Ch07 - Recruiting and Selecting Sales Personnel

Part IVPart IVSALES FORCE SALES FORCE COMPETENCIESCOMPETENCIES

Part IVPart IVSALES FORCE SALES FORCE COMPETENCIESCOMPETENCIES

Chapter 7:Chapter 7:

Recruiting and Recruiting and Selecting Sales Selecting Sales PersonnelPersonnel

Recruitment Recruitment And SelectionAnd SelectionPlanningPlanning

Recruitment Recruitment And SelectionAnd SelectionPlanningPlanning

RecruitRecruitCandidatesCandidates

RecruitRecruitCandidatesCandidates

SelectSelectProspectsProspects

SelectSelectProspectsProspects

ValidatingValidatingthe Processthe Process

ValidatingValidatingthe Processthe Process

Chapter 7: OutlineChapter 7: Outline

What is Turnover?What is Turnover?

Figure 7-1: Sales Force Turnover RatesFigure 7-1: Sales Force Turnover Rates

78%78%

12%12%10%10%

50%50%

33%33%

17%17%

15%15%

19%19%

66%66%

ConsumerConsumer IndustrialIndustrial ServicesServices

0-10%0-10% 11-16%11-16% More than More than 16%16%

Turnover RatesTurnover RatesIndustryIndustry 19991999

ConstructionConstruction 13.8%13.8%

Office EquipmentOffice Equipment 47.047.0

RetailRetail 51.251.2

Wholesale (Consumer Goods)Wholesale (Consumer Goods) 18.518.5

ElectronicsElectronics 14.114.1

Business ServicesBusiness Services 26.226.2

PharmaceuticalsPharmaceuticals 8.3 8.3

BankingBanking 4.3 4.3

Real EstateReal Estate 11.911.9

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

Turnover Rates in Selected Turnover Rates in Selected IndustriesIndustries

CompensationCompensation (trainee average)(trainee average)$35,500$35,500

Benefits (approx.21.5% ofBenefits (approx.21.5% of compensation)compensation) 7,600 7,600

Field ExpenseField Expense 16,00016,000

Direct ExpenseDirect Expense $59,100$59,100

Training CostsTraining Costs 7,1007,100

TOTAL COSTSTOTAL COSTS$66,200$66,200

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

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

Company Culture and the Company Culture and the Hiring ProcessHiring Process

Develop a hiring process related to Develop a hiring process related to core culture.core culture.

What are the core cultures of these What are the core cultures of these companies?companies?

Aligning People to Core Aligning People to Core Job ResponsibilitiesJob Responsibilities

The Chally Group, a sales consulting company, The Chally Group, a sales consulting company, found that matching a person’s skills set with found that matching a person’s skills set with the skills required by the sales job led to higher the skills required by the sales job led to higher performing salespeople and greater job performing salespeople and greater job satisfaction.satisfaction.

What skill sets are needed for the followingWhat skill sets are needed for the followingsales positions?sales positions?

– Missionary? Missionary? – Sales Support? Sales Support? – New Business?New Business?

Aligning People to Core Aligning People to Core Job ResponsibilitiesJob Responsibilities

Missionary:Missionary:– Technical skills, relationship building Technical skills, relationship building

skills skills

Sales Support:Sales Support: – Empathy, relationship building skillsEmpathy, relationship building skills

New Business:New Business: – Assertiveness, persuasiveness, time Assertiveness, persuasiveness, time

management, ability to closemanagement, ability to close

What Purchasing Agents Like What Purchasing Agents Like About SalespeopleAbout Salespeople

PERCENT OF RESPONDENTSPERCENT OF RESPONDENTSTRAITS WHO RATED MOST VALUEDTRAITS WHO RATED MOST VALUED

Willingness to fight for Willingness to fight for customer:customer:

Thoroughness/follow Thoroughness/follow through:through:

Market knowledge/Market knowledge/willingness to willingness to

share:share:

ImaginatioImagination:n:

Knowledge of product line:Knowledge of product line:

Diplomacy in dealing Diplomacy in dealing withwith

operating departments:operating departments:

0%0% 25%25% 50%50% 75%75% 100%100%

Recruiting SourcesRecruiting Sources

Classified AdsClassified Ads– Reaches wide audience Reaches wide audience

(trade publications may narrow the reach)(trade publications may narrow the reach)– Used if high turnoverUsed if high turnover– Tend to over-produce under-qualified Tend to over-produce under-qualified

candidatescandidates Present EmployeesPresent Employees

– Familiar w/ company products & proceduresFamiliar w/ company products & procedures– Established job historiesEstablished job histories– Sales as a promotionSales as a promotion– Over-rely on previous experienceOver-rely on previous experience

Recruiting SourcesRecruiting Sources

Referrals/Networking Referrals/Networking – Company executives understand needs, culture and Company executives understand needs, culture and

potential fit for sales responsibilitiespotential fit for sales responsibilities

Employment AgenciesEmployment Agencies– best if company paysbest if company pays

Schools & CollegesSchools & Colleges– Poised & easily trainedPoised & easily trained– Lack experience & become boredLack experience & become bored

Customers, Suppliers & CompetitionCustomers, Suppliers & Competition– Good if need w/out much trainingGood if need w/out much training– Legal & ethical issuesLegal & ethical issues– Common: insurance, stock broker, office equipment, Common: insurance, stock broker, office equipment,

clothingclothing

Figure 7-3: A Model for Selecting SalespeopleFigure 7-3: A Model for Selecting Salespeople

Direct recruit to controllocation or phone numberDirect recruit to control

location or phone number

Complete applicationblanks

Complete applicationblanks

Conduct screeninginterviews

Conduct screeninginterviews

Check credit andbackground

Check credit andbackground

Complete psychologicaland achievement tests

Complete psychologicaland achievement tests

Secondary interviewsSecondary interviews

Make offer for salesposition

Make offer for salesposition

Physical examPhysical exam

Measure subsequentsuccess on the job

Measure subsequentsuccess on the job

HiringHiringcriteriacriteria

forforsalessalesjobsjobsusedused

totoguideguide

selectionselectionprocessprocess

HiringHiringcriteriacriteria

forforsalessalesjobsjobsusedused

totoguideguide

selectionselectionprocessprocess

Modify hiringcriteria, tests or

Interview procedures

Modify hiringcriteria, tests or

Interview procedures RejectRejectRejectReject

1.1. Account for all dates.Account for all dates.

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

3.3. Reasons for leaving job.Reasons for leaving job.

4.4. Is there a pattern of growth?Is there a pattern of growth?

RESUME ANALYSISRESUME ANALYSIS

QUESTIONS ABOUT QUESTIONS ABOUT INTERVIEWERSINTERVIEWERS

What Research ShowsWhat Research Shows Does extensive interviewing experience help an Does extensive interviewing experience help an

interviewer to make better judgments?interviewer to make better judgments?

Does pressure to recruit impair the judgment of Does pressure to recruit impair the judgment of experienced interviewers less than inexperienced experienced interviewers less than inexperienced interviewers?interviewers?

When interviewing multiple recruits, do interviewers When interviewing multiple recruits, do interviewers tend to use previous applicants as the standard of tend to use previous applicants as the standard of comparison for subsequent applicants?comparison for subsequent applicants?

Will the positive effects of good appearance offset an Will the positive effects of good appearance offset an unfavorably rated personal history for a recruit?unfavorably rated personal history for a recruit?

QUESTIONS ABOUT QUESTIONS ABOUT INTERVIEWERSINTERVIEWERS

What Research ShowsWhat Research Shows How much of the factual information presented in an How much of the factual information presented in an

interview will the interviewer remember immediately interview will the interviewer remember immediately after a short interview if no notes are taken?after a short interview if no notes are taken?

How will lack of notes and factual recall affect the How will lack of notes and factual recall affect the interviewer’s rating of the recruits interviewed?interviewer’s rating of the recruits interviewed?

How reliably can a group of interviewers rate a recruit’s How reliably can a group of interviewers rate a recruit’s qualifications for a job?qualifications for a job?

How reliably can a group of interviewers rate future job How reliably can a group of interviewers rate future job performance by a recruit?performance by a recruit?

1.1. Failure to establish rapportFailure to establish rapport

2.2. Lack of planLack of plan

3.3. Insufficient timeInsufficient time

4.4. Not listeningNot listening

5.5. Personal biasPersonal bias

6.6. QuestionsQuestions

7.7. First impressionsFirst impressions

COMMON INTERVIEWER COMMON INTERVIEWER MISTAKESMISTAKES

TYPICAL INTERVIEW TYPICAL INTERVIEW QUESTIONSQUESTIONS

What is interviewer trying to What is interviewer trying to determine?determine?

1.1. What was the most monotonous What was the most monotonous job you ever had to do?job you ever had to do?

– What are your values and general What are your values and general orientation in life?orientation in life?

– How creative were you in eliminating How creative were you in eliminating boredom?boredom?

TYPICAL INTERVIEW TYPICAL INTERVIEW QUESTIONSQUESTIONS

2.2. In thinking about people you like, what is In thinking about people you like, what is it you most like about them?it you most like about them?– Reflects what person is and desires to becomeReflects what person is and desires to become

3.3. Up to this point in your life, what do you Up to this point in your life, what do you consider to be your biggest consider to be your biggest disappointment?disappointment?– Have you done anything? -- more active = more Have you done anything? -- more active = more

disappointmentsdisappointments

4.4. How willing are you to relocate? How willing are you to relocate? To what extent are you willing to travel?To what extent are you willing to travel?– Motivation in wanting job -- involves travelMotivation in wanting job -- involves travel

TYPICAL INTERVIEW TYPICAL INTERVIEW QUESTIONSQUESTIONS

5.5. How do you feel about the way your How do you feel about the way your previous employer treated you?previous employer treated you?

– How you react to supervision & organizational culturesHow you react to supervision & organizational cultures

6.6. What are your long-term financial What are your long-term financial objectives and how do you intend to objectives and how do you intend to achieve them?achieve them?

– Are you realistic & mature?Are you realistic & mature? – Will this company enable you to achieve these goals?Will this company enable you to achieve these goals?

7.7. What was the most difficult decision you What was the most difficult decision you ever had to make as a leader?ever had to make as a leader?

– Were the leadership positions in your resume Were the leadership positions in your resume demanding or ceremonial in nature?demanding or ceremonial in nature?

– What is your leadership style & philosophy?What is your leadership style & philosophy?

TYPICAL INTERVIEW TYPICAL INTERVIEW QUESTIONSQUESTIONS

8.8. Why should we hire you? Why should we hire you?– How badly do you want the job?How badly do you want the job?– What do you think of yourself?What do you think of yourself?– Do you believe in yourself?Do you believe in yourself?

9.9. Sell me this pen. Sell me this pen.– Do you really know how to make a Do you really know how to make a

sales presentation?sales presentation?– Did you mention the main product Did you mention the main product

benefits?benefits?– Did you ask for the order?Did you ask for the order?

ASKING THE RIGHT ASKING THE RIGHT QUESTIONSQUESTIONS

About two weeks after starting a new job, doubts About two weeks after starting a new job, doubts

creep into your mind. The gap between what you creep into your mind. The gap between what you

were told and what’s actually happening gets were told and what’s actually happening gets

wider by the day. When you’re on the job for wider by the day. When you’re on the job for

three weeks, you say to yourself, three weeks, you say to yourself, “I think I made a “I think I made a

mistake.”mistake.” One way to avoid making a costly One way to avoid making a costly

mistake like this is to ask the right questions mistake like this is to ask the right questions

when interviewing. What questions would you when interviewing. What questions would you

ask when applying for a field sales position to ask when applying for a field sales position to

avoid accepting the wrong job?avoid accepting the wrong job?

ASKING THE RIGHT ASKING THE RIGHT QUESTIONSQUESTIONS

1.1. May I look at your resume? May I look at your resume?

2.2. Where will I get my leads? Where will I get my leads?

3.3. May I review your sales literature? May I review your sales literature?

4.4. When are your slow times? When are your slow times?

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

6.6. May I visit your marketing May I visit your marketing department?department?

PREVIOUS EMPLOYER PREVIOUS EMPLOYER REFERENCE CHECK REFERENCE CHECK QUESTIONSQUESTIONS Dates of Employment?Dates of Employment?

What was the Job?What was the Job?

What type of selling was involved?What type of selling was involved?

How did the applicant get along with his/her How did the applicant get along with his/her manager? Customers? Fellow salespeople?manager? Customers? Fellow salespeople?

How did his/her job performance compare others?How did his/her job performance compare others?

Applicants strongest points? Weaknesses we Applicants strongest points? Weaknesses we should help him/her overcome?should help him/her overcome?

Why did s/he leave your company?Why did s/he leave your company?

Would you rehire the applicant? Why?Would you rehire the applicant? Why?

Table 7-2Table 7-2 Validity of Predictors for Entry-Level Validity of Predictors for Entry-Level JobsJobs

PredictorPredictor ValidityValidity

Ability composite (tests)Ability composite (tests) .53.53Job tryoutJob tryout .44.44Biographical inventoryBiographical inventory .37.37Reference checkReference check .26.26ExperienceExperience .18.18InterviewInterview .14.14Training and experience ratingsTraining and experience ratings .13.13Academic achievementAcademic achievement .11.11EducationEducation .10.10InterestInterest .10.10AgeAge .01.01

What’s in a Signature?What’s in a Signature?

Small letters such as “a,” “e,” and “o” are more than ¼ inch in height and farther to the right side of the page.

These people tend to be enterprising and are usually risk takers, take charge leaders, and pacesetters. They are your typical salesperson.

Small signatures, less than 1/8 inch tall with an upright slant and placed towards the left hand of the page

These people tend to be objective observers. They keep cool, don’t get excited under pressure, and in general make good listeners and negotiators. They might be better for high-level sales to established clients.

Medium-sized signatures (about 1/4 inch).

These people are your team players. 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.

WHAT MAKES A SUPER WHAT MAKES A SUPER SALESPERSON?SALESPERSON?

Personal ComputerPersonal ComputerManufacturerManufacturer

Photographic Equipment Photographic Equipment ManufacturerManufacturer

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

*Organizational awareness Persistence

Personal time-planning Presentation skills

Quick thinking Stress tolerance

Targeted persuasion *Use of influence strategies

*Use of influence strategies

* These traits were found in salespeople at both companies.* These traits were found in salespeople at both companies.

Table 7-5Table 7-5 Typical Interview QuestionsTypical Interview Questions

Why should we hire you?Why should we hire you?

Regardless of the company and type of sales position for which you may interview, there are some interview questions that are typically asked. You may not be asked each of these questions in every interview, but you should be prepared to answer them all. After reading each question, think about what the interviewer’s purpose may be in asking the question. What is he or she trying to determine? What should your response be to each question?

Table 7-5Table 7-5 Typical Interview QuestionsTypical Interview Questions

Why should we hire you?Why should we hire you? What was the most monotonous job you ever had to do? In thinking about the people you like, what is it you like most about

them?

Up to this point in your life, what do you consider to be your biggest disappointment?

How willing are you to relocate? To what extent are you willing to travel?

How do you feel about the way your previous employer treated you?

What are your long-term financial objectives, and how do you propose to achieve them?

What was the most difficult decision you ever had to make as a leader?

Why should we hire you?

Sell me this pen.

JOB DESCRIPTION JOB DESCRIPTION FACTORSFACTORS

Selling RequirementsSelling Requirements New vs. established account

selling Selling through distributors Entertaining customers Level of buying authority Physical activity required Technical knowledge Relocation

Written proposals Individual vs. team selling One time vs. systems selling Type of prospects/customers One-on-one vs. group selling Travel: how much & what kind Program or concept selling

Nonselling TasksNonselling Tasks Reports to management Customer service and training Sales promotion

Educational seminars Collecting receivables Marketing plans

Degree of ResponsibilityDegree of Responsibility Negotiations of pricing Travel and entertainment

Career PathsCareer Paths Compensation plan Promotion timing

Earnings potential Promotion leaders

Performance ExpectationsPerformance Expectations Activity level requirements Minimum sales volume or

profits