Manufacturers and Supply Chain Managers Face Same Daunting Task: Building a Sales Workforce

Oxford Economics has predicted that the amount of Baby Boomers in the global workforce would drop 9 percent between 2015 and 2020, from 31 percent in 2015 to 22 percent in 2020. Since then, a record 70 million baby boomers have retired.

This has created a daunting new challenge for manufacturers — with similar implications for supply chain managers.

How do you rebuild your salesforce, one that has historically been compromised of baby boomers? What will it take to attract younger generations of sellers to the manufacturing industry? Is the quest for Millenial and Gen Z talent going to drive sales organizations towards digital transformation faster than it otherwise would?

Pam Hammers, Independent Manufacturing Sales Consultant for Miller Heiman Group, shared some other observations in an exclusive interview with SCMR.

Supply Chain Management Review: How important is compensation as an incentive to attract young sellers?

Pam Hammers: Compensation doesn't seem to be as much of a driver for young sellers as it is for older generations. As they start their new sales career, they may have a limited understanding of whether the commission structure they're being offered is strong. Additionally, it might be more important to millennials to accept a position if it aligns with their values, rather than just based on a compensation package. For young sellers, company culture is critical when it comes to selecting an employer. Millennials want a job that they're passionate about.

SCMR: Anything else?

Hammers: Yes. They also are looking for sales leaders and mentors who will provide consistent feedback as they grow and develop in their career. For many young sellers, they consciously weigh their needs against the company's needs. This differs from older generations, who would do whatever the company asked of them, even if it might mean moving across the country.

SCMR: What must manufacturers do to retain young salespeople?

Hammers: First, increase focus on employee development in addition to helping them learn about company products and processes. Most sellers in the manufacturing industry start out with a background in engineering or material science—very few graduate college with sales degrees or experience. Company onboarding programs often train young sellers on the company's processes and products, but sales leaders also need to invest resources in developing their sales skills. Older generations of sellers could rely on their product knowledge and relationships to close deals. But in today's environment, sellers work with more informed buyers who need more from sellers than tickets to a ball game.

SCMR: How does the process begin?

Hammers: Sales leaders today can start by ensuring sellers understand how to have meaningful conversations with customers. They can't just rely on their technical expertise when it comes to discussing a customer's business issues. Customers today expect sellers to bring expertise and perspective to help solve them challenges or benefit from great opportunities.

As sellers move through their sales process, they have to be able to effectively speak to the value of their solutions for their customers. Young sellers need training on how to give a product demo or sales presentations based on their customers' needs. They're looking to their employer to teach them skills that enable them to be successful across their entire sales process – from prospecting to qualifying to presenting to closing.

Manufacturers that invest in this type of training will earn the loyalty of their emerging sales force. Millennials are devoted to their employer if they feel like the company is equally devoted to their continued growth and development—they want mentors who will go deeper with them. This approach shows that the company is investing in them as sellers.

SCMR: What changes in corporate culture must be made to appeal to young sellers?

Hammers: Most manufacturing companies are, by nature, very operations-focused, but may not be technologically advanced in the area of sales enablement. Their focus may be on selling through the internet or improving technology in their products, rather than using technology to support the effectiveness of their sales organization. For example, many manufacturers struggle with implementation or adoption of a CRM system.

While this seems like a deterrent to recruiting millennials, it in fact provides an opportunity for both groups. Millennials are digital natives who seek mentorship and want career growth. They're hungry for any special opportunities that can come their way.

With that in mind, manufacturers can appeal to millennials by providing them an opportunity to come in and digitally transform their sales organization. Millennials can teach manufacturers how to use technology to better enable their salesforce. Likewise, for millennials, this presents an opportunity to have an immediate impact on an organization. This would appeal to young salespeople who seek ownership over their work and like to make decisions that will shape the way companies do business.

Often, we don't bring millennials in for these types of engagement because we see them as too junior. But we're missing a major opportunity to harness one of their core strengths – their technological know-how.

SC
MR