Sales Force Training At Arrow Electronics 222u3t

Sales Force Training At Arrow Electronics

140301022 PGDM Executive

Sprouts Training Program      

Hire a graduate right of college to the sales force trough a structured Interview process. Taught about Arrows history and values, basics of the industry and electronic components. (Headquarter 1 week) How to pick orders from shelves, track inventory and operate systems. (Warehouse 2 weeks) Exposing recruits to sales, customer , marketing, shipping, work with FSR’s and SMR’s, product management assistance. (Field office 6 months) Sales skill training. (Headquarter 1 week) Training period over, instated as permanent employees in field office. (Field Office) Merits and Demerits of Introducing Pathways Program

Merits  It is essential in order to counter the constantly reducing sales force pool  Arrow has acquired four of the top 10 distributors and the size of the company has increased which would a uniform training program.  Although Arrow had a sales force of 1000, their turnover was around 26% - 30 %.  To attain competitive advantage and become a benchmark in sales force in the industry by creating a consistent talent pipeline.  Since the recruits are fresh out of college, it is essential to train and bring energy and professionalism.

Demerits  A rigorous training is making them the most sought after sales people in the industry and hence being offered higher pay packages and management positions which in turn lead to attrition.  Training was additional cost to company.  According to Kaufman “it’s more reasonable to hire somebody from competitor at $40,000 than to give somebody a 30 % hike in your company” [1985 figures].  It led to clashes between General Managers and newly trained sales force due to stark difference in their ideologies which caused internal HR issues.

Way Forward for Pathways 1. Recruitment  Colleges on campus recruitment.  Inter Industry recruitment to break free from the clutter of the industry.  Scouts for potential employees from within the industry. 2.      

Procedures for official recruitment Hiring profile. Application Security. Interview. Psychological testing. Reference checks. Physical examination.

3. Training 

    

Expand the scope of Pathways into a professional training program for employees in the other ranks of the organization. Theoretical frameworks Scenario based Gamification Voluntary Quality Circles Recreational activities throughout the program for heightened the bonding and relaxation in stress induced environment.



Job Offer.

To retain talent Arrow should Restructure Recruitment, Training and Compensation 



  

 

Differential Recruitment process. o Hire from Ivy league and non Ivy league colleges. o Differential pay packages. o Non Ivy league graduates expected to stay for longer satisfied with pay and work. Staggered training module. o Avoid excess investment in short span of time. o Step wise training program spread over first 3 years of FSR’s career. o Structure training program based on performance. Increase awards and recognition program over the course of training. Include stock units for employees. Fringe benefits like following should be included: o Compensation. o Medi-claim. o Recreational centers. o Campus / hostel during training. Loans with reduced interest rates should be offered. Sabbatical leaves can be provided. Restructure the Sales force organization?

  

Giving Area Sales Managers a more focused approach towards retaining clients by means of regular interaction. This will reduce Arrow’s depenpendence on FSR’s as they are the only key point for Customer relationship management. This will also de-risk Arrow from potential loss of clients when FSR’s leave.