Recruiting _ Selecting Personnel

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					The Selling Team
 Recruiting and
     Selecting
 Sales Personnel

               Marketing 3345
Recruitment &
                 Recruit       Select    Validating
  Selection
                candidates   prospects   the process
  Planning
 Consumer      Industrial     Services

      21%           18%       34%
              17%
26%

      53%                   21%     45%
                    65%




       0-5%         5-10%         More than
                                  10%

 Sales Force Turnover Rates
              Turnover Rates in Selected Industries

                                                        Turnover
                                                         Rates
             Industry                                    2005

             Construction                                  13.8%
             Office Equipment                              47.0
             Insurance                                       .8
             Retail                                        51.2
             Wholesale (Consumer Goods)                    18.5
             Electronics                                   14.1
             Business Services                             26.2
             Pharmaceuticals                                8.3
             Banking                                        4.3
             Real Estate                                   11.9
Source: Dartnell’s 30th Sales Force Compensation Survey (2005), p.187.
        First Year Cost of a Salesperson in the U.S.

               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 (2005).
Recruiting & Selecting Personnel
Planning Cycle
 •   Job Analysis
      Job Description
      Job Qualifications
       – Research:
         “Sales  - ability to get other
           people to act”
          “Balanced life-styles” are most
           successful
       – Buyers perspective
  Recruiting & Selecting Personnel


Planning Cycle
 •   Job Analysis
      Job Qualifications
       – Sales vs. Technical skills
          -- which is more important?

       – Personality Factors
JOB DESCRIPTION COMPONENTS
Selling Requirements:          Degree of Responsibility and
New account vs. established    Authority:
account                        Negotiations of pricing
                               Entertaining customers
Selling through distributors
Entertaining customers         Career Paths:
Level of buying authority      Compensation plan
Physical activity required     Promotion timing
Weekends away from home
Relocation


Non-selling Tasks:
Reports to management
Customer service and training
Sales promotion
JOB DESCRIPTION COMPONENTS
Performance Expectations:          Performance Expectations:
Activity level requirements        Travel and entertainment

Written proposals                  Earnings potential
                                   Promotion leaders
Individual vs. team selling
                                   Minimum sales volume or
One time vs. systems selling
                                   profits
Type of prospects and customers
One-on-one selling vs. groups
Travel -- how much and what kind
Program or concept selling
Technical knowledge

Educational seminars
Collecting receivables
Marketing plans
What Purchasing Agents Like About Salespeople

           Traits
 Willingness to fight for
               customer:
   Thoroughness/follow
                through:
     Market knowledge/
    willingness to share:
Knowledge of product line:
Diplomacy in dealing with
   operating departments:
             Imagination:

                        0%       25%        50%       75%      100%

                    Percent of Respondents Who Rated Most Valued
Recruiting Sources
 Classified   Ads
  –   Reaches wide audience
  –   Used if high turnover
  –   Tend to over-produce under-qualified
      candidates
 Present    Employees
  –   Familiar w/ company products &
      procedures
  –   Established job histories
  –   Sales as a promotion
  –   Over-rely on previous experience
Recruiting Sources
 Internet   Resume Sites
  –   Reaches wide audience
  –   Will continue to grow in importance
      because of screening options and ease
      of access


Referrals/Networking
  –   Company executives understand needs,
      culture and potential fit for sales
      responsibilities
Recruiting Sources
 Employment     Agencies
 –   best if company pays
 Schools   & Colleges
 –   Poised & easily trained
 –   Lack experience & become bored
 Customers,    Suppliers & Competition
 –   Good if need w/out much training
 –   Legal & ethical issues
 –   Common: insurance, stock broker, office
     equipment, clothing
Recruiting Sources for Salespeople



         Internet Resume Sites                                          87%

     Newspaper advertising                                             83%
Source




           Employee referrals                        45%

         Employment agencies                   37%

         Educational institutes        20%

         Professional societies        20%


                                  0%   25%           50%         75%          100%

                                       Percent of firms using source
                            Direct recruit to control
                           location or phone number

                             Complete application
                                   blanks

                              Conduct screening
         Hiring                  interviews
         criteria
            for                Check credit and
          sales                  background
           jobs
                            Complete psychological
          used               and achievement tests
             to
          guide              Secondary interviews
        selection
         process
                              Make offer for sales
                                  position

                                Physical exam

       Modify hiring
      criteria, tests or     Measure subsequent
   interviewprocedures        success on the job
                                                        Reject

A Model for Selecting Salespeople
RÉSUMÉ ANALYSIS

1.Account for all dates.

2.Examine the number of jobs and
  length of time spent on each job.

3.Reasons for leaving job.

4.Is there a pattern of growth?
Recruiting & Selecting Personnel
Selecting Salespeople
 Typical Interview Questions
 -- what is interviewer trying to determine?
 1. What was the most monotonous job you
 ever had to do?
 What are your values & general
 orientation in life?
 How creative were you in eliminating
 boredom?
Recruiting & Selecting Personnel
2. In thinking about people you like, what is
  it you most like about them?
 Reflects what person is and desires
 to become


3. Up to this point in your life, what do you
  consider to be your biggest
  disappointment?
 Have you done anything? -- more
 active = more disappointments
 Recruiting & Selecting Personnel
4. How willing are you to relocate? To what
 extent are you willing to travel?
 Motivation in wanting job -- involves
 travel

5. How do you feel about the way your
  previous employer treated you?
 How you react to supervision &
 organizational cultures
Recruiting & Selecting Personnel
6. What are your long-term financial
  objectives and how do you intend to
  achieve them?
  Are you realistic & mature?
  Will this company enable you to achieve
  these goals?
7. What was the most difficult decision you
  ever had to make as a leader?
  Were the leadership positions in your
  resume demanding or ceremonial in
  nature?
  What is your leadership style &
  philosophy?
Recruiting & Selecting Personnel
8. Why should we hire you?
  How badly do you want the job?
  What do you think of yourself?
  Do you believe in yourself?

9. Sell me this pen.
  Do you really know how to make a sales
  presentation?
  Did you mention the main product
  benefits?
  Did you ask for the order?
COMMON INTERVIEWER MISTAKES

1.     Failure to establish rapport
2.     Lack of plan
3.     Insufficient time
4.     Not listening
5.     Personal bias
6.     Questions
7.     First impressions
ASKING THE RIGHT QUESTIONS
About two weeks after starting a new job, doubt
creep into your mind. The gap between what you
were told and what’s actually happening gets wider
by the day. When you’re on the job for three weeks,
you say to yourself, “I think I made a mistake.” One
way to avoid making a costly mistake like this is to
ask the right questions when interviewing. What
questions would you ask when applying for a field
sales position to avoid accepting the wrong job?
ASKING THE RIGHT QUESTIONS

1. May I look at your resume?

2. Where will I get my leads?

3. May I review your sales literature?

4. When are your slow times?

5. May I go with you on a sales call?

6. May I visit your marketing department?
TESTING VALIDITY
    Validity of Predictors for Entry-Level Jobs


       Predictor                         Validity

       Ability composite (tests)          .53
       Job tryout                         .44
       Biographical inventory             .37
       Reference check                    .26
       Experience                         .18
       Interview                          .14
       Training and experience ratings    .13
       Academic achievement               .11
       Education                          .10
       Interest                           .10
       Age                                .01
    Recruiting & Selecting Personnel
 Background and Credit Check
 Previous Employer Reference Check
      Dates of Employment?
      What was the Job?
      What type of selling was involved?
      How did the applicant get along with his/her
       manager? Customers? Fellow salespeople?
      How did his/her job performance compare
       others?
      Applicants strongest points? Weaknesses we
       should help him/her overcome?
      Why did s/he leave your company?
      Would you rehire the applicant? Why?
What’s in a Signature?
   Signature                          Interpretation
Small letters such as “a,”            These people tend to be enterprising
“e,” and “o” are more than 1/4 inch   and are usually risk takers, take
in height and farther to the right    charge leaders, and pacesetters.
side of the page.                     They are your typical salesperson.

                                      These people tend to be objective
Small signatures, less than           observers.They keep cool, don’t get
1/8 inch tall with an upright         excited under pressure, and in
slant and placed towards the          general make good listeners and
left hand of the page.                negotiators. They might be better
                                      for high-level sales to established
                                      clients.

Medium-sized signatures               These people are your team players.
(about 1/4 inch).                     Interaction is their byword and they
                                      tend to play strictly by the rules.
                                      They take calculated risks, with
                                      emphasis on the calculations. Not
                                      generally sales types.
Recruiting & Selecting Personnel
                 Physical Exams
   Selling is strenuous and stressful

   What are the physical requirements of the
    job?

   Americans with Disabilitites Act (1992)

   Graphology
WHAT MAKES A SUPER SALESPERSON?
  Personal Computer                    Photographic
  Equipment
    Manufacturer                      Manufacturer

Threshold Competencies                    Threshold
  Competencies
  Communication                 Decisiveness
  *Information Collection               *Information
  Collection
  Personal Sensitivity
  *Organizational Awareness
  *Relationship-building               *Relationship-
  building
  Technical knowledge                 Systematic
  thinking

Differentiator Competencies         Differentiator
  Competencies
  Concern for personal impact         *Focused
  achievement
  *Focused achievement                 Interpersonal
  diagnosis
  Initiative                     Job commitment