Transcript CHAP9
CHAPTER NINE Recruiting and Selecting the Sales Force 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 PROBLEMS OF POOR SELECTION Inadequate sales coverage / lack of customer follow-up Increased training costs More supervisory problems Higher turnover Suboptimal performance 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/> 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 DETERMINING NUMBER OF PEOPLE NEEDED What should sales managers consider? – Turnover rate – Sales forecasts – Proposed changes in products, markets, and market coverage TURNOVER Turnover Rate = Separations per year Average Sales Force size FIRST YEAR COST OF A SALES PERSON COMPENSATION BENEFITS (24%) $24,752 5,940 FIELD EXPENSES 20,397 TRAINING COSTS 16,177 TOTAL COSTS $ 67,206 NUMBER OF APPLICANTS R =H/SxA – R = number of applicants – H = number of hires – S = % of recruits selected – A = % of those who accept DETERMINING TYPE OF PEOPLE NEEDED Job analysis Job description Job qualifications JOB ANALYSIS …a systematic way to describe how a job is to be performed, as well as the tasks that make up a job. FROM THE INTERNET “Analyzing an Existing Job” <http://www.toolkit.cch.com/text/p05_023 0.asp> JOB DESCRIPTION …a written document that spells out the job relationships and requirements that characterize each sales position. FROM THE INTERNET….. Writing an Effective Job Description: http://www.onlinewbc.org/docs/manage/ descriptions.html COMPONENTS OF JOB DESCRIPTIONS Job title Organizational relationship Duties and responsibilities Hiring specifications Summary: technical requirements and demands of the job USES FOR THE JOB DESCRIPTION Selection and hiring Sales training Compensation plans Performance appraisal JOB QUALIFICATIONS Aptitudes, skills, knowledge, and personality traits necessary to perform a job successfully ISSUES CONCERNING JOB QUALIFICATIONS Uniqueness Degree to which each trait must be possessed How essential is each quality? TRAIT CATEGORIES Mental (intelligence, planning ability) Physical (appearance, health, speaking ability) Experience (education, sales, other) Personality (ambition, interest, tact) Environmental (membership) 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 SOURCES OF RECRUITS The present sales force Other company employees Other companies – Competitors – Customers Educational institutions Advertisements Voluntary applications Employment agencies Internet THE PRESENT SALESFORCE Why should the salesforce be consulted? Use of incentives OTHER COMPANY EMPLOYEES Why look elsewhere within the company? 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! CUSTOMERS Can purchasing agents become sales people? What are the risks associated with hiring from your customer’s company? EDUCATIONAL INSTITUTIONS Types of positions? Placement centers Relationships with professors 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 COMPONENTS OF A GOOD RECRUITING AD Company name Product Territory Hiring Qualifications Compensation plan, benefits How to contact employer FROM THE INTERNET... Advertising Media for Job Ads <http://aol.toolkit.cch.com/text/P05_0640. asp> Read the associated materials on newspapers, trade journals, television and radio, and online posting. VOLUNTARY APPLICANTS Record retention system EMPLOYMENT AGENCIES “Recruit” the agency Agencies can perform initial screening Compensation INTERNET Employers can post their jobs on-line or search one of the many resume databases. FROM THE INTERNET... The Job Factory <http://www.jobfactory.com/> 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 SELECTION TOOLS Graphology Application blanks Personal interviews Psychological tests References and credit reports Physical examinations Assessment centers SELECTION PRINCIPLES Least costly tools first A series of tools should be used Tools aid managerial judgment; are not substitutes GRAPHOLOGY Graphology (a.k.a. Handwriting Analysis) is the art of interpreting a person's character from his/her personal handwriting. FROM THE INTERNET…. Graphology / Handwriting Analysis FAQ <http://web.singnet.com.sg/~tjlow/gclub/ grapho.htm> 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 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? PERSONAL INTERVIEWS Get to know the candidate – Determine fitness for job – verify facts on application – two way communication device Validity COMMON INTERVIEWER MISTAKES Failure to establish rapport Lack of a plan Insufficient time Not listening Personal bias Questions First impressions OVERCOMING INTERVIEW SHORTFALLS Standardized rating form Train interviewers Patterned interviews/multiple interviews 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? 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 OTHER INTERVIEW ISSUES Non directed interviews Interviewing the spouse Stress interviews PSYCHOLOGICAL TESTS Controversial Types – – – – Intelligence Aptitude Interest Personality WHEN TO USE PSYCHOLOGICAL TESTS Large number being hired Hiring inexperienced salespeople Cost of hiring failure is high FROM THE INTERNET... Lee Resources <http://www.leeresources.com/pages/ psyctest.html> REFERENCES Employment Personal Credit PREVIOUS EMPLOYER REFERENCE CHECK Dates of employment? What was the job? Type of selling involved? Get along with mangers/clients/coworkers? Applicants strongest points/weaknesses? Why did she/he leave company? Would you rehire? Why? PHYSICAL EXAMINATION Sales jobs are physically, mentally, and emotionally demanding Medical insurance coverage DRUG SCREENING Identify the drug user prior to incorporating him/her into the employee population. Methods of testing are generally urine, hair or combination of these two ASSESSMENT CENTERS A centralized, comprehensive evaluation procedure involving – tests – interviews – simulation exercises (business games, discussions groups, presentations) FROM THE INTERNET... Evaluation Through Assessment <http://www.sbaer.uca.edu/docs/ Publications/pub00024.txt> Centers EXTENDING THE JOB OFFER Timing Who makes the job offer? When extending the offer – review specifics – let the recruit talk Accept rejection with grace FROM YOUR TEXT Read everything in Chapter Nine!!