Post by arfanho7 on Feb 26, 2024 21:25:52 GMT -6
The pair used a consumer durable goods business in India as a real world laboratory for the research. Running this kind of experiment is not the easiest thing in the world to do Chung says. But it does have wide implications. The more than million people employed in personal selling in the United States alone represent about percent of the entire country s labor force according to the US Department of Labor.
In addition companies spend on average percent of sales revenue on sales force costs and a much higher percentage in B B firms. The problem for researchers in this area according to Chung is that companies are reluctant to tinker with their compensation plan so it s difficult to come up with subjects to study. So previous research was usually conducted in a lab or with undergrad students or temps hired specifically for the Hungary Phone Number List experiment—not actual field research. Luckily this company wanted to know about the compensation plan in more detail so they were willing to experiment and we took advantage of that Chung says. The Power Of Quotas The researchers main finding was that the company saw a roughly a percent gain in sales when the bonus was conditioned on the salesperson hitting a quota. When there were no strings attached to the bonus the gains dropped to half that in one scenario and to a net decrease of percent in another.
In the sales force setting people work harder if they re told a specific goal says Chung noting that percent of firms in the United States use some type of bonus to reward employees. The field experiment spanned six months in the second half of and involved full time salespeople from branches in four major cities in India. purifiers were not told they were part of an experiment Chung says the four branches were selected far apart to limit any watercooler effect of employees comparing notes. Within the six months there were weeks of different compensation schemes tested assigned randomly by branch interspersed with control weeks.
In addition companies spend on average percent of sales revenue on sales force costs and a much higher percentage in B B firms. The problem for researchers in this area according to Chung is that companies are reluctant to tinker with their compensation plan so it s difficult to come up with subjects to study. So previous research was usually conducted in a lab or with undergrad students or temps hired specifically for the Hungary Phone Number List experiment—not actual field research. Luckily this company wanted to know about the compensation plan in more detail so they were willing to experiment and we took advantage of that Chung says. The Power Of Quotas The researchers main finding was that the company saw a roughly a percent gain in sales when the bonus was conditioned on the salesperson hitting a quota. When there were no strings attached to the bonus the gains dropped to half that in one scenario and to a net decrease of percent in another.
In the sales force setting people work harder if they re told a specific goal says Chung noting that percent of firms in the United States use some type of bonus to reward employees. The field experiment spanned six months in the second half of and involved full time salespeople from branches in four major cities in India. purifiers were not told they were part of an experiment Chung says the four branches were selected far apart to limit any watercooler effect of employees comparing notes. Within the six months there were weeks of different compensation schemes tested assigned randomly by branch interspersed with control weeks.
