Recruitment and Selection of the Sales Force
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Transcript of Recruitment and Selection of the Sales Force
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