MEASURING THE EFFECT OF SALARY RAISE OVER THE PERFORMANCE OF SALES PROFESSIONALS – THE CASE OF AN INTERNATIONAL ORGANIZATION

Dimovska, Nena; Eftimov, Lјupcho

doi:10.47063/ebtsf.2020.0035

MEASURING THE EFFECT OF SALARY RAISE OVER THE PERFORMANCE OF SALES PROFESSIONALS – THE CASE OF AN INTERNATIONAL ORGANIZATION

Date Issued

2020-11-14

Author(s)

Dimovska, Nena

DOI

10.47063/ebtsf.2020.0035

http://doi.org/10.47063/EBTSF.2020.0035

Abstract

Should fixed salary be the single and most appropriate tool for motivating employees; or should management consider a more diverse, innovative tools for motivation, based on multiple factors? Does a salary increase always guarantee ROI? Also, will sales professionals be motivated by an incremental, equal-to-all salary increase? This paper elaborates these and similar dilemmas and presents a research conducted in the sales sector, in a medium-sized international firm. It represents consequences of applying an equal and applicable to all salary increase of 10%. Тhe paper tries to reject traditional beliefs (and awards distribution models) that salary, per se, is the highest source or motivation and a guarantee for improving performance. Тhe research shows how sales professionals are affected by incremental salary increase, and tries to provide recommendations for further research on effective, cost-efficient award strategies that increase motivation and performance and can be easily adopted in similar organizations.

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PROCEEDINGS EBTSF ISSN 2671-3705 (1).pdf

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23.11 MB

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