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Sales Force Training At Arrow

Electronics

140301022
PGDM Executive

Sprouts Training Program

Hire a graduate right of college to join 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 support, marketing, shipping, work with FSRs and SMRs, 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 its 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 FSRs 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 Arrows depenpendence on FSRs as they are the only key point contact for Customer
relationship management.
This will also de-risk Arrow from potential loss of clients when FSRs leave.

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