30 Journal of Selling & Major Account Management Recruiting New Salespeople From Universities: University Sales Centers Offer a Better Alternative By Dan C. Weilbaker and Michael Williams Over the years many businesses have vacillated between hiring new salespeople from the pool of recent college graduates and hiring salespeople with experience. Companies hiring new graduates have also debated over whether to hire students with business degrees or those with a liberal arts degree. Recently another factor has been injected into the decision. There are now eleven universities that have sales programs that offer employers graduates with business degrees and also offer employers’ graduates who have prepared themselves to enter and excel in business to business selling. This article provides some insight into the benefits associated with hiring graduates from a personal selling specialization. This article also discusses the development of university sales programs along with the creation of the University Sales Center Alliance (USCA). Finally, the article also provides a report on the benefits of hiring graduates from any of the USCA schools. Introduction Personal Selling has long been viewed by most academics and some practitioners as a trade school profession. However, the growth of business-to-business selling has produced significant changes in attitudes about professional selling as a career (Wotruba, Simpson and Reed-Draznik 1989; Weeks and Muehling 1987; Castlebery 1990a). In line with this changing perception, there has been a recent trend toward developing a personal selling specialization within marketing departments across the country. Several universities have been ahead of the curve in pursuing professional selling as a valuable academic curricular component of a marketing program. This article provides some insight into what prompted some schools to pioneer and champion the sales curriculum while others schools have taken a wait and see attitude. In addition, the paper provides the results of a study of the sales centers comprising the University Sales Center Alliance and how these findings could help companies benefit by recruiting graduates from these sales programs. This article is designed to help corporations become more effective and productive when hiring new salespeople from the pool of new college graduates. Northern Illinois University The recent formation of the University Sales Center Alliance (USCA), as well as increased student interest in a sales career and increased demand for sales program graduates, are all indications that the sales focused programs are a viable option to consider when hiring new salespeople from colleges and universities. This article will provide more detailed information on the benefits of a sales curriculum as well as some of the issues relevant to the quality of graduates. Issues like: number of professors, number of courses, class sizes, use of role playing, the cost of development (faculty, equipment, teaching loads, etc.) have a major impact on the quality of the program and graduates. Information from a recent survey of the USCA schools illustrates the benefits when companies are interested in hiring the best available talent for sales positions. Historical Perspective University level selling classes are nothing new. There have been personal selling courses offered at the university level for decades—Illinois State University offered a course in Salesmanship as early as 1914 as a required course in its Department of Commercial Education. However, most of the early sales courses were single courses offered as electives and often Application Article avoided by students due to the unpopular perceptions a career in sales held by many students. These single sales course offerings were traditionally a course that combined personal selling and sales management. It seemed that having management as a part of a course provided some academic legitimacy to the offering and allowed the sales course a foothold into the curriculum. As far back as 1911 there has been a specific textbook for salesmanship classes (Sheldon 1911). Today, the number of textbooks developed specifically for personal selling has expanded to include over 18 different academic textbooks. The personal selling process in both academic research and the classroom has gone through several phases over time that seem to mirror the changes in the business environment. Initially most of the personal selling academic literature was focused on retail selling or business-toconsumer selling. This has given way to an emphasis on business-to-business selling. Business-to-business selling involves selling to a company in which the decisions may or may not be made by a group of people (depending of the type of product or service being sold). The use of buying centers shifted the selling process and content of selling to a more logical rather than emotional decision-making. The use of logic and analysis in the business-to-business arena placed a burden on the practicing salespeople to acquire new and more complex skills in order to effectively communicate and sell to the business buyer. These new skills required a person who was more educated than previously needed. Thus, more and more companies required salespeople to have a college education rather than just a high school diploma (the norm in the 1950’s, 1960’s and in some industries into the 1970’s). This shift has been one of the drivers influencing the growth in university sales courses over the past 16 years. Initially, corporations were happy to get new college graduates (from any discipline). They Summer 2006 31 would spend time and money training them on product knowledge as well as some basic selling skills. However, as training costs escalated and customer demands on salespeople increased, companies found that they needed better educated salespeople in order to compete effectively. One option was to continue hiring the same type of people and spend much more money training them. A second option was to reduce training costs and time by hiring graduates of sales programs who understand selling and who have developed basic selling skills. Even though both systems are in use today, more and more companies are looking to universities to prepare new hires by giving them an initial understanding of the selling process, developing basic selling skills, and teaching that selling careers have many benefits as well as challenges. The University Sales Center Alliance (USCA) The first two schools to adopt a collegerecognized specialization in professional sales were Baylor University and Northern Illinois University in 1988 (Castleberry 1990b). With the success of these two programs, other schools soon initiated their own sales programs. By the end of 1996 there were six schools that had recognized sales programs. They were: Ball State University, University of Memphis, University of Akron, and University of Toledo, Northern Illinois University and Baylor University (Sales and Marketing Magazine 1996). By 2002 this number had increased to nine schools having established sales programs. These schools were: Ball State University, Baylor University, Northern Illinois University, Illinois State University, University of Toledo, University of Akron, Kennesaw State University, and University of Houston, and Ohio University. The faculty from these schools would consistently meet at conferences to discuss situations at their universities and what their programs were doing to improve the education of their students. At the National Conference in Sales Management (NCSM) in 2001, a special Vol. 6, No. 3 32 Journal of Selling & Major Account Management students in the sales program, activities to assist students, scholarly activities of faculty, involvement in professional organizations, operational budgets, fund raising, and use of advisory boards. session on “how sales centers had been developed” was presented by three schools (Northern Illinois University, University of Akron, and University of Toledo). At the next NCSM (2002) meeting, the nine schools that had sales programs in place were invited to sit down to discuss issues and how they might work together to encourage other schools to develop sales centers and how to move the sales profession forward. This was the birth of the University Sales Center Alliance (USCA). The alliance members agreed upon the following mission statement: The USCA mission is to advance the sales profession through academic leadership in research, teaching and outreach. William Patterson University became the tenth member in 2003 and Indiana University the eleventh member in 2004. Benefits of Recruiting at Sales Center The two primary stakeholders related to sales centers are: (1) the students (both current and alumni) and (2) companies/recruiters. Each of these two stakeholders will be discussed separately. Student Benefits Findings support a number of benefits in terms of job opportunities and placement, starting salaries, training-to-job cycle time, and promotability for students completing the multiple courses comprising sales programs. Responses documented a dramatic difference in the percentages of students having accepted a job at the time of graduation between three categories (1) general marketing students, (2) students completing only the basic sales class, and (3) students completing the sales program (multiple courses in a sales sequence or major). As seen in Table 1, the students completing the sales program had a substantially higher hiring rate than those of the general marketing group or those only completing a single, basic sales class. In fact, both the current year and the average yearly rate (due to fluctuations in the economy, the average rate is probable a better measure) both showed the students graduating Sales Center Research At the conclusion of an annual USCA meeting, the authors took it upon themselves to survey the existing sales centers to profile each of the recognized programs and identify specific characteristics about the programs that might be of interest to companies considering or currently using college new hire programs. The questionnaire was developed by the authors to obtain information on a variety of topics related to a sales center. Specific coverage included breadth of curriculum, number of role plays used, faculty resources, funding, class sizes, use of technology, student placement, number of Table 1: Placement Rates at Sales Centers Job Placement Rate Current Year Average in Previous Years Student Category % Difference % 68% Difference General Marketing 50% Completing only Basic Sales Class 53% + 3% 72% +4% Completing Sales Program 82% +29% 93% +19% Northern Illinois University Application Article 33 Summer 2006 from the sales program with about a 20 percent higher placement rate than students in the comparative categories. A second benefit for students is in terms of significantly higher starting salaries. Similar to the differences seen in the job placement rates, the study found that starting salaries were much higher for those who completed the sales program than for students in the other two categories. As illustrated in Table 2, average starting salaries for general marketing majors ranged from $29,750 to $38,000. This compares to the average range of $30,250 to $39,750 for students completing the first basic course in selling and $33,750 to $49,250 for students completing the sales program sequence. In relative terms, this translates to students completing a single, basic selling course receiving starting salaries ranging from 1.7 to 4.6 percent higher than general marketing students. Students completing the sales program receive starting salaries ranging from 11.6 to 23.9 percent higher than those students completing only the basic course in sales and from 13 to 29 percent higher than general marketing students. Anecdotally, some of the salary differences are due to the level of position being accepted. The students who completed the sales course work typically obtained higher level jobs in b-t-b selling while those general students seemed to take sales positions in retail or transactional selling situations. Finally, respondents referenced anecdotal comments from recruiters representing a variety of companies that hire sales graduates from USCA schools. These anecdotal comments indicated that hiring companies report that students completing multi-course selling programs tend to learn quicker in their sales training, have higher levels of sales skill understanding and mastery, and are productive faster than their counterparts from other areas of study. Although not tested in this study, these findings could logically be extended to conclude that these students are likely to receive better salary increases and faster promotions based on performance in the future. Company/Recruiter Benefits Comments from companies that recruit and hire sales students from the sales center universities agree that they are able to reduce their training costs due to the education and practical (handson) training the students received while in college. The fact that students have already covered much of the material in the companies’ training programs allows them to concentrate more on developing and perfecting the skills and not on initially acquiring the knowledge. This in turn makes them more productive or faster to be productive than other recent hires from nonsales center universities. Another benefit for companies is that sales students have realistic expectations regarding the specific tasks and activities along with responsibilities and challenges of selling jobs. This means that there is less likelihood that they will leave the position during the development phase of the job. This assists the company in reducing turnover and thus the cost of hiring and training. Considering the costs of Table 2: Average Starting Salary Ranges Average Dollar Range Student Category From Difference To Difference General Marketing Students $29,750 $38,000 Completing only Basic Sales Class $30,250 +$ 500 1.7% $39,750 +$1,750 4.6% Completing Sales Program $33,750 +$3,500 11.6% $49,250 +$9,500 23.9% Vol. 6, No. 3 34 Journal of Selling & Major Account Management international business-to-business, or conflict resolution classes. salesperson turnover run from 1.5 to 2.5 times the departing employee’s annual salary (Hinchcliffe 2003; Bliss 2004) this is a significant and tangible benefit for company stakeholders. Finally, anecdotal information received from sales graduates indicates that they are more satisfied with their position which leads to higher levels of motivation. All of which helps them be better salespeople and generate more revenue for the company. A look at the number of students in the basic sales course for the USCA schools found that the range was from 24 to 100 students with a median of 26 students. The number of sales role-plays also varied in the basic sales class from one to four with an average of 2.1 role-plays. The small class size is particularly important since the use of role-plays takes considerable a large amount of class time and thus fewer students can be accommodated than in a traditional lecture format marketing class. Issues Specific to Sales Centers Curriculum Schools with sales centers have placed a considerable amount of emphasis on the sales curriculum in that 75 percent of the schools require marketing majors to take the basic sales class while only 25 percent have it as an elective. The practical nature of the education is evident in that 100 percent of the schools have practitioners actively involved in the classroom. The number of different sales classes provided ranged from 4 to 7 with an average of 5.5 (mode was 4). Beyond the basic sales class, all of the respondents offered a sales management class, 62 percent offer an advanced sales class, 25 percent offer both negotiations and purchasing with 12.5 percent offering either key account management, persuasion, technology, Another issue that might be important for a sales program is the number of sections offered in the basic sales course. The range was from 3 to 12 sections per year with the average being 9. Thus, the number of faculty needed to staff just the basic course ranged from 1 to 2 full time equivalents without consideration of the other classes being offered. Thus, initiating and supporting a sales program requires a significant commitment to staffing. Faculty There are two ways to approach the staffing issue. One is to use only academically qualified professors and the other is to supplement the academically qualified with adjunct faculty who Table 3: Lead Sales Faculty Profile Teaching Tenure Range (Years) 9-20 Average 15 Years Sales Experience Teaching Load Different Courses Taught 2-12 (% time teaching) 30-100% 7 82% 2.4 University Committee Academic Journal Subscriptions 2-3 Table 4 Lead Sales Faculty Profile (Continued) Refereed Journal Publication Refereed Proceedings Publications Range 6-60 8-70 Per year 1-7 1-3 Average 21.1 25.8 4.6 1.1 Northern Illinois University Application Article 35 Summer 2006 satisfy accreditation requirements with an advanced degree and relevant sales experience. Respondents to this study indicated that the number of tenure track faculty (full time equivalents) ranged from 1 to 3 with an average of 2.3 tenure track faculty per program. The profile of the lead faculty member for each school (See Table 3 and Table 4) illustrates that they do more than just teach (although this is a major contribution). They have been teaching sales for a considerable length of time (average 15 years) and have the business background (average 7 years) to provide credibility in the classroom. This is enhanced by the fact that seven out of the eight (87 percent) faculty do consulting outside of academic work. They also publish many refereed journals and proceedings; serve on several college and university committees as well stay current with new knowledge and trends in the academic journals. All of this means those knowledgeable faculties are important in providing top notch classroom experiences for students. Supportive Activities The last area has to do with having a specific job fair organized for sales. Sixty six percent of the USCA schools that responded to this question have a dedicated sales job fair. The earliest one started in 1993 and the latest one started in 1997. They attract between 20 and 75 companies to attend with the average being 40 companies. They also attract between 175 and 300 students to attend the event with the average being 200. Another major issue is the amount of resources needed to run a quality sales program. This seems to be one large barrier to entry for other schools (even if they were interested in providing sales education). These resources consist of special rooms and equipment as well as the need to have smaller class sizes to accommodate the use of role-plays in the sales classes. In a semester system it typically takes about eight weeks to do one role- play of about 20 minutes in length with some feedback for about 24 students per class. Thus, it is imperative that classes be kept smaller than normal which means that more sections may need to be offered. This means that more faculty members are needed to cover the classes. The second resource issue deals with acquiring the money to buy and install audio/video equipment needed for student feedback. That brings us to a facilities issue: electronic equipment. The use of audio/video recording and playback is essential in providing quality education in the sales program. Neither the classroom nor electronic equipment will be a small investment. The electronic equipment, although available, is relatively expensive. Depending on the number of cameras and video playback systems, the costs could range from as little as $5,000- $8,000 to as much as $200,000. It is important for the faculty in charge of the development of the sales center to identify ways to obtain the money needed. Is it to be from the university or does it needs to be raised from corporate sponsors? The final obstacle to overcome is the student’s attitude toward selecting a sales career and thus sales courses. Even though there has been a positive change in student attitudes towards sales as a career (Murray and Robinson 2001; Table 5: Financial Issues Related to Sales Center Number (n) Donation to Initiate Sales Program 5 Annual Financial Support from University 3 Range $20,000-$550,000 $9,000-$20,000 Average $182,000 $13,000 Vol. 6, No. 3 36 Journal of Selling & Major Account Management Swenson, Swinyard, Langrehr and Smith 1993; Castleberry 1990a; Bellenger, Bernhardt and Wayman 1974; Wotruba, Simpson and ReedDraznik 1989; Weeks and Muehling 1987, Weilbaker and Merritt 1992), even today there is still resistance on the part of some students to take sales classes. That is one reason that some schools have started requiring one sales course for all marketing majors and minors. It is evident by the increase in the number of sales students that this introductory class is a turning point for many students. Once some critical mass has completed the sales course and found their attitude changed regarding careers in sales, then they talk to others and soon there is even a desire to take the sales classes. When students find out that professional selling is not telemarketing, that they can make a significant amount of money, and that they can get jobs, they begin to take it more seriously. How to Obtain the Benefits of Recruiting from USCA Schools The first decision has to be where you want to spend the resources to recruit new sales hires. If that decision has universities as part or all of the focus, then you need to decide how you will approach the hiring process. Companies can either cast a wide net (go to a large number of schools) or they can be focused (select a few to concentrate on) in their selection of schools. Even if the choice is selected schools, most recruiters and sales managers have an affinity for their alma mater. If the decision is made on results of previous hires and not just on school loyalty, then the investment is worth while. An advantage of using a focused recruiting strategy is that the resources used can be more effectively. That is, companies have finite resources and what ever resources are used at the selected schools can be larger than if spread over many schools thus it can have an impact and attract students to the company. All of the USCA schools use practitioners in parts of the classroom experience. With many Northern Illinois University companies recognizing that classroom exposure is critical to attracting the right candidates, when focused recruiting is used it is more likely that the faculty will allow your people into the classroom. Another way to gain access to sales center schools is through involvement on a sales advisory board. This board would be comprised of sales managers/sales directors/ sales VP’s, or even owners. The make up of the board is ideally weighted toward alumni from the school who have been successful in their sales career. It is also important to ensure that diversity within the types of industries selected along with diversity in the people selected to participate on the board. Another valuable opportunity provided by the sales advisory board is the input they provide on the curriculum and other activities provided by the sales center. These sales professionals have access to information about successful salespeople within their own organization and can share best practices in training that can be applied within the sales center. The sales advisory board can be instrumental in helping graduates gain sales positions. The board members can provide a valuable link to a company’s recruiting and hiring practices. If the board has a number of high visibility companies, then this will also help attract high quality students to enroll in the sales program. Finally, participating in the sales specific job fairs hosted by the USCA schools will also help improve the return on investment for recruiting. The fact that students know that the companies are there to hire sales professionals allows for a self selection process for students. That is, only those students interested in sales will attend and thus reduce the necessity to screen students’ interest in sales. Conclusions In a highly competitive marketplace, it is important to find key suppliers for the raw material needed for success. In this case we are Application Article talking about key human resources for salespeople. Just as a company would not consider buying raw material that need extra processing when other sources are available that do not require extra processing, companies need to consider the same for hiring new salespeople from universities. We are saying that if a company is serious about hiring the best people that can become productive faster, be more satisfied with their sales position, have lower turnover and be the future leadership of the sales organization, then recruiting new sales hires from University Sales Center Alliance schools is an obvious choice. The various sales centers across the country are not viewed as competitors but rather as allies in the struggle to make professional sales a valued area of study with a marketing degree. A list of the schools and their main contact person is listed below. University Sales Centers Richard Canada Business 428C / IUB Executive Director of Center for Sales Studies and Market Intelligence Lecturer of Marketing Indiana University 1309 East Tenth Street, Bloomington, IN 47405 rcanada@indiana.edu Kenneth L. Hartung Executive Director, The Sales Centre Marketing Department Copeland 630 Ohio University Athens, OH 45701 hartlung@ohio.edu Jon M. Hawes Professor of Marketing Director, Fisher Institute for Professional Selling CBA 310 University of Akron Akron, OH 44325 37 Summer 2006 jhawes@uakron.edu William A. Weeks Professor of Marketing Director, Center for Professional Selling One Bear Place 98007 Waco, TX 76798 Bill_Weeks@baylor.edu Eli Jones Professor of Marketing Director, Sales Excellence Institute C. T. Bauer College of Business University of Houston Houston, TX 77204-6021 eli-jones@uh.edu Ramon Avila Professor of Marketing Director, H.H. Gregg Center for Professional Selling Miller College of Business Ball State University Muncie, IN 47306-0355 ravila@bsu.edu Michael Williams Professor of Marketing Director, Professional Sales Institute College of Business Illinois State University Campus Box 5590 Normal, IL 61790-5590 mrwilli@ilstu.edu Terry W. Loe Associate Professor Director, Center for Professional Selling Kennesaw State University 1000 Chastain Rd. #0406 Kennesaw, GA 30144 terry_loe@coles2.kennesaw.edu Vol. 6, No. 3 38 Journal of Selling & Major Account Management Richard Buehrer Professor of Sales and Marketing Director, Edward H. Schmidt School of Professional Sales College of Business Administration The University of Toledo Toledo, OH 43606 richard.buehrer@utoledo.edu David Reid Director, Russ Berrie Institute for Professional Sales William Paterson University P.O. Box 920 Wayne, NJ 07474-0920 reidd@wpunj.edu Dan C. Weilbaker McKesson Pharmaceutical Group Professor of Sales Director, Office for Selling Effectivenes Department of Marketing Northern Illinois University Barsema Hall 128 R DeKalb, IL 60115 dweilbak@niu.edu REFERENCES Bellenger, Danny N., Kenneth L. Bernhardt and Wilbur S. Wayman (1974), “Student Attitudes Toward Selling As A Career: Implications for Marketing Education,” Combined Proceeding, Ronald Curhan ed., Chicago: American Marketing Association. Bliss, William G. “Cost of Employee Turnover,” The Advisor, Accessed April 28, 2004 <http://www.isquare.com/turnover.cfm. Castleberry, Stephen B. (1990a), “The Importance of Various Motivational Factors to College Students Interested in Sales Positions,” Journal of Personal Selling and Sales Management, 10 (Spring), 67-72. Castleberry, Stephen B. (1990b), “The Sales Program at Northern Illinois University,” Journal of Personal Selling and Sales Northern Illinois University Management, Vol. 10 (Summer), 77-79. Hinchcliffe, Raymond H. (2003), “The Cost of Turnover,” Recruiter: A Newsletter for Field Managers, LIMRA International. Murray, Sharon and Harry Robinson (2001), “Graduates into Sales-Employer, Student and University Perspective,” Education and Training, 43, No. 2/3, 139-144. Sales and Marketing Management (1996), ‘Where to Scout for New Salespeople,” September, p.26. Sheldon, Arthur F. (1911), The Art of Selling: for Business Colleges, High Schools of Commerce, Y.M.C.A. Classes, and Private Students, Chicago: The Sheldon School. Swenson, Michael J, William R. Swinyard, Frederick W. Langehr and Scott M. Smith (1993), “The Appeal of Personal Selling as a Career: A Decade later,” Journal of Personal Selling and Sales Management, 13 (Winter), 51-64. Weeks, William A and Darrell D. Muehling (1987), “Students Perceptions of Personal Selling,” Industrial Marketing Management, 16 (May), 145-151. Weilbaker, Dan C. and Nancy J. Merritt (1992), “Attracting Graduates to Sales Positions: The Role of Recruiter Knowledge,” Journal of Personal Selling and Sales Management, Vol. 12 (Fall), 49-58. Wotruba, Thomas R., Edwin K. Simpson and Jennifer Reed-Drazkin (1989), “The Recruiting Interview as Perceived by College Student Applicants for Sales Positions,” Journal of Personal Selling and Sales Management,”9 (Fall), 13-24. Dan C. Weilbaker is McKesson Professor of Sales at Northern Illinois University. E-mail: dweilbak@niu.edu Michael Williams is a Professor of Marketing at Illinois State University. E-mail: mrwilli@ilstu.edu