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Canada needs skilled sales staff: Survey
Feb. 21, 2006.
CANADIAN PRESS |
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Sixty-six
per cent of Canadian employers are having trouble
finding suitably talented workers compared with 40 per
cent worldwide, according to a study by the Manpower
Inc. employment firm
Manpower said Tuesday it surveyed nearly 33,000
companies in 23 countries including 1,000 in Canada, and
found that the hardest-to-find workers in Canada are, in
order, sales representatives, customer service
representatives, engineers, drivers, mechanics,
labourers, chefs,
electricians, skilled trades and nurses.
The survey, conducted last month, found the shortage of
suitable workers most pronounced in Mexico, Canada and
Japan. The situation was least problematic in India,
where only 13 per cent of employers reported having
difficulty filling positions.
"Across North America and Asia, the top three talent
shortages are identical — sales representatives rank No.
1, followed by engineers and technicians," said Jeffrey
Joerres, chairman and CEO of Manpower Inc.
"Employers are telling us that they are not just looking
for bodies to fill sales jobs; they want experienced
salespeople who know their respective industries and can
drive revenues," Joerres said.
He added that compensation packages in hot job
categories will be rising rapidly, and "anyone who is
currently searching for a new job or a different career
path should seriously consider the results of this
survey, and set their sights on getting the education
and training required to pursue one of these promising
career paths."
Joerres predicted: "In 10 years we will see many
businesses failing because they haven't planned ahead
for the talent shortage and are unable to find the
people they need to run their businesses. This is not a
cyclical trend, as we have seen in the past; this time
the talent crunch is for real, and it's going to last
for decades."
Factors contributing to the talent-hunting woes of
Canadian employers include "demographic shifts like
aging population and lower birth rates; inadequate
education programs; globalization; social evolution; and
entrepreneurial practices like outsourcing and off
shoring," said Lori Procher, general manager of Manpower
Canada.
"Among the actions required to address these shortages
in the coming years are enhanced links with schools,
investment in training, re-skilling and up-skilling
employees and flexible use of talent." |
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| Will You be Sued Next? |
| According to the Chubb Insurance Group, one in four
privately held companies has been sued in the past few
years by an employee or a former employee. In the same
report, executives at half the companies surveyed
consider it likely they will be sued by employees, and
nearly one-third believe they would be likely to lose
and their companies seriously damaged by such a lawsuit.
Nearly half expected an employee to file an EEOC
complaint during the year. The additional
responsibility and pressure such an environment puts on
HR staff is obvious, even if the actual numbers turn out
to be wrong. The expectation itself provides the
pressure! |
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| Risk of Employee
Defection Up
MetLife's annual "Employee Benefits Trend Study" found
that 22 percent of all employees changed jobs in the
last year and-a-half, compared to 17 percent in a
similar period in their 2004 study. In one demographic
subgroup of young families with children under age 6, it
was nearly one-third higher!
Employee participants in the study reported their top
priorities when deciding to stay or go (and where to go)
were the "quality of co-worker and/or customer
relationships," "opportunity for work-life balance" and
"an organization whose purpose/mission I agree with."
Employers facing worker shortages, take note! |
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HR Professionals Try
to Keep Up with Field
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As the articles above attest, the term "HR Generalist"
has never had broader implications. Federal Law Changes,
employee loyalty challenges, risk of expensive lawsuits
arising from HR policies, keeping up with technology,
science and metrics, and more demanding (but rewarding)
professional certification standards — it's hard to find
time to just do the daily workload! |
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Effects of Hiring Under
Producers in Sales
-Mike Hopkins & Mark Wathen |
| A well-known national company provides personal
development and coaching services across the U.S. and
has done so for over 20 years. Their sales process is
highly structured. Leads are generated from a variety of
sources, including infomercials, Internet campaigns and
traditional advertising channels. Once a lead is
captured and qualified, an appointment is set for a
telephone presentation, most often including both
members of a married or committed couple as prospects.
The sales professionals we measured here conduct the
scripted telephone session. The interview goal is a sale
in the range of $2,000 to $8,000 consisting of one or a
combination of the company's personal and business
development training courses. Obviously, a great deal
of money and time has already been invested by the time
an appointment begins, and both the company and the
salesperson need to close a high percentage of the
interviews conducted. New salespeople complete a
five-week training course and transition from an hourly
compensation period to a commission-only system within a
relatively short time.
The company currently staffs approximately 130
full-time sales positions. They anticipate, based on
last year's statistics, that they will need to hire 200
new salespeople to fill an anticipated 76 new vacancies
in the sales staff since only about one-in-three hires
actually finish the training and succeed in their first
few weeks in becoming commissioned salespeople. As with
the sales process itself, this process of developing new
sales representatives is very expensive. The company is
highly motivated to reduce sales turnover and to
increase average close ratios of the sales force, if
possible.
For this initial study, three groups of salespeople
were selected by management, based on tenure (on the
sales floor more than six months) and closing ratios.
These groups were separated into "top," middle" and
"marginal" performers, based on the closing ratios. All
subjects completed the Profile XT™ assessment. A job
match pattern was prepared for the top-performing group,
and all subjects were matched to this pattern.
The results were dramatic. The top performing group
matched the pattern at an average of 88.5 percent, and
no member of that group scored less than 83 percent. The
middle group averaged 71.8 percent match, and the
marginal group averaged 70 percent match. Clearly, the
assessment differentiated between people who were top
performers and those who were not. To a lesser extent,
it also differentiated between middle and marginal
performers.
In this setting, top performers produced annual sales
of $500,000-plus and earned commissions in the
six-figure range. By contrast, marginal performers
produced in the range of $200,000, earning average
commissions less than $50,000. Not surprisingly, this
was the group with the most turnover. They did not fit
their jobs well and they presumably had employment
alternatives compensating as well or better.
For the company, the opportunities are clear. If they
are making 76 selections in a year, each good decision
(hiring a likely top performer) is worth an additional
$300,000 in potential sales. In the first year, this
represents a potential $22-million-plus sales increase!
In addition, if they hire more people with the
characteristics and production of their "top
performers," their recruiting, training, turnover and
missed opportunity costs will decrease. The combined
result should be significant gains in overall
profitability.

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| "If you have always
done it that way, it is probably wrong."
- Charles Kettering
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