The reduction of the sales force has begun. 80% of the reps need to re-apply for their positions under the farce of a sales reorganization. They will be interviewed and then told whether or not they will be a part of the "new" organization. The result will be less reps making less money. The long term result will be less motivation to service and sell resulting in lost business. If the management of OMX were any more stupid, they'd have to be watered twice a week.
They should re-organize in the sales force. The sales managers are only seeing who is spending money at retail then going out and taking them out of the store by offering extended discounts so they can put the commission in their pocket. This kills "margin' by almost 20-30% and also hurts sales at retail level. These sales reps have no clue how to generate "NEW" business. Contract is weighing this company down.
I have been reading these posts for weeks and most people really don't get it do they? I am part of contract sales and this change needed to happen years ago. There are so many sales people that live off of their current accounts and don't bring anything new to the table. I am sorry that these individuals are losing their jobs but hopefully they'll end up at Staples or Depot and continue to be non-performers. And by the way legally people have to interview for new positions when their's are eliminated.
Did anyone else catch that they reorganized the corporate office, placing the head of global communications in charge of HR? I'm wondering what makes him qualified. So where is the EVP of HR? He is nowhere to be found, his name not even mentioned. Sad way to handle things.
Sounds like an excuse to get rid of the ones who just live off of a few nice accounts and do not really do anything to bring in substantial new business. As long as they have a plan to make sure they do not lose customers or top performers they will be fine.
I'm not sure what the answers to the test questions were being used for. Other than to score the prospectful employee. Going with the lowest bidder doesn't seem feasible; yet the company has been unpredictable in the year or two previous.
Does anyone know what the "test" that was given at the interviews was going to be used for?
Why do this if they are getting rid of the lowest total compensation and old Boise associates.
ODP and SPLS are not hiring reps like crazy so I do not think that is a worry. I doubt they will be making room for the reps OMX did not keep. My guess is that most of the customers who are under contract with good pricing wont go anywhere unless the service changes. Maybe a few small customers follow the reps but I doubt it. Most significant organizations do not make major supplier decisions based on a single relationship. Even if a few small fish go resulting in a minimal sales decrease the huge overhead reduction of the sales force should make this a very profitable decision for the contract segment.
Many a company has underestimated the loyalty factor. Your right most reps will not land at ODP or SPLS, they have different plans. Though the independents will make room. The size of the accounts that will travel with a rep is the last size OMX can afford to lose, small and mid size, the one with the highest margins.