1. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 5 Profiling and Recruiting Salespeople Eagles don’t flock. You have to find them one at a time. Yogi Berra

2. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Recruiting and Selection Problems Lack of resources Lack of job specification and qualifications Qualifications not objectively established Lack of managerial training Personal prejudices Search for managerial talent

3. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Key Laws and Regulations Affecting a Sales Force Civil Rights Act of 1964 Federal Contract Compliance, Executive Orders Age Discrimination in Employment Act (1967) Fair Employment Opportunity Act (1972) Rehabilitatin Act of 1973 Vietnam Era Veterans Readjustment Act (1974) Uniform Guidelines on Employment Selection Procedures (1978) Americans with Disabilities Act (1990)

4. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Fig. 5-2 Sales Force Staffing Process: Plan for Recruiting & Selection Establish Responsibility for Recruiting, Selection and Assimilation Determine Number of People Wanted Conduct Job Analysis Prepare Job Description Recruit Applicants Select Applicants Design a System For Measuring Applicants Hire The People Assimilate New People Into Sales Force Determine Hiring Qualifications Measure Applicants Against Hiring Qualifications Make Selection Decisions

5. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Workload Analysis Number of reps needed = Total workload in market Workload one rep can handle Market workload: Customer Number of Calls Total class accounts per year calls x = A 400 20 8,000 B 600 10 6,000 14,000 One rep’s workload: Calls/day x Selling days/week x Working weeks/year = Annual workload 5 x 5 x 50 = 1250 Number of reps needed = = 112 reps 14,000 1250

6. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Fig 5-3 Determining the Number of Salespeople Needed Strategic Plans New - Eliminated/ + Promo- + Retirements + Terminations/ = Total new territories combined tions resignations reps needed territories Expansion MN and RI 2 promo 2 retirements 1 termination New reps into Texas. Territories expected expected expected needed 4 - 1 + 2 + 2 + 1 = 8

7. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Content of Job Description Title The nature of the product or service to be sold Type of customers to be called on, frequency of calls, and types of personnel to be contacted Specific tasks and responsibilities to be carried out Organizational relationships Mental and physical demands of the job Environmental pressures and constraints that might affect the job

8. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Fig. 5-4 Ten traits and abilities of top salespeople Trait Related Ability Ego strengthTo handle rejection Sense of urgencyTo complete the sale Ego driveTo persuade people AssertivenessTo be firm in negotiations Willingness to take risksTo be innovative SociabilityTo build relationships Abstract reasoningTo sell ideas Sense of skepticismTo question, to be alert CreativityTo sell complex products and ideas EmpathyTo understand customer needs Source: Erika Rasmusson, “The 10 Traits of Top Salespeople, “ Sales & Marketing Management, August 1999, pp. 34-37.

9. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Recruiting for the Team Willingness to share Cooperative Trusting Empathetic Accepting of others Receptive to others ideas Selflessness Leadership skills

10. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Recruiting Sources of Sales Reps SourceComment Referrals:Candidates and position are known to person making referral. Existing sales force is an excellent source for referrals as they know their job requirements and can identify good matches. Current employeesCompany employees know the company and its products. Other Companies: CompetitorsCompetitors know the customers and are familiar with your products. CustomersCustomers know your products and your company. SuppliersSuppliers know your company and your products. The InternetRecruits may come through the company’s own website – or through specialized Internet recruiting sites, such as Monster.com. Educational institutionsPrimarily used when recruiting inexperienced people. Students are usually actively involved in a job search, and this provides an efficient place to screen large numbers of available candidates. AdvertisementsProduces the greatest number of candidates, but the average quality is sometimes lower. Employment agenciesThe agency is often more costly than other methods, but it will do a large part of the initial screening. Part-time workersThese workers are easy to contact, readily available, and can work flexible hours. This is a good source for in-home selling. Voluntary applicantsThese applicants are interested in your firm and probably possess a high degree of self-confidence, self-reliance, and initiative.

11. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Fig. 5-8 Recruiting Evaluation Matrix Evaluation Criteria Consistent with strategic planning? Number recruits Number hired Percent retained after 3 years CostFrequency 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: