P R A D

path to internal perpetuation and that firms with lower WAPAs have an easier path to organic growth.

WASA and WAPA: 2008 - 2013

53.3

52.9

52.5

51.9

51.9

51.1

48.7

48.4

48.0

47.8

47.0

46.6

2008

2009

2010

2011

2012

2013

WASA

WAPA

Source: Reagan Value Index

As the graph above demonstrates, however, there has been a steady increase in each of these metrics over the past six years. While not perfectly linear in their ascent, the industry’s most recent WASA result is 2.2 years higher than five years ago, while the WAPA has increased by 2.1 years. Healthy firms will have a WASA under 55 and a WAPA under 50. This trend supports our analysis that most firms are under-hiring. We are getting older as an industry. WASA and WAPA, though not new, should remain as key reference points for firms as they assess their hiring needs. In addition, a stratification of Sales Velocity is also beneficial. For the following discussion, we have identified four distinct age bands. Although equivalent in length (roughly 10 years), each is very different in terms of performance and impact on Sales Velocity.

Relative Impact of Age Bands on Sales Velocity

Sales Velocity Difference: Bottom and Top 25%

Average Sales Velocity

Top 25% Sales Velocity

Bottom 25% Sales Velocity

Age Band

Description

Up to age 35

Early Career

1.4%

2.6%

4.5%

3.1

36 – 45

Early-Mid Career

1.8%

3.8%

5.9%

4.1

46 – 55

Late-Mid Career

2.8%

3.6%

5.5%

2.7

Over 55

Late Career

1.2%

2.7%

3.7%

2.5

TOTAL

7.3%%

12.7%

19.6%

12.4

Source: Reagan Value Index

This segmentation of the industry’s validated sales force again uses the Reagan Value Index as a proxy. We have broken down each age band to show relative contribution to Sales Velocity. We

12 Producer Recruiting & Development Study