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!!