Salesforce Recruitment and Selection

Management of the Modern Sales Force Marketing 6228

Sales Force Turnover Rates*

Consumer
21% 26%

Industrial
18%

Services
34%

17%

21%
53% 65%

45%

0-5%
*Turnover rates per annum

5-10%

More than 10%

Source: Dartnells 30th Sales Force Compensation Survey (1999), p.187.

Turnover Rates in Selected Industries

Industry Construction Office Equipment Insurance Retail Wholesale (Consumer Goods) Electronics Business Services Pharmaceuticals Banking Real Estate Turnover Rates 1999 13.8% 47.0 .8 51.2 18.5 14.1 26.2 8.3 4.3 11.9

Source: Dartnells 30th Sales Force Compensation Survey (1999), 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 Direct Expense Training Costs Total Costs 16,000 $59,100 7,100 $66,200

Source: Dartnells 30th Sales Force Compensation Survey (1999), p.187.

The Recruiting Process

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

JOB DESCRIPTION FACTORS

Selling Requirements: New account vs. established account Selling through distributors Entertaining customers Level of buying authority Physical activity required Weekends away from home Relocation
Non-selling Tasks: Reports to management Customer service and training Sales promotion

Degree of Responsibility and Authority: Negotiations of pricing

Career Paths: Compensation plan Promotion timing

JOB DESCRIPTION FACTORS

Performance Expectations: Activity level requirements Written proposals Individual vs. team selling One time vs. systems selling 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 Performance Expectations: Travel and entertainment Earnings potential Promotion leaders Minimum sales volume or profits

Characteristics of Salespeople who Fail

Instability of residence
Failure in business within the past two years Unexplained gaps in the persons employment record Recent divorce or marital problems Excessive personal indebtedness; for example, bills could not be paid within two years from earnings on the job

Inside Recruiting

Advantages:
Company employees have established performance records and present themselves as a known entity Recruits from inside require less orientation and training due to familiarity with current products, policies and operations Recruiting within bolsters company morale because employees see opportunities for advancement

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

Selection Tools and Procedures

Application blanks Personal interviews Reference checks Physical examinations Psychological tests
intelligence personality aptitude/skills

Legislation Impacting Recruitment

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

Illegal/Sensitive Questions

Nationality or race Religion Sex and marital status Age Physical characteristics Height and weight Financial situation Arrests and convictions