Bonuses versus Commissions: A Field Study
Abstract
Quota-based bonuses and commissions are the two most common incentive compensation plans. The authors uncover differential effects of these plans from a natural field-based experiment featuring 14,000 monthly observations over three years from 458 sales territories of a pharmaceutical firm that switched from a bonus plan to an equivalent commission plan. The intervention led to significant sales productivity improvement; this effect was...
Paper Details
Title
Bonuses versus Commissions: A Field Study
Published Date
Jun 1, 2013
Volume
50
Issue
3
Pages
317 - 333
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