On December 28, major members of the Cainiao Alliance held their annual meeting in Tonglu, Zhejiang, known as China's express delivery hometown. The meeting issued an initiative for 2018 to improve courier treatment and dignity, and enhance delivery service capabilities to ease end-point pressure.
It is good that the three express delivery companies (YTO, STO, ZTO, and Yunda) are raising couriers' salaries, but the problem is: when couriers and food delivery riders earn more than sales representatives, can distributors still recruit sales staff?
This is not speculation but a real problem that has troubled distributors in the past two years. New Distribution recently interviewed several distributor friends, and almost all distributors consistently reported that understaffing and recruitment difficulties are common phenomena in distributor team management. Compared with functional positions (such as accounting, administration, warehouse, and driver), recruiting sales representatives is the most difficult.
Difficulty in recruiting for distributor positions: Sales representative > Clerk/Administration > Driver.
There are many reasons for recruitment difficulties, which can be summarized into three points: people, platform, and environment.
First, people. Mr. Hu from Nanjing shared his feelings with New Distribution: trading companies hope to recruit young people because doing business requires drive. Young people around 25 are the ideal candidates, but there is an awkward situation: young people are divided into two types: "locals" and "outsiders" in the city. The two types have different attitudes and pursuits towards FMCG sales work.
A large part of the "locals" look down on this job; it is hard work, "bowing and scraping" work, unless you can give them opportunities to "slack off."
The "outsiders" pursue income. But the income of sales representatives is not high; based on this income, they might as well deliver food. In addition, they pursue development. The FMCG industry is relatively traditional, and development space is very limited.
It is worth noting that distributors also hire some sales staff around 40 years old. Although they are reliable, they can only do things by the book, cannot accept "new things," and lack drive.
Second, platform. Currently, regional trading companies rarely have the scientific and clear promotion mechanisms of first-tier brand companies or large-scale companies. In addition, there are holiday rest benefits, social security, etc. Trading companies can offer too little to young people.
Mr. Huang from Wuhan lamented: In three years, not a single college graduate has been recruited.
Third, environment. The temptation of the external environment leads more young people to go to relatively "popular" industries. Young people go to real estate and finance for higher returns; middle-aged people go to food delivery and express delivery for stability. As long as they can deliver on time and use polite language, there is no high threshold like sales representatives, and if they do well, their salary can exceed that of sales representatives.
Mr. Li from Shihezi told New Distribution: In recent years, competition among external employers has been fierce, and wages are much higher than in previous years. Even companies like JDB are having difficulty recruiting.
Typical external enterprises include: first, high-yield enterprises in real estate and finance; second, fast-growing enterprises such as internet ground promotion services.
Moreover, it is not only difficult to recruit new staff, but the loss of old employees is also a headache for distributors. Mr. Hu from Nanjing told New Distribution: I dare not recruit from society now; I am "scared" of recruiting. If one comes, another leaves; the market cannot withstand such turmoil. Now I can only rely on introductions from acquaintances.
The reasons for employee departure are nothing more than two points: First, feeling stifled; second, external temptation.
First, feeling stifled. Mr. Wu from Urumqi told New Distribution: The core work of first-tier FMCG brands at the channel terminal level is daily maintenance. Under the strong brand background, channel gross profit is low, and sales representatives' market maintenance work is relatively simple.
But as a distributor, only doing "pass-through" products cannot cover costs. It is necessary to equip profit-type products and potential-type products to increase gross profit and generate profits.
But at this time, the business ability requirements for sales representatives are high, and the sales resistance and setbacks in daily work are relatively large. If young people maintain this state for a week, their confidence is basically worn away.
Of course, in addition to facing the "sharp tongues" of terminal bosses, there is also the company's internal platform prospects. Not seeing a future also belongs to the "feeling stifled" category.
Second, external temptation. After new employees join the company, they often encounter peers in the market, and then there is comparison: "Compare how much you earn, how much commission you get." When young people hear this, they easily become "restless." If there is no possibility of upward mobility and they can't earn money, they leave. Among these are excellent sales representatives.
Distributors also admit that they give sales representatives, especially young people, a very limited platform. However, today's young people, due to external temptations and superior family conditions, do not have much survival economic pressure, leading to "picky" attitudes and poor job stability.
Mr. Hu from Nanjing revealed to New Distribution that even first-tier brands such as Coca-Cola and Red Bull have a period of sales representative vacancies every year.
In response to recruitment difficulties, many distributors have different mindsets, which can be summarized into three types:
The first type of distributor mindset: "To forge iron, one must be strong." If you make an impact in the regional market, you will naturally be able to recruit people. This is the confident type for 2018 recruitment.
The second type: Cancel social recruitment and rely only on introductions from acquaintances. This is the helpless type for 2018 recruitment.
The third type: There is no way; just take it step by step. This is the pragmatic type for 2018 recruitment.
Zhao Bo's Comment:
Even if recruitment is difficult, distributors' business must continue. The question is what better ways to retain excellent talent. Regardless of business size, distributor human resource management is a systematic and complex task, and distributors must make efforts to personally grasp it. For the recruitment, management, and retention of personnel, I have the following suggestions:
First, do not tolerate gray income of sales staff for fear of employee departure. Must resolutely prevent the interception of promotional items, embezzlement of market expenses, and price increases for product sales.
Second, strengthen employee training and management so that they can increase personal income through skill improvement. Employees never leave because management is strict, but because they feel wronged or see no hope, or cannot earn enough income.
Third, try to make employees partners through the Amoeba model, starting a business together on the company's big platform.
Fourth, try to make employees small bosses through contracting, working for themselves.
Fifth, use B2B platforms, online transactions, and third-party market personnel services to make up for the shortage of sales staff.
To fully understand the salary situation in the FMCG industry, New Distribution has launched the "Distributor 2017 Labor Cost Survey." We welcome your participation. After the survey, based on the results, we will invite industry experts and some distributors with excellent human resource management to share strategies and methods on "How Distributors Recruit, Manage, and Retain Talent." Welcome to participate.
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