sales Force Staffing Process
Plan for recruiting and selection Establish responsibility for recruiting, selection, and assimilation
Determine number of people wanted
Conduct job analysis
Prepare job description
Recruit applicants Identify
sources of recruits
Select the
source to be used
Contact the recruits
Select applicants Design a ystem for measuring applicants
Measure
applicants against hiring qualifications
Make
selection decisions
Hire the people
Assimilate new people into the sales force
Determine hiring qualifications
E stablishing Res ponsibility for
Recruiting,Selection, and Assimilation
Determining the No. of Peo ple Needed
Forecast
well in advance of the time the people will actually be employed (April- Start of a new FY) Avoid the mistake of ±
±
Employing more than are needed with the intent of weeding out as time goes by. Using performance on the job as an additional selection tool.
Review any changes in the Cos strategic marketing plan. ±
±
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Planned increases & decreases in marketing expenditures. Overhaul of the Sales Organization.(P&G) Change of present channels of distribution structure.(Dell)
Reps needed for changes in the deployment of salespeople: new territories, eliminated territories, realigned territories.
Promotions out of the sales force.
Expected retirements from the sales force.
Expected turnover, including terminations and resignations.
New territories
Expansion into Rajasthan. Reps needed: 3 -
Eliminate/ + combine territories Chattisgarh & MP territories combined. Reps eliminated: 1 +
Promotions Retirements Termination/ + + resignations =
Total new reps needed
2 promotions 2 retirements 1 termination expected: expected: expected:
2 +
2 +
1 =
7
Develo ping a Profile of the T y p e of Peo ple Needed
There are 3 tasks associated with developing a profile of the type of people wanted: Job analysis the actual task of determining what constitutes a given job. Job descriptionthe document that sets forth the findings of the job analysis. Job qualifications (sometimes called hiring specifications)the specific, personal qualifications and characteristics applicants should possess to be selected for the given job.
1. Job Analysis
Different types of sales jobs ± ±
Channel Sales (B2C,B2B) Personal Selling
Specific skills associated with each of those jobs that will
make someone a success or failure. An effective analysis of a sales job usually requires extensive observation and interviewing. ±
Sales Reps
±
Sales Force Managers
± ±
Account/Relationship Management Market Development/New Account (Cold Canvassing,Telesales)
Customers Other executives who are directly involved with the personal selling activities of the Co.
2.
T itle
Job Descri ption
of joba complete description so there is no vagueness, especially in a company that has several different types of sales jobs. pto whom do the salespeople report? Organisational relationshi T y p es of products and services sold. T y p es of customers called onpurchasing agents, engineers, plant managers,maintenance and so on. Duties and res ponsibilities related to the jobplanning activities, actual selling activities, customer servicing tasks, clerical duties, and selfmanagement responsibilities. Job demandsthe mental and physical demands of the job, such as the amount, of travel(15-20 days in a month), autonomy, and stress. H iring s pecificationsthe qualifications an applicant needs to be hired for the job. While job qualifications technically are not part of a job analysis, there is merit in presenting the job duties and the job qualifications in one document.
3.Job
Qualification
Most difficult part of selection function.
No generally accepted profile for success across selling positions. Each company should establish its own individualized set of hiring requirements for each type of sales job in that firm. e.g.
Aviva Life Insurance will not hire a lateral untill the individual has earned at least one promotion in the past organization.
Ten traits and abilities of top salespeople Trait
Ego strength Sense of urgency Ego drive Assertiveness Willingness to take risks Sociability Abstract reasoning Sense of skepticism Creativity Empathy
Related Ability
Source:
To handle rejection To complete the sale To persuade people To be firm in negotiations To be innovative To build relationships To sell ideas To question, to be alert To sell complex products and ideas To understand customer needs
Erika Rasmusson, The 10 Traits of Top Salespeople, Sales & Marketing Management, August 1999, pp. 34-37.
Desirable Characteristics for Sales peo ple
The following major categories of traits are those for which specifics should be developed: ±
±
±
±
±
±
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Mental capacities (planning and
problem-solving
ability). Physical characteristics (appearance,neatness). Experience (sales and other business experience). Education (number of years, degrees, majors). Personality traits (persuasiveness, adaptiveness). Skills (communication, interpersonal, technological, job-specific). Socio-environmental factors (interests, activities, memberships in organizations).
Methods
of Determining Qualification
Study of Job Description
Analysis of Personal History ±
±
±
Large & old Cos to analyse the personal histories of its present & past salespeople. Analyse various characteristics of good & poor sales reps. The traits of the good sales reps are then used to develop a job profile of the kind of person the firm is seeking.
Characteristics to study personal history ±
Age,Education, IQ tests,Personality Tests,General Appearance.
Under
A. Age When Hired Number of Reps Good Poor Total % of Reps Reps Good Reps 30 70 100 30
25 25-35
180
20
200
90
36-45
100
50
150
66
46-55
40
60
100
40
Over 55 Total
10
40
50
20
360
240
600
B. Previous Education Number of Reps Good Poor Total % of Reps Reps Good Reps Some high 30 70 100 30 school High 250 25 275 91 school graduate Some 20 80 100 20 college College 55 45 100 55 graduate Postgradua 5 20 25 20 te study Total 360 240 600
Personal History Information can also be analysed using discriminant analysis or multi dimensional scaling in SPSS
Recruiting & its I m portance
Recruiting includes all activities involved in securing individuals who will apply for the job. Refers to well planned and well operated system for recruiting applicants. Overlooking good sources of
prospective salespeople or hiring unsuitable people if done haphazardly.
Sources for recruiting Sales Re presentatives
Sources of Sales Force Recruits
Current co ny employees
Referrals
Employment agencies
Recruiting Sources
he Internet
Educational Institutions
Other companies Competitors Customer Others
Part-time working
Advertisements
1. Referrals
A referral is a recommendation by one individual that another be hired for a position. Advantages ±
They know the job requirements and the recruit. Chances are pretty good that the recommended candidate will have the necessary skills as well as fit within the company culture.
Disadavantages ±
Not getting enough candidate to apply for a position
2.
Current E m ployees
Some companies recruit their
sales force from
workers in their offices.
Advantages ±
±
±
±
Observed by the Management
These workers are acquainted with the product and also have been indoctrinated in company policies and programs. Their values fit with the company culture. These candidates are the least costly to recruit and train.
3. Other
Com panies: Com petitors,Customers,Non Com petitors
4. T he I nternet
5.
E ducational I nstitutions
6.
Advertisements
7 .
E m ployment Agencies
W orkforce
Minority Groups
Women
Diversity???
Recruiting E valuation Matri x Evaluation
Consistent with strategic planning? Number
Recruiting sources Within company: Sales force departments
recruits Other
Other companies: Competitors Customers Noncompetitors Educational institutions
Advertisements Employment agencies
Voluntary applicants Computerized databases
Criteria
Number hired
Percent retained after 3 Cost years
Re p s perFrequency of formance after 2 yrs. use
Selecting and H iring A pplicants
Selection Tools
Legal Considerations
Application Blanks
Personal Interviews
Interview Structure
Interview Focus
Timing & Method of the Interview
Psychological Testing
References and other Outside Sources
Background Checks
Assessment Centers
The Job Offer Decision
The Hiring Phase
Extending the Offer
Socialisation
and Assimilation
Pre Entry Socialisation
Assimilation of New Hires
Relationships
