For office technology dealer HR departments, perhaps no other area is more fraught with peril than the sales division. Traditionally, it sees some of the highest turnover rates. Training and development costs aren’t insignificant; in addition to those candidates who wash out within the first year, dealers may suffer the indignity of seeing some of their best young reps absorb the training and mentoring, only to seek out greener pastures.
As an aside, hiring across all industries and positions did enjoy a reprieve from the final rule issued by the Federal Trade Commission (FTC) that would have banned noncompete agreements for employees, contractors and executives. The rule, which would’ve went into effect Sept. 4, was struck down by the U.S. District Court for Northern Texas in late August. The FTC is expected to launch appeals that could see the matter litigated all the way to the Supreme Court.
The market for sales people is a hotly contested one. The approach taken by many dealers is similar to the choices confronting firms that wish to enter the managed IT realm: to build or acquire? Is it better to take a raw candidate with personality, the right temperament and no negative baggage, and mold them into a selling machine? Or is it more preferred to land a seasoned veteran, either from within the industry or from another sector, and theoretically have an option who can jump right in much quicker than a sales neophyte?
Of course, neither option is quite so simple. For the account rep cultivators, how many “selling machines” might one discover/develop out of a prospect field of, say, 10 people? Maybe one or two. And while manufacturer layoffs have increased the pool of competent sellers, it’s tough to mold after the clay has hardened, so to speak. That’s not to say all veteran account reps lack flexibility, but longstanding habits can be tough to break.
The question is, which method will cost more money in the long run? And will the return on investment more than make up for it before the candidate looks to go elsewhere? Many dealers feel blessed to have long-tenured sales reps, but as they grow, it necessitates the need for more impactful sellers.
As a complementary piece to this month’s State of the Industry report on hiring and retention, we asked our dealer panel to share some of the tactics they employ to keep their star reps satisfied. In addition to time-tested methods including recognition programs, president’s club vacations and qualifying manufacturer trips, there are modern tools that can allow dealers to remain competitive on the HR landscape.
Resignation Whys
Dealers and independent organizations have developed aptitude tests that can project those individuals who have a disposition to be successful at selling, but it’s not an exact science. Cynthia Bennett, vice president of talent acquisition at Impact Networking in Lake Forest, Illinois, knows the talking points surrounding why salespeople will exit an organization. From general burnout to feelings of incompetence, or a lack of resources and support, many pitfalls can produce a level of frustration that morphs into resignation.
Bennett believes the dealer has all of the critical bases covered, including best-of-breed training, unique recognition incentives, bonuses, company-paid trips globally and a competitive commission structure. Technology solutions such as 6Sense, SalesLoft and ZoomInfo produce high-caliber leads and have helped simplify the task of sales.
“Sales today isn’t the way sales was in years past,” Bennett noted. “Reps need to be educated in their craft, understand the landscape in which they are selling, and have the ability to sell through educating and challenging the status quo. If you can provide the tools needed to sell in today’s market, you’re more likely to retain your talent.”
Salespeople tend to have their own idiosyncrasies, needs and approaches, so it’s tough to use a one-size-fits-all management style in dealing with them. Larry Weiss, president and CEO of Atlantic Tomorrow’s Office, believes it’s important to give them a wide berth. But it’s also vital to hold them accountable and ensure they’re changing with the times.
“Compensation dictates behavior,” Weiss noted. “You’ve got to strike a balance with the tenured salespeople. Not only do we have to have competitive comp plans, but they must also provide an unrestricted limit to earnings. We’ve got to cultivate a culture so that all parties enjoy working together.”
It’s a careful line to walk. Weiss believes his company has the best copier reps in the business. However, like most companies, Atlantic Tomorrow’s Office needs to get them to do a better job of selling additional services. “There is no growth in the comfort zone and no comfort in the growth zone,” he added.
“Hopefully we can figure out a better way to do that and make the uncomfortable more tolerable,” Weiss said. “These people really do have a skill that’s beyond what most people have.”
Leveraging B Time
Setting high standards and unambiguous expectations may filter out a degree of candidates at the outset, but that might not be a bad thing. In the case of Pacific Office Automation in Beaverton, Oregon, the level of commitment required to wear the uniform and represent the organization from a selling standpoint is “not for everyone,” according to CEO Doug Pitassi.
The best candidates tend to capitalize on both A and B time. The standard 8:30 a.m.–5 p.m. is A time, but account execs are expected to use B time to prepare for A time. It’s during the B time when reps can learn the technology and better understand the clients within their territories—this is when elite sales reps are born.
“It takes two to three years of training, linking technology to solutions and understanding customers to really become confident,” Pitassi said. “A lot of people throw in the towel early. The reps may have the behavior to do it, but do they have the will-do? That will-do is the commitment to their knowledge, skills and attitude to be successful.”
It’s during that first year or so that sales rookies drop from the ranks. Reps who stick with the program for three years—nearly 90% of them, says Pitassi—will remain on board for another five years.
“There’s a lot of hard schooling involved,” he said. “Still, I don’t think we’re any different from other dealers in terms of retention. We lose a pretty good percentage of reps in their first year. That’s just a factor of the industry we’re in.”
Taking ownership of a territory can enable sales reps to enjoy enough success to keep them hungry and wanting more. Deb Dellaposta, president of Doing Better Business in Altoona, Pennsylvania, equates the dealer’s business relationship managers to being CEOs of their territories or account bases. Radio silence, she notes, is one of the most important elements to avoid.
“Two-way communication regarding market focus, compensation plans, and setting pricing levels and sales expectations is key,” Dellaposta noted. “We value their opinions and actively engage them in decision-making.”
What’s Best
Supporting sales reps goes a long way toward retaining them, and Vern Hydorn knows a thing or two about retention. The vice president of sales for Burlington, Massachusetts-based NBM proudly points out that 60% of the dealer’s overall staff of 75 has been with the company for 10 or more years.
One element that’s helped solidify the relationship between Hydorn and his on-the-street reps is his willingness to back them 100%. He’s found that what’s in the best interest of the sales rep is usually what’s best for the client as well. Knowing Hydorn has their backs has prevented meaningful job turnover.
Incentives make for great enticements. The entire sales force will head down to Foxborough, Massachusetts, to catch a Patriots-Jets game this month. A number of NBM salespeople also qualified for a trip to Costa Rica for a sun-filled experience that was sponsored by Sharp. Both Sharp and Ricoh have gift card programs, in which points are loaded on the salespeople’s credit cards each time they enter the serial number of equipment sold.
Still, despite their best efforts, there are reps that invariably don’t stick around for the long haul. “The turnover is greater for those people who’ve been on board 18 months to two and a half years,” Hydorn said. “They’ve had some success, maybe they’re even doing well, but they don’t want to spend their entire career in this industry. Maybe they want to go into medical devices or software. And that’s OK, because it’s a win-win situation. They benefit from the experience they’ve gained, and we benefit from the customers they leave behind.”
Inside Sales
Rosa Solares, director of culture and talent management for AIS in Las Vegas, keeps particular tabs on the state of sales turnover. She’s read that it churns somewhere in the 20%–30% range. So what’s the best approach to avoid falling within that not-so-sweet spot? Solares believes it boils down to the account reps’ motivation—why they’re in that role and whether they’re behaviorally aligned with the nature of the job.
AIS uses a number of tools to ascertain whether applicants have the necessary disposition to sell. The dealer recently launched an inside sales team, which she terms the “farmers and nurturers.” The “hunters” are the on-the-street salespeople who meet with the clients and close the deals.
“We take a different approach to sales; we’ve been a little creative in re-engineering our department and the initiatives over the last year or so,” she said. “We’ve found a lot of success with it. Also, it’s especially important to have great sales managers who are going to be there for everything those newer sales reps need.”
When it comes to cultivating long-term sales success stories, it’s impossible to overstate the significance of attitude. It’s an important ingredient with the sales team at CPI Technologies of Springfield, Missouri. The feeling of belonging to a tight-knit, cohesive unit with monthly, quarterly and annual contests appeals to the competitive side of most field reps, notes Erik Crane, president and CEO of CPI.
“Supporting [our sales reps] and giving them all the tools they need to be successful is a big deal as well,” Crane remarked. “If people feel supported and heard about the things they need or see, they’ll be harder to steal away.”
At the end of the day, it’s also important to remember the fundamental driver that fuels the sales rep on a daily basis. “Generous, results-driven comp plans don’t hurt either,” he added.
