Sales Representatives

Finance

Sales Representatives

Challenge: 

A large multi-national financial services provider wanted to improve their sales representatives election process in an effort to increase employee satisfaction and decrease turnover. Sales representatives are responsible for providing excellent customer service through (a) assessing customer financial goals, (b) resolving customer issues, and (c) recommending solutions to meet customer needs.

Solution: 

Hogan recommended using the Motives, Values, Preferences Inventory (MVPI) to help increase employee satisfaction and decrease turnover by aligning applicant values with those identified as most important in the sales representative role. The MVPI identifies how well a person would fit within a team, department and organisation. Research revealed that the organisation thrives on social interaction (high Affiliation), helping others (high Altruism), and accomplishment (high Power). When combined with a situational judgment inventory, these MVPI scales formed the foundation of the revised screening guidelines.

Result: 

Prior to implementation of the MVPI, the organisation reported a turnover rate of 48%. After using the MVPI for one year, this dropped to 18%.

 Pre-MVPI Implementation
(Total N=1104)
Post-MVPI Implementation
(Total N=657)
 N%N%
Voluntary Turnover38635%7912%
Involuntary Turnover14513%396%
Total Turnover53148%11818%

The client estimated that they spend at least $15,000 to select and onboard new employees. They hire approximately 1,000 employees per year. Not only did the reduction in turnover help the company retain 300 sales representatives, but saved the organisation an estimated $4.5 million in costs associated with replacing these employees.