McGraw-Hill/IrwinMcGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 5Chapter 5

Profiling and Profiling and RecruitingRecruitingSalespeopleSalespeopleEagles don’t flock. You have to find them one at a time.

Yogi Berra

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Recruiting and Selection ProblemsRecruiting and Selection Problems Lack of resourcesLack of resources

Lack of job specification and qualificationsLack of job specification and qualifications

Qualifications not objectively establishedQualifications not objectively established

Lack of managerial trainingLack of managerial training

Personal prejudicesPersonal prejudices

Search for managerial talentSearch for managerial talent

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Key Laws and Regulations Affecting Key Laws and Regulations Affecting a Sales Forcea Sales Force

Civil Rights Act of 1964Civil Rights Act of 1964 Federal Contract Compliance, Executive OrdersFederal Contract Compliance, Executive Orders Age Discrimination in Employment Act (1967)Age Discrimination in Employment Act (1967) Fair Employment Opportunity Act (1972)Fair Employment Opportunity Act (1972) Rehabilitation Act of 1973Rehabilitation Act of 1973 Vietnam Era Veterans Readjustment Act (1974)Vietnam Era Veterans Readjustment Act (1974) Uniform Guidelines on Employment Selection Uniform Guidelines on Employment Selection

Procedures (1978)Procedures (1978) Americans with Disabilities Act (1990)Americans with Disabilities Act (1990)

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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 ApplicantsDesign 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

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Workload AnalysisWorkload 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

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Fig 5-3 Determining the Number of Fig 5-3 Determining the Number of Salespeople NeededSalespeople 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

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Content of Job DescriptionContent 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

Organizational relationships

Mental and physical demands of the job

Environmental pressures and constraints that might affect the job

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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.

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Recruiting for the TeamRecruiting for the Team Willingness to share

Cooperative

Trusting

Empathetic

Accepting of others

Receptive to others ideas

Selflessness

Leadership skills

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Recruiting Sources of Sales RepsRecruiting Sources of Sales RepsSource 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.

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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.

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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: