Job Market: Sales Representatives Resist the Downturn
24 December 2008
Read by 2030 persons
Currently, around 50 to 60% of job offers are for sales representatives. Companies are competing to attract recent graduates, even offering training. Banks, insurance companies, and large retailers are still recruiting large numbers of young sales representatives. Salaries increase by 5 to 15% per year.
The crisis! But not for everyone. The job market, although slowing down significantly, seems to have picked up for certain profiles who are benefiting from the crisis. Sales representatives are among them. According to Lamia Teugels, recruitment manager at F2V Consulting, "the sales function is the one that is best weathering the storm; companies want to maintain and grow their market share. As a result, they are targeting sales profiles."
That said, experienced profiles are more sought after than beginners. "Recruiters appreciate sales representatives who have a good understanding of product or service offerings, distribution channels, and industry news. They seek reassurance with experts who are quickly operational," adds Mohamed Bennouna, CEO of F2V Consulting.
But since there are more recent graduate candidates, employers are making concessions and are ready to take what they can find, even if it means providing additional training. "Companies are competing to attract a large number of them, even if it means training them," emphasizes Yann Dolléans, CEO of TMC, a training firm specializing in sales teams. The financial sector (banks and insurance) and large-scale retail perfectly illustrate this situation. The same is true for real estate, automotive, and B2B services.
Salespeople are increasingly qualified and present themselves more as advisors
Currently, 50 to 60% of job offers are for sales representatives. This proves that sales are more than ever one of the main career paths for recent graduates. The main reason is that selling is an obsession for companies, even more so during a crisis. Brand prestige, as well as product and service quality, are no longer as determining as in the past. Nowadays, it must be recognized that consumers often have difficulty choosing from the array of products and services offered to them every day. To succeed in such a highly competitive environment, it is therefore essential to ensure a constant presence on the ground. Nevertheless, regardless of the number of positions available, companies never hire the first person who applies.
To build a career in this field, it is essential to first have strong technical skills in the sector in which one wishes to work, simply because one does not sell a computer in the same way as a financial product or office furniture. Moreover, a survey by Abacus Consulting, whose results were published by La Vie éco (see the December 22, 2006 edition), shows that the profession has completely transformed. Things have evolved rapidly, and the profession is no exception. The era of the self-taught salesperson, solely interested in sales figures and who sells thanks to their charm, is over.
Today, the salesperson is increasingly qualified and presents themselves more as an advisor. "They are better trained and better informed about their environment," emphasizes Hamid Zerda, CEO of Abacus Consulting.
Salary: significant disparities between sectors and companies introduce criteria
The CEO of TMC Consulting, however, insists on classifying sales representatives into two categories: B2C, those who deal with individuals, and B2B, those who sell to businesses. "The sales effort is much more difficult for B2B sales representatives because they offer a service or product for specific uses to well-informed interlocutors who often have a perfect understanding of their field," he explains.
In terms of salary, sales remains one of the best-paying functions in a company. Sales executives see their paychecks increase by an average of 5% each year. This significant increase is mainly due to the increase in the variable component. "It all depends on the companies' salary policy, but also on individual performance.
According to surveys, we observe that companies are increasingly concerned with introducing qualitative or quantitative criteria into the variable component, such as the introduction of long-term objectives," explains Mr. Bennouna. Today, the variable component represents an average of 20% of the overall salary, or even 50% in extreme cases.
However, it should be noted that there are significant disparities in salary increases, depending on the sectors of activity and the companies. For example, we see significant increases in the hospitality and retail sectors. However, in general, companies are categorized into three segments.
First, those operating in a highly competitive environment. For these companies, salary increases are significant and can reach 10% per year, or even 15% in extreme cases.
Second, multinational companies. They generally have real salary scales that take into account individual performance, training provided, and strategic positioning criteria. Salary increases can also reach 15% from one year to the next.
Third, SMEs or companies operating in less competitive activities. These companies are not imbued with a sales-oriented mindset. Salaries are largely fixed, and increases generally do not exceed 3% annually.
Focus: 75% of sales representatives hold at least a Bac+2 degree
One of the rare surveys exclusively dedicated to the sales function in Morocco was conducted in 2006 by Abacus Consulting. It is based on a sample of 4,500 sales representatives and 185 companies. 57% of those surveyed are aged between 18 and 35. They are mainly found in rapidly developing sectors, including distribution/trade/commerce, services, transport, and to a lesser extent, in agri-food. Young people are numerous (51%) in the IT and telecoms sectors, areas that are supposed to attract younger people. Regarding education, nearly 75% of those surveyed hold at least a Bac+2 degree. Only 7% of them have not studied, and 17% have a Baccalaureate level. The most educated (Bac+4 and above) are employed in the banking/insurance/credit, IT and telecoms, industry and industrial equipment, and transport sectors. As for agri-food, automotive, and auto equipment, they have a high concentration of Bac+2 or Bac+3. Overall, 30% of those surveyed graduated from business schools; university graduates account for 26%, holders of BTS commercial diplomas 14%, engineers 13%, holders of BTS technical diplomas 10%, and the rest 7%. Another striking feature of the study is that the number of female sales representatives remains low in absolute terms. They represent only 18% of the total sales population. Their preferred field is the tertiary sector: 38% are in financial services (banks, insurance, credit), 33.6% in personal services, and 27% in information technology.
Questions to Yann Dolléans, CEO of TMC, a training firm specializing in sales teams: "The successful salesperson is the one who can maintain their performance over time"
La Vie éco: How is the job market for sales representatives doing?
Y.D.: Certainly, there has been a slowdown in recent months, but we are in a recovery phase. The job market for sales representatives is picking up, and many opportunities are available.
In the market, we can find a large number of technical sales representatives who have a strong technical understanding of their products. These are generally Bac+2 and above profiles who hold positions of responsibility. However, companies, especially in the industrial sector, often have problems with these types of profiles. The reason is that they have a basic technical training (technician or engineer) and often do not have the predisposition to sell a product. This is why, after hiring, they ask us to train them and make them operational.
For large-scale retail, for example, there are good salespeople in the field, but also technical sales engineers, merchandisers... These are roughly the same profiles as in industry.
In services, we have profiles that are more oriented towards consulting, such as customer or business managers.
Is it easy for a company to find good profiles?
The requirements of the profession are not limited to these technical aspects. Sales is above all a mindset; otherwise, a person, regardless of their training or level of knowledge of a product or sector, will never make a good salesperson. Once these two qualities, technical skills and natural predisposition, are combined, performance will only depend on the way of working, apart, of course, from the quality of the product or service to offer and the size of the market.
Succeeding in this profession requires good individual organization. The successful salesperson is the one who can maintain their performance over time. This talent is cultivated through several almost essential rules.
These rules can be summarized in three questions: how to persuade? How to negotiate? How to close? You can possibly persuade a customer and not close a deal. On the other hand, I find that companies struggle to find profiles without diagnosing their teams. Sometimes, a little training can make someone a very successful salesperson.
And what about salaries, how are they evolving?
I'm from the old school that believes that a salesperson's salary should be primarily based on the variable component. Unfortunately, there are companies that are not imbued with a sales-oriented mindset and do the opposite.
Another issue is that commission systems are sometimes quite complex. This can lead to frustration among salespeople. A compensation system is generally based on sales figures but also on a product unit or, as is done in some local groups, on the margin achieved. This allows for greater involvement and motivation of salespeople. In the long term, I think that companies will have to align themselves with this last option to remain competitive.
Brahim Habriche
Published on November 2, 2009
Posted online on November 5, 2009
lavieeco.com
The crisis! But not for everyone. The job market, although slowing down significantly, seems to have picked up for certain profiles who are benefiting from the crisis. Sales representatives are among them. According to Lamia Teugels, recruitment manager at F2V Consulting, "the sales function is the one that is best weathering the storm; companies want to maintain and grow their market share. As a result, they are targeting sales profiles."
That said, experienced profiles are more sought after than beginners. "Recruiters appreciate sales representatives who have a good understanding of product or service offerings, distribution channels, and industry news. They seek reassurance with experts who are quickly operational," adds Mohamed Bennouna, CEO of F2V Consulting.
But since there are more recent graduate candidates, employers are making concessions and are ready to take what they can find, even if it means providing additional training. "Companies are competing to attract a large number of them, even if it means training them," emphasizes Yann Dolléans, CEO of TMC, a training firm specializing in sales teams. The financial sector (banks and insurance) and large-scale retail perfectly illustrate this situation. The same is true for real estate, automotive, and B2B services.
Salespeople are increasingly qualified and present themselves more as advisors
Currently, 50 to 60% of job offers are for sales representatives. This proves that sales are more than ever one of the main career paths for recent graduates. The main reason is that selling is an obsession for companies, even more so during a crisis. Brand prestige, as well as product and service quality, are no longer as determining as in the past. Nowadays, it must be recognized that consumers often have difficulty choosing from the array of products and services offered to them every day. To succeed in such a highly competitive environment, it is therefore essential to ensure a constant presence on the ground. Nevertheless, regardless of the number of positions available, companies never hire the first person who applies.
To build a career in this field, it is essential to first have strong technical skills in the sector in which one wishes to work, simply because one does not sell a computer in the same way as a financial product or office furniture. Moreover, a survey by Abacus Consulting, whose results were published by La Vie éco (see the December 22, 2006 edition), shows that the profession has completely transformed. Things have evolved rapidly, and the profession is no exception. The era of the self-taught salesperson, solely interested in sales figures and who sells thanks to their charm, is over.
Today, the salesperson is increasingly qualified and presents themselves more as an advisor. "They are better trained and better informed about their environment," emphasizes Hamid Zerda, CEO of Abacus Consulting.
Salary: significant disparities between sectors and companies introduce criteria
The CEO of TMC Consulting, however, insists on classifying sales representatives into two categories: B2C, those who deal with individuals, and B2B, those who sell to businesses. "The sales effort is much more difficult for B2B sales representatives because they offer a service or product for specific uses to well-informed interlocutors who often have a perfect understanding of their field," he explains.
In terms of salary, sales remains one of the best-paying functions in a company. Sales executives see their paychecks increase by an average of 5% each year. This significant increase is mainly due to the increase in the variable component. "It all depends on the companies' salary policy, but also on individual performance.
According to surveys, we observe that companies are increasingly concerned with introducing qualitative or quantitative criteria into the variable component, such as the introduction of long-term objectives," explains Mr. Bennouna. Today, the variable component represents an average of 20% of the overall salary, or even 50% in extreme cases.
However, it should be noted that there are significant disparities in salary increases, depending on the sectors of activity and the companies. For example, we see significant increases in the hospitality and retail sectors. However, in general, companies are categorized into three segments.
First, those operating in a highly competitive environment. For these companies, salary increases are significant and can reach 10% per year, or even 15% in extreme cases.
Second, multinational companies. They generally have real salary scales that take into account individual performance, training provided, and strategic positioning criteria. Salary increases can also reach 15% from one year to the next.
Third, SMEs or companies operating in less competitive activities. These companies are not imbued with a sales-oriented mindset. Salaries are largely fixed, and increases generally do not exceed 3% annually.
Focus: 75% of sales representatives hold at least a Bac+2 degree
One of the rare surveys exclusively dedicated to the sales function in Morocco was conducted in 2006 by Abacus Consulting. It is based on a sample of 4,500 sales representatives and 185 companies. 57% of those surveyed are aged between 18 and 35. They are mainly found in rapidly developing sectors, including distribution/trade/commerce, services, transport, and to a lesser extent, in agri-food. Young people are numerous (51%) in the IT and telecoms sectors, areas that are supposed to attract younger people. Regarding education, nearly 75% of those surveyed hold at least a Bac+2 degree. Only 7% of them have not studied, and 17% have a Baccalaureate level. The most educated (Bac+4 and above) are employed in the banking/insurance/credit, IT and telecoms, industry and industrial equipment, and transport sectors. As for agri-food, automotive, and auto equipment, they have a high concentration of Bac+2 or Bac+3. Overall, 30% of those surveyed graduated from business schools; university graduates account for 26%, holders of BTS commercial diplomas 14%, engineers 13%, holders of BTS technical diplomas 10%, and the rest 7%. Another striking feature of the study is that the number of female sales representatives remains low in absolute terms. They represent only 18% of the total sales population. Their preferred field is the tertiary sector: 38% are in financial services (banks, insurance, credit), 33.6% in personal services, and 27% in information technology.
Questions to Yann Dolléans, CEO of TMC, a training firm specializing in sales teams: "The successful salesperson is the one who can maintain their performance over time"
La Vie éco: How is the job market for sales representatives doing?
Y.D.: Certainly, there has been a slowdown in recent months, but we are in a recovery phase. The job market for sales representatives is picking up, and many opportunities are available.
In the market, we can find a large number of technical sales representatives who have a strong technical understanding of their products. These are generally Bac+2 and above profiles who hold positions of responsibility. However, companies, especially in the industrial sector, often have problems with these types of profiles. The reason is that they have a basic technical training (technician or engineer) and often do not have the predisposition to sell a product. This is why, after hiring, they ask us to train them and make them operational.
For large-scale retail, for example, there are good salespeople in the field, but also technical sales engineers, merchandisers... These are roughly the same profiles as in industry.
In services, we have profiles that are more oriented towards consulting, such as customer or business managers.
Is it easy for a company to find good profiles?
The requirements of the profession are not limited to these technical aspects. Sales is above all a mindset; otherwise, a person, regardless of their training or level of knowledge of a product or sector, will never make a good salesperson. Once these two qualities, technical skills and natural predisposition, are combined, performance will only depend on the way of working, apart, of course, from the quality of the product or service to offer and the size of the market.
Succeeding in this profession requires good individual organization. The successful salesperson is the one who can maintain their performance over time. This talent is cultivated through several almost essential rules.
These rules can be summarized in three questions: how to persuade? How to negotiate? How to close? You can possibly persuade a customer and not close a deal. On the other hand, I find that companies struggle to find profiles without diagnosing their teams. Sometimes, a little training can make someone a very successful salesperson.
And what about salaries, how are they evolving?
I'm from the old school that believes that a salesperson's salary should be primarily based on the variable component. Unfortunately, there are companies that are not imbued with a sales-oriented mindset and do the opposite.
Another issue is that commission systems are sometimes quite complex. This can lead to frustration among salespeople. A compensation system is generally based on sales figures but also on a product unit or, as is done in some local groups, on the margin achieved. This allows for greater involvement and motivation of salespeople. In the long term, I think that companies will have to align themselves with this last option to remain competitive.
Brahim Habriche
Published on November 2, 2009
Posted online on November 5, 2009
lavieeco.com
