9

Sales Force Recruitment and Selection

Value of Hiring Good Employees

$1,400,000 $1,200,000

Average Annual Sales

$1,000,000 $800,000 $600,000 $400,000 $200,000 $0 No Testing Standardized Test Highly-Predictive Standardized Test
Source: HR Chally Group (2007). 9-2

Average Hire

Poor Hire

Key issues that drive recruitment and selection of salespeople Identify who is responsible for recruitment and selection Understand a job analysis and how selection criteria are determined Define sources for new sales recruits Explain selection procedures Understand equal opportunity requirements
9-3

9.1
The decision process for recruiting and selecting salespeople

9-4

Recruiting Responsibility?

Depends on size of sales force, kind of selling involved First-level sales managers

Straightforward sales jobs New recruits need no special qualifications Turnover rates are high

Recruiting specialist may assist when a firm must be selective Personnel executives or top-level managers often assist if sales force prepares individuals to be sales or marketing managers
9-5

Job Analysis and Selection Criteria

Job analysis determines activities, tasks, responsibilities and environmental influences are involved Job description details findings of job analysis Statement of job qualifications describes personal traits and abilities needed to perform
9-6

Sources for Job Analysis and Description

Observe and interview current staff to determine what they actually do Interview sales managers who supervise people in the job to determine what they think job occupants should be doing Use the job description creation process as a means of reaching consensus on job content, activities and training needs
9-7

Content of the Job Description

Nature of product(s) or service(s) being sold Types of customers Specific tasks and responsibilities Relationship between the sales position and others within the organization Mental and physical demands of the job Environmental pressures and constraints
9-8

Determining Job Qualifications and Selection Criteria

Most difficult part of recruitment and selection Need specific criteria to guide the selection

Examine job description Evaluate personal histories of current sales force to identify differentiating characteristics among high performers
9-9

Salespeople who Fail

Instability of residence Failure in business within past two years Unexplained gaps in employment record Recent divorce or marital problems Excessive personal indebtedness

9-10

9.3
Applicant interview form

9-11

Recruiting Applicants

Must be well-implemented Sources

Internal External

9-12

9.2 Recruiting a Global Sales Force

Challenge

Determining qualities Addressing cultural differences Sales tasks Relationship-building skills Motivation Technological savvy
9-13

Focus on

Internal Sources

Advantages

Established performance records, are a known entity Require less orientation and training Bolsters company morale Must fully inform human resources of sales staff needs
9-14

External Sources

Referrals from other firms

Salespeople Customers

Advertisements Employment agencies Educational institutions Internet

9-15

Selection Tools and Procedures

Application blanks Personal interviews Reference checks Physical examinations Psychological tests

Intelligence Personality Aptitude/skills

9-16

Selection Tools and Procedures

Composites of psychological test scores offer the greatest assessment validity and predictive value Personal interviews offer the lowest predictive potential

9-17

Application Blanks

Standardizes information Personal history information Facilitates interview preparation May raise questions

9-18

Personal Interviews

Structured interview

Predetermined questions Interviewer may fail to probe unique qualities or limitations Discussion on wide ranging topics May yield unexpected insights Requires interviewers with interpretative skills
9-19

Unstructured interview

9.3 Role of Personal Interviews

First interview

Draw out basic information Communication skills Personality traits Interest level

Second interview

Drill down Assess potential

9-20

Source: Bob Ayrer, Hiring SalespeopleGetting behind the Mask, American Salesperson 49, no. 2 (2004), p. 20; and Audrey Bottjen, Interview with a Salesperson, Sales & Marketing Management, April 2001, p. 70.

Reference Checks

Should include several in-depth probes May be time-consuming, costly Can ensure factual data

Job experience College degrees Aptitudes Job performance

9-21

Can reveal opinions

Can prevent costly hiring mistake

Physical Examinations

Sales jobs require sound basic health, stamina and the physical ability Caution when requiring medical examinations and specific tests for drug use, HIV virus Using a standard physical examination for all positions is ill-advised Physical exam can be performed only after extending job offer (ADA)

9-22

Psychological Tests

Types

Valid tests:

Intelligence tests mental ability Aptitude tests interest in and ability to perform job Personality often tests traits related to future success in a job
Well-designed Validated Well-administered

Well designed, validated and administered tests provide a valid selection tool

Intelligence Aptitude Personality

9-23

Psychological Tests

Concerns

May not validly predict future success

in a specific firm

Some creative and talented people may deviate from expected norms Test-wise individuals may be able to manipulate results May discriminate against different races, genders, et al thus becoming illegal
9-24

Guidelines for the Appropriate Use of Tests

Test scores should be considered one of several inputs Test only on abilities and traits relevant to job When possible, use tests with internal checks for validity Conduct empirical studies to validate the tests predictive value
9-25

9.4

Legislation affecting recruitment and selection

9-26

9.5
Illegal/Sensitive Questions

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

9-27