THE HIRING PROCESS
Below is an illustration of how a sales force is developed when using the Personnafax system.
Recruiting > Selection > Training > Retention
When reviewing the system, one should keep in mind that errors, oversights, or shortcomings in an earlier stage of the process cannot be cured later on in the process. A problem in an earlier stage remains a problem in the later stages. If the recruit pool is too small or not sufficiently diverse, the selection tools cannot fix the problem, nor can training. If the wrong candidates are selected from the pool of recruits, training is unable to cure the limitation. Thus, the earliest stages of the process are considered the most crucial.
Recruiting:
Involves engaging as many potential candidates as possible who have an interest in pursuing a commissioned based sales career. Many agencies in commissioned based sales use only one technique of recruiting - referrals from employees being the most popular. Although this technique has some proven effectiveness, it is not and should not be the only method, as it often produces people from similar backgrounds and limits the diversity of the potential agents and thus markets. Campus recruiting is another common technique. This method has proven expensive and produces few candidates that make it into a particular industry, but those who do are often the most successful salespeople and have a long lasting productive career. Campus recruiting requires a large capital outlay upfront and a careful, often expensive, selection process, but also offers significant and lasting rewards in the future. Professional recruiters and employment agencies are often difficult to use because of the long period of time in determining whether the recruit will make it in the industry. In sophisticated commission based sales it usually takes two years of fulltime employment in the industry before a recruit can be deemed successful. Few employment agencies are willing to wait 2-years to collect their often high commissions and if they collect before two years, there is no proof that the candidate will succeed. The most important part of recruiting is that the manager has a constant, large and diverse pool from which to select. Recruiting is not a one-time event, it is a continual process, vital to the success of the agency and company.Selection:
Is one of the most vital components in developing a successful sales force. There is no substitute for having the facts to make clear, far reaching judgments, without the facts it is only a guesswork or gut instinct - instincts are only correct some of the time and for some people. Selection is not a uniform process - there is not one correct selection technique. This is why Personnafax does not rely on computerized analyses, a computer cannot properly account for the numerous variables included in a candidate's success or failure in an industry. The factors that must be considered in the selection process are a candidate's psychological profile - do they have dominance, closing power, how do they channel frustration and cope with the many failures common in commissioned based sales. Are they overly dominant and thus turn clients off? The psychological profile is just one factor in the selection process. There are many factors, other than individual psychological ones, that determine success or failure in commission based sales. What is the natural market? Does the candidate have a pre-existing market to sell products? Can this market afford the products that are being sold? What is the person's financial situation? Do they have sufficient assets to finance themselves through the difficult years of developing a clientele and a successful sales career? Is this person ethical? Most sophisticated commissioned based sales careers have regulatory agencies overseeing them that place strict guidelines on sales techniques. Will the recruit comply or will the candidate be a nightmare of ethical dilemmas and civil liability? Many people are lured by the potential of a commissioned based career, but how does the family or significant other feel about an income which may be inconsistent, even volatile? Can the early income support the recruit's lifestyle? If not, will this be a short lived career in commissioned based sales? Can this person commit fulltime to commissioned based sales? Many agencies have been lured into hiring people without financial commitment, where the candidate pays for their own licensing and are not paid for anything other than what they sell. This supposedly "risk free" process, which has great appeal in theory, has demonstrated repeated failures, virtually none of the part-time people ever become successful full timers at a later point. Would you go to the store to get a free lottery ticket if you were assured not to win? Agencies looking for little investment in the early stages, have shown less in returns in the long run. The recruiting and selection processes are the most vital components of the hiring process. As virtually all successful agencies in commissioned based sales have demonstrated, the place to invest time, money, and energy is in the early stages, recruiting and selection.A selection tool should identify the candidate's strengths and weaknesses, point managers in the direction of proper training and market development, and provide a profile of the candidate so the manager may have a constant reference tool to refer to during the candidate's tenure with the agency. When thinking of selection, think of a metaphor - diamond mining; miners will dig miles and miles through dirt to find just a few precious diamonds and after finding the few they continue to dig further. They will dig through far more dirt than diamonds in their quest. The selection process weeds through many, many candidates to find just a few that are successful. This long and tedious process is well rewarded!
Training:
How much relevant knowledge does the candidate bring, and where are the gaps? Does the candidate need extensive training and are they receptive to further training. There is no one particular form of training that is necessary, other than that required to comply with licensing standards or particular agency or company standards. Otherwise all training should be tailored to the particular individual depending on experience, knowledge of the industry, and education.Retention:
Once a candidate has become successful in the industry, retention remains an important component. Competing companies or agencies will seek to "cherry pick" the best agents from other agencies. Other sales agents may become wary of a routine, no matter how rewarding it is financially. Although all commission based sales jobs hold financial rewards for people in the industry, financial rewards may not be the only factor influencing people to stay. Other incentives may be individual rewards or recognition from the agency, company, or supervisors. Others may need room for advancement into management, while others may reject the management role. The selection tool used should provide an outline of the basic incentive structure of the candidate and their work history and employment stability to determine if they can be retained and if so, how.
THE ROLE OF PERSONNAFAX
Personnafax serves as the selection tool for making employment decisions. Personnafax first serves as a rejection tool for weeding out those candidates who will be unlikely to succeed in a sophisticated commissioned based sales career. These candidates are ordinarily removed from the process by being ranked either "fully doubtful" or "questionable." For those candidates not rejected at the early stages of the process, the information provided in the candidate profile is an invaluable tool for managers in making informed decisions. Candidates ranked "acceptable" have the potential to make it in the field, but managers should closely look at their strengths and weaknesses. After screening out additional candidates, managers can utilize the Personnafax report to structure interviews to further explore strengths and weaknesses of the candidate in greater detail. The manager can also look to the Personnafax for specific training needs of candidates selected. Finally, the manager can consult the Personnafax report to find areas beyond financial rewards that will aid in retaining the new hire.