Friendly Financial Recruiting Strategy

Friendly Financial Recruiting Strategy

1. What aspects of the recruiting process increase the likelihood that territory managers will leave once they have been hired?

Stewart (191) states that the leading cause of employee turnover is the overall attitude toward employees. Friendly Financial emphasizes providing clients services at the lowest cost, without much regard for the quality of such services. The company also seeks to leverage a large clientele base to cut costs. Such messaging portrays the company as one that only cares about profits and not their potential employees’ welfare. As a result, employees can only work in such a place for a short while before finding a better alternative. Another reason for the high turnover among territorial managers is that district managers only hire people they like best. The district managers pride themselves on the fact that they can sell anything to clients, which is how they select the best fit for the territorial manager position. This poor managerial culture could likely cause employee turnover at Financial Friendly.

2. Should Friendly Financial use other methods to recruit territory managers? Which methods?

Financial Friendly should use other recruitment methods besides its traditional recruitment method. One such recruitment method that suits the company is seeking employee referrals. Employees who join an organization through referrals have shown characteristically lower turnover rates (Stewart 181). Financial Friendly is currently experiencing high employee turnover rates in the territorial manager’s position; hence, adopting an employee referral program will be useful.

3. Is the recruiting process at Friendly Financial efficient? What are some things that might be done to reduce recruiting costs?

The recruitment process at Financial Friendly is inefficient. After placing an ad in the media, a district manager has to incur hotel costs to interview employees. As a result, the organization has to pay for ads and hotel bills. Besides, the manager has to make several calls with potential recruits. To cut such costs and make the recruitment exercise more efficient, Stewart (139-140) recommends the automation of the recruitment exercise. Automation allows an organization’s recruiters to focus much of their time on filling jobs. At Financial Friendly, a technological software that allows managers to interview job seekers remotely will be helpful.

Work Cited

Stewart, Greg L. Human Resource Management, 2nd Edition. John Wiley & Sons, 2010.

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Please read the case and answer the questions at the end. Please respond to two of your peers. Do you agree or disagree?

Friendly Financial Recruiting Strategy

Friendly Financial Works is a fictional provider selling small business accounting, payroll, and financial services. The company uses an integrated software platform to help small businesses manage their financial assets better. Based on the assumption that small business owners often lack the expertise and time to manage financial assets effectively, Friendly Financial seeks to provide a relatively inexpensive “one-stop solution” for financial planning and control.

Friendly Financial’s business model calls for providing services at the lowest cost rather than giving customized service to each client. To be successful, Friendly Financial needs to lower its prices by continually increasing the number of small businesses that use its services. Thus, the success of Friendly Financial depends largely on its sales force.

The sales force is divided into geographic territories, with a territory manager having exclusive responsibility for all sales activity within a specific area. Territories are organized into sales districts. The average number of territories in each district is 20.
Each district is led by a sales manager who oversees all personnel activities, such as hiring and training, in the territories within their district.

Territory managers are paid on a commission basis. They generate most of their sales by cold-calling potential businesses. A typical day consists of 10 to 15 unannounced visits to small businesses. The territory manager seeks an appointment with the owner or manager of each firm they visit. When an appointment is granted, the territory manager presents and tries to develop a contract between the small business and Friendly Financial. As with most unannounced sales calls, most visits end without an agreement to provide services.

A major concern for Friendly Financial Works is identifying and keeping enough territory managers. The turnover rate is approximately 200 percent each year. A district sales manager must hire about 40 new employees in a year. When a job
vacancy occurs, the district sales manager usually travels to the sales territory to begin recruiting. The district sales manager places an advertisement in the local newspaper and includes a telephone number for potential recruits to call. The manager then spends three to four days at a local hotel answering phone inquiries and
conducting interviews. The territory manager position is usually offered to the
best candidate on the final day the district sales manager is in the
territory.

District sales managers pride themselves on being able to land the sales representatives they like best. Many district sales managers boast that they can sell
anything to anybody, and this is how they approach employee recruiting activities.
Because they are talented sales representatives, district sales managers generally do a great job of touting the benefits of the position.

Questions:
1. What aspects of the recruiting process
increase the likelihood that territory managers will leave once hired?
2. Should Friendly Financial use other methods to recruit territory managers? Which methods?
3. Is the recruiting process at Friendly Financial efficient? What are some things that might be done to reduce
recruiting costs?