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Thought Leadership
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 7% are
still employed by the client. Of the 93% who turned over in the past
seven years, an astonishing 70% left within a year and 96% 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% 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.
Steven Rothberg is the President and Founder of CollegeRecruiter.com, the leading job board for college
students looking for internships and recent graduates hunting for entry
level jobs and other career opportunities. Steven can be reached at
Steven@CollegeRecruiter.com or 800-835-4989 x704.


