CASE 8.2 RTechnology: Improving Recruitment and Selection RTechnology generates $8 million in annual revenues Josh Lyons started the company while he was still in by providing remote recovery and repair for computer college. The technology is based on a prototype devel servers to companies with wholesale and retail websites. oped in his dorm to help friends with computer prob. The primary competitive advantage of R' is providing lems without leaving his room. In the six years since cost-effective, remote-access, 24-7 troubleshooting and Josh graduated, sales have grown dramatically due to repair . If the customer's website is down or is operating his unique technology. While some larger accounts are too slowly, the customer is effectively "out of business." serviced with a direct sales team, most customers are Therefore, customers view this service as critical to served by fifteen Internet-telemarketing sales and sup their success. port staff HAPTER 8 Recruiting and Selecting the Sales Force 245 Until now, rapid sales growth has been the exclusive brought in to be interviewed by Josh and a couple of excus of the company. However, Josh is concerned other people who are around at the time. Since they because top-line growth has slowed recently, and his usually know the applicant's family or friends, inter- growth prospects. At the suggestion of a member of the people who would fit in with the small company cul- board of directors, Josh has recently started looking at ture. In fact, he doesn't think the applicant's college investors are beginning to ask questions about future views are very personal and social. Josh always looks for tracts after one year. Tash decides to call some of the customers who had nor renewed their service contracts to explore this issue. customer renewal (retention) rates. He has noticed that major and previous experience is very important, only 65 percent of customers are renewing their con- because the company provides on-the-job training. Orientation and initial training at the company is also informal. Orientation consists of Josh talking with He learns that customers "never talked to the same per- the new member of the sales team about how the com- son twice," and they perceived a lot of turnover" in the Next the new employee is assigned to one of the pany started and its mission, vision, and core values. company. They also say that a long-term relationship "senior" members of the sales team for on-the-job with their sales support person is important to main training. Since there is no formal training system or taining confidence in the company and its services. manual, the new employee sits with the trainer" at a This customer feedback really shocks Josh. He always workstation to learn the job. This approach seemed to thought rapid sales growth meant that customers must work well when the company was smaller. However, be satisfied. Josh begins to question if he has been too Josh is beginning to wonder if the initial training pro- focused on technology and growth. Is the customer cess may also be contributing to the turnover problem. retention problem really related to turnover in his sales Josh has promised to present a detailed plan to team? If so, how can he reduce turnover? address customer retention at the next R Technology Josh has always been proud that all of his employees board of directors meeting. He knows that solutions to are either students or recent graduates of Spring Col- turnover in the sales team must be addressed to lege, his alma mater. He thinks it is really cool to be able improve customer retention, so he makes a list in his to work with friends and people with the same back- PDA of some key questions he must answer in prepara- ground. The college has even recognized him as alumni tion for the meeting. of the year. Now he isn't so sure that this is a good strat- egy for recruiting members of the sales team. This QUESTIONS thought is especially strong when he takes the time to 1. What changes does Technology need to make in calculate his employee turnover rate-72 percent! In an its recruiting process? instant, all the parties for employees who were leaving 2. What changes does the company need to make in its the company for graduate school and marriage takes on selection process? a new meaning! 3. How can the initial orientation and training process Recruitment and selection of salespeople at the com- be modified to be more efficient and effective? pany is informal. Usually applicants are identified by word of mouth among employees. Often because they are in a hurry to fill a position, only one applicant is Case prepared by K. Randall Russ, Belhaven College