Sales and Distribution

Management
Marketing 3345
Salesforce Recruitment
and Selection
*Turnover rates per annum
Sales Force Turnover
Rates*
53%
21%
26%
65%
18%
17%
45%
34%
21%
Consumer Industrial Services
0-5%
5-10%
More than
10%
Source: Dartnells 30
th
Sales Force Compensation Survey (2009), p.187.

Turnover Rates
Industry 1999

Construction 13.8%
Office Equipment 47.0
Insurance .8
Retail 51.2
Wholesale (Consumer Goods) 18.5
Electronics 14.1
Business Services 26.2
Pharmaceuticals 8.3
Banking 4.3
Real Estate 11.9
Source: Dartnells 30
th
Sales Force Compensation Survey (1999), p.187.
Turnover Rates in
Selected Industries
Compensation
(trainee average) $35,500
Benefits (approx.21.5% of
compensation) 7,600
Field Expense 16,000

Direct Expense $59,100

Training Costs 7,100

Total Costs $66,200
Source: Dartnells 30
th
Sales Force Compensation Survey (2009), p.187.
First Year Cost of a
Salesperson in the U.S.
The Recruiting Process
Mark W. Johnston and Gary W. Marshall, Sales Force Management,
McGraw Hill, 2006
Who is Responsible for
Recruiting?
Depends on size of sales force and kind of
selling involved
First-level sales managers often handle
recruiting for:
Straightforward sales jobs
Jobs where new recruits need no special
qualifications
Jobs where turnover rates are high
Who is Responsible for
Recruiting?
When a firm must be selective, a recruiting
specialist may assist in the recruitment
process
If the sales force prepares individuals to be
sales or marketing managers, personnel
executives or top-level managers often
assist with recruitment

Job Analysis and
Selection Criteria
Conduct a job analysis to determine what
activities, tasks, responsibilities and
environmental influences are involved
Write a job description that details the
findings of the job analysis
Develop a statement of job qualifications
describing the personal traits and abilities
needed to perform in the job

Who Conducts the Analysis
and Prepares the Description?
Current occupants of the job
Sales managers who supervise people in the job
Current staff should be observed and interviewed
to determine what they actually do
Use the job description creation process as a
means of reaching consensus on job content,
activities and training needs.

Content of the Job
Description
Nature of the product(s) or service(s) being
sold
Types of customers
Specific tasks and responsibilities
Relationship between the sales position and
other positions within the organization
Mental and physical demands of the job
Environmental pressures and constraints
JOB DESCRIPTION FACTORS
Selling Requirements: Degree of Responsibility
New account vs. established and Authority:
account Negotiations of pricing
Selling through distributors
Entertaining customers Career Paths:
Level of buying authority Compensation plan
Physical activity required Promotion timing
Weekends away from home
Relocation

Non-selling Tasks:
Reports to management
Customer service and training
Sales promotion

JOB DESCRIPTION FACTORS
Performance Expectations: Performance Expectations:
Activity level requirements Travel and entertainment
Written proposals Earnings potential
Individual vs. team selling Promotion leaders
One time vs. systems selling Minimum sales volume or
Type of prospects and customers profits
One-on-one selling vs. groups
Travel--how much and what kind
Program or concept selling
Technical knowledge
Educational seminars
Collecting receivables
Marketing plans



Determining Job Qualifications
and Selection Criteria
This is the most difficult part of the recruitment
and selection process
Need specific criteria to guide the selection
Methods deciding on criteria include:
Examining the job description
Evaluating personal histories of the current
sales force to identify differentiating
characteristics among high performers
Characteristics of
Salespeople who Fail
Instability of residence
Failure in business within the past two years
Unexplained gaps in the persons employment
record
Recent divorce or marital problems
Excessive personal indebtedness; for example,
bills could not be paid within two years from
earnings on the job

Recruiting Applicants
Successful firms depend upon a well-
planned and effectively implemented
recruiting effort.
Recruiting should be step one in the
selection process.
Internal sources of candidates consist of
employees in other departments within the
firm.
Recruiting Applicants
External sources of candidates include:
people in other firms
educational institutions
others attracted through advertising or
employment agencies.
Recruiting issues facing sales managers
grow exponentially as companies expand
globally and seek salespeople in new
international markets.
External Resources
Classified Ads
Reaches wide audience
Used if high turnover
Tend to over-produce under-qualified
candidates
Internet Resume Sites
Reaches wide audience
Too new for significant data
Will continue to grow in importance
because of screening options and ease of
access
External Resources
LinkedIn
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
Inside Recruiting
Advantages:
Company employees have established performance
records and present themselves as a known entity
Recruits from inside require less orientation and
training due to familiarity with current products,
policies and operations
Recruiting within bolsters company morale because
employees see opportunities for advancement

Facilitating internal recruiting starts with fully
informing human resources of sales staff needs
Selection Tools and
Procedures
Application blanks
Personal interviews
Reference checks
Physical examinations
Psychological tests
intelligence
personality
aptitude/skills

Selection Tools and
Procedures
Composites of psychological test scores
offer the greatest assessment validity and
predictive value for evaluating a candidates
potential and possible future job
performance.
Personal interviews offer the lowest
predictive potential but often carry the
greatest weight.

Personal Interviews
Structured interview
applicants are asked the same
predetermined questions
potential weakness is that interviewer may
fail to identify or probe a candidates unique
qualities or limitations

Unstructured interview
induces free discussion on wide ranging
topics
afford the applicant opportunity to talk
freely with minimal direction and may
yield unexpected insight
requires experienced interviewers with
interpretative skills

Personal Interviews
Background and Credit Check

Previous Employer Reference Check
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?
Physical Examinations
Sales jobs require sound basic health, stamina
and the physical ability to withstand stress
Caution should be exercised in requiring
medical examinations and other specific tests
for such things as drug use or the HIV virus
A physical exam can be performed only after
extending a job offer
Managers deem using a standard physical
examination for all positions ill-advised

Tests
Well designed, validated and administered tests provide a
valid selection tool
Possible reasons to use test cautiously
Tests may not validly predict future success in a
specific firm
Some creative and talented people may deviate from
expected norms
Intelligent and test-wise individuals may be able to
manipulate results
Some tests may discriminate against people of
different races, genders, et al thus becoming illegal

Guidelines for the
Appropriate Use of Tests
Test scores should be considered only a single
input of several in the selection process
Applicants should be tested only when abilities
and traits tested hold relevance to the job
When possible, tests with internal checks for
validity should be used
The firm should conduct comparative,
longitudinal studies to validate the predictive
value in their setting
TESTING VALIDITY
Validity of Predictors for Entry-Level Jobs
Predictor Validity

Ability composite (tests) .53
Job tryout .44
Biographical inventory .37
Reference check .26
Experience .18
Interview .14
Training and experience ratings .13
Academic achievement .11
Education .10
Interest .10
Age .01
Legislation Impacting
Recruitment
Mark W. Johnston and Gary W. Marshall, Sales Force Management,
McGraw Hill, 2006
Illegal/Sensitive Questions
Nationality or race
Religion
Sex and marital status
Age
Physical characteristics
Height and weight
Financial situation
Arrests and convictions