Sales Force Management: From Recruitment to Compensation
Recruiting Applicants
Internal Resources
Internal resources refer to individuals already employed within the company but working in different departments. Transferring these employees to the sales department can be an effective recruitment strategy.
The HR department is best positioned to identify suitable candidates for sales roles. Their knowledge of employee abilities and performance makes them invaluable in this process.
Advantages of Internal Recruitment:
- Performance records are readily available, providing insights into past achievements.
- Reduced orientation and training costs, as internal hires are already familiar with company products, policies, and operations.
- Boosts company morale by demonstrating opportunities for growth and advancement within the organization.
External Resources
External resources encompass individuals from outside the company. This category includes:
People from Other Firms
Recruiting experienced salespeople from competitors can provide valuable industry knowledge, established customer relationships, and a ready-made network. While some may perceive this as unethical, it’s a common business practice.
Current salespeople within your organization can be valuable assets in this process. They understand the job requirements and often have contacts in other companies.
Customers can also serve as a source of referrals.
Advertisements
Companies can utilize advertisements to attract applicants. The type and placement of ads depend on the specific job requirements. For specialized roles demanding technical expertise, industry or technology magazines are effective channels.
Targeted advertising reduces the volume of unqualified applicants, minimizing costly screening processes.
Employment Agencies
Partnering with reputable employment agencies can streamline the recruitment process. Providing agencies with a detailed job description ensures they source candidates who align with your requirements.
Colleges and Universities
Colleges and universities are excellent sources for entry-level positions requiring strong analytical and technical abilities. Recent graduates often possess the drive and enthusiasm to excel in sales roles.
However, their lack of experience necessitates comprehensive training programs.
Internet
Online platforms, such as LinkedIn, have become increasingly popular for sourcing candidates. These platforms allow companies to target specific skill sets and experience levels.
Selection Procedures
Effective selection procedures are crucial for identifying the best candidates. Common methods include:
Application Blanks
Application forms ensure consistency in the information gathered from each candidate. They provide a snapshot of the applicant’s personal and professional history, aiding hiring managers in interview preparation.
Personal Interviews
Interviews allow for a deeper assessment of a candidate’s personality, communication skills, and overall suitability for the role.
Interviews can be structured (using a standardized set of questions) or unstructured (allowing for a more conversational flow).
Reference Checks
Contacting references provided by the candidate helps verify past performance and the accuracy of information shared during the application process.
Physical Examination
Physical examinations may be relevant for sales roles demanding physical stamina and the ability to handle stress. However, these examinations should be directly related to the job requirements and conducted ethically.
Tests
Tests can measure a candidate’s mental abilities, personality traits, and aptitude for sales. Common tests include:
- Personality tests
- Intelligence tests
- Aptitude tests
Objectives of Sales Training
Comprehensive sales training programs are essential for developing a successful sales force. Key objectives include:
Increase Productivity
Effective training equips salespeople with the skills and knowledge to excel in their roles, leading to increased productivity and revenue generation.
Improve Morale
Well-trained salespeople are more confident in their abilities, leading to higher job satisfaction and morale.
Lower Turnover
Investing in training reduces turnover rates by providing salespeople with the tools and support they need to succeed.
Improve Customer Relations
Trained salespeople are better equipped to build and maintain strong customer relationships, leading to increased loyalty and repeat business.
Improve Selling Skills
Training programs enhance essential selling skills, such as time management, territory management, and objection handling.
Sales Training Topics
Effective sales training programs cover a wide range of topics, including:
Product or Service Knowledge
A deep understanding of the products or services being sold is paramount. Salespeople should be able to articulate value propositions, address customer questions, and differentiate offerings from competitors.
Market/Industry Orientation
Salespeople need to understand the broader market and industry dynamics, including economic factors, trends, and competitive landscapes.
Company Orientation
Knowledge of company policies, procedures, and culture is essential for salespeople to represent the organization effectively.
Time and Territory Management
Effective time and territory management skills are crucial for maximizing productivity and reaching target customers.
Legal and Ethical Issues
Salespeople must operate within legal and ethical boundaries. Training on relevant laws and regulations is essential.
Technology
Salespeople need to be proficient in using technology, such as laptops, smartphones, and customer relationship management (CRM) systems, to streamline their workflow and enhance productivity.
Compensating Methods
Choosing the right compensation plan is crucial for attracting, motivating, and retaining top sales talent. Common methods include:
Straight Salary
Straight salary plans offer stability and predictability in earnings. They are suitable when:
- Management prioritizes long-term objectives over short-term sales volume.
- Measuring individual sales performance is challenging.
Advantages:
- Encourages salespeople to focus on non-selling activities, such as customer service.
- Simplifies compensation calculations.
Disadvantages:
- May not incentivize high levels of sales performance.
- Can lead to complacency among lower-performing salespeople.
Straight Commission
Straight commission plans directly link earnings to sales performance, providing a strong incentive to drive revenue.
Advantages:
- Highly motivating for high-performing salespeople.
- Fair and transparent compensation structure.
Disadvantages:
⁃ salespeople are not motivated to build new relationships with new customers, they are working hard to milk the existing ones. ⁃ Unstable payment for salespeople.⁃ High turnover specially when the business condition is poor.3. Combination plan: It’s the most popular, it gives fix salary plus commission or bonuses or both. So fix salary plus commission linked with his sales performance.So salespeople are motivated for both, admins job and selling job.But the percentage of the commission here is small because they have fix salary already.