Chapter 7

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Part IV

SALES FORCE COMPETENCIES

Chapter 7:

Recruiting and Selecting

Sales Personnel

Chapter 7: Outline

Recruitment

And Selection

Planning

Recruit

Candidates

Select

Prospects

Validating the Process

Total Quality Management

Comparisons

Six Sigma Standard

6 Sigma +

Error Rate

3.4 per million

Business

Application

Airline flight safety

5 Sigma 300 per million

4 Sigma

3 Sigma

1.6 Sigma

6 per 10,000

30 per 100

45 per 100

Typical world-class manufacturers

Manufacturing average

IRS phone tax advice

Typical employment selection and deployment

Source: “Total Quality Sales Management, The HR Chally Group, 2008

Turnover Rates in Selected

Industries

Industry

Turnover

Rates

Construction

Office Equipment

Retail

Wholesale (Consumer Goods)

Electronics

Business Services

Pharmaceuticals

Banking

Real Estate

13.8%

47.0

51.2

18.5

14.1

26.2

8.3

4.3

11.9

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

Company Culture and the

Hiring Process

Develop a hiring process related to core culture.

What are the core cultures of these companies?

Aligning People to Core

Job Responsibilities

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

What skill sets are needed for the following sales positions?

Missionary?

Sales Support?

New Business?

Aligning People to Core

Job Responsibilities

Missionary:

Technical skills, relationship building skills

Sales Support:

Empathy, relationship building skills

New Business:

Assertiveness, persuasiveness, time management, ability to close

What Purchasing Agents Like

About Salespeople

PERCENT OF RESPONDENTS

TRAITS WHO RATED MOST VALUED

Willingness to fight for customer:

Thoroughness/follow through:

Market knowledge/ willingness to share:

Knowledge of product line:

Diplomacy in dealing with operating departments:

Imagination:

0% 25% 50% 75% 100%

Recruiting Sources

Classified Ads

Reaches wide audience

(trade publications may narrow the reach)

Used if high turnover

Tend to over-produce under-qualified candidates

Present Employees

Familiar w/ company products & procedures

Established job histories

Sales as a promotion

Over-rely on previous experience

Recruiting Sources

Referrals/Networking

Company executives understand needs, culture and potential fit for sales responsibilities

Employment Agencies

– best if company pays

Schools & Colleges

Poised & easily trained

Lack experience & become bored

Customers, Suppliers & Competition

Good if need w/out much training

Legal & ethical issues

Common: insurance, stock broker, office equipment, clothing

Hiring criteria for sales jobs used to guide selection process

Direct recruit to control location or phone number

Complete application blanks

Conduct screening interviews

Check credit and background

Complete psychological and achievement tests

Secondary interviews

Make offer for sales position

Physical exam

Modify hiring criteria, tests or

Interview procedures

Measure subsequent success on the job

Figure 7-3: A Model for Selecting Salespeople

Reject

What do we want to predict?

Job analysis

Incumbent interviews

Observation

Job Description

Essential tasks

Qualifications

JOB DESCRIPTION FACTORS

Selling 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 Tasks

Reports to management

Customer service and training

Sales promotion

Educational seminars

Collecting receivables

Marketing plans

Degree of Responsibility

Negotiations of pricing

Travel and entertainment

Compensation plan

Promotion timing

Career Paths

Earnings potential

Promotion leaders

Performance Expectations

Activity level requirements

Minimum sales volume or profits

RESUME ANALYSIS

1.

Account for all dates.

2.

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

3.

Reasons for leaving job.

4.

Is there a pattern of growth?

“MGM Mirage Chairman and Chief Executive J. Terrence Lanni, one of the gambling industry's most powerful figures, announced late Thursday he would step down from his executive posts.

The resignation was announced publicly, however, on a day when Mr. Lanni found himself in a dispute with his alma mater over his academic credentials after questions were raised by

The Wall Street Journal.”

WSJ 11/14/2008

In a 2004 survey of human-resource professionals, 61% said they "often" or "sometimes" find résumé inaccuracies when vetting prospective hires, according to the Society for Human

Resource Management.

QUESTIONS ABOUT

INTERVIEWERS

What Research Shows

Does extensive interviewing experience help an interviewer to make better judgments?

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

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

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

QUESTIONS ABOUT

INTERVIEWERS

What Research Shows

How much of the factual information presented in an interview will the interviewer remember immediately after a short interview if no notes are taken?

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

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

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

COMMON INTERVIEWER

MISTAKES

1.

Failure to establish rapport

2.

Lack of plan

3.

Insufficient time

4.

Not listening

5.

Personal bias

6.

Questions

7.

First impressions

TYPICAL INTERVIEW

QUESTIONS

What is the interviewer trying to determine in the following questions?

1.

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

– What are your values and general orientation in life?

– How creative were you in eliminating boredom?

TYPICAL INTERVIEW

QUESTIONS

2.

In thinking about people you like, what is it you most like about them?

Reflects what person is and desires to become

3.

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

Have you done anything? -- more active = more disappointments

4.

How willing are you to relocate?

To what extent are you willing to travel?

Motivation in wanting job -- involves travel

TYPICAL INTERVIEW

QUESTIONS

5.

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

How you react to supervision & organizational cultures

6.

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

Are you realistic & mature?

Will this company enable you to achieve these goals?

7.

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

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

What is your leadership style & philosophy?

TYPICAL INTERVIEW

QUESTIONS

8.

Why should we hire you?

How badly do you want the job?

What do you think of yourself?

Do you believe in yourself?

9.

Sell me this pen.

Do you really know how to make a sales presentation?

Did you mention the main product benefits?

Did you ask for the order?

ASKING THE RIGHT

QUESTIONS

About two weeks after starting a new job, doubts creep into your mind. The gap between what you were told and what’s actually happening gets wider by the day. When you’re on the job for three weeks, you say to yourself, “I think I made a mistake.” One way to avoid making a costly mistake like this is to ask the right questions when interviewing. What questions would you ask when applying for a field sales position to avoid accepting the wrong job?

ASKING THE RIGHT

QUESTIONS

1.

Where will I get my leads?

2.

May I review your sales literature?

3.

When are your slow times?

4.

May I go with you on a sales call?

5.

May I visit your marketing department?

6.

May I look at your resume?

PREVIOUS EMPLOYER

REFERENCE CHECK QUESTIONS

 Dates of Employment?

 What was the job?

 What type of selling was involved?

 How did the applicant get along with his/her manager?

Customers? Fellow salespeople?

 How did his/her job performance compare others?

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

 Why did s/he leave your company?

 Would you rehire the applicant? Why?

Validity of Predictors for Entry-Level Jobs

Predictor

Ability composite (tests)

Job tryout

Biographical inventory

Reference check

Experience

Interview

Training and experience ratings

Academic achievement

Education

Interest

Age

.37

.11

.10

.10

.01

.26

.18

.14

.13

Validity

.53

.44

Ability tests

Personality

Big Five

Openness to experience (intelligence)

Conscientiousness

Agreeableness

Extroversion

Neuroticism (emotional stability)

More Tests

Intelligence

Wonderlic

Work sample

Biodata

Legal Issues

Civil Rights Act

Disparate treatment

(i) the plaintiff is a member of a protected class;

(ii) the plaintiff applied and was qualified for the job;

(iii) the application was rejected; and

(iv) the position remained open after the rejection.

Disparate impact

80% rule

Griggs v. Duke Power Co.

, (1971),

A court case argued before the Supreme Court of the

United States on December 14, 1970. It concerned employment discrimination and the disparate impact theory and was decided on March 8, 1971. It is generally considered the first case of its type.

The court ruled that the company's employment requirements did not pertain to applicants' ability to perform the job, and so was discriminating against

African-American employees, even though the company had not intended it to do so. The judgment famously includes the line "Congress has now provided that tests or criteria for employment or promotion may not provide equality of opportunity merely in the sense of the fabled offer of milk to the stork and the fox."

Legal Issues

Age discrimination

Fair employment Act (reinforce civil rights act)

Americans with Disabilities Act

Reasonable accomodation

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.

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

Medium-sized signatures

(about 1/4 inch).

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

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.

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 SALESPERSON?

Personal Computer

Manufacturer

Threshold Competencies

Communication

*Information Collection

Personal Sensitivity

*Relationship-building

Technical knowledge

Photographic Equipment

Manufacturer

Threshold Competencies

Decisiveness

*Information Collection

*Organizational Awareness

*Relationship-building

Systematic thinking

Differentiator Competencies

Concern for personal impact

*Focused achievement

Initiative

*Organizational awareness

Personal time-planning

Quick thinking

Targeted persuasion

*Use of influence strategies

Differentiator Competencies

*Focused achievement

Interpersonal diagnosis

Job commitment

Persistence

Presentation skills

Stress tolerance

*Use of influence strategies

* These traits were found in salespeople at both companies.

Typical Interview Questions

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?

Typical Interview Questions

What do you regard as your major strengths and limitations?

What have you accomplished or achieved in life that you are most proud of?

Success means different things to people. What does it mean to you?

If there was a job that had everything you are looking for, what kind of a job would it be?

What goals have you established for yourself in the short and long term?

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