Recruitment and Selection of the Sales Force

Sales Force Selection & Strategic Planning

• The sales force is the one group that directly generates revenues for the organization by executing the Co’s strategic marketing plans.

• The selection process should be consistent with the Co’s strategic marketing planning & its sales force planning.– Existing account maintenance v/s new account

development.(Experienced v/s Freshers)– Strategy of promoting from within for the

development of future executives as opposed to hiring older,experienced sales reps at high salaries.

Upstarts & New entrants • Most of the late entrants hire experienced sales

personnel from incumbents to jumpstart their sales & kick in revenues.

• They avoid the costly process of initial screening of the applicants,interviewing,making job offers, on the job training before inducting into the salesforce.

Importance of a Good Selection Program

1. Qualified Salespeople are scarce– Selling does not have the high social prestige of some

other careers e.g. Brand Management– Most MBA’s view selling in a –ve way,associating it

with door-to-door activities or with less than desirable personal traits,such as being pushy,beg or obnoxious.

2. Good Selection improves Sales Force Performance– Making a choice between a salesperson whose

performance is just acceptable v/s outstanding.

3. Good Selection promotes cost savings– Substantial direct cost savings are often generated

when sales force turnover is reduced, as significant costs are incurred before a salesperson reaches productive status v/s plug & play approach.

4. Good selection eases other managerial tasks– Easier to train,supervise & motivate right people for

the sales job.

5. Sales managers are no better than their sales force– One of the ways a manager can outwit the

competition is by having better salespeople.

The Law and Sales Force Selection

• GOI legislation and related regulatory guidelines emphasize two concepts in employment: – Nondiscrimination – Affirmative action.

1. Non Discrimination

• Nondiscrimination requires employers to refrain from discriminating against anyone with regard to age, race, religion, sex, national origin, disability, or status as a veteran—and to eliminate all existing discriminatory conditions, whether intentional or inadvertent.

• Discrimination charges can also be filed against a firm that uses recruitment sources with few people from the protected classes.(Minorities,OBC,Women )

2. Affirmative Action

• Affirmative action requires employers to do more than ensure neutrality—they must make additional efforts to recruit, employ, and promote qualified members of groups formerly excluded.

• These efforts must be made even if that exclusion cannot be traced to discriminatory actions of the employer.

Scope of Sales Force Staffing Process

Establish responsibility for recruiting, selection,

and assimilation

Determine number of people wanted

Conduct job analysis

Prepare job description

Determine hiring qualifications

Identify sources of recruits

Select the source to be used

Contact the recruits

Design a ystem for measuring applicants

Measure applicants against hiring qualifications

Hire the people

Assimilate new people into the sales force

Make selection decisions

Plan for recruiting and selection

Recruit applicants

Select applicants

Establishing Responsibility for Recruiting,Selection, and Assimilation

Determining the No. of People Needed

• Forecast well in advance of the time the people will actually be employed (April- Start of a new FY)

• Avoid the mistake of – Employing more than are needed with the intent of weeding

out as time goes by.– Using performance on the job as an additional selection tool.

• Review any changes in the Co’s strategic marketing plan.– Planned increases & decreases in marketing expenditures.– Overhaul of the Sales Organization.(P&G)– Change of present channels of distribution structure.(Dell)

• Reps needed for changes in the deployment of salespeople: new territories, eliminated territories, realigned territories.

• Promotions out of the sales force.• Expected retirements from the sales force.• Expected turnover, including terminations and resignations.

New territories

Eliminate/ +

combineterritories

Promotions +

Retirements +

Termination/

resignations=

Total newreps

needed

ExpansionintoRajasthan.Repsneeded:

Chattisgarh & MPterritoriescombined.Repseliminated:

2 promotions expected:

2 retirements expected:

1 termination expected:

3 -

1 +

2 +

2 +

1 =

7

Developing a Profile of the Type of People Needed

• There are 3 tasks associated with developing a profile of the type of people wanted:

• Job analysis— the actual task of determining what constitutes a given job.

• Job description—the document that sets forth the findings of the job analysis.

• Job qualifications (sometimes called hiring specifications)—the specific, personal qualifications and characteristics applicants should possess to be selected for the given job.

1. Job Analysis• Different types of sales jobs

– Channel Sales (B2C,B2B)– Personal Selling

• Account/Relationship Management• Market Development/New Account (Cold Canvassing,Telesales)

• Specific skills associated with each of those jobs that will make someone a success or failure.

• An effective analysis of a sales job usually requires extensive observation and interviewing.– Sales Reps– Sales Force Managers– Customers – Other executives who are directly involved with the personal selling

activities of the Co.•

2. Job Description• Title of job—a complete description so there is no vagueness,

especially in a company that has several different types of sales jobs.• Organisational relationship—to whom do the salespeople report?• Types of products and services sold.• Types of customers called on—purchasing agents, engineers, plant

managers,maintenance and so on.• Duties and responsibilities related to the job—planning activities,

actual selling activities, customer servicing tasks, clerical duties, and self-management responsibilities.

• Job demands—the mental and physical demands of the job, such as the amount, of travel(15-20 days in a month), autonomy, and stress.

• Hiring specifications—the qualifications an applicant needs to be hired for the job. While job qualifications technically are not part of a job analysis, there is merit in presenting the job duties and the job qualifications in one document.

3.Job Qualification

• Most difficult part of selection function.• No generally accepted profile for success across

selling positions. • Each company should establish its own

individualized set of hiring requirements for each type of sales job in that firm. e.g.

• Aviva Life Insurance will not hire a lateral untill the individual has earned at least one promotion in the past organization.

Ten traits and abilities of top salespeople

Trait

• Ego strength• Sense of urgency• Ego drive• Assertiveness• Willingness to take risks• Sociability• Abstract reasoning• Sense of skepticism• Creativity• Empathy

Related Ability

• To handle rejection• To complete the sale• To persuade people• To be firm in negotiations• To be innovative• To build relationships• To sell ideas• To question, to be alert• To sell complex products and

ideas• To understand customer needs

Source: Erika Rasmusson, “The 10 Traits of Top Salespeople, “ Sales & Marketing Management, August 1999, pp. 34-37.

Desirable Characteristics for Salespeople

• The following major categories of traits are those for which specifics should be developed:– Mental capacities (planning and problem-solving

ability).– Physical characteristics (appearance,neatness).– Experience (sales and other business experience).– Education (number of years, degrees, majors).– Personality traits (persuasiveness, adaptiveness).– Skills (communication, interpersonal, technological, job-

specific).– Socio-environmental factors (interests, activities,

memberships in organizations).

Methods of Determining Qualification• Study of Job Description• Analysis of Personal History– Large & old Co’s to analyse the personal histories of its

present & past salespeople.– Analyse various characteristics of good & poor sales

reps.– The traits of the good sales reps are then used to

develop a job profile of the kind of person the firm is seeking.

• Characteristics to study personal history– Age,Education,IQ tests,Personality Tests,General

Appearance.

A. Age When Hired B. Previous EducationNumber of Reps Number of Reps

Good Reps

Poor Reps

Total % of Good Reps

Good Reps

Poor Reps

Total % of Good Reps

Under 25

30 70 100 30 Some high school

30 70 100 30

25-35 180 20 200 90 High school graduate

250 25 275 91

36-45 100 50 150 66 Some college

20 80 100 20

46-55 40 60 100 40 College graduate

55 45 100 55

Over 55

10 40 50 20 Postgraduate study

5 20 25 20

Total 360 240 600 Total 360 240 600

Personal History Information can also be analysed using discriminant analysis or multi dimensional scaling in SPSS

Recruiting & its Importance

• Recruiting includes all activities involved in securing individuals who will apply for the job.

• Refers to well planned and well operated system for recruiting applicants.

• Overlooking good sources of prospective salespeople or hiring unsuitable people if done haphazardly.

Sources for recruiting Sales Representatives

Sources of Sales Force Recruits

Current company employees

Other companies Competitors

Customer Others Referrals

Employment agencies Part-time working

Recruiting Sources

The Internet Advertisements Educational Institutions

1. Referrals

• A referral is a recommendation by one individual that another be hired for a position.

• Advantages– They know the job requirements and the recruit.

Chances are pretty good that the recommended candidate will have the necessary skills as well as fit within the company culture.

• Disadavantages– Not getting enough candidate to apply for a position

2. Current Employees

• Some companies recruit their sales force from workers in their offices.

• Advantages– Observed by the Management– These workers are acquainted with the product and

also have been indoctrinated in company policies and programs.

– Their values fit with the company culture. – These candidates are the least costly to recruit and

train.

3. Other Companies: Competitors,Customers,Non Competitors

4. The Internet

5. Educational Institutions

6. Advertisements

7. Employment Agencies

Workforce Diversity???

• Minority Groups• Women

Recruiting Evaluation Matrix

Evaluation Criteria

Consistent with strategic planning? Number

recruitsNumber hired

Percent retained after 3 years

Cost Frequency of use

Rep’s per-formance 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:

Selecting and Hiring Applicants

Selection Tools

Legal Considerations

Application Blanks

Personal Interviews

Interview Structure

Interview Focus

Timing & Method of the Interview

Psychological Testing

References and other Outside Sources

Background Checks

Assessment Centers

The Job Offer Decision

The Hiring Phase

Extending the Offer

Socialisation and Assimilation

Pre Entry Socialisation

Assimilation of New Hires

Relationships

Mentoring New Employees