Chapter 5

Profiling and RecruitingSalespeople

Learning Objectives

Sales force selection and strategic planning

Scope of sales force staffing process

Recruiting and Selection Problems

Lack of resources Lack of job specification and

qualifications Qualifications not objectively

established Lack of managerial training Personal prejudices Search for managerial talent

Key Laws and Regulations Affecting a Sales Force Civil Rights Act of 1964 –prohibit discrimination Federal Contract Compliance, Executive Orders –comply

with federal legislation and affirmative action plan (50 or more).

Age Discrimination in Employment Act (1967)-prohibit age discrimination

Fair Employment Opportunity Act (1972)-equal employment Rehabilitation Act of 1973-hire people with disabilities (50

or more) Vietnam Era Veterans Readjustment Act (1974) –hire

Vietnam and disable veterans Uniform Guidelines on Employment Selection Procedures

(1978)-prohibit discriminatory practices in hiring. Americans with Disabilities Act (1990) –prohibits

discrimination based on disabilities.

Scope of sales force staffing process

Five major activities: Plan the recruiting and selection

process Recruit an adequate number of

applicants Select the most qualified applicants Hire those people who have been

selected Assimilate/integrate the new hires

into the company

Fig. 5-2 Sales Force Staffing Process: Plan for Recruiting & Selection

Establish Responsibility for Recruiting, Selection

and Assimilation

Determine Number of

People Wanted

Conduct Job Analysis

Prepare Job Description

Recruit Applicants

Select Applicants

Design a System For Measuring

Applicants

Hire the People

Assimilate New People into Sales Force

Determine Hiring Qualifications

Measure Applicants Against Hiring Qualifications

Make Selection Decisions

Workload AnalysisNumber of reps needed = Total workload in market

Workload one rep can handle Market workload:

Customer Number of Calls Total class accounts per year calls

x =

A 400 20 8,000

B 600 10 6,000

14,000

One rep’s workload:

Calls/day x Selling days/week x Working weeks/year = Annual workload 5 x 5 x 50 = 1250

Number of reps needed = = 112 reps

14,000

1250

Factors to consider in hiring applicants

Management should consider these factors:

Reps needed for changes in the development of salespeople: new territories, eliminated territories, realigned territories.

Promotions out of the sales force. Expected retirements form the sales

force. Expected turnover, including

terminations and resignations.

Fig 5-3 Determining the Number of Salespeople Needed

Strategic Plans

New - Eliminated/ + Promo- + Retirements + Terminations/ = Total new territories combined tions resignations reps needed territories

Expansion MN and RI 2 promo 2 retirements 1 termination New repsinto Texas. Territories expected expected expected needed

4 - 1 + 2 + 2 + 1 = 8

Content of Job Description

Title

The nature of the product or service to be sold

Type of customers to be called on, frequency of calls, and types of personnel to be contacted

Specific tasks and responsibilities to be carried out-planning activities, actual selling activities, customer servicing task.

Organizational relationships – to whom to report

Mental and physical demands of the job – (e.g., travel, stress level)

Environmental pressures and constraints that might affect the job

Fig. 5-4

Ten Traits and Abilities of Top Salespeople

Trait Related Ability

Ego strength To handle rejection

Sense of urgency To complete the sale

Ego drive To persuade people

Assertiveness To be firm in negotiations

Willingness to take risks To be innovative

Sociability To build relationships

Abstract reasoning To sell ideas

Sense of skepticism To question, to be alert

Creativity To sell complex products and ideas

Empathy To understand customer needs

Source: Erika Rasmusson, “The 10 Traits of Top Salespeople, “ Sales & Marketing Management, August 1999, pp. 34-37.

Recruiting for the Team

Willingness to share

Cooperative

Trusting

Empathetic

Accepting of others

Receptive to others ideas

Selflessness

Leadership skills

Recruiting Sources of Sales Reps

Source CommentReferrals: Candidates and position are known to person making referral. Existing

sales force is an excellent source for referrals as they know their jobrequirements and can identify good matches.

Current employees Company employees know the company and its products.

Other Companies:

Competitors Competitors know the customers and are familiar with your products.

Customers Customers know your products and your company.

Suppliers Suppliers know your company and your products.

The Internet Recruits may come through the company’s own website – or through specialized Internet recruiting sites, such as Monster.com.

Educational institutions Primarily used when recruiting inexperienced people. Students areusually actively involved in a job search, and this provides an

efficientplace to screen large numbers of available candidates.

Advertisements Produces the greatest number of candidates, but the average quality is sometimes lower.

Employment agencies The agency is often more costly than other methods, but it willdo a large part of the initial screening.

Part-time workers These workers are easy to contact, readily available, and canwork flexible hours. This is a good source for in-home selling.

Voluntary applicants These applicants are interested in your firm and probably possessa high degree of self-confidence, self-reliance, and initiative.

Fig. 5-7 Differences in Student and Recruiter Perceptions of Important Attributes for Selecting a Sales Position

Attributes as selected by the:Importance Rank Student Recruiter1 Job satisfaction Training Program

2 Advancement opportunity Advancement opportunity

3 Company financial stability Salary

4 Recruiter shows interest Employee morale

5 Employee morale Job satisfaction

6 Fit with goals Company financial stability

7 Job Security Job security

8 Company reputation Company growth potential

9 Training program Employee voice own views

10 Company growth potential Task variety

11 Recruiter friendly Company reputation

12 Geographic location Non-monetary benefits

13 Non-monetary benefits Recruiter friendly

14 Salary Fits with goals

15 Recruiter personality Recruiter shows interest

Source: Michael A. Wiles and Rosann Spiro, “Attracting Graduates to Sales Positions and The Role of Recruiter Knowledge: A Reexamination,” Journal of Personal Selling & Sales Management, Winter 2004, pp. 39-48.

Fig. 5-8 Recruiting Evaluation Matrix

Evaluation Criteria

Consistent with strategic planning?

Number recruits

Number hired

Percent retained after 3 years

Cost Frequency of use

Percentage successful after 2 yrs.

Recruiting sources

Within company: Sales force Other departments

Competitors Customers Noncompetitors

Educational institutions

Advertisements

Employment agencies

Voluntary applicants

Computerized databases

Other companies:

In-class discussion