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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.

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chapter nine

CHAPTER NINE

Recruiting and Selecting the Sales Force

importance of a good selection program
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
PROBLEMS OF POOR SELECTION
  • Inadequate sales coverage / lack of customer follow-up
  • Increased training costs
  • More supervisory problems
  • Higher turnover
  • Suboptimal performance
legal considerations
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
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
DETERMINING NUMBER OF PEOPLE NEEDED
  • What should sales managers consider?
    • Turnover rate
    • Sales forecasts
    • Proposed changes in products, markets, and market coverage
turnover

TURNOVER

Turnover Rate =

Separations per year

Average Sales Force size

number of applicants
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
determining type of people needed
DETERMINING TYPE OF PEOPLE NEEDED
  • Job analysis
  • Job description
  • Job qualifications
job analysis
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
FROM THE INTERNET
  • “Analyzing an Existing Job” <http://www.toolkit.cch.com/text/p05_0230.asp>
job description
JOB DESCRIPTION
  • …a written document that spells out the job relationships and requirements that characterize each sales position.
from the internet14
FROM THE INTERNET…..
  • Writing an Effective Job Description: http://www.onlinewbc.org/docs/manage/ descriptions.html
components of job descriptions
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
USES FOR THE JOB DESCRIPTION
  • Selection and hiring
  • Sales training
  • Compensation plans
  • Performance appraisal
job qualifications
JOB QUALIFICATIONS
  • Aptitudes, skills, knowledge, and personality traits necessary to perform a job successfully
issues concerning job qualifications
ISSUES CONCERNING JOB QUALIFICATIONS
  • Uniqueness
  • Degree to which each trait must be possessed
  • How essential is each quality?
trait categories
TRAIT CATEGORIES
  • Mental (intelligence, planning ability)
  • Physical (appearance, health, speaking ability)
  • Experience (education, sales, other)
  • Personality (ambition, interest, tact)
  • Environmental (membership)
recruiting candidates
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
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
THE PRESENT SALESFORCE
  • Why should the salesforce be consulted?
  • Use of incentives
other company employees
OTHER COMPANY EMPLOYEES
  • Why look elsewhere within the company?
competitors
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
CUSTOMERS
  • Can purchasing agents become sales people?
  • What are the risks associated with hiring from your customer’s company?
educational institutions
EDUCATIONAL INSTITUTIONS
  • Types of positions?
  • Placement centers
  • Relationships with professors
advertisements
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
COMPONENTS OF A GOOD RECRUITING AD
  • Company name
  • Product
  • Territory
  • Hiring Qualifications
  • Compensation plan, benefits
  • How to contact employer
from the internet29
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.
voluntary applicants
VOLUNTARY APPLICANTS
  • Record retention system
employment agencies
EMPLOYMENT AGENCIES
  • “Recruit” the agency
  • Agencies can perform initial screening
  • Compensation
internet
INTERNET
  • Employers can post their jobs on-line or search one of the many resume databases.
from the internet33
FROM THE INTERNET...
  • The Job Factory <http://www.jobfactory.com/>
factors influencing choice of sources
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
SELECTION TOOLS
  • Graphology
  • Application blanks
  • Personal interviews
  • Psychological tests
  • References and credit reports
  • Physical examinations
  • Assessment centers
selection principles
SELECTION PRINCIPLES
  • Least costly tools first
  • A series of tools should be used
  • Tools aid managerial judgment; are not substitutes
graphology
GRAPHOLOGY
  • Graphology (a.k.a. Handwriting Analysis) is the art of interpreting a person's character from his/her personal handwriting.
from the internet38
FROM THE INTERNET….
  • Graphology / Handwriting Analysis FAQ <http://web.singnet.com.sg/~tjlow/gclub/ grapho.htm>
application blanks
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
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
PERSONAL INTERVIEWS
  • Get to know the candidate
    • Determine fitness for job
    • verify facts on application
    • two way communication device
  • Validity
common interviewer mistakes
COMMON INTERVIEWER MISTAKES
  • Failure to establish rapport
  • Lack of a plan
  • Insufficient time
  • Not listening
  • Personal bias
  • Questions
  • First impressions
overcoming interview shortfalls
OVERCOMING INTERVIEW SHORTFALLS
  • Standardized rating form
  • Train interviewers
  • Patterned interviews/multiple interviews
interviews four basic issues
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
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
OTHER INTERVIEW ISSUES
  • Non directed interviews
  • Interviewing the spouse
  • Stress interviews
psychological tests
PSYCHOLOGICAL TESTS
  • Controversial
  • Types
    • Intelligence
    • Aptitude
    • Interest
    • Personality
when to use psychological tests
WHEN TO USE PSYCHOLOGICAL TESTS
  • Large number being hired
  • Hiring inexperienced salespeople
  • Cost of hiring failure is high
from the internet49
FROM THE INTERNET...
  • Lee Resources <http://www.leeresources.com/pages/ psyctest.html>
references
REFERENCES
  • Employment
  • Personal
  • Credit
previous employer reference check
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
PHYSICAL EXAMINATION
  • Sales jobs are physically, mentally, and emotionally demanding
  • Medical insurance coverage
drug screening
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
ASSESSMENT CENTERS
  • A centralized, comprehensive evaluation procedure involving
    • tests
    • interviews
    • simulation exercises (business games, discussions groups, presentations)
from the internet55
FROM THE INTERNET...
  • Evaluation Through Assessment Centers<http://www.sbaer.uca.edu/docs/ Publications/pub00024.txt>
extending the job offer
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
FROM YOUR TEXT
  • Read everything in Chapter Nine!!