Management of the ModernManagement of the Modern

Sales ForceSales Force

Marketing 6228Marketing 6228

Salesforce Salesforce Recruitment and Recruitment and SelectionSelection

*Turnover rates per annum

Sales Force Turnover Sales Force Turnover Rates*Rates*

53%

21%

26%

65%

18%17%

45%

34%

21%

Consumer Industrial Services

0-5% 5-10%More than10%

Source: Dartnell’s 30th Sales Force Compensation Survey (1999), p.187.

Turnover RatesIndustry 1999

Construction 13.8%Office Equipment 47.0Insurance .8Retail 51.2Wholesale (Consumer Goods) 18.5Electronics 14.1Business Services 26.2Pharmaceuticals 8.3Banking 4.3Real Estate 11.9

Source: Dartnell’s 30th Sales Force Compensation Survey (1999), p.187.

Turnover Rates in Turnover Rates in Selected IndustriesSelected Industries

Compensation

(trainee average) $35,500

Benefits (approx.21.5% of

compensation) 7,600

Field Expense 16,000

Direct Expense $59,100

Training Costs 7,100

Total Costs $66,200

Source: Dartnell’s 30th Sales Force Compensation Survey (1999), p.187.

First Year Cost of a Salesperson in the U.S.

The Recruiting ProcessThe Recruiting Process

Mark W. Johnston and Gary W. Marshall, Sales Force Management, McGraw Hill, 2006

JOB DESCRIPTION JOB DESCRIPTION FACTORSFACTORSSelling Requirements:Selling Requirements: Degree of Degree of

ResponsibilityResponsibility

New account vs. establishedNew account vs. established andand Authority:Authority:

account account Negotiations of pricingNegotiations of pricing

Selling through distributorsSelling through distributors

Entertaining customersEntertaining customers Career Paths:Career Paths:

Level of buying authorityLevel of buying authority Compensation planCompensation plan

Physical activity requiredPhysical activity required Promotion timingPromotion timing

Weekends away from homeWeekends away from home

RelocationRelocation

Non-selling Tasks:Non-selling Tasks:

Reports to managementReports to management

Customer service and trainingCustomer service and training

Sales promotionSales promotion

JOB DESCRIPTION JOB DESCRIPTION FACTORSFACTORSPerformance Expectations:Performance Expectations: Performance Performance

Expectations:Expectations:Activity level requirements Activity level requirements Travel and Travel and

entertainmententertainmentWritten proposalsWritten proposals Earnings potentialEarnings potentialIndividual vs. team selling Individual vs. team selling Promotion leadersPromotion leadersOne time vs. systems sellingOne time vs. systems selling Minimum sales Minimum sales

volume orvolume orType of prospects and customersType of prospects and customers profitsprofitsOne-on-one selling vs. groupsOne-on-one selling vs. groupsTravel--how much and what kindTravel--how much and what kindProgram or concept sellingProgram or concept sellingTechnical knowledgeTechnical knowledgeEducational seminarsEducational seminarsCollecting receivablesCollecting receivablesMarketing plansMarketing plans

Characteristics of Characteristics of Salespeople who FailSalespeople who Fail

Instability of residenceInstability of residence Failure in business within the past two Failure in business within the past two

yearsyears Unexplained gaps in the person’s Unexplained gaps in the person’s

employment recordemployment record Recent divorce or marital problemsRecent divorce or marital problems Excessive personal indebtedness; for Excessive personal indebtedness; for

example, bills could not be paid within two example, bills could not be paid within two years from earnings on the jobyears from earnings on the job

Inside RecruitingInside Recruiting

Advantages:Advantages:

– Company employees have established Company employees have established performance records and present themselves as performance records and present themselves as a known entitya known entity

– Recruits from inside require less orientation and Recruits from inside require less orientation and training due to familiarity with current products, training due to familiarity with current products, policies and operationspolicies and operations

– Recruiting within bolsters company morale Recruiting within bolsters company morale because employees see opportunities for because employees see opportunities for advancementadvancement

Facilitating internal recruiting starts with fully Facilitating internal recruiting starts with fully informing human resources of sales staff needsinforming human resources of sales staff needs

Selection Tools and Selection Tools and ProceduresProcedures

Application blanksApplication blanks Personal interviewsPersonal interviews Reference checksReference checks Physical examinationsPhysical examinations Psychological testsPsychological tests

– intelligenceintelligence– personalitypersonality– aptitude/skillsaptitude/skills

Legislation Impacting Legislation Impacting RecruitmentRecruitment

Mark W. Johnston and Gary W. Marshall, Sales Force Management, McGraw Hill, 2006

Illegal/Sensitive Illegal/Sensitive QuestionsQuestions

Nationality or raceNationality or race ReligionReligion Sex and marital statusSex and marital status AgeAge Physical characteristics Physical characteristics Height and weightHeight and weight Financial situationFinancial situation Arrests and convictionsArrests and convictions