Employing an Export Sales Professional - weighing up the costs and benefits.

In an increasingly globalized world, many UK businesses recognize the importance of expanding into international markets. To do so successfully, they often need to recruit export sales professionals, individuals who are responsible for driving sales and building relationships in overseas markets. While the return on investment (ROI) of hiring such talent can be significant, the costs associated with recruiting and employing an export sales professional are not to be overlooked. These costs include recruitment expenses, onboarding and training, salaries, benefits, compliance, and long-term employment costs.

This blog will delve into the various costs involved in recruiting and employing an export sales professional in the UK, providing a comprehensive view for companies considering this strategic hire.

1. Recruitment Costs

Recruiting an export sales professional can be an intensive process, particularly given the unique skill sets required. These professionals must possess a deep understanding of both domestic and international markets, along with strong negotiation skills, cultural awareness, language abilities, and extensive knowledge of export regulations.

The recruitment process involves several potential cost factors:

a) Recruitment Agency Fees

Many businesses opt to use specialized recruitment agencies to find experienced export sales professionals. These agencies typically charge between 15% and 25% of the annual salary of the role. For a senior export sales professional earning an annual salary of £60,000, this could equate to a one-off recruitment fee of between £9,000 and £15,000.

b) Job Advertisement Costs

If a business decides to manage the recruitment process in-house, they will need to advertise the vacancy on various job platforms such as LinkedIn, Indeed, or industry-specific job boards. Posting on these platforms typically costs between £100 and £500 per job ad, depending on the platform’s reach and the duration of the posting.

c) Internal Recruitment Costs

In-house recruitment requires significant investment in time and resources. HR teams need to screen candidates, conduct interviews, and carry out background checks, all of which incur costs. Internal HR recruitment efforts, particularly for specialized roles, are often valued at between £3,000 and £5,000 in terms of time and resources spent.

d) Recruitment Software

If the company uses applicant tracking systems (ATS) or other recruitment software, there may be additional costs associated with managing the recruitment process. These systems typically cost between £1,000 and £5,000 per year, depending on the complexity and size of the company.

2. Salaries and Compensation

The largest ongoing cost of hiring an export sales professional is their salary and compensation package. The salary of an export sales professional in the UK varies depending on experience, the industry, and the region where the business operates.

a) Basic Salary

For a mid-level export sales professional with 3-5 years of experience, the average salary in the UK ranges from £40,000 to £60,000 per year. Senior professionals with extensive experience and success in international sales can command salaries in the region of £70,000 to £100,000 per year.

b) Commission and Bonuses

Sales roles, particularly those focused on exporting, often include performance-based incentives such as commission and bonuses. These can add anywhere between 10% and 50% of the base salary to the total compensation package, depending on the sales targets achieved. For example, if an export sales professional earns a basic salary of £50,000, they could also earn an additional £10,000 to £25,000 in commission.

c) Company Benefits

In addition to salary and commission, export sales professionals may expect benefits such as:

                •             Company Car/Car Allowance: For professionals required to travel frequently, especially between regions or overseas, businesses may offer a company car or car allowance. This can cost between £4,000 and £10,000 annually.

                •             Private Health Insurance: Many businesses provide private health insurance as part of the benefits package, which typically costs between £1,000 and £2,000 per employee, per year.

                •             Pension Contributions: UK law requires employers to contribute a minimum of 3% of an employee’s salary to their pension. For a salary of £50,000, this equates to a £1,500 annual cost.

3. Onboarding and Training Costs

Once the right candidate is hired, they need to be properly onboarded and trained to ensure they are successful in their role. Onboarding and training costs can vary significantly depending on the complexity of the business’s products and the markets they are exporting to.

a) Onboarding Process

The onboarding process can take several weeks, during which the new hire familiarizes themselves with the company’s products, sales processes, and target markets. During this time, productivity is often low, but the business is still paying the full salary of the new employee. This period can be costly in terms of lost productivity and salary payments.

b) Training Programs

Export sales professionals may require specialized training to ensure they are familiar with export regulations, documentation, and logistics. This could involve:

                •             External Courses: Sending employees to external training programs can cost between £500 and £2,000 per course, depending on the provider and duration.

                •             Internal Training: If the company has an internal training program, there are still costs associated with developing and delivering the training. This could range from £1,000 to £5,000 in terms of HR and managerial time, training materials, and systems.

4. Travel and Expenses

Given the nature of export sales, professionals are often required to travel internationally to meet clients, attend trade shows, or negotiate deals. This can result in significant costs.

a) International Travel

Depending on the frequency and distance of travel, companies should budget for airfare, hotels, and other travel-related expenses. For example, a single international business trip within Europe could cost between £1,000 and £3,000, including airfare, accommodation, meals, and local transport. Longer-haul destinations such as the US or Asia could see these costs rise to £5,000 per trip.

b) Trade Show Attendance

Attending international trade shows is often a critical component of an export sales professional’s role. The cost of participating in trade shows includes registration fees, booth rental, travel, and marketing materials. A trade show booth at a major international event can cost between £5,000 and £20,000, depending on the size and location.

5. Compliance and Administrative Costs

Employing an export sales professional comes with additional administrative and compliance costs, particularly when dealing with international markets.

a) Export Compliance

Businesses must ensure they comply with the various regulations and requirements of the countries they are exporting to. This may require hiring legal experts or consultants, which could cost between £5,000 and £15,000 annually, depending on the complexity of the markets involved.

b) Visa and Work Permits

If the export sales professional is required to work overseas for extended periods, the business may need to arrange visas or work permits. Depending on the country, visa applications can cost between £200 and £1,000 per employee, not including legal fees if assistance is required.

6. Retention and Long-Term Employment Costs

Once a company hires an export sales professional, it’s crucial to consider the long-term costs associated with retention and keeping the employee engaged.

a) Employee Development

Investing in ongoing professional development for export sales professionals is essential for retaining top talent. Courses, certifications, and advanced training programs can cost between £1,000 and £5,000 per year, depending on the scope.

b) Salary Increases and Promotions

To remain competitive and retain high-performing employees, companies must offer salary increases or promotions over time. The cost of retaining an export sales professional can increase by 5-10% annually as salaries and benefits grow in line with experience and inflation.

Conclusion

Hiring an export sales professional is a strategic investment that can drive significant growth for a company looking to expand internationally. However, businesses must carefully consider the full range of costs associated with recruiting, employing, and retaining such talent. From recruitment fees and onboarding to salaries, benefits, and travel expenses, the total cost of employing an export sales professional in the UK can range from £70,000 to £150,000 annually or more, depending on the level of experience and the specific demands of the role.

Despite the costs, the potential rewards of hiring an export sales professional can be substantial, as they play a crucial role in helping businesses tap into new markets, increase revenue, and build long-term international relationships.