Human Resources 101

(NC)—According to the latest figures (December 2005) from Statistics Canada’s Labour Force Survey, the total number of people employed in sales occupations is 424,900*. Contrary to popular conceptions, the vast majority of Canadian sales personnel are not employed by large, multi-national firms but by small businesses.

Currently Canadian employers are facing a talent shortage in finding qualified sales personnel to fill existing vacancies according to a recent Manpower survey (January 2006). The situation is not expected to improve and there are a number of factors responsible for this state of affairs.

Canada’s baby boomer workforce is aging and health issues will continue to reduce the number of individuals able to participate in the workforce. Second, top notch salespeople are forged through a combination of education, experience, on the job training and ongoing professional development. Due to marketplace consolidation and intense competition amongst suppliers, there has been a shift in the sales focus from commodity to value which is forcing many companies to realign their sales strategies and compensation plans to reflect this new reality in selling. Customers have assumed the upper hand in the buying process and a professional salesperson not only needs to have extensive knowledge of a company’s product offerings but understand a customer’s business inside and out to deliver value.

So what impact will these factors have on small businesses looking for qualified salespeople? A significant one. Here are a few tips to help you plan for the future:

Remain competitive. To retain top sales talent, small and medium-sized companies will need to develop and design more incentive and recognition programs for their sales personnel. They will also have to offer competitive salaries on top of healthy commissions to attract talented candidates to their companies.

Focus on developing and mentoring your existing salespeople. Identify those salespeople who have the greatest potential in sales and focus your energies and monies on developing their talent to achieve their full potential.

Establish relationships with colleges and universities. As the competition for sales talent grows, you may need to hire candidates who are recent graduates of specialized marketing or sales certificate programs. It’s best to establish relationships now with educational institutions to have access to top graduates.

Engage your salespeople. It is always imperative to provide a challenging and worthwhile environment for your ‘A’ list sales team. One of the most fundamental methods is through communication. Your sales force must clearly understand the goals and vision of the major objectives and how their contributions “fit” into the mix.

Reinforce the positive. Salespeople need to know and feel appreciated that their contributions are being valued. Compensation is the most obvious way of showing your appreciation but positive reinforcement, recognition, and public acknowledgment will go a long way to making your salespeople feel valued.

(*Data taken from Statistics Canada Labour Force Survey and Small Business Register December 2005).

The Canadian Professional Sales Association (CPSA) is a national association of nearly 30,000 sales and marketing professionals across Canada. To join CPSA, or for a list of programs and benefits offered, visit www.cpsa.com or call 1.888.267.CPSA (2772).