Who Says You Need to Recruit Entry Level People for Entry Level Jobs?
Well, I do. And so does one of our clients whose identity will remain anonymous for reasons which will become apparent a little later in this blog entry.
I recently learned from one of our clients that they've hired several thousand outside sales representatives since 2000 but only seven percent are still employed by the client. Of the 93 percent who turned over in the past seven years, an astonishing 70 percent left within a year and 96 percent within three years. Ouch.
The average sales rep at this client generates a little over $150,000 in gross revenues in their first year. They're paid a 15 percent commission so receive about $23,000 per year. The top third make about $35,250 and the bottom third make about $15,000. Double ouch.
So, aside from the problem of how much these people are being paid to be outside, commissioned sales representatives, what other problems does the client have? Well, the local managers have pretty much refused to hire entry level people for these obviously entry level sales rep positions. They've been somewhat successful recruiting experienced sales reps but those reps leave as soon as they understand what kind of money they're likely to make -- hence the retention problem.
The solution? I didn't need to tell the client. They already knew. The local managers need to be educated and convinced that it is critical to hire the right person for the job. Hire someone who is over qualified and the result is that they get bored and frustrated. Hire someone who is under qualified and the result is that they get stressed and make a ton of costly mistakes. Either way, you've got a retention problem because the over qualifieds quit and the under qualifieds get fired.
The position that this client has is an excellent opportunity for a college student or recent graduate who wants to make a living in sales. It is an entry level sales position because of the earning potential so the managers need to hire entry level people. So who says you need to recruit entry level people for entry level jobs? Hopefully now everyone who is involved in the hiring process.
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