tutor2u Business Studies Blog

Tracker Pixel for Entry

Motivating employees - the end of the mobile phone sales shark?

Sunday, May 17, 2009
Print Tweet This!Save to Favorites
Recommend on Google+

A great example to use when discussing the importance of financial incentives as a way of motivating employees to maximise revenues.  The Carphone Warehouse has decided to abandon the use of sales-related commissions for its store staff…

The Guardian reports that:

“Carphone Warehouse hopes to dispel the image of mobile phone sellers as sharp-suited sharks out to make a sale at any price by ending the practice of paying commissions in all of its UK stores so that staff can give impartial advice to customers.”

This is a great example to use in various ways.

For example, how important is the perceived impartiality of Carphone Warehouse staff to the consumer - when deciding on which mobile phone network operator and which price plan?

Does the loss of a sales incentive mean that employees are less motivated to close the deal (i.e. sign a customer up), or perhaps less inclined to recommend an unsuitable phone package?

Interestingly, the article goes on to claim that:staff retention in the London stores which acted as the pilot scheme had gone up, helped by a rise in basic salaries from £11,000 to £17,000.


blog comments powered by Disqus




BUSINESS TEACHER RESOURCE NEWSLETTER
Get first news of business teaching resources, ideas and other materials from tutor2u. Over 9,400 business teachers from the UK and around the world receive our regular teacher email newsletters. Sign up for free here!

*  Your Email Address:
*  Preferred Format:
    Full Name:
*  Country:
    Job / Position:
    Postcode:
    School / College:
    Town / City:
    AS/A2 Applied Business Board:
    AS/A2 Business Studies Board:
    BTEC First:

    BTEC National in Business:

    GCSE Applied Business Board:
    GCSE Business Board:
*  Enter the security code shown:







Popular Topic Tags

recession, demand, prices, price, unemployment, profit, economics, costs, investment, inflation, supply, employment, trade, competition, gdp, risk, china, debt, euro, entrepreneur, capacity, production, innovation, downturn, tutor2u, revision, pay, exports, manufacturing, confidence, profits, food, incentives, banks, strategy, globalisation, aqa, expectations, oil, csr, usa, startup, retailers, housing, productivity, sterling, supermarkets, takeover, google, economies of scale, mortgage, cash flow, advertising, quiz, leadership, property, buss4, tesco, economic growth, video, efficiency, enterprise, motivation, stakeholders, apple, deflation, corporate social responsibility, ebea, market share, airlines, pricing, taxation, merger, slowdown, bank of england, acquisition, interest rates, market failure, borrowing, competitiveness, sustainability, product life cycle, credit crunch, budget deficit, aqa business studies, facebook, twitter, aqa business, bbc, nelson thornes, philip allan updates, starbucks, philip allan, monopoly, diversification, recruitment, organic growth, stocks, training, oligopoly, starter activity, shareholders, uk economy, poverty, emerging markets, dollar, government failure, retailing, management, suppliers, buss1, marketing mix, tim harford, cpi, branding, opportunity cost, breakeven, government spending, hodder education, vat, product, customer service, eu, losses, wages, evaluation, india, external growth, wealth, environment, edexcel, location, promotion, technology, information failure, business studies revision, sources of finance, franchise, aqa gce business, elasticity, regulation, spare capacity, welfare, jobs, economic cycle, marketing, zondle, strategic direction, british airways,
View all tags for the Business Blog
Blog RSS feed Blog RSS Feed

Latest entries

Categories