Waiting for the Wind to Lift the Sales

by Jennifer Ridgeway jennifer.ridgeway@state.mn.us and Cameron Macht cameron.macht@state.mn.us
June 2009

Waiting for the Wind to Lift the Sales

With the economy stuck in the doldrums of a recession, attention has shifted to sales numbers. Policymakers, news organizations, and economists closely track retail sales and consumer spending reports, searching for signs of consumer confidence and economic recovery. A rising tide in sales numbers would likely start lifting all boats in the economy.

Although the conditions are difficult, most salespeople don’t mind the added attention – because this is their time to shine. According to the occupational description on www.iseek.org, sales representatives have social interests and “consider achievement important. They like to see the results of their work and to use their strongest abilities. They like to get a feeling of accomplishment from their work.” [1]

Judging by the high number of openings currently posted on www.MinnesotaWorks.net, there is plenty of work to accomplish for skilled salespeople as businesses focus on increasing sales numbers. Through May 2009 just under 20 percent of the jobs listed on MinnesotaWorks in the Southwest Minnesota planning region were in sales or related occupations requiring sales and customer service skills ranging from in-store sales to store managers to outside sales.

Help Wanted: Sales

Sales and related occupations had the third highest number of job vacancies in Southwest Minnesota in the fourth quarter of 2008, accounting for more than 10.5 percent of total reported job openings. Of nearly 3,000 job vacancies, 315 were in sales and related occupations.

Southwest Minnesota’s overall job vacancy rate was 1.7 percent, meaning there were 1.7 job openings for every 100 filled jobs in the region. The job vacancy rate for sales occupations was 2 percent, showing a slightly higher level of demand. Although the number of openings is down slightly from fourth quarter 2007, demand for sales occupations is still relatively high in the region (see Figure 1).

Through fourth quarter 2008 there were more than 15,500 sales workers in the Southwest Minnesota planning region, making it the third largest occupational group behind office and administrative positions and production occupations. Overall, sales and related jobs accounted for just under one in every 10 jobs in the region.

A Wide Range

Sales jobs range from cashiers and retail salespeople (occupations that typically rely on short-term, on-the-job training) to sales engineers who sell business goods or services (occupations that may require a technical background equivalent to a bachelor’s degree in engineering), and everything in between. Many sales occupations offer on-the-job training, but others require related work experience or post-secondary education.

Several colleges and universities in the region offer sales, marketing or general business certificates, diplomas, and degrees. During fourth quarter 2008, 5 percent of the 315 open-for-hire sales jobs in the region required post-secondary education, and 22 percent required a certificate or license according to results from the Minnesota Department of Employment and Economic Development Job Vacancy Survey. Openings for sales representatives in manufacturing and wholesale trade industries had the highest educational requirements (86 percent required post-secondary education, and 54 percent required a certificate or license) and the highest expected median wage offer ($19.23 per hour).

Knowing something about the business was also important for being a good manufacturing or wholesale trade salesperson as 100 percent of vacancies that quarter required related work experience. And none of these openings was for part-time work, compared to 90 percent of retail sales openings that were part-time in nature.

Sales by Industry

More than 11,000 of the sales and related jobs are in the trade, transportation, and utilities sector including about 9,750 in retail trade. Although it has the highest number of sales workers, retail has the lowest median wages at $8.56 per hour. The next largest employing sector for sales occupations is wholesale trade, where median wages were nearly $10 higher per hour at $18.31 (see Table 1).

Four other industry sectors also offer higher median hourly wages for salespeople: construction ($24.68), manufacturing ($22.64), educational and health services ($20), and financial activities ($19.85). Combined, they employ more than 2,500 salespeople. Wages for salespeople in information ($13.20) and professional and business services ($13.02) were about $1 below the median hourly wage for the region ($14.17). Sales jobs in leisure and hospitality – which would include cashiers in the fast food industry – have a median wage of $8.63 per hour. Wages were also lower in other services ($9.59) and public administration ($8.88). In addition to low wages many of these retail, hospitality, and service sales jobs tend to be part-time, and many do not offer benefits.

Investing in a Sales Career 

An investment in education and training for a sales career would be worthwhile, as most sales occupations are expected to experience growth in the region between 2006 and 2016, with many projected to see growth rates much higher than the regional average (4.4 percent). Some of the fastest growing sales occupations, including insurance sales agents; advertising sales representatives; and securities, commodities, and financial services sales agents, require some post-secondary education, including bachelor’s degrees and industry-specific certifications. These jobs also tend to be higher paying, although lower paying jobs like retail salespersons and counter and rental clerks are also projected to grow over the next decade. Even those jobs not projected to experience net new job growth should have large numbers of replacement openings, boosting the total number of openings over the period (see Table 2).

So what does it take to be good in sales? According to the standard classification of knowledge, skills, and abilities for sales and related jobs, workers need to be well-rounded. Figure 2 demonstrates the top knowledge, skills, abilities, and work activities important to a career in sales.

All sales jobs require some math and communication skills, including speaking, reading, and writing, as well as social perceptiveness and critical thinking skills. Salespeople also need to be able to speak clearly and seek out and understand information, communicating directly with supervisors, co-workers, and customers.

Sales is ultimately a people-centered job, requiring the ability to influence decision making, resolve conflicts, and negotiate for the benefit of all parties involved. For manufacturing and technical sales jobs, knowledge of production, processing, or design might also be necessary.

Sales involves a great deal of enthusiasm and risk-taking. It can also be a great opportunity for people to start their own business. Nationwide, 12 percent of people in sales and related occupations were self-employed in 2006. One in four insurance-sales agents was self-employed, according to data from the U.S. Census Bureau, and other high level sales occupations also had larger concentrations of self-employment.

In addition to self-employment, companies in the Southwest region continue to hire sales staff to get their products and services to market. For people with the right mix of skills and attitude, education and training, and assertiveness and achievement, sales careers can offer great employment opportunities in current economic times and into the future.

 [1]Sales Representatives. www.iseek.org/careers/careerDetail?id=3&oc=100188