new hire start-up first 90 days · of the qualities necessary to become a successful rmc sales...

Sales Manager’s Handbook Chapter 6 Rev. 6/2016

Chapter 6

New Hire Start-Up

First 90 Days


ROCHESTER MIDLAND CORPORATION

NEW HIRE SALES TRAINING PROGRAM

I. Objectives of the Sales Training Program

II. Preparing for the New Hire's First Day

A. Personnel Forms

B. Customer Records and Red Check

C. Start-Up Kit

D. Manager's Check-Off Forms

III. Planning & Scheduling of Events

A. Calendar of Training and Sales Activities

IV. Training Priorities

A. Job Orientation

B. Market / Product / Customer Orientation

C. Classroom Training on Concepts of Cleaning and Cleaners

D. Short Course on Counselor Sales Person

E. Developing a Specific Sales and Action Plan

F. Field Training in Sales and Service

V. Progress Indicators

VI. Summary


I. INTRODUCTION:

The primary objective of the RMC New Hire Training Program is to assist the Sales Manager, to

develop a new rep from the "Potential" stage to Peak Performance and to determine the presence

of the qualities necessary to become a successful RMC sales professional in a 90-day period.

Although sales training is an on-going process, the first 90 days is critical for a new hire to

develop success habits and for the Manager to evaluate his/her effort and performance.

This training program can also be utilized to retrain and evaluate underachieving reps.

In order to determine the new hire's and/or underachiever's continued employment with RMC

after the 90-day period, we must be certain that we have provided all the support, training,

guidance and leadership necessary for the rep to succeed. This training program provides that

certainty in our decision to either cut our losses or develop a winner.


II. PREPARING FOR THE NEW HIRE'S FIRST DAY

Prior to the new sales rep's first day on the job, completing the following can maximize training

time:

A. Personnel Forms:

- The Sales Pay Package Summary Form should be completed, approved and

signed by the Regional, Group and Business Unit Managers and forwarded to

Talent Management (TM) prior to TM sending the RMC employment Offer

Letter to the new rep.

- Mail the Employment Package/Personnel Forms to the new rep prior to his/her

first day. Have them fill out as much of the paperwork as possible to be

completed on his/her first day with you. Forms that require a witness should be

signed only in front of you or another RMC management employee.

- The I-9 Form should be completed at the start of the first day. The completed

form and photocopies of the ID’s used to complete the form must be faxed to TM

the morning of the rep’s first day. Be sure to ask the new hire to bring 2 forms

of ID with them on the first day: a Driver’s license plus one of the following:

Social Security card, Birth certificate or Passport. The original form and

photocopies of the ID’s used to complete the form must still be forwarded to TM.

This allows TM and CIS to set the new rep up in the computer, assign a sales

number, and transfer the accounts being given to the new rep to the new rep’s

territory.

- Completed On-Payroll Packets should be mailed to Talent Management

immediately. Packets received after current pay period processing has begun will

cause the first payday to be delayed. Incomplete packets will also cause delay in

adding the new rep to payroll.

- A Sales Account Allocation Form (SAAF) and a Monthly Sales Target (MST)

should be completed and approved by the Regional and Group Managers prior to

the rep’s first day. Failure to do so will result in delays in order processing

and/or commission reductions.


B. Customer Records and "Red Check"

- If necessary, which it is in most cases, make sure to update the customer record

books using the 15-Month Report.

C. Start-Up Kit

- Order business cards using the form included in the On-Payroll Packet or via the

new rep start up form available on the RMC Intranet.

- Updated price book, product manuals and division manuals, i.e., Universal

Training, Boiler simplified, etc.

- Training videos: RMC Chemical Safety Program.

- Market Specific Training Guides:

General Approach to Cleaning and Cleaners.

- Samples of Core products for demos base on specific market focuses.

D. Check-off Forms

Attached are forms to assist you in checking off the completion of items to be covered.


SALES MANAGER'S TRAINING CHECK-OFF FORMS

SECTION I. PERSONNEL FORMS - (Check off as completed)

______ Pay Plan Worksheet

______ Application for Employment

______ New Employee Profile

______ Employee Withholding from W4

______ Government Eligibility to Work Form I-9

______ Auto License and Insurance

______ Request for Direct Deposit

______ Employee Chemical Safety Quiz and Video

______ Safety Equipment Issued and Receipt Letter

______ Chemical Safety Program Sign-Off

______ Business card order form

______ Corporate Sales Policy

______ Employment Agreement

______ Electronic Media Policy

______ Shipment & Transport of Chemicals Policy

SECTION II. JOB ORIENTATION

______ Job Description & Responsibilities

______ RMC Organization

______ RMC Vision, Mission, Values, Strategies, and Measures

______ Regional Organization

______ Samples for Demos

______ Daily Sales Activity

______ Call Summary Reports

______ Business Cards

______ CSR / Sales Rep Procedures Manual

______ Price Book Orientation

______ Corporate Sales Policy


______ Sales Order Forms - Proper Way to Write Order

______ New Account Information

______ Minimum Commissionable Orders

______ Bid Policy and Special Price Quotes

______ Blanket Order Agreement/Price Quotes

______ Loaned Equipment Policy

______ National Account Pricing

______ Freight Policy

______ Registered Products

______ Sample Policy

______ Lot Numbers on Products

______ Expense Guidelines

______ Merchandise Returns

______ Credit Policy

______ Commission Clawbacks

______ Reading a Product Label

______ Inventory Communications

______ Shipping Locations

SECTION III. SALES SUPPORT

______ Marketing / Technical Support

______ Customer Service Center Support

______ Divisional Sales Support

SECTION IV. FORMS

______ Weekly Planning Schedule

______ Pre-Call Planner

______ EOM Report

______ CCF (Customer Complaint Form)

______ Incident Report

______ Time Off Request

______ Monthly Time Sheet


______ Inventory Gain / Loss

______ Sample Order

______ Loaned Equipment Agreement

______ Loaned Equipment Upcharge Worksheet

______ TEAM Program

______ Supply Agreements

______ SPQ Requests

______ Order Forms

______ New Account Start-Up Form

SECTION V. REPORTS

______ 562 Report

______ Order Summary Report

______ Invoiced Order Report

______ Open Order Report

______ Detailed Aging Report

______ Attrition Reports

______ Attrition Codes

______ Price List Report

______ Tier Verification Report

______ Loaned Equipment Report

SECTION VI. RMC INTRANET

______ Sign-On and Navigation

______ Divisional Sections

______ Knowledge Base

______ File Repository

______ Search Function

______ My Sales Reports


SECTION VII. SAFETY

______ Safe Lifting

______ Personal Protective Equipment (PPE)

______ Hearing Protection

______ Chemical Safety

SECTION VIII MARKET / PRODUCT / CUSTOMER ORIENTATION

Review each of the following items (Check off when completed)

______ Corporate Sales Strategy

______ Regional Sales Strategy

Marketing Divisions Overview and Focuses

______ Food Safety

______ Water Energy

______ CleanAire

______ Facility Supplies

______ Marketing Bulletins

Customer Orientation

______ 15-Month Report

______ TVR

______ Account Record Books

______ Territory Management

______ Key Accounts in Territory

______ Qualified Prospect Summary

______ Sanor Trial Bank

Product/Application Orientation

______ Concepts of Cleaning and Cleaners

______ SSTARTECC

______ Specific Division Basic Manuals

______ Core Products in the Marketing Focuses


SECTION IX. SALES PROCESS & SKILLS TRAINING

______ Reorders

______ Checking Inventory

______ Account Expansion

______ Account Development

______ Account Servicing

______ CSP

______ Role Play Relating and Discovery

______ Discovery Agreements

______ Pre-Call Planner

SECTION X. PLANNING AND ORGANIZATION

______ Sales Plan (Consolidated Call Sheet) & Calendar for Month

______ Weekly Planning Schedule

______ Samples for Demos

______ Daily Sales Activity

______ Call Summary Reports

______ QPP, QPS, Month End Closing Reports

III. PLANNING AND SCHEDULING OF EVENTS

The Sales Manager has many responsibilities and sales people with which to work. By planning

and scheduling the new hire's first 90 days activities, it allows you to coordinate training days

with yourself and other trainers, it gives everyone the opportunity to plan his/her schedules

effectively and it also teaches the new rep the value of planning.

The following is an example of a new sales reps schedule for the first 20 working days or 1st

month on the job. Review and discuss priorities with your Regional Manager and fill out an

actual calendar. (Copy should be sent to both the Regional Manager and the Division Vice

President/General Manager).


MONTHLY WORK SCHEDULE MONTH OF _____MARCH_____

NAME _____"New Rep"_______

MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY

DAY 1

Office 8:30 AM Personnel Forms

&

Job Orientation

2

Customer/Product/Market

Orientation

Sales Training

Assign MSTG

3

Field Training

With

Manager

4

Field Training

With

Manager

5

Sales Day

(Sold)

Call in PM To

Review Day

6

Classroom Training

Market/Products

"Relating & Discovery "

Sales Training

Make Appts.

7

Field Training

With

Manager

8

Sales Day

(SOLO)

9

Sales Day

(SOLO)

10

Team Selling

With Another Rep

Call In For Review

11

Classroom Training

Market/Products

"Advocating"

Sales Training Make Appts.

12

Field Training

Day With

Specialists

13

Sales Day

(SOLO)

14

Field Training

With

Product Manager

15

Sales Day

(SOLO)

16

Classroom Training

"Supporting & ROI

Make Appts.

17

Sales Day

(SOLO)

18

Sales Day

(SOLO)

19

Sales Day

(SOLO)

20 Field Training

With

Manager

Review the Month &

Plan the Following Month


IV. TRAINING PRIORITIES

A. JOB ORIENTATION

It is vital that the new sales rep understands from day one what his/her responsibilities are,

RMC’s expectations and the effort that it's going to take for them to become successful. These

responsibilities must be written and discussed thoroughly.

The RMC sales reps job description consists of the following responsibilities and objectives:

“ONE” RMC:

- Our Vision

- Live by RMC Core Values

SALES:

- The retention and expansion of the existing account base entrusted to them.

- Development and acquisition of new accounts for territory expansion.

- Achieve minimum sales growth standards.

TRAINING:

- Learn and have clear understanding of the focused markets, products and applications.

- Minimum service requirements.

- Learn and master Counselor Sales Person

- Timely completion of Training Guides assigned for home study.

- Attend sales training meetings scheduled by Management.

ORGANIZATION:

- Keep up-to-date customer records/purchase activities.

- Maintain up-to-date and accurate customer information such as: key contacts, service

dates, etc.

- Maintain current price book and product manuals.

- Record and submit call summaries, sales reports and review with Manager.


PLANNING:

- Complete monthly planning calendar base on Consolidated Call Sheets and scheduled

training days due 1st of every month.

- Written updated list of target accounts (QPS) with 30-40 prospects monthly.

- Pre-call planning.

- Qualified Prospect Profiles and action plans

CUSTOMER SERVICE:

- Assist customer service support team in handling customer requests.

- Assist in account receivables when necessary.

- Cooperate with Inside Sales Rep assistance requests.


B. MARKET / PRODUCT / CUSTOMER ORIENTATION

In order for the new sales rep to become an effective RMC sales professional, he or she must

first understand "WHO" we are, "WHAT" we do and "HOW" we get it done.

Rochester Midland Corporation has been in the specialty chemical business since 1888. RMC’s

uniqueness is in the diversity of its product lines and the markets we serve.

Our products are focused in the following market applications:

- Food safety and plant sanitation in food processing plants such as meat and poultry

processing, seafood, bakeries, snack food, prepared foods, vegetable processing, dairy,

beverage, etc.

- Environmentally preferable technologies for industrial and production cleaning

applications for metal working, heavy equipment manufacture, graphic arts,

transportation, asphalt and concrete industry.

- Water treatment for comfort and process heating and cooling systems in manufacturing

facilities, food processing, metalworking, plastics, universities, hospitality and health

care.

- Waste water treatment for the circuit board industry, metal plating, food processing, and

paper mill industry.

- Sanitation programs for the Animal Lab Science research facilities in medical centers,

universities, pharmaceutical companies and private research laboratories.

- Institutional cleaning products for environmentally preferable and sustainable cleaning of

hospitals, public facilities and offices.

- Personal care products for use in washrooms in virtually all facilities in every market.


Now discuss the titles and job responsibilities of the personnel the reps will be contacting in

his/her existing accounts and his/her target accounts.

INDUSTRY

Plant Manager Purchasing Agent

Maintenance Supervisor Production Manager

Plant Engineer Environmental Safety

Boiler and Cooling Operator Waste Treatment Plant Operator

FACILITY AND BUILDINGS

Building Manager

Maintenance Supervisor

Purchasing

Housekeeping/Custodial Supervisor

HEALTH CARE

Administrator

Environmental Services Manager

Housekeeping/Custodial Services

Purchasing

Food Service Manager

Power Plant Engineering

Facility Manager

FOOD PROCESSING

Plant Sanitarian

Plant Manager

Plant Engineering

Maintenance Supervisor

Quality Assurance Director

Purchasing Director


SCHOOLS & UNIVERSITIES

Director of Buildings and Grounds

Custodial Services

Business Manager

Superintendent of Schools

Purchasing

Power Plant Engineering

Athletic Director

Food Service

Nurse

UTILITY COMPANIES

Plant Manager

Environmental and Safety Director

Purchasing

Facility Maintenance / Housekeeping

Plant Engineering

Vehicle Maintenance Department


Utilizing the TVR and 15-Month Report, review the types of customers the new rep has in his

territory. Identify the key accounts, which in most cases represent 20% - 30% of the entire

account base.

It is crucial that scheduled calls are planned for these key accounts in the first two months.

The makeup of these accounts will also assist you in determining the training priorities for the

new sales rep. For example: If the account base has water treatment accounts that need frequent

service, then one of the training priorities must include the completion of MSTG "Boiler

Treatment Simplified" and arrange for training to teach the new rep how to service these

accounts.

Keep in mind that the new rep has no preconceived ideas of what is difficult and what is easy to

learn. It is our ability to teach in a logical and simple to understand manner that will be the

difference.

You may also want to divide the territory into quadrants for effective time management when

planning the daily sales activities.


C. CONCEPTS OF CLEANING AND CLEANERS

To effectively provide product and application training, we must first teach and make sure that

the rep learns and understands the concept of cleaning and cleaners.

Start by explaining the categories of the different types of cleaners and the soils that they clean.

Spend extra time on SSTARTECC and teach them how to bridge the two parts.

The "General Approach to Cleaning and Cleaners" MSTG explains in detail the concepts of

cleaning and it also includes practical sales situations that forces the rep to select a specific

product for the specific application needs. This exercise will also help them in actual selling

situations.

Use the "General Approach" MSTG for this training session and it should be the first home study

assignment for the new hire to study and complete.

Once the sales rep fully understands the concept of hard surface cleaning, learning products and

applications in all the Marketing divisions will be easier and less confusing.

You can then assign a Core group of products and basic training manuals for a specific market

focus for the rep to master.

For example:

MEAT PROCESSING: Foam Safe, F-364, F-25, 780ST

INDUSTRIAL: Alpha 1 & 3, Excel, Neugenic 4175, Super Electrosafe

BOILERS: BFW-504, OS-912, RLT-250, AND CLT-7


D. SALES TRAINING

The RMC sales activity consists of two parts. The first part is Account Retention and the second

part is Account Development in existing accounts for expansion and new prospects for territory

growth.

ACCOUNT RETENTION

The two main reasons customers are lost is due to either a change in sales rep or a change to

customer management. Therefore, it is vital that the initial call must start with the Relating

phase. The new rep must establish trust and credibility with the customer and discover his/her

desired status regarding the change. Then proceed to performing service requirements, inventory

checks and obtaining reorders.

It is important to remember that creating multiple relationships in an account, above and below

and next to your central contact (known as 3 x 3 selling) is an effective method of improving

account retention, particularly as personnel changes occur. You should make sure you have a

relationship with your contact’s boss(es), your contact’s subordinates and your contact’s peers

(other managers at the contacts same level). If and when your contact moves on, you have three

other relationships to pull you through.

The retention of our existing base is achieved by providing proper service of these accounts that

brings added value to the customer. Some of the key service activities include:

� Customer safety seminars.

� Product application training for plant personnel.

� Account Reviews.

� Providing Cleaning Procedures.

� Quality audits.

� System reviews.

� Written Service Reports

� R.O.I. identification

� Continuous improvement projects

ACCOUNT DEVELOPMENT

Account development is probably the most complex and important part of the entire training

program. It is the core of our sales training to produce peak performers and inter-dependent reps.


Too often, we assume that by hiring candidates with previous sales experience that all we need to

do is provide them with product knowledge and they will produce. This thinking has proven to

be a costly mistake time and time again.

To be a Peak Performer in our business, it requires a certain "Thought Process" that may not

have been taught or learned by the new hire in his/her previous job experience. Not only are

they now required to learn a vast variety of products in various markets and applications, they

must learn to develop creative solutions to cleaning & treatment problems, design programs to

improve existing programs, sell value through overall cost reduction / increased output and

return on investment instead of lower price per gallon / pound.

In essence, they must learn the difference between "Product Selling" and "Program Selling",

when each one is the appropriate approach and how to effectively operate as a Counselor Sales

Person (CSP).

Our objective as trainers is to develop all our sales reps from the "Dependent" stage to the "Inter-

dependent" stage. By taking a rep step-by-step through the entire selling process and ensuring

that they master the basic four (4) fundamentals of Relating, Discovering, Advocating and

Supporting, we develop Peak Performers and his/her success is by design rather than by accident.

Due to the complexity and the need for specifics, teaching and supporting the use of CSP will be

a separate section on its own so that it can be utilized by new and veteran sales reps.


E. DEVELOPING A SPECIFIC SALES AND ACTION PLAN

In developing a specific plan, we must divide it into the following categories:

Sales Objectives:

The sales target to be assigned must be determined based on the territory volume sold the

previous year, lost accounts, attrition, new business carryover, price increases plus the

minimum growth requirement.

As the rep starts calling on accounts, there may be accounts that are lost or overloaded

with inventory by the previous rep. Make the adjustment as needed. It is critical that we

are fair in setting sales targets for the new hire.

Action Goals:

Set action goals that are challenging and attainable. It is important that the new rep

experience successes from which to build upon at the beginning stages of his/her career.

A new rep’s action goals should consist of the following:

� Making appointments

� Relating and Discovery Agreements

� Surveys

� Product demos and/or tests

� Service reports

Depending on the new hire's attitude to learn, you may not want to assign every category

the first month. However, all these action goals that cover all the market focuses should

be included in the 90-days training and evaluation period.


DAILY SALES ACTIVITY

MORNING

7:00 - 7:30 Travel time or make appointments

8:00 - 10:00 Service / Reorder calls

Appointment calls

Qualify 2 potential prospects

10:00 - 10:15 Call 800 Voice Mail for messages

If managers are available, review prior calls

Return messages

10:15 - 12:00 Sales calls - reorders and development

AFTERNOON

12:00 - 12:30 Lunch

Fill out Call Summary

Questions for Manager / Trainers

12:30 - 1:00 Travel time to next sales call

1:00 - 3:30 Service / Reorder calls

Appointment calls

Product demos

3:30 - 3:45 Check Voice Mail for messages

Review day with Manager

Ask questions re: applications, products

Call in orders for the day

Return messages

3:45 - 5:00 Qualify 2 more potential prospects

Schedule appointments

Complete Call Summary


EVENING:

- Review day’s activities

- Plan follow-ups

- Check e-mail messages and respond as needed

- Phone communication with Manager

- Study MSTG assigned

- Learn 2 Core products

- Prepare pre-call plans for the following day’s sales activities and tools needed:

o Survey forms

o Product portfolios

o Brochures

o Service report forms

o Samples for demos


F. FIELD TRAINING, SALES & SERVICE

SALES:

Field sales training is where the knowledge and information is put into action. This is the

stage in the training process where the manager shows the reps how the CSP selling

process should be conducted. It is also the time where coaching and motivating takes

place.

Keeping in mind that at the new reps dependent stage, we need to show them step-by-step

the proper selling process from the Relating phase through the Supporting phase.

Our objective being that we want to bring the rep to the independent stage as quickly as

possible, it is important that during field training, we allow the rep to show his/her

capabilities on some of the calls. If the rep has no prior sales experience, they must at

least be able to emulate what we do during sales calls.

Before the call, discuss and role-play the Pre-Call plan. After each sales call, review and

conduct a post-call discussion. Start by discussing the positive things and make

suggestions on the areas that need improvement. Remember, there is no criticism that is

constructive. So do not criticize, people are more receptive to suggestions.

It is also vital that we do not shortcut the selling process during field training sales calls.

Follow through with each stage of the selling process and remember, do not sell for them,

rather sell with them!

SERVICE:

Schedule service calls with the new rep. You should enlist the help of either a product

manager or a capable associate if necessary. Service training must include following:

- Perform the minimum service standards.

- Titration and service report record keeping

- Relate & discover with operators.

- Preventative maintenance on RMC equipment.

- Identify continuous improvement opportunities.

- Identify additional application opportunities.


V. PROGRESS INDICATORS

The amount of time that you and other managers spend in training and team selling with sales

people is an investment. As is the case in all investments, there must be a return on your

investment. Therefore, it is important to track progress, evaluate failures and successes, evaluate

the sales rep's effort and determine if the desired results are satisfactory.

The following are several guidelines to assist you in tracking progress:

- Sales goals are being met or are you getting excuses?

- Are action goals being met?

- Check his/her prospect list. Are new ones added all the time or do you see the same

ones?

- Is the sales rep asking questions about applications or are there no questions being asked

at all?

- Do they ask the same questions repeatedly?

- Is he/she arranging demos and closing new sales on his/her own or do they depend on

you to do all the selling?

- Does the rep order samples for demos?

- Is the rep suggesting creative solutions to problems or do they expect answers from you

all the time?

- When quizzed on the CSP components or core products, can they present confidently or

do they stutter, guess or give you a blank stare?

Your time is valuable. Therefore, these questions have to be answered positively or negatively.

The first 90 days are critical. As the saying goes: "You can lead a horse to water, but you can't

make him drink." If we have added salt to the oats to give them the extra incentive and they still

refuse to drink, then you as a trainer have done all you can. Do not waste any more time.

Review your evaluations regarding the specific rep and his/her plan with your management team.

It is also important to remember that although a particular rep may not be showing progress in

some product division, they may be a producer in other product lines which makes him/her a

valuable part of the team. And the ultimate goal is the team goal. If results aren't being met but

the effort is evident, you may need to adjust or change the plan. The goals must stay the same.

Measurable progress must be achieved in reasonable time or substantial changes must be made.


Summary

In providing a new hire sales rep with a complete training program, the manager knows that

he/she has given the new hire all the tools and support needed to be a successful RMC sales

professional.

The success or failure of the new rep is now totally based on his/her own desire to succeed,

intelligence and drive to learn the concepts of creative chemistry, and develop creative solutions,

and the effort she/he is willing to put forth in order to succeed.

If progress is not evident, some reps will resign of his/her own accord. However, most will not.

It is the manager’s decision and responsibility to terminate or keep the new hire within the 60

days training and evaluation period.

If termination is the proper course of action, then make sure that the proper procedures of

termination are followed to avoid any unnecessary appearance of unfairness or legal

complications. Discuss the process with the Group Vice President and Talent Management. See

Chapter 8 for Performance Improvement Plan and Performance Appraisal guidance.

On the positive side, we know that if the new rep has the desire to succeed and is willing to put

in the effort, this training program will serve its purpose in developing them from the Dependent

Stage to the Interdependent Stage. Thus, the addition of another member to RMC’s professional

sales team is achieved.


Expense Guidelines 1) MILEAGE (where pay package allows):

a) Mileage begins from the first stop and ends with the last stop. Reimbursement rate is defined in your pay package. Daily mileage logs must accompany expense account form for payment, listing miles driven per day or trip, location(s) visited and purpose of trip. This information should be written on Page 2 (Explanation Page) of the expense report.

b) MILEAGE TO AND FROM OFFICE IS NOT REIMBURSABLE IF THAT IS THE OFFICE WHERE THE INDIVIDUAL IS BASED.

2) GIFTS, GRATUITIES:

a) Company policy precludes the giving of any gifts or gratuities to any customer, prospect or employee without the explicit approval of the Division Vice President.

b) Entertainment such as golf, hockey, football, baseball games, etc are only reimbursable if pre-approved by Division Vice President and submitted with proper documentation after the event.

3) CUSTOMER LUNCHES:

a) OCCASIONALLY acceptable, but should be the exception. b) Detailed ORIGINAL receipts with specific information on the company, employee names and

business topics reviewed at the lunch must be included for reimbursement. No reimbursement will be made with “tear-off” receipts. Only credit card or cash register receipts are acceptable under IRS regulations.

4) EMPLOYEE MEALS:

a) Manager may OCCASIONALLY purchase a meal for the employee, but not on a routine basis. Section 5 limits apply for each person. This should be reported per section 5e.

b) Detailed documentation as defined in 3b must accompany the receipt for reimbursement. 5) MEALS AWAY FROM HOME:

a) Breakfast Maximum $10.00 + tip + tax. b) Lunch Maximum $12.00 + tip + tax Only with Overnight Stays c) Dinner Maximum $35.00 + tip + tax. d) If charges exceed these maximum caps, only list the cap as the reimbursable expense. Tips

should not exceed 15%. e) When you submit reimbursable business meals, you must fill out the back-side of the expense

report which includes not only who you had the meal with, but also where you ate and what business was discussed. Without all these components, your expense report will be returned.

f) No reimbursement will be made with “tear-off” receipts. ORIGINAL detailed receipts must be submitted.

6) HOTEL/MOTEL:

a) Refer to RMC Travel Policy for corporate numbers and information. b) Maximum acceptable hotel rate is $120/night plus applicable taxes. c) Exceeding the Maximum will only be considered in major metropolitan areas where lower priced

options are not available, with prior approval of the Division Vice President or President. d) Hotel/Motel bills will be reimbursed only for lodging, meals, and tax expenses. Exclude

incidentals such as mini-bar, movies, phone calls, etc. ORIGINAL receipt must be submitted. e) Refrain from charging phone calls to your room. This is very expensive and will NOT normally be

reimbursed. 7) RMC will not reimburse any expense claims in excess of $10.00 without proper ORIGINAL

receipts. 8) CAR RENTALS:

a) Refer to RMC Travel Policy for Corporate numbers and information.


Expense Guidelines (cont’d)

9) AIR TRAVEL:

a) All air travel must be booked through Van Zile Travel preferably using their online booking tool or, if necessary, an agent at 585-244-1100 or 1-800-836-8110, ask for someone on the Rochester Midland Team.

b) Division Vice President or President must approve trips prior to purchase of ticket(s). c) No more than two (2) RMC employees are to travel on the same flight at any time. Additionally,

no two (2) senior managers are to fly together at any time. Exceptions to this rule require President approval.

10) BUSINESS TELEPHONE CALLS:

a) RMC will reimburse managers and sales reps for reasonable business calls made from their home or mobile/cellular phones up to the cap limit, assuming this is part of your pay package. The original total telephone bill with highlighted long distance business calls must be submitted for payment approval. Charge ONLY business portions to RMC, meaning applicable long distance charges.

b) Specific business-related telephone caps for home and cellular/mobile telephones and faxes must be followed, as per your pay package.

c) Base rate charges for home telephones will not be covered as reimbursable expenses. d) If your pay package includes this reimbursement, only current charges will be paid, past-due

charges will not be considered for reimbursement. 11) EXPENSE REPORTS

a) Expense reports should be submitted each week. b) Expense reports that are filed later than 30 days after the last trip date are not reimbursable. c) Expense reports must be submitted on the proper form. d) Any expenses listed under Transportation require a detailed explanation, on Page 2, for

reimbursement. e) Any expenses listed under Business Meals on the Expense Report require a receipt and detailed

explanation, on Page 2, for reimbursement. f) Any Miscellaneous supply purchases on the Expense Report require a receipt and detailed

explanation, on Page 2, for reimbursement. g) ORIGINAL supporting receipts must be attached, for processing. G. A. Paynter

President & COO


RMC TRAVEL POLICY

I. GENERAL POLICY STATEMENT RMC's policy is to reimburse an employee for reasonable expenses incurred during

ordinary business activity carried out at the Company's request or in its best interest, following Company guidelines at all times.

II. SUMMARIES OF POLICIES BY EXPENSE CATEGORIES 1. Transportation to and from business appointments and meetings outside the office is

a reimbursable business expense. Expenses incurred while commuting between home and the normal office location are not reimbursable. For air travel, trips must be scheduled with the approved RMC travel agency (Van Zile Travel preferably with their online booking tool – Concur - or, if necessary, an agent) and must be approved by the Division Vice President, or President prior to ticketing.

2. Hotel and Motel expenses are reimbursed when an employee must be away from

home overnight for business reasons and according to Expense Guidelines. 3. Meals will be reimbursed when associated with business travel away from home or

when a business situation requires that a non-employee be provided a meal. See Expense Guidelines.

4. Approved meeting expenses will be reimbursed or paid directly to the vendor when

approved in writing by the cost center manager responsible for and present at the event. An itemized receipt for all expenses will be required to document the place and business purpose of the meeting.

III. AIR TRAVEL

1. Van Zile Travel is our exclusive travel agency. Most trips should be booked using their online booking tool (Concur). Additionally, Van Zile has a team of agents dedicated to RMC. Ask for someone on the “Rochester Midland Team”. Team members are listed below. If they are not available, your call will be forwarded to another agent.

Van Zile Travel Office hours: Mon - Fri 7:30a.m.- 7:00p.m. EST 3540 Winton Place Rochester, NY 14623 Phone: 585-244-1100 Concur Help Desk: 877-443-5515 M-F 8:30 am – 7 pm EST

800-836-8110 Fax 585-244-3410 Email: [email protected] [email protected] Website: www.vanzile.com Emergency: 877-443-5766 - After hours emergencies ONLY Rochester Midland Team Peggy x2790 [email protected] Meghan x2774 [email protected] Erin x2770 [email protected] Diane x2792 [email protected]


2. All travel must be approved by the Division Vice President, or the President

prior to ticketing. PLAN AHEAD! Except in emergencies, air fares should be planned and reserved at least two weeks in advance.

3. There are to be no more than two (2) RMC employees traveling on the same

flight at any time. Additionally, only one (1) senior manager per flight at any time. Any deviations from this policy must be approved by the President.

4. Air Travel is to be economy class or equivalent. Travel arrangements should be

made sufficiently in advance to obtain the lowest discount fare. (Discounts may save as much as 50% of the normal fare cost.) Coast-to-Coast travel may require that you stay over a Saturday to obtain lowest rate. RMC will pay for lodging/meals.

Van Zile Travel/Concur uses RMC's travel policy as a guideline in making your

arrangements and will report your travel expenses (air, car, lodging) to RMC on a daily basis. Any deviation from the lowest fare they are able to obtain will be included in their report and you will be asked to explain the reason for the deviation. In the absence of an acceptable explanation, you may be liable for the excess cost.

5. Van Zile/Concur will email your itinerary to you. You MUST review it when

received to ensure it is what you wanted. 6. If for any reason, you are unable to use a ticket/reservation, advise Van Zile Travel

ASAP. Van Zile will “bank” these tickets and use them whenever it is possible. In some cases, you will be able to exchange an entire non-refundable ticket towards another non-returnable ticket of greater value. RMC will then pay the fare difference plus a fee. Ask the travel agent about any restrictions regarding unused tickets. Each airline has different requirements.

IMPORTANT: If you purchase a non-refundable airline ticket and

find that you need to cancel, call Van Zile Travel by 7:00 p.m. EST

the next business day after booking the ticket and they can void the

transaction, in most cases.

Any employee wishing to "upgrade" to other than economy class may do so by

paying the excess cost.

7. NO AIRLINE TICKETS ARE TO BE CHARGED TO PERSONAL CREDIT

CARDS. ALL PURCHASES OF AIRLINE TICKETS MUST GO ON

RMC’S BTA ACCOUNT WITH VISA. NO EXCEPTIONS WITHOUT

APPROVAL OF THE PRESIDENT.

8. Frequent Flyer Programs. Our arrangement with Van Zile Travel is one of the least

cost routing. When scheduling air travel, you will be asked for destination and time schedules. The airline will be established by the agency. Legitimately earned frequent flyer miles obtained through the least cost routing policy are yours to keep. However, the abuse of the requirement for least cost routing or the scheduling of unnecessary trips for purposes of accumulating frequent flyer miles will result where applicable in a personal chargeback of the excess cost.


V. ACCOMMODATIONS 1. If Traveler is booking a hotel IN CONJUNCTION with airfare, they are requested to

use Van Zile Travel/Concur to book. Van Zile will find affordable cost lodging in any city, per RMC guidelines.

2. If Traveler is booking hotel or rental car ALONE, with NO airfare, they should call an

agent at Van Zile Travel directly. 3. Van Zile/Concur will email your hotel reservations to you. You MUST review

this when received to ensure it is what you wanted.

4. Hotels will generally hold your reservation only until 6 p.m., unless you guarantee the reservation with a credit card for late arrival. The only drawback to this is if you don't show up and you haven't canceled the reservation in advance, the hotel will charge you for the first night.

5. Hotel charges will be charged to your personal credit card and are reimbursable on

an Expense Report with proper approvals. VI. MEALS RMC will reimburse an employee for reasonable meal expenses associated with

business travel away from home. RMC Expense Guidelines apply. VII. CAR RENTALS 1. To book a rental car with NO airfare, call an agent at Van Zile Travel directly. 2. Car rentals may be booked in CONJUNCTION with your other travel plans (airfare)

through Van Zile Travel/Concur. In general, auto rentals should be midsize, intermediate or compact, depending on the specific circumstances. No rentals for premium, luxury or sports cars are allowed. RMC has accounts with several car rental companies:

PREFERRED: National Car Rental Account # XZ29232 PREFERRED: Enterprise Account # XZ29232 Hertz Account # 398849 Budget CorpRate Account # T319100 If a lower rate is available through another rental company on a special promotion,

you are free to use that company.

2. Check to see if unlimited mileage is available at the rate you are being charged. 3. Car rentals will be charged to your personal credit card and are reimbursable on an

Expense Report with proper approvals.

4. When renting a car, say "yes" to collision damage (or loss damage) insurance unless you are charging to a credit card which provides primary insurance coverage. Say


"no" to both Personal Accident Insurance and Personal Effects Protection. American Express usually provides this primary coverage, so decline the Collision Damage Waiver (or similar option) offered by the rental agency when charging to American Express.

American Express and Diners Club credit cards offer primary coverage for collision or loss damage. If your credit card coverage is not primary, you should say "yes" to the collision or loss damage insurance. Secondary coverage requires that you put claims through your personal insurance first.

5. Credit Card Insurance Coverage. American Express and Diners Club credit cards

offer primary coverage of collision or loss damage. If coverage is not primary, you should still say yes to the collision or loss damage insurance. Secondary coverage requires that you put claims through your personal insurance first.

6. Return all rental cars with a full gas tank. VIII. TELEPHONE CALLS For non-sales employees who may be required to travel for business, business toll

charges are reimbursable. When travel takes you away from home, short phone calls to the employee's home are reimbursable, as approved by your supervisor.

For sales employees, see the Expense Guidelines. IX. DISCOUNT CARDS If you belong to AARP or Triple A, discounted hotel accommodations and car rental

rates are often made available to you. If you are 55 or older, you should get an AARP Card. Please be sure to include these membership numbers on the Traveler Profile you submit on Concur.


VAN ZILE TRAVEL

Office Hours: Monday – Friday 7:30 a.m. – 7:00 p.m. EST

Phone Numbers: Local Rochester 585-244-1100 Field (toll free) 800-836-8110 Fax 585-244-3410 Concur Help Desk 877-443-5515 Email [email protected] Website www.vanzile.com After hours emergency 877-443-5766 (Use only for after hours EMERGENCY)

Rochester Midland Team at Van Zile: Peggy x2790 [email protected] Erin x2770 [email protected] Meghan x2774 [email protected] Diane x2792 [email protected]

When calling Van Zile, ask for someone on the Rochester Midland Team.

Hotel Reservations: When booking hotel reservation ALONE, with no airfare, call an agent directly at Van Zile

Travel.

When booking a hotel in conjunction with airfare, reservation should be made online via

Concur.

Car Rentals: -Use Concur online when reserving rental cars WITH airfare -Call a Van Zile Travel agent directly to reserve rental car WITHOUT air reservations. -PREFERRED: Enterprise Account # XZ29232 -PREFERRED: National Car Rental – RMC Contract # XZ29232 -Hertz Account # 398849 -Budget CorpRate Account # T319100 Reminders:

1. Collision Damage Coverage (also referred to as Loss Damage Waiver). a. Say “yes” unless charging to a credit card that provides primary insurance

coverage. b. Say “no” if using your Corporate American Express card.

2. Personal Accident Insurance (PAI) – say “no”. 3. Personal Effects Protection (PEP) – say “no”

Attention AARP and AAA Members: discounts are often available through membership. Always ask.


Rochester Midland Corp. Expense Report Manager:

Employee name Employee number Department Date

Sample Form One RMC 12/1/2009

Project Bill to

Field Sales Calls

NOTE: Items in BOLD/ITALICS require explanation on page 2

Date: 12/1/2009 12/2/2009 12/3/2009 12/4/2009 12/5/2009 TOTAL

Bill to: TOTAL

LODGING

Lodging & Hotel 83.50 83.50 $167.00

Laundry

Tips

Lodging total 83.50 83.50 $167.00

MEALS

Breakfast 7.50 8.45 $15.95

Lunch & Snacks

Dinner

Meals total 7.50 8.45 $15.95

BUSINESS NOTE: All items in this category require explanation on page 2

Business meals 34.30 24.28 $58.58

Conference 250.00 $250.00

Entertainment 85.00 $85.00

Business total 34.30 24.28 335.00 $393.58

TRANSPORTATION NOTE: Mileage per day requires detailed documentation on page 2

Airfare

Auto Rental

Auto Maint./Gas

Local Transportation

Tolls/Parking

Number of Miles 288 288

Miles @ $0.210 / mile 60.48 60.48 $120.96

Trans. total 60.48 60.48 $120.96

MISCELLANEOUS NOTE: All entries require a receipt and a detailed explanation on page 2

Telephone & Fax 62.00 $62.00

Supplies non-customer 20.00 $20.00

Postage 15.00 $15.00

Cellular 75.00 $75.00

Small Equip -customer

Testing Supplies-customer

Repairs -customer

Misc. total 172.00 $172.00

TOTAL 60.48 125.30 116.23 335.00 232.48 $869.49

Due employee $869.49

Account Charge Codes - For Administrative Use Only

Co Br/CC Div Account AmtTravel & Hotel

01 54400 537.96 NOTE: This section replaces the yellow Corporate Check Meals & Entertain

01 54420 159.53 Form and will be completed by the department Airfare

01 54430 Administrative Assistant.Tele & Fax

01 55600 62.00Cellular

01 55640 75.00Employee signature Date

Stat & Supply non-customer01 57500 20.00

Postage01 56000 15.00

Small Equip -customer 01 53350

Testing Supp.-customer 01 56250Approval signature Date

Repairs -customer 01 53510

Form #0380 Total 869.49


BUSINESS MEALS & ENTERTAINMENT DETAIL

Date Establishment Note Amount

12/1/2009 $60.48

12/2/2009 $34.30

12/3/2009 $24.28

12/4/2009 $250.00

12/4/2009 $85.00

12/5/2009 $60.48

Date Customer Name Address Amount

Form #0380

Guest & Company Affiliation

Mileage to Erie, PA and Cleveland, OH 288 miles

Herb Fishburn U.S. Cold Storage, Eric PA

Northeast Region Team Meeting

Applebee's, Eric PA

Review corporate accounts program & complete system

survey

Holiday Inn, Wickliffe, OH Review hospital marketing plan

Gail Kovacs VP Facilities University Hospital, Cleveland, OH

Holiday Inn, Wickliffe, OH

Metro Cleveland Hospital Engineers association seminar &

trade show

Attend Cleveland Cavaliers game w/me. Covered terms of

new account contract

Mileage from Cleveland to Rochester

Cust # Description

new hire start-up first 90 days · of the qualities necessary to become a successful rmc sales...

Documents