Sales Qualifications Strategy. The Chartered Institute of Marketing. September 2009

Transcription

1 CfA 6 Graphite Square Vauxhall Walk London SE11 5EE info@cfa.uk.com Tel: Fax: Sales Qualifications Strategy The Chartered Institute of Marketing September 2009

2 Contents Page 1 Executive summary 1 2 Scope of the Sales Qualifications Strategy UK wide scope of the SQS Key priorities and alignment with government policy 14 3 Sales profession working environment Special features or characteristics of the working environment Workforce trends and changes forecast for the sales sector working 20 environment 4 Summary of current qualifications and learning provision The main types of qualifications and learning provision for the profession Uptake of qualifications and learning provision Current and developing uses for qualifications 31 5 Other uses of qualifications and national occupational standards Use of qualifications for the regulation of practice Use of qualifications to promote customer confidence and protect the 39 public Use of NOS towards enhancing individual and organisational 39 performance 6 How the CIM will help realise the future The vision for future qualifications and learning provision for the sales 41 profession Past and future dialogues and partnership working Practical help provided by the CIM Monitoring and evaluating the SQS 47 Appendices A B C D Consultation Sales qualification provision Relevant Government policy References and Sources of Data

3 Section 1: Executive Summary The following paragraphs summarise the principal points and conclusions within this strategy. The numbers in parentheses indicate those pages within the main body of this document where further detail can be found. The sales profession is one of the largest groups of professionals in the UK today, employing some 7% of the UK workforce which equates to 2.06 million people. In addition, there are many more non-specialists for whom selling is an essential activity, with this latter group including the managers of small to medium sized enterprises (SMEs) of which there are over 4 million in the UK. We are committed to working with employers to use qualifications and national occupational standards (NOS) to support and drive learning provision across selling occupations in the UK. (Pages 5 to 11) Whilst very many employers provide sales training and there are several respected sales training organisations, traditionally there has not been a requirement for qualifications amongst sales professionals, either for entry within the profession or for progression. However, this situation is changing. Amongst employers, as indicated by the MSSSB s Labour Market Intelligence report (LMI) of 2008, entry into the profession is increasingly at graduate level, with 58% of employers offering subsequent training via specialist organisations. However, 72% of all sales training within employer organisations is provided in-house. There is also a strong interest amongst employers in gaining appropriate accreditation of the training provided, be this in-house or that provided externally. (Pages 11 to 13) Research amongst employers undertaken in developing this strategy and as part of previous related projects supports the view that, in order to address their requirements and to implement a robust associated qualifications strategy, there is a need to: Develop awareness for the sales NOS and of the benefits of vocational skills training, and qualifications in sales, which in turn are based upon the NOS, Promote the use of qualifications towards raising the professionalism of this occupational area, including developing awareness of how the associated and underpinning NOS can be utilised in benchmarking relevant qualifications and training programmes, Publicise the endorsement of the qualifications and associated NOS by the professional bodies, Promote the use of the new qualifications allowed via the developing qualifications frameworks, as well as existing, vocationally related qualifications (VRQs) and also National/Scottish Vocational Qualifications (N/SVQs), Develop VRQs, and new forms of qualifications arising via the developing frameworks, to meet specific needs identified amongst employers, which includes addressing particular aspects of the selling process, Promote the sales standards for non-specialists as an effective source of guidance upon selling practice, particularly amongst SMEs, Develop proposals for the incorporation of a sales element within the National Curriculum, Utilise fully the opportunities offered as a result of the new qualifications frameworks to provide and promote a flexible qualifications structure designed to meet employer requirements. (Pages 14 to 17)

4 There are a number of characteristics of the sales profession which impact upon the learning requirements of the workforce and these are as follows: Sales is pan-sectoral which can create tensions between a demand for sectorspecific learning, and the resources available for its provision, In a sector where, historically, there has been only a limited drive for qualifications, there is evidence that this is changing. The trend towards professionalising the sales workforce and an associated interest amongst many employers to develop and retain talented individuals leads us to believe that there is a wider need to enhance the attractiveness of the sales profession through enhanced recognition and opportunities for career progression, There is strong growth in the following areas of selling with a consequent impact upon the skills requirements of those involved: o o consultative and relationship selling, which requires the sales professional to nurture the customer relationships with key accounts, often at a strategic level, telesales, where advances in technology and associated cost reductions means that this offers a cost effective way of reaching customers, There is evidence that employers are seeking modular awards which focus upon particular key areas of sales competence, and which are perceived to be smaller than N/SVQs. (Pages 18 to 20) There are a number of changes impacting upon the sales workforce which are likely to influence the demand for qualifications. These include: Addressing the skills needed by future sales professionals. These include the skills associated with strategic account management, commercial/business awareness and business development skills, as well as the soft skills of time management and communication including negotiation and influencing, The need to ensure that the profession s skills are up to date and to build the professional status of selling, enabling the profession to realise its value in helping organisations to achieve their full potential, Promoting the standardisation and quality assurance of training provision, Informing HE sales qualifications, ensuring that these address up to date practice, Using qualifications to promote enhanced coordination of the sales and marketing functions. (Pages 20 to 25) Qualifications and learning provision relevant to the sales profession include: A range of modules within secondary education, although there are no a stand-alone qualifications addressing sales. Selling tends to be included as an element within related qualifications such as those addressing business studies, A number, although limited, of graduate and post-graduate programmes within higher education, NVQs at levels 2, 3 and 4 in Sales and Sales Management, and at levels 2 and 3 in Telesales. These were launched in 2007 and uptake is encouraging. It is believed that uptake could be developed further by addressing the concerns expressed by some employers regarding the bureaucratic nature of N/SVQs and their assessment, together with the associated lessons learnt. This would enhance further current levels of take-up and build upon the encouraging numbers of recent registrations, A Sales and Telesales Apprenticeship Framework, approved in 2008, VRQs addressing selling, and often combined with administration or marketing, which are offered by several awarding bodies, including educational and professional bodies. The available evidence indicates that employer confidence might be enhanced in the range of available qualifications and learning provision

5 through the effective benchmarking and/or kite-marking of those qualifications and learning provision fulfilling appropriate criteria, Professional level qualifications offered by professional bodies. (Pages 26 to 31) The evidence provided by respondents to the research undertaken in developing this strategy indicates that: Qualifications are considered by increasing numbers of employers as essential/important in: o o o o o developing and recognising specialist sales skills, improving staff morale and retention, informing selection criteria, recognising professional competence, accrediting in-house training, One-third of employers who responded view apprenticeships as essential/important to their business in offering an entry route for employees into the sales profession. This view is supported by the related interest expressed in developing vocational qualifications aimed particularly at candidates seeking to enter the sales profession, There is interest in further applications for qualifications in: o developing selling and managerial skills, appropriate to sales managers, o promoting entry into the profession, o developing and recognising skills within particular areas of selling, o quality assuring training provision, The QCF/SCQF offers the opportunity to address employers interest in awards which are flexible, accessible and transferable, including the opportunity to recognise employers in- house development programmes, Delivery methods for learning and their associated qualifications need to be flexible, and to make use of new and emerging delivery formats for qualifications and associated learning, Sales N/SVQs are particularly appropriate for those at entry level within the profession, There is interest in qualifications and/or associated instruments designed to develop the selling skills of non-specialists involved in the selling of products/services. (Pages 32 to 39) In addition to the use of qualifications and NOS as the basis for recognising achievement by candidates, the NOS also require candidates to adhere to ethical and regulatory requirements impacting upon sales activities. It is recognised that sales professionals work within regulated environments, and this is addressed within the relevant standards. Of particular further significance is the use of NOS for a range of personal and organisational development applications, and the opportunity this offers for enhancing greatly their usage amongst employers. For example the NOS can: Inform in-house competence frameworks, Inform job descriptions and associated person-requirements for roles, Allow appraisal of performance, identifying areas of strength and aspects for development, Inform the development of training programmes and ensure that individual training is focused on real need, Inform career planning and organisational capability planning, Enable the recognition of achievement. (Pages 40 to 41)

6 This strategy is therefore designed to help employers to overcome the challenges described and to enhance the drive for increased professionalism across the sales profession. This strategy therefore sets out a vision in which the key objectives are to: 1) Develop sales qualifications provision, making full use of the flexibility afforded by the qualifications frameworks, 2) Promote the use of learning and development, mapped to standards in the management of a professional sales workforce, 3) Develop and promote recognised career entry points and opportunities for progression, 4) Address identified skills gaps across the sales workforce, 5) Promote enhanced learning provision for the sales workforce, 6) Promote assessment which is cost-effective and adds value. (Pages 42 to 44) We will maintain its partnership working with employers and the further stakeholder organisations. It will also provide the following practical help to complement and support the above. This help will include: 1) Continuing to monitor the use and interest in existing and further qualifications, 2) Ensuring that CIM standards conform to national framework requirements across the four home nations, 3) Engaging employers effectively in the standards and qualifications process, 4) Ensuring that standards provision continues to cover all levels and functions of selling, 5) Building understanding of the NOS and their applications, 6) Developing the support of other SSCs/SSBs towards the inclusion of relevant Sales NOS within their suites of standards. (Pages 45 to 48)

7 Section 2: Scope of the Sales Qualifications Strategy The Chartered Institute of Marketing (The Institute) is working closely with the marketing and sales professions to develop and promote a world-class UK wide framework for marketing and sales education. As such, the CIM represents two professions which are linked closely and which are pivotal to the success of modern organisations, and therefore to the UK economy as a whole. Today s successful organisations share a strong focus upon their customers, through continuously finding creative ways of establishing, serving and satisfying the requirements of well defined markets. It is the marketing and sales professions, more than any other functions, which focus upon these markets and their customers. This Sales Qualifications Strategy (SQS) has been developed by the CIM in conjunction with the marketing profession. This has involved obtaining views via an on-line questionnaire together with detailed interviews with representatives of stakeholder organisations, including several professional bodies and workshops held in each of the four nations of the UK which were well attended by practitioners and their employers. In addition, the Sales Advisory Board of the MSSSB has provided comment and direction. Appendix A sets out a list of those who have kindly provided commentary and feedback and their help is acknowledged with particular thanks. The strategy presents the vision for future qualifications and associated education for the profession, and sets out how CIM will work with the profession realising and refining this vision. Whilst addressing qualifications and education, the strategy also addresses those NOS which are considered to be essential to realising the vision described. This reflects the importance of the NOS and also the considerable interest in the standards demonstrated by employers during the consultations. A separate Marketing Qualifications Strategy is also available. Given the natural links between sales and marketing, these strategies share a number of aspects. A copy of the Marketing Qualifications Strategy can be obtained from the CIM website ( This section of the strategy is set out under the following principal headings: 1) UK-wide scope of the SQS: the sales profession, occupational roles within the profession, the population of learners, range of qualifications provision, overlap with other sectors, 2) Key priorities and alignment with government policy: influences and strategic priorities, responding to strategic Government priorities. 2.1 UK wide scope of the SQS The sales profession The sales profession is one of the largest groups of professionals in the UK today, employing around 7% of the UK s workforce - approximately 2.06 million people. Of these, 84% of the sales workforce is employed in England, 8% in Scotland, 4% in Wales and 3% in Northern Ireland. (MSSSB LMI Report, 2008)

8 The sales professional is involved in personal selling, a process involving discussion, often face to face, between two people, or between the sales professional and a group. The sales professional is able to offer flexibility in the message being given, reacting to the immediate feedback that this process allows. The flexibility, reacting to the feedback and making an evaluation of the overall response to the selling message, is a key strength of the sales process. It enables information to be provided in the context of the buyer s environment and requirements, objections to be overcome, negotiation, and the sales professional to demonstrate the products and services on offer. Such selling can therefore be extremely effective, as the sales person can explore the particular needs of individual customers, and can adjust the marketing proposition to fit such needs in negotiating the terms of a sale. The salesperson can also develop long-term personal relationships with key decision makers within important customer accounts, often referred to as key account management. There is an old fashioned image of personal selling, involving the hard sell with a brash and persistent salesperson delivering an unrelenting string of persuasive messages. However, as is emphasised by the large majority of employers, the modern sales professional now needs to be highly educated and skilled if they are to be successful within increasingly sophisticated markets. The term salesperson can be applied to a wide range of roles. For example, salespeople behind the counters in many retail outlets can, primarily, often be order takers through to the sales professional involved in personal selling. This latter area includes those involved in the essential task of obtaining orders, which can require the proactive selling of an organisation s products/services. The profession also includes those involved in sales management, thereby managing those working directly in personal selling, as well as the strategic development of the sales function for their organisations. The role of the sales professional can therefore vary from organisation to organisation. Indeed in some, there may be no sales people at all if the organisation sells solely through direct sales channels, such as mail-order, via brokers, or via on-line channels such as the internet. However, in the vast majority of organisations, the sales professional performs a critical role. In fulfilling this role, sales professionals can be involved in business development and selling to a wide range of customers, although these may be considered to be within two broad categories: Consumer selling, for example, where the salesperson sells to the retail customer and/or to the end user directly, and where this is face to face it is often referred to as direct selling. Employers confirm that although there is an increase in the recruitment of graduates into these roles, there is also a high proportion of nongraduate sales personnel recruited into this area of activity, often with only limited training provided particularly amongst smaller employers, Business to business selling, where the salesperson sells to other businesses for example, manufacturing and professional services. Employers confirmed that this aspect of selling is particularly dominated by graduates and increasingly so, reflecting the demand for highly skilled individuals able to communicate and negotiate with other professionals. However, the negative side of this is that many expect to move through to management roles very quickly, leading to a lack of career sales people who want to stay in face-to-face sales roles. In addition, feedback indicated that senior posts in the more sales-sophisticated organisations can often be filled by experienced sales professionals from outside the UK. These personnel are often recruited from countries where there is a greater tradition of sales training and the attaining of sales-specific professional qualifications, and a consequent greater respect for the professionalism of sales personnel. Within some organisations, the sales professional may be the only contact with a

9 company s customers, such that the salesperson is perceived as the company. In others, such as those selling consumer goods, the final consumer may never be aware of the organisation s salespeople. This is because such salespeople work with the wholesalers and retailers to ensure that their companies products are sold effectively. Key activities in the selling process Traditionally, the main stages in any sales process can be considered to be: Prospecting for customers, to identify potential customers for an organisation s products/services, Qualifying the prospects, identifying those with good potential, and screening out the others, Preparing the approach, involving learning about the prospect and developing a strategy towards developing business with the new customer, Developing the relationship with new customers, including gathering information about their requirements, Presenting the sales message, including demonstrating the relevant products/services and matching their benefits to the customer s requirements, Handling queries and any objections, which involves identifying and addressing any barriers to achieving the sale, Closing the sale, where various techniques might be used to obtain an order, Following up the sale, to ensure that the sale has been completed and any agreed after sales arrangements are in place to the customer s satisfaction. International selling The above process can also be applied to those involved in export, or international, selling. However, the international sales professional also has to be aware of different cultures and their impact upon aspects of the sales process, and in particular in the negotiation of a sale. Range of selling activities In the recent occupational mapping employers were asked about the range of selling activities undertaken, including which are the main source of their organisation s sales. The results are set out below. Many respondents indicated that several of these activities were undertaken, and often more than one was considered to be a main source of their sales.

10 Activity Selling activities (%age) Undertaken (% age of respondents) Main source of sales (% age of respondents) Field selling (person to person) Key account management Telesales Channel selling (via discrete channels) Trade selling (to reseller organisations) (Source : Occupational Map) Field selling and key account management are therefore undertaken by the large majority of organisations, including SMEs, with these activities being considered to be a main source of sales by 75% and 48% of organisations respectively. In addition to the above list, other selling activities identified by respondents include broker selling and networking. Sales professionals work in almost all sectors of the UK economy, with sales related activity occurring in some form within most commercial and non-commercial industries and organisations. As above the range of key sales activities include: Partnership account management, involving senior management in the commercial development of relations between their organisation and their clients, Key account management, with the sales professional developing a strategic relationship with key customers, Field sales, involving personal, often face to face, interaction with customers, Trade seller to reseller organisations, where the sales professional deals with third-party agencies, such as retailers, who then sell to end-users, Retail sales, addressing those working within a retail environment, and including for example, those within estate agency, retail banking and the motor trade, Telesales, often involving outbound calls to potential customers, Channel sales (where selling is via particular channels, such as the internet or mail-order). Sales personnel can be involved in selling within different environments, including selling from business to consumers, from business to business, and from business to government, each with its own associated requirements regarding skills and knowledge. The standard occupational strands, based upon Standard Occupational Classification (SOC) terminology, used to identify the above figures and their relative sizes within the profession are set out within the following chart. The numbers employed are taken from the MSSSB s LMI report published in 2008.

11 Sales occupations in the UK Sales and retail assistants 000s 1,245 Marketing and sales managers 330 Sales representatives 225 Other sales related occupations 103 Telephone sales persons 58 Elementary sales occupations 49 Rounds (wo)men and van sales 25 person Market and street traders and 19 assistants Importers/exporters 6 Total 2,060 Notes: 1) The figure for sales and retail assistants includes roles within the retail environment with a range of responsibilities including those involving a high proportion of professional selling activity, 2) The figure for marketing and sales managers represents those found to be working within sales activities by the LMI study. Occupational roles within the profession The sales profession therefore embraces a wide range of roles, and an even wider range of job titles. The following describes the typical roles and responsibilities within the sales function of a larger private sector organisation, as identified within the separate Sales Occupational Map developed by the MSSSB. The roles focus upon those within field/telesales operations and it is recognised that not all of the roles described may necessarily be present within all organisations. Nevertheless, they are typical and are presented in what would usually be a descending order of seniority. Field sales environment The following roles are those found typically within a structured sales force operating within a larger sales-oriented commercial organisation: Sales Director Reporting to the Managing Director, the typical job holder has overall responsibility for the development and effective implementation of the company s sales strategy and for the management of the sales function, National Account Controller Reporting to the Sales Director, the typical job holder would normally be responsible for the formulation and implementation of sales strategies for individual key accounts, National Account Manager/Senior Key Account Manager Reporting to the National Account Controller, the typical job holder would normally be responsible for an identified account(s). Typical duties include establishing and implementing a sales plan towards achieving agreed sales and profitability targets, Global Account Manager Reporting to the Sales Director, the typical job holder operates their accounts in the manner of business units,

12 Export/International Sales Manager Reporting to the Sales Director, the typical job holder is normally responsible for the formulation and implementation of sales strategies for specified overseas markets, National/Regional Sales Manager Reporting to the Sales Director, the typical job holder would normally control the company s regional salesforce teams in the UK, being responsible for the promotion of the organisation s products and services within the marketplace, Sales Manager/Area Sales Manager Reporting to the Sales Director or National/Regional Manager, the typical job holder would have sales and commercial responsibility for a range of specialised products or a defined sales area in the UK, Customer Retention/Service Manager Reporting to the Sales Director or National/Regional Manager, the typical job holder integrates selling and customer service functions towards retaining and developing existing customers, Senior Sales Representative Reporting to the Sales Manager, the typical Senior Representative would maintain contacts with managerial levels within the customers purchasing departments, promoting and securing sales of the company s products and services, Sales Representative Reporting to an Area Sales Manager, the typical Sales Representative would identify, maintain and develop opportunities for the promotion of the organisation s products and services within a defined sales area. Telesales environment The following roles are those found typically within a structured contact centre where the sales personnel are responsible for making outbound, telesales calls to both potential and existing customers: Telesales Team Leader/Supervisor Reporting to the Call Centre Manager, the typical Telesales Team Leader would supervise a group of Telesales Agents, Senior Telesales Agent Reporting to the Call Centre Manager/Telesales Team Leader, the typical Senior Telesales Agent would be responsible for promoting sales by telephone, Telesales Agent Reporting to the Telesales Team Leader, the typical Telesales Agent works in a target driven environment, telephoning current and potential customers. The above field sales and/or telesales environments can often be supported within larger selling departments by a sales training function. Within this might be experienced sales personnel adopting a sales training role, often supported by external training professionals. Sales and retail assistants Within the retail environment selling features strongly, with many roles requiring expertise in face to face selling. It is also recognised that in some retail environments, roles may focus upon responding to customers intentions to purchase rather than proactive selling.

13 Sales outsourcing Several organisations also outsource their sales functions to contract sales organisations, which then sell on behalf of several companies. Such contract sales organisations can be involved in field and/or telesales, and sometimes key account management. Sales administration environment The following describes roles found typically within a larger sales administration and support function. This function is often assuming an increasingly important role towards monitoring accounts, and managing sales data and its interpretation. The roles include: Sales Office Supervisor Reporting to the Sales Manager, the typical job holder would be responsible for supervising the efficient operation of the internal sales department, liaising between the external salesforce and relevant internal departments, Senior Administrator/Clerk Reporting to the Sales Office Supervisor, the typical job holder is required to provide sales information and explanations on product lines and services offered. Further job holders with responsibility for selling In addition to those sales professionals for whom selling is their principal activity, there are many further job holders for whom selling is an important activity, even though it may not be their primary or sole responsibility. These include, for example, those working within SMEs, including their owners and managers. Whilst many SMEs do not employ a dedicated sales professional, they are involved in selling and related activities. As described in the Occupational Map, with over 4 million SMEs in the UK, of which some 84,000 employ between 20 and 500 people, it is likely that the number of non-specialist sales personnel in the UK is considerable. Indeed, sales skills can be considered to be important in almost all walks of life and job roles. These skills address developing relations of mutual benefit whether in a commercial or even a personal context. Such considerations are contributing to the debate regarding whether young students, such as those at GCSE level, ought to be taught sales related skills. Cross sector coverage Sales is a cross-sector profession throughout the UK. Access to and interest from the consequent broad range of employers and individuals working within the profession brings associated benefits including: A large potential target audience, Scope for specialisation, Stimuli for development from a range of sources. The population of learners The population of learners is the same body of sales personnel, including sales professionals and also the non-specialists, as identified above. This Sales Qualifications Strategy is therefore designed to support learning for those working towards entry into the profession, those already working as sales specialists within the profession, and those who might not be sales specialists, but for whom important elements of their work are sales focused. A significant amount of sales professionals include also the role of marketing in their portfolio of responsibilities.

14 The attaining of sales qualifications has not been of particular importance for many within the profession for many years. Often, ability has tended to be judged by results and experience. Consequently, the uptake of qualifications has tended to be low. However, feedback from employers indicates that this is changing. As a result, the population of sales learners is far larger than that indicated by the uptake of sales qualifications over recent years. However, much use is made of sales training, and there are high numbers of specialist sales trainers offering training provision to the profession. The evidence from the LMI and research in developing this Strategy indicates that employers are increasingly seeking confirmation that the training is effective and that the demand from employers for qualifications attesting to sales competence is also increasing. The following factors all illustrate drivers towards an increase in the demand for qualifications: 1) The Sales Occupational Map, and the LMI report, confirm that entry into the profession is increasingly at graduate level, with employers seeking to attract and develop individuals able to develop strategic business relations with their clients, 2) LMI data indicates that 58% of companies employing sales personnel provided specialist sales training over the previous year, a figure which industry experts expect to increase, 3) LMI data identifies that 72% of training is currently informal and provided in-house, that is, offered outside the structure of a formal training course provided by specialist providers. Therefore, a significant proportion of the training of learners within the profession is currently outside national frameworks and recognised accreditation. However, the research also identifies a strong and developing desire for accredited training, with 47% of employers considering it important for their staff, 4) Consultation with employers identifies that trends and influences, such as international competition, employee retention and the drive for enhanced professionalism, are all increasing the demand for accredited training. In addition, amongst the owners and managers of SMEs and other non-specialists involved in selling activities, the strong support demonstrated during the development of the MSSSB s NOS which address selling for non-specialists illustrated the interest in, and a need for, sales focused learning provision targeted at non-specialists who carry out sales activities and yet are unlikely to have had any formal sales training. Professional bodies The sales profession is supported by professional bodies, such at the Institute of Sales and Marketing Management (ISMM), and the Chartered Institute of Marketing (CIM). These provide a focus for the representation of sales professionals and offer qualifications recognising sales competence. The ISMM is represented upon the Sales Advisory Board of the MSSSB. Comprehensive coverage of NOS The development of the current suite of NOS has enjoyed the support of practitioners, the professional bodies, education providers and awarding bodies, and is considered to offer a comprehensive coverage of most of the sales activities undertaken by the profession. Clearly, there is a need to ensure that the existing NOS are maintained, such that they continue to reflect current as well as emerging best practice. As described by one employer, the standards must remain at the cutting edge. In addition, as the profession develops and new techniques and areas of activity emerge, new NOS and possible qualifications will be required.

15 Range of qualifications provision The principal types of qualification available currently within the sales profession are as follows: England, Wales, Northern Ireland: Post Graduate Study, Bachelor Degrees, Vocationally Related Qualifications (VRQs), Higher National Diplomas (HNDs), National Vocational Qualifications (NVQs), Modern Apprenticeships, Scotland: Post Graduate Study, Bachelor Degrees, Higher National Certificates (HNCs), and Higher National Diplomas, (HNDs), Higher National Units, National Units, at SCQF levels four, five and six within the Scottish Credit and Qualifications Framework (SCQF). In addition to the above qualifications and associated training, there is a wide range of further learning provision across the UK. Indeed, this is the basis for the majority of current sales learning and development utilised by employees. Such provision includes: Courses relating to continuing professional development, Non-accredited training by employers and private training providers, Informal and semi-skilled work-based learning, including induction training. Training provision The LMI data explores the types of training provided. As above, it also differentiates between formal and informal training, with the former including, for example, organised courses, and the latter including the more ad-hoc, but often equally important, training offered by managers/colleagues through guidance/tuition. The data indicates that: 47% of employers have increased their sales training budget over the past three years, 58% of companies provided sales training over the past year, of which: - 74% of the training is informal and provided in-house, - 18% of the training is formal and again in-house, - 8% of training is provided by external training providers, including colleges, 54% of the employers consulted suggest that there are gaps in training provis In particular, employers identified that provision at entry level for those joining the profession, and also that for sales managers, both strategic and operational, was inadequate. The feedback emphasised that whilst there is training available, the programmes were often insufficiently relevant to the profession s requirements. The key requirement was for enhanced programmes, and this is reflected in the preference across employers for tailored, in-house programmes. Amongst those attaining sales qualifications/awards, the most common are attained through sales training leading to industry accredited qualifications, accounting for 16% of the qualifications, followed by NVQs (12%), and other, formal, vocational training also accounting for 12% of the qualifications attained.

16 Overlap with other sectors As the sales profession is cross-sector, we work with organisations and their sales professionals from almost all sectors of industry, and from those within the public, private and voluntary sectors. Amongst those Sector Skills Councils (SSCs) and Standards Setting Bodies (SSBs) with which the CIM footprint overlaps particularly are: Council for Administration, with regard to the role of sales administrators, E-skills, with regard to contact centres, and associated telesales operations, Institute of Customer Service, with selling and customer service being functions which are linked closely, Management Standards Centre, which maintains standards addressing the marketing and selling of products/services by those in general management, Skillsmart Retail, with regard to the role of sales personnel within the retail environment, Small Firms Enterprise Development Initiative with regard to selling and business development amongst SMEs. In addition, as discussed above, there is also overlap with a large number of other SSCs and SSBs as many organisations within their sectors are likely to have sales functions. 2.2 Key priorities and alignment with government policy Influences and strategic priorities The following paragraphs describe the key priorities for qualifications development, and the associated issues which are amongst the drivers for such development and that of associated learning programmes. These drivers are discussed in greater detail in Section 3 of this document. Drivers for qualifications and associated learning Amongst the drivers for qualifications and the associated development of NOS are the following: 1) Increasingly competitive markets, both within the UK and internationally, are driving the need by employers for highly skilled sales personnel, with qualifications identified as a route towards recognising the competence of such personnel, 2) The need to continue raising the professionalism of selling within organisations, ensuring that sales personnel are equipped with up to date selling skills and excellent commercial/business appreciation, 3) The demand for recognised entry routes into the sales profession, with defined criteria and associated development programmes designed to ensure that entrants are equipped with the skills and knowledge necessary for today s more sophisticated sales environment, 4) A desire amongst employers for standardisation, or benchmarking, of sales training and associated awards/qualifications. Employers identify that this is relevant particularly for the range of programmes offered by private training providers, 5) Concerns amongst employers regarding their legal liabilities in the event of malpractice in their selling activities, 6) The need for close working between and coordination of the sales and marketing

17 functions within organisations, which is being driven by the increasing focus by organisations upon their markets and customers. Priorities for qualifications and associated learning The consequent priorities for qualifications and associated learning development towards enhancing skills across sales are to: 1) Raise the profile of qualifications and vocational skills training in sales, building upon the opportunities offered by the developing qualifications frameworks, with NOS and associated qualifications, including the existing VRQs, Apprenticeships, NVQs, and Scottish Vocational Qualifications (SVQs), recognised as a basis for training and development, 2) Develop VRQs and qualifications arising from the opportunities presented via the developing qualifications frameworks to meet specific needs, including the addressing of particular aspects and emerging techniques within the sales process. This includes developing the opportunity to promote the accreditation of employer programmes, 3) Address identified skills gaps within the sales workforce, 4) Develop awareness of qualifications and of NOS, and their applications in developing, managing and retaining sales talent, towards raising the competitiveness of UK employers, 5) Develop awareness of NOS and their applications in benchmarking relevant qualifications and training programmes, 6) Gain and publicise the endorsement of NOS, and associated qualifications, by the relevant professional bodies, 7) Develop, and support employers in the use of, implementation tools which address a range of applications for NOS within employer organisations, and which link to performance outcomes, 8) Develop flexible arrangements for recognising achievement, which would include online and interactive delivery, where relevant, ensuring that undue time away from the job is minimised, 9) Promote the sales standards for non-specialists as a respected source of guidance upon effective sales practice for those involved in selling, but without specialist selling expertise, 10) Use qualifications and standards to promote commercial understanding and coordination across the separate functions of sales and marketing, thereby assisting these complementary functions to work together effectively, 11) Develop proposals for the incorporation of a sales element within the National Curriculum. Responding to strategic Government priorities Several aspects of Government policy and guidance have informed the development of this strategy. These are listed within the appendices.

18 The Government policies, strategies and associated developments which have had a significant impact upon skills, education, training and development and which have been of particular importance in informing the development of this strategy are the: 1) Leitch Review, 2) Skills for Scotland, 3) Qualifications and Credit Frameworks. Leitch Review of Skills The Leitch Review of Skill s Final Report, Prosperity for all in the global economy, (2006), built upon the findings of the National Employer Skills Survey 2005, undertaken by the Learning Skills Council (LSC). This Report identified that around 19% of the UK s skill gaps exist within sales, and thereby identified a clear need for the development of such skills within the UK. The Leitch Report described how the skills system must address the needs of individuals and employers, with the meeting of vocational skills to be demand-led rather than planned centrally. This implied a significant shift away from a central control over the funding of Further Education towards allowing employers a greater say in how the funding might be used. It is recognised that funding tends primarily to be provided for lower level qualifications. However, this shift is a positive development for the sales profession, where much of the learning is delivered in-house. The policy direction set by the Leitch Report therefore provides impetus and support for employers towards providing their sales personnel training related to targeted, accredited qualifications. In identifying that vocational qualifications should be demand-led, unitised and based on NOS, the Report recommended that sector bodies, rather than the Qualifications and Curriculum Authority (QCA), should be responsible for approving qualifications. SSCs/SSBs would then be able to recommend approval of qualifications developed by organisations, including those of education institutions and employers for inclusion within the qualifications frameworks, if they meet these standards. This will allow approval of employer-specific qualifications and promote the accreditation of in-house qualifications. Skills for Scotland The Scottish Government s strategy document entitled Skills for Scotland replaces the Leitch Report in Scotland. As described within this document, standards setting bodies need to: 1) Develop proper engagement with employers in their sector in order that they can speak with legitimacy on their behalf, 2) Deliver sectoral LMI that is trusted, well used and fits with the robust national information supplied by Future Skills Scotland, 3) Ensure that employers have a say in the design and development of learning at all levels and in all settings, not just in vocational qualifications, 4) Develop strong partnerships with other key players in their sector as well as with Government, providers and intermediary bodies. Qualifications and Credit Frameworks Unitised, modular frameworks with transferable credits will be in place in each of the four nations across the UK. Within England, the Qualifications and Credit Framework (QCF) is replacing the National Qualifications Framework (NQF) directly. In Wales, the QCF integrates with the Credit and Qualifications Framework for Wales (CQFW) and replaces the CQFW pillar previously

19 occupied by the NQF. Within Northern Ireland, the QCF draws upon the work of the Northern Ireland Credit Accumulation and Transfer System (NICATS). The Scottish Credit and Qualifications Framework (SCQF) brings together all Scottish mainstream qualifications into a single unified framework. It was developed in partnership by the Scottish Qualifications Authority (SQA), Universities Scotland, the Quality Assurance Agency Scotland and the Scottish Executive, and was launched in December The NQF has been identified as inflexible to meet fully the skills need of employers. The regulatory authorities for England, Wales and Northern Ireland have therefore worked together to develop the new QCF which will be regulated jointly. This framework is designed to be: 1) More responsive in meeting employer and learner needs, using a flexible system to tailor learning by combining a range of units, 2) More inclusive, with the facility to recognise learning which did not sit within the NQF, with the possibility of now including employer-led training being of particular relevance to the sales profession. It is recognised that provision by the professional bodies is employer-led and therefore inclusive. The importance of the professional bodies is recognised by the CIM in ensuring effective engagement with their network of employers, 3) Easier for learners to navigate around and to understand, helping them meet their individual needs. The QCF is unit-based and supported by a system of credit accumulation and transfer. The achievements of learners are expressed through credit accumulation and transfer. The achievements of learners are expressed through credit, indicating the size of the unity of qualification, and by level, indicating the challenge. The QCF, and the SCQF, offer important opportunities towards promoting sales skills in the UK, as they allow for enhanced flexibility in terms of the combination of units allowed, and they also allow for the recognition of appropriate in-house programmes. In addition, they present enhanced opportunities for the many non-specialists who undertake sales activities, where a unitised framework will allow recognition of learners who progress some sales focused learning within non-sales qualifications.

20 Section 3: Sales profession working environment 3.1 Special features or characteristics of the working environment This section of the SQS explores the principal features or characteristics impacting upon the sales profession including their consequent impact for the use of qualifications and associated NOS. In considering the features or characteristics, as well as exploring the nature of selling, the focus here is upon those characteristics which tend to inhibit the adoption of the current provision of qualifications, and to explore possible changes in that provision which would promote the adoption of qualifications. As above, this section also considers the associated role of NOS, reflecting the interest in these, and their link to qualifications, and how the standards also offer an opportunity to develop and build upon employers interest in their use which may extend to qualifications and education, based upon the content of the NOS. Exploring workforce trends and the impact for qualifications As has been stated previously, the sales sector employs high numbers of personnel, although the forecast is that this has become fairly static, and indeed may be dropping temporarily because of the recession. Overall, the attaining of sales qualifications has not been of particular importance for progression. However, the available evidence indicates that this is changing. To understand the trends affecting the selling workforce, and the impact for qualifications, it is important to consider the activities undertaken and how these vary widely across a profession which is truly pan-sectoral. The fact that selling crosses all sectors of the UK economy can cause tensions between the need for sectorspecific learning and qualifications, and the resources available to meet such requirements. A developing interest in the value of qualifications In a profession which is acknowledged by many employers as being critical to their success, and one which involves a range of activities across all sectors of the UK economy, a key characteristic is the low level of practitioners with qualifications, particularly sales-specific awards and a traditional belief amongst some entrenched practitioners that selling is a skill that cannot be taught readily. For example, from several organisations, including some larger employers, was the comment that (my) company does not train (in selling techniques) any of our sales people much at all. Whilst most provide technical training regarding the organisation s products/services, sales is perceived as something of a black art within some organisations. Nevertheless, many employers have emphasised the need for effective training, including that for those entering the profession. Several employers also refer to the challenge of dealing with increasingly informed and demanding customers. As one sales manager remarked, buyers now go on courses that tell them about sales techniques. Another identified how buyers in the trade sector are increasingly being recruited from retailers, and as such buyers skills and demands in that organisation s trade sector were developed highly. The need for programmes designed to enhance, and to update the selling skills of existing sales personnel is therefore acknowledged by many employers. Within many of the companies represented by such respondents, the barrier to training is often considered to be a lack of commitment at Board level. However, for some, the barrier was uncertainty over the quality of training available, as it was observed that, there is a plethora of training providers and courses, some of which are very poor...