“If you wouldn’t think twice about poaching a highly profitable customer from a competitor,” Daryl Lucien asks, “why would poaching a high-profit employee be an issue?”
Lucien may have a point, but it’s a painful one for lots of dealers. It’s commonplace for LBM operations to hire sales reps from another competitor, particularly when a company wants to increase market share or hamstring a rival. Still, the deed rubs some dealers so raw that a rule of etiquette has emerged: While the poacher must never make a first direct call to the target, the poacher can leave so many hints that the desired rep would be blind not to notice.
“If they reach out to me, then it’s fair game,” says Mike McDole, senior vice president of sales at Mansfield, Mass.-based National Lumber.
“If someone met me in the parking lot at 6:30 a.m. with coffee and doughnuts to introduce themselves as looking for a sales job, I’d make a territory for them,” declares Lucien, director of sales and marketing at B&B Distributors near Cleveland.
Mike Butts, general manager at Jackson, Mich.-based General Materials, says he doesn’t use job-posting websites or classified advertisements to get the word out that he is hiring. Instead he just tells his vendor reps he has a position available.
“The vendor reps are in every lumberyard in your community,” he says. “They know you’re looking for OSRs and maybe talking to someone who is expressing a little dissatisfaction at their current situation.” Vendor reps like to talk, Butts notes, and that means he has no doubt that his message will get shared.
Ken Sandlin, sales and operations manager at Sunex International, a high-end windows and doors dealer, says he hired some of his competitors’ top salespeople after they were laid off during the downturn. “In another case, we recruited a top performer from a competitor who was unhappy,” he says. It’s a routine occurrence; some of the experts who provided input for this story revealed that many times an unsatisfied employee will come to them looking for a new job.
“Back in the good times, I knew of many successful ‘steals,’” recalls David Burgess, a sales consultant for Trussmax in Winchester, Va. “In today’s economy, however, I would caution sales representatives considering playing along with poaching. It can and has backfired. I have several friends and acquaintances who were lured away only to find themselves in a worse position, demoted, let go, or end up returning to their previous employers.”
Whether you should look inward when filling open sales positions is a matter of debate. David Luecke, vice president of sales and marketing at Forge Lumber, Erlanger, Ky., likes promoting from within because he already knows that person’s strengths and the internal candidate understands and follows company procedures.
In rebuttal, Bill Hofius, New England sales manager at Riverhead Building Supply, headquartered in Shirley, N.Y., says one has to be careful to avoid invoking the Peter Principle, which declares that employees tend to rise to their level of incompetence. And Lucien notes that “field sales is not a natural progression for many,” even if they would come to the outside sales rep job with deep knowledge of your products.
Hofius says dealers who actively recruit remind him of the story of the boy who was so ugly that his parents had to tie pork chops to his ears just to get the dog to play with him.
“Hiring packages and pork chops have a short shelf life,” he says. “Eventually you have to look at who you are playing with. If your company is as ugly as the boy, then you better have plenty of pork!
“Companies that have developed a strong and positive brand with customers and employees do not recruit or poach a competitor’s sales force,” Hofius says. “Getting the word out that we are hiring is usually good enough to draw quality resumes.”
Then he adds: “And yes, we are taking applications for outside sales positions.”
All Special Report Articles
It's Time To Run Your LBM Business Differently
As housing revives, follow these ideas to revive your business so it can handle and profit from increased business.
New Ways To Measure Your LBM Business
Fine-tune your operation's performance by adding these innovative metrics.
Why Dealers Should Prepare To Accelerate in 2013
Housing data expert Jonathan Smoke predicts growth virtually everywhere nationwide.
Housing Data Expert Gives Tips on Tracking Your Local Economy
Hanley Wood Market Intelligence’s Jonathan Smoke gives advice on which economic indicators deserve the most attention, how economists work, and what to expect through 2014.
Five Steps to Funding Tomorow's Growth
Get on better footing with lenders by building relationships with myriad money sources.
To Move Forward, Go Back — Back to Basics
Old-school management techniques are some of the best things you can do to advance when housing revives.
Three Reasons Why Lumber Shortages Are Likely by Late 2013
Tighter credit, scaled-back production, and a trucker shortage have put the entire supply chain in limbo.
How a Small Dealer Can Figure Its Sales Reps' ROI
Consultant Jim Enter offers this formula to help you decide whether your reps are generating sufficient sales.
Hiring? Consider Options Besides Full-Timers
Temps, '1099' contract workers, part-timers and outsourcing firms all might be better.
Why Dealers Should Consider Subcontracting Rather than Hiring New Workers
Veteran LBMer Dena Cordova makes the case for rebuilding your staff in part by hiring '1099' workers.
Past Decisions Hurt Dealers Today as They Seek New Execs
Layoffs during the downturn thinned the ranks, soured young people to an LBM career.
A Dealer's Guide to Polite Poaching of OSRs
Dealers say there's an active market in seeking out other dealers' sales reps. But there's etiquette to be followed in pursuing those people.
As Business Grows, Dealers Need To Upgrade Tech Capabilities
How do you provide personal TLC when you're getting busier? By investing in technology.
Mind the (Tech) Gap
Young remodelers are more tech-savvy than their older counterparts. For good or ill, that's going to change how dealers work with this group.