What is it about?
Variable compensations are a form of incentivizing the salesforce. This paper examines the frequency, magnitude, and implementation speed of variable compensation systems on salesforce satisfaction and performance. The research evaluates the impact on the salesforce in the context of technological turbulence and competitive intensity. Findings show a mixture of accentuating and attenuating effects on both outcomes.
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Why is it important?
Managers need to understand the effectiveness of the variable compensation system to optimize their impact on salesforce attitudes and performance.
Perspectives
Variable compensation for the sales force needs to be designed keeping in view their impact on sales force satisfaction besides performance. Variable compensation effects may vary depending on the type of industry based on the technology changes in the industry as well as competitive intensity.
Dr. Arvind Agrawal
The University of Nebraska Omaha
Read the Original
This page is a summary of: Dimensions and contingent effects of variable compensation system changes, Journal of Business Research, August 2016, Elsevier,
DOI: 10.1016/j.jbusres.2015.12.061.
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