Will commissions remain a key incentive and compensation strategy for your company's salesforce?
Recently, The New York Times published a story outlining a major shift that many companies are making in their sales structures.
Considering that consumers now come to the table prepared with much more knowledge than before, thanks to the Internet, some believe the role of salespeople has changed and that commission structures are outdated and even counterproductive. But there's always a concern about removing commissions as an incentive.
The New York Time summarizes this dilemma:
"The proponents of ditching commissions believe they foster negative behaviors, such as focusing on an individual’s profit over the company’s, emphasizing short-term outcomes and encouraging unproductive competition among sales representatives. Even companies that pay commissions can face costly turnover as representatives chase more lucrative offers. But to do away with commissions altogether raises a concern that these companies share: Without them, can they attract and keep top sales agents?"
What do you think? Read More