Chapter 10.
Recruiting Salespeople

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• Building Relationships – Systems Integration
  Value added systems are a new source of income Organization must align itself with the new strategy	Emphasis on
  	Value over technology Relationship over control Customer needs over vendor product
  The role of the sales force is critical
  Implementation of a systems integration strategy requires that salespeople Find new ways to add value to the customer at a more strategic level Develop solid, long-term relationships with customers and other vendors Understand processes in the customer organization Build teams that cross internal and customer lines
  Systems integration requires a new set of sales competencies
  Competency models: Conesco Schoonover Hubbard	Identify the behaviors and traits of excellent performers
  a new tool to help design the processes to select the right people
  Question the old adage "selling is selling" Develop innovative perspectives on hiring, assessing, coaching, training and retention

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• Introduction

  A constant supply of qualified, trained salespeople is crucial Turnover contributes to the need to continuously recruit

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• Recruiting
  Centralized	Decentralized
  Highly technical positions Positions requiring extensive centralized training Sales positions considered the first stepping-stone to management	Local recruiting is important Training is local Local department is somewhat autonomous
  Initial screening	screens out the obviously unqualified done by personnel (HR) department when centralized
  Legal restrictions
  1964 Civil rights act as amended Minorities, older people, women, disabled must have equal opportunity Every job specification must be justified Affirmative action may be required Click this image to find out more

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• Job analysis and description
  Job Analysis
  Job analysis - basis for job description	find study summarize data
  The Firm's Selling Environment	How competitive What types of customer relationships Industry practices for selecting salespeople
  Salesperson's Duties	Sales manager's expectation Marketing manager's expectations Customer's expectations What duties to existing salespeople think they have
  Follow salespeople through at least one cycle Write a preliminary job description Review and revise
  Job description
  Detailed and specific Quantitative statement of duties (quotas) Includes a system of priorities Five components
  Planning	Preparatory work before a call Prospecting and Qualifying requirements Percent of time to be used for planning
  Selling	Number of calls and demonstrations How to write orders How to process completed orders Displays and customer stock checking
  Servicing	Installation Complaints Adjustments Returns		Special offers Collections Credit policies
  Communicating	pass on orders, complaints, requests to management pass on policies, terms and new products to customer Marketing intelligence gathering
  Miscellaneous	Company training and mentoring Customer training Attending customer's sales meetings Text example page 218
  Some On line job descriptions	Sage Publishing Stride Rite Corp Automation Service
  Job specifications
  Spells out for the salesperson exactly what is considered a satisfactory job May be developed on an individual basis Usually lists the characteristics, education and other elements in the "ideal" candidate's background and personality
  A formula for Hiring Sales Manager's Quest
  AT&T's list		Resistance to premature judgement Ability to present facts orally Ability to defend one's position orally Behavior flexibility Persistence
  Insurance Company		Stability Industry Perseverance Compatibility Integrity Sincerity	Loyalty Self-reliance Leadership Adaptability Intellectual honesty
  Mayer & Greenburg		Empathy Understanding  customers motives, feelings and their current situations. Sympathy is simply expressing your pity or sorrow of you customer’s feelings and situation. Emphatic salesperson senses the customers reactions Is able to change pace and make whatever changes are necessary to satisfy the customer and close the sale.
  		Ego Drive A simple, basic human trait that feeds our feelings of self-worth. Ego drives us to perfection. A good salesperson must be motivated by more than monetary reward. The sale - the conquest - provides a powerful means of ego enhancement and award of merit. Because of his or her personality composition, must have sales to satisfy these achievement needs. Self motivated to get the brass ring. They get up everyday and they want to “win the national championship
  A Selling Spectrum A hierarchy of sales positions that may call for different specifications
  Delivery Salesperson Inside order taker Outside order taker Missionary Salespeople Sales Engineer Creative Selling Tangibles Creative Selling Intangibles

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• Sources of salespeople
  Other Departments	Know the company Know the product Good for morale Still must meet specifications
  Present Salesforce	Have lots of outside contacts Know the job and what it takes Know that it would hurt the company and themselves if the wrong person is hired
  Centers of influence	Believes in you company and product Is influential with a number of people Is willing to give you names The names given to you are at least partially qualified
  Educational Institutions	Universities For technical or business skills For future managers Don't recruit overqualified Contact faculty Internships and summer jobs
  University Placement Centers	Advantages
  	Cost effective. No charge to employer or employee Economies of scale: can interview 10-16 applicants per day Applicants are ready to work
  	Disadvantages
  	Applicants may lack experience Must plan ahead to get into the school's schedule Students may have a negative attitude about sales
  The Industry	Trade journals Trade shows
  Hiring from Competitors A Controversial Practice	Advantages
  	Already trained Meets quotas more quickly Has loyal customers that might come Costs less to hire
  	Disadvantages
  	Wants more money (raises selling costs to the whole industry) May move to another firm later Is loyalty important? Must unlearn some bad habits Legal issues
  Suppliers and customers	Both have some knowledge Training could be quicker Already have contacts inside
  Professional associations	Most carry ads Most have web sites
  Armed forces discharge centers	Retirees - Have an income for life can afford to work on commission Short term May have leadership (officer) training May have other skills May understand military buying procedures
  Classified advertisement	Do it consistently and systematically Know where and when Know the message Keep good records
  Employment agencies	OK for some types of positions Establish firm standards Give them specifications Give them advancement opportunities Meet with the agencies and sales managers to review
  Unsolicited applicants	Don't throw them away There could be a good reason why
  The Internet	Can screen applicants by computer Can search resume databases

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• Tips To Help Hire and Motivate Top Talent
  Hire from other industries	New ideas and concepts Product knowledge can be taught
  Keep the carrot within sight and within reach	Reward for different kinds of activity Save the majority for a closed deal
  Don't be afraid to hire someone that does not fit the mold	Forget profiled and stereotyped New faces and styles may help
  Hire people - not experience	Don't hire someone just to save time training them
  Go with your gut, but ...	First impressions are important Compare your impressions with others'
  Check References	If they wont give references then forget about them
  Listen to how they sound on the phone	Customers will hear the "phone voice" first Listen to the "morning" voice and the "afternoon" voice
  Sell the sizzle	Sell all the benefits that your firm offers Don't forget intangibles
  Develop ongoing training	Product knowledge is basic Teach the selling process as well

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• Turnover
  Turnover can be over 100%
  Consequences some experts say that turnover does not effect overall selling performance	Separation costs Cost of finding replacements Training costs for replacements Salary and commission differences Costs of different skill levels Vacant territory costs Continuity (relationships broken) costs
  Measurement problems Independent contractor status may confuse the issue Some firms measure turnover for new people only
  Factors contributing to turnover
  Sales forces in general	Sales force size - turnover increases with size Higher advancement opportunities leads to higher turnover. When they don't get promoted they quit Low compensation Role ambiguity - salesperson doesn't think that they are getting enough information They aren't sure what is expected of them Role conflict - contradicting pressures
  Life Insurance Companies	Average start pay Time required to get to a sales volume Type of compensation Delaying job responsibilities Full time territory Quota commission pay
  Direct Selling Companies	Little advising or supervision Rejection is taken personally Few leads provided Evening and weekend work Straight Commission Uncertainty of sales methods Minimal Training

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• Summary

  Keys to successful recruiting and hiring is consistency risk taking flexibility change A constant supply of qualified, trained salespeople is needed due to Turnover growth promotions job switching