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…
“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.
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