• Recruitment

Recruitment is a positive process in which a company attract a pool of talented people. Recruitment is
the procedure to obtain a good number of people with the potential capability of becoming good sales
personnel. Attracting new sales personnel is an important aspect of the sales manager's job.

• Selection
Selection is the process of evaluating the qualifications, experience, skill, knowledge, etc. of an applicant
in relation to the requirements of the job to determine his suitability for the job. Selection is a negative
process through which they screen people and finally select desired number of personnel who are
offered appointment. After attracting a large number of people, it becomes possible to select the
individuals, which fit the needs of the organization. Attracting and selecting new sales personnel is an
important aspect of the sales manager's job.

Good selection fits the right person to the right job, thereby increasing job satisfaction and reducing the
cost of personnel turnover. In addition training costs are reduced, either because those hired are more
capable of absorbing training or because they require less formal training.

• RECRUITMENT PROCESS
The steps of recruitment process are:

(a) Conducting a job analysis:

(b) Preparing a job description :

(c) Developing a set of job qualifications:

(d) Attracting a pool of applicants:

(a) Conducting a job analysis: Before a company can search for a particular type of salesperson, it must
know something about the sales job to be filled. To aid in the process, a job analysis should be
conducted to identify the duties, requirements, responsibilities, and conditions involved in the job.

A proper job analysis involves following steps:

1. Analyze the environment:

2. Determine the duties and responsibilities:

3. Spend time making calls:

(a) What is the nature of the competition faced by the salesperson in this job?

(b) What is the nature of the customers to be contacted, and what kinds of problems do they have?

(c) What degree of knowledge, skill, and potential is needed for this particular position?

2. Determine the duties and responsibilities : Determine the duties and responsibilities that are
expected from the sales-person. In so doing, information should be obtained from salespeople,
customers, the sales manager, and other marketing executives including the advertising manager,
marketing services manager, distribution manager, marketing research director, and credit manager etc.

3. Spend time making calls : Spend time making calls with several salespeople, observing and recording
the various tasks of the job as they are actually performed. This should be done for a variety of different
types of customers and over a representative period of time.

(b) Preparing a job description : The result of a formal job analysis is a job description. Since a job
description is used in recruiting, selecting, training, compensating and evaluating the sales force, the
description should be in writing so that it can be referred to frequently.

The written job description lets prospective job applicants, as well as current sales personnel, know
exactly what the duties and responsibilities of the sales position are and on what basis the new
employee will be evaluated.

The job description is probably the most important single tool used in managing the sales force.
Because,

i) It is used not only in hiring but also in managing and sometimes as a basis for firing salespeople.

ii) It provides the sales trainer with a description of the salespeople's duties and enables him or her to
develop training programs that will help salespeople perform their duties better.

iii) Job descriptions are also used in developing compensation plans. Often, the type of job determines
the type of compensation plan that will be used.

iv) Job descriptions aid managers in supervision and motivation.

v) Finally, a job description puts management in a position to determine whether each salesperson has a
reasonable workload.

(c) Developing a set of job qualifications: The duties and responsibilities set forth in the job description
should be converted into a set of qualifications that a recruit should have in order to perform the sales
job satisfactorily. Determining these qualifications is probably the most difficult aspect of the entire
recruitment process. One reason is that the manager is dealing with human beings; therefore, a
multitude of subjective and very complex characteristics are involved.
Specific qualifications such as education and experience should be included in the job qualification, thus
making good candidates easier to identify. But most firms also try to identify personality that most
probably make better salespersons, such as self-confidence, aggressiveness, etc.

(d) Attracting a pool of applicants: The next major step in the recruitment process is attracting a pool
of applicants for the sales position to be filled. All large companies with a sales force have a continuous
need to identify, locate, and attract potentially effective salespeople. The candidates recruited become
the reserve pool of sales staff from which new salespeople will be chosen. The quality of this group will
predict the future successes or problems of the sales organization.

• SOURCES OF RECRUITMENT
Sales managers should analyze each potential source to determine which ones will produce the best
recruits for the sales position to be filled. The most frequently used sources are:

(a) Persons within the company

(b) Competitors

(c) Non-competing companies

(d) Educational institutions

(e) Advertisements

(f) Employment agencies

(g) Website

(a) Persons within the company: Companies often recruit salespeople from other departments, such as
production or engineering, and from the non-selling section of the sales department. The people are
already familiar with company policies as well as the technical aspects of the product itself. The chance
of finding good salespeople within the company should be excellent because sales managers know the
people and are aware of their sales potential. In fact, most firms turn to non-sale personnel within the
company as their first source of new sales recruits. Hiring people from within the company can raise
morale because a transfer to sales is often viewed as a promotion.

But transferring outstanding workers from the plant or office into the sales department does not
guarantee success. In some cases hostility can arise among plant and office supervisors, who feel their
personnel are being taken by the sales department. Recommendations from the present sales force and
sales executive usually yield better prospects than those of other employees because the people in sales
understand the needed qualifications.

(b) Competitors: Salespeople recruited from a competitor are trained, have experience of selling similar
products to similar markets, and should be ready to sell almost immediately. But usually a premium
must be paid in order to attract them from their present jobs. Some sales managers are reluctant to hire
competitors' salespeople because the practice is sometimes viewed as unethical. It is unethical if the
salesperson uses valuable confidential information in competing against the former employer.

Recruiting competitors' salespeople may bring other problems. Although these people are highly trained
and know the market and the product very well. It is often hard for them to unlearn old practices. They
may not be compatible with the new organization and management. Also, recruits from a competitors
usually are expected to switch their customers to the new business; if they are unable to do so, their
new employer may be disappointed.

The potential for these problems to arise may be evaluated with one question: why is this person
leaving the present employer? A satisfactory answer to this question frequently clears up many doubts
and usually leads to a valuable employee. The difficulty arises, however, in determining the real answer.
Often, it is almost impossible to assess accurately why someone is looking for another job. Good sales
managers must be able to evaluate effectively the information they get.

(c) Non-competing companies: Non-competing firms can provide a good source of trained and
experienced salespeople, especially if they are selling similar products or selling to the same market.
Even though some recruits may be unfamiliar with the recruiting firm's product line, they do have
selling experience and require less training.

Recruits from these sources already have some knowledge; their familiarity reduces the time it will take
to make them productive employees.

Another advantage of recruits from the sources is that they are already familiar with the industry.

(d) Educational institutions: High schools, vocational schools, business school, colleges, and universities
are all excellent sources of sales recruits. Large firms usually are successful in recruiting from
universities, but small firms tend to be more successful in recruiting from small educational institutions
or from other sources. While most college graduates lack specific sales experience, they have the
education and perspective. College graduates tend to adapt more easily than experienced personnel.
They have not yet developed any loyalties to a firm or an industry.

A major problem in recruiting from college campuses used to be the unfavourable image of sales. Selling
typically was associated with job insecurity, low status, and lack of creativity, but this situation has been
changing in recent years. Colleges graduates are beginning to realize that selling provides challenge and
a sense of accomplishment, that it is complex and exciting, that it allows them to be creative, that it
rewards them well and in direct proportion to their level of achievement, and that it provides
opportunity for rapid advancement.

College students tend to avoid small companies because these companies usually employ few college
graduates, and students are afraid that people without college degrees for the job.

(e) Advertisements: Classified advertisements in newspapers and trade journals are another source of
recruits. National newspapers and various trade journals are used in recruiting for high-caliber sales and
sales management positions. However, most firms that use advertising, especially in local newspapers,
are recruiting for low-level sales positions. While advertisements reach a large audience, the caliber of
the average applicant is often second-rate. This places a burden on those doing the initial screening.

The quality of applicants recruited by advertisements can be increased by carefully selecting the type of
media and describing the job qualifications specifically in the ad. To be effective, a recruiting ad must
attract attention and have credibility. The following elements should be included to ensure an ad's
effectiveness: company name; product; territory; hiring qualifications; compensation plan, expense
plan, and benefits; and the way to contact the employer.

(f) Employment agencies: Employment agencies are among the best and the worst sources. Most of the
time it depends on the relationship between the agency and the sales manager. The agency should be
carefully selected, and a good working relationship must be developed. Sales managers should make
sure that the agency clearly understands both the job description and the job qualifications for the
position to be filled. They can provide a highly useful service to sales managers by screening candidates
so that recruiters may spend more time with those prospects who are most highly qualified for the job.

• SELECTION PROCESS
The selection process involves choosing the candidates who best meet the qualifications and have the
greatest aptitude for the job. There are numerous tools, techniques, and procedures that can be used in
the selection process. While successful selection of sales applicants does not necessitate the use of all
the tools and techniques. Companies typically use the following tools :

(a) Initial screening interviews

(b) Application forms

(c) In-depth interviews

(d) Reference checks

(e) Physical examinations

(f) Tests

(a) Initial screening interviews: The steps in the selection process vary from company to company,
depending on the size of the company, the number of salespeople needed, and the importance of the
position to be filled. The purpose of the initial screening interview is to eliminate, as soon as possible,
the undesirable recruits. Initial screening may start with an application form, an interview, or some
type of test. But no matter which tool is initially used , it should be brief. It should be brief that cut
down costs. But it must not be so brief that it screens out good candidates.

(b) Application forms: Application forms are one of the two most widely used selection tools (the other
is the personal interview). An application form is an easy means of collecting information necessary for
determining an applicant's qualifications. Information requested on forms usually includes name,
address, position applied for, physical condition, educational background, work experience, participation
in social organizations, outside interests and activities, and personal references. Other important
questions on an application form relate directly to the sales position for which the application is
made. For example:

• Why do you want this job?

• Why do you want to change jobs?

• What minimum income do you require?

• Are you willing to travel?

• Are you willing to be transferred?

• Are you willing to use your car for business?

• What do you want to be doing five years from now? Ten years from now?

Application forms will differ from company to company. On all forms, however, it is illegal to include
questions that are not related to the job. Some companies use a weighted application form that has
been developed from the regular application form by analyzing the various items that help distinguish
between good and poor salespeople. If companies can show that items such as educational level, and
years of selling experience tend to be more related to success than are other items, then more weight
(importance) can be placed on them in making hiring decisions.

Thus, applicants who rate higher than an established minimum number of points on these items are
considered, and those who fail to reach the cutoff point are usually rejected. An important function of
application forms is to help sales managers prepare for personal interviews with candidates for sales
positions. By looking over the application form before the interview, the sales manager can get an initial
impression of the applicant and can prepare a list of questions to ask during the interview.

(c) In-depth interviews: The interview is the most used of the various tools for selecting employees. A
salesperson is seldom hired without a personal interview. In fact, as many as three or four interviews are
usually conducted with the most desirable candidates. No other selection tool can take the place of
getting to know the applicants personally. The personal interview is used to help determine if a person is
right for the job. It can bring out personal characteristics that no other selection tool is capable of
revealing.

The interview also serves as a two way channel of communication, which means both the company and
the applicant can ask questions and learn about each other. The questions asked during an interview
should be aimed at finding out certain things: Is the candidate qualified for the job? Does the candidate
really want the job? Will this sales job help the candidate fulfill personal goals? Will the candidate find
this sales position challenging enough?
These questions, like those on the application form, are directed at examining the applicant's past
behaviour, experiences, and motivation. Every sales manager will use a different approach in attempting
to elicit useful information. The approach used will depend on the sales manager's personality, training,
and work experience. Interviews differ, depending on the number of questions. At one end is the totally
structured, or guided, interview; at the other end is the informal, unstructured type. In the structured
interview, the recruiter asks each candidate the same set of questions.

These are standardized questions that have been designed to help determine the applicant's fitness for
the sales position, structured interviews can be used for initial screening but are not useful in probing
for in-depth information. A structured approach is particularly useful for inexperienced interviewers.
Since it helps and guide the interviewer and ensures that all factors relevant to the candidate's
qualifications are covered.

(d) Reference checks: A company cannot be sure it has all the information on an applicant until
references have been thoroughly checked. Reference checks allows a company to secure information
not available from other sources. References usually are checked while the application form is processed
and before the final interview takes place. In general, the quality of reference checks as a selection tool
is questionable. Checking on the names supplied by a candidate is often seen as a waste of time because
it is unlikely that serious problems will be uncovered. Therefore, many firms try to talk with people who
know the applicant but were not listed on the application form.

References from teachers and former employers are generally more helpful than other types of
references. Teachers can usually give an indication of intelligence, work habits, and personality traits.
Former employers can be used to find out why the person left the job and how well he or she got along
with others. Reference checks can uncover information about an applicant that may alter a sales
manager's perceptions of the person's sales ability.

(e) Physical examinations : Many sales jobs require a degree of physical activity and stamina. Poor
physical condition can only hinder a salesperson's job performance; therefore, a company should insist
on a thorough medical examination for all its sales recruits. The results from the examination should be
interpreted by a doctor who is familiar with the demands of the sales job, and the sales manager should
be notified of the results. Because of their expense, physical examinations usually are not given until a
recruit has passed most of the steps in the selection process.

(f)Tests: Tests are the most controversial tools used in the selection process. The need for application
forms, reference checks, and personal interviews is seldom disputed, but there are differences of
opinion about whether tests are necessary in the hiring of salespeople. There are some basic tests used
in the selection process of sales personnel.

Intelligence tests:

Knowledge tests:

Vocational interest tests:

Intelligence tests: These tests measure raw intelligence and trainability. Recent research has indicated
that a salesperson's cognitive ability or intelligence is the best indicator of future job performance. Thus,
although once looked down upon, the intelligence test is slowly regaining status as the most effective
tool for selecting salespeople.

Knowledge tests: These tests are designed to measure what the applicant knows about a certain
product, service, market, and the like.

Sales aptitude test: These tests measure a person's inborn or acquired social skills and selling know-how
as well as tact and diplomacy.

Vocational interest tests: These tests measure the applicant's vocational interest, the assumption being
that a person is going to be more effective and stable if he or she has a strong interest in selling.

Personality tests: These tests attempt to measure the behavioral traits believed necessary for success in
selling, such as assertiveness, initiative, and extroversion.