Recruiting & Selecting Personnel

1. Recruiting & Selecting Personnel Asking the Right Questions - Discussion Question 4 1. May I look at your resume? 2. Where will I get my leads? 3. May I review your sales literature? 4. When are your slow times? 5. May I go with you on a sales call? 6. May I visit your marketing department?

2. Industrial Services Consumer Figure 9-1: Sales Force Turnover Rates 21% 18% 34% 17% 26% 21% 53% 45% 65% 0-5% More than 10% 5-10%

3. Recruiting & Selecting Personnel In-Class Exercise 9-1 -- Which one to Pick? • As a sales manager what are you trying to accomplish in an initial interview? • Based on the job description, what are some of the qualifications you might look for in a candidate? • What are the characteristics of a good interview question? • Which person should be chosen for the last training class option?

4. Recruiting & Selecting Personnel In-Class Exercise 9-1 • What questions will a strong candidate ask during an interview? • Will you ask different questions of a person with experience than one coming out of college with no experience? • What are common mistakes made by candidates on initial interviews? • What are common mistakes made by companies during initial interviews? • Is there a possibility of conflict between Armstrong and the wholesaler, if one of the wholesaler’s people is hired? How can the conflict be avoided?

5. Recruiting & Selecting Personnel In-Class Exercise 9-2 • Why is T.S. letting you know about the offer? • Why is this such a difficult situation for the company? • What are the pitfalls of reacting in this situation? • Should management counter the offer? • Why do people leave after being successful with a company for a long period of time? • What can management do to minimize the risk of this happening? • If a start salesperson does leave to go to a competitor, what steps can management take to minimize the damage?

6. Recruiting & Selecting Personnel Selecting Salespeople Typical Interview Questions -- what is interviewer trying to determine? 1. What was the most monotonous job you ever had to do? What are your values & general orientation in life? How creative were you in eliminating boredom?

7. Recruiting & Selecting Personnel 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

8. Recruiting & Selecting Personnel 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?

9. Recruiting & Selecting Personnel 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?

10. Chapter 9 Sales job analysis Sales job qualifications Recruit candidates Select prospects Validating the process

11. Recruiting & Selecting Personnel Physical Exams • Selling is strenuous and stressful • What are the physical requirements of the job? • Americans with Disabilitites Act (1992) • Graphology (9-16)

12. Recruiting & Selecting Personnel Planning Cycle • Job Analysis • Job Description (9-4) • Job Qualifications • Research: • “Sales - ability to get other people to act” • “Balanced life-styles” are most successful • Buyers perspective (9-5) • Sales vs. Technical skills • -- which is more important? • Personality Factors (9-6)

13. Recruiting & Selecting Personnel Planning Cycle • Job Analysis • Job Description (9-4) • Job Qualifications • Research: • “Sales - ability to get other people to act” • “Balanced life-styles” are most successful • Buyers perspective (9-5) • Sales vs. Technical skills • -- which is more important? • Personality Factors (9-6)

14. Recruiting & Selecting Personnel Recruiting • Classified Ads • Reaches wide audience • Used if high turnover • Blind vs. open ads • Tend to over-produce under-qualified candidates • Company Sources • Familiar w/ company products & procedures • Established job histories • Sales as a promotion • Over-rely on previous experience

15. Recruiting & Selecting Personnel Recruiting • Employment Agencies - best if company pays • Schools & Colleges - trend toward more use • 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

16. Recruiting & Selecting Personnel 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?

17. QUESTIONS ABOUT INTERVIEWERSWhat 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? 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?

18. 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

19. Figure 9-5: 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? • What was the most monotonous job you ever had to do? • In thinking about the people you like, what is it you like most about them? • Up to this point in your life, what do you consider to be your biggest disappointment? • How willing are you to relocate? To what extent are you willing to travel? • How do you feel about the way your previous employer treated you? • What are your long-term financial objectives, and how do you propose to achieve them? • What was the most difficult decision you ever had to make as a leader? • Why should we hire you? • Sell me this pen.

20. 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?

21. PREVIOUS EMPLOYER REFERENCE CHECK -- POSSIBLE QUESTIONS What were the dates if employment? What was the job? What type of selling was involved? How did the applicant get along with his or her managers? Customers? Fellow salespeople? How did his or her job performance compare with others on the job? What are the applicant’s strongest points? Are there any weaknesses we should help him or her overcome? Why did he or she leave your company? Would you rehire the applicant? Why?

22. Table 9-4 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

23. Signature Small letters such as“a,” “e,” and “o” are more than 1/4 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). Interpretation 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’S IN A SIGNATURE?

24. WHAT MAKES A SUPER SALESPERSON? Personal Computer Photographic Equipment Manufacturer Manufacturer Threshold Competencies Threshold Competencies Communication Decisiveness *Information Collection *Information Collection Personal Sensitivity *Organizational Awareness *Relationship-building *Relationship-building Technical knowledge Systematic thinking Differentiator CompetenciesDifferentiator Competencies Concern for personal impact *Focused achievement *Focused achievement Interpersonal diagnosis Initiative Job commitment *Organizational awareness Persistence Personal time-planning Presentation skills Quick thinking Stress tolerance Targeted persuasion *Use of influence strategies *Use of influence strategies * These traits were found in salespeople at both companies.

25. TURNOVER RATES IN SELECTEDINDUSTRIES Turnover Rate Industry 1988-89 Construction 45.8% Office Equipment 35.9 Instruments 34.9 Retail 28.0 Wholesale (Industrial) 25.5 Electronics 13.2 Utilities 13.0 Food Products 13.0 Machinery 12.6 Rubber/Plastics 11.6

26. FIRST YEAR COST OF A SALESPERSONIN THE U.S. Compensation (trainee average) $24,752 Benefits (24% of compensation) 5,940 Field Expense 20,397 Direct Expense $51,089 Training Costs 16,117 Total Costs $67,206

27. Selling Requirements: New account vs. established account selling Selling through distributors Entertaining customers Level of buying authority Physical activity required Weekends away from home Relocation Nonselling Tasks: Reports to management Customer service and training Sales promotion Degree of Responsibility and Authority: Negotiations of pricing Career Paths: Compensation plan Promotion timing Performance Expectations: Activity level requirements Written proposals Individual vs. team selling One time vs. systems selling Type of prospects and customers One-on-one selling vs. groups Travel -- how much and what kind Program or concept selling Technical knowledge Educational seminars Collecting receivables Marketing plans Travel and entertainment Earnings potential Promotion leaders Minimum sales volume or profits JOB DESCRIPTION FACTORS

28. Table 9-1 What Purchasing Agents Like About Salespeople Percent of Respondents Who Rated Most Valued Traits Willingness to fight for customer Thoroughness/follow- through Market knowledge/ willinness to share Knowledge of product line Diplomacy in dealing with operating departments Imagination

29. Table 9-3 Recruiting Sources for Salespeople Newspaper advertising Employee referrals Employment agencies Educational institutes Career conferences Professional societies Source Percent of firms using source

30. Direct recruit to control location or phone number Figure 9-3: A Model for Selecting Salespeople Hiring criteria for sales jobs used to guide selection process 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 interviewprocedures Measure subsequent success on the job Reject

31. 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?

32. Hiring Criteria Ranked by 100 Sales Managers Variable Characterisitc* Maturity P Personal selling/sales management skills M Appearance P Cooperativeness P Communications/public speaking N Disposition P Punctuality P Mannerisms P General marketing skills M English/writing skills N Management skills N Extroversion P Marketing department reputation S Product development/management skills M Finance skills N Market research skills M Market logistics skills M Personnel management skills N

33. Hiring Criteria Ranked by 100 Sales Managers (continued) Variable Characteristic Civic functions O Management science skills N Advertising/advertising management skills M Consumer/industrial buyer behavior skills M School reputation S Pricing skills M Accounting skills N Internship program S Social functions O Recruiting success with school S Internship training skills N Sports participation O Retailing/retail management skills M Home hobbies O Fraternal organizations O Social sciences/arts skills N * P, personal traits; M,marketing skills; N, nonmarketing skills; S, school reputation; O, outside activities. Source: Marketing News (January 13,1978), p.5.