EXPRESS: Sales Performance Rankings: Examining the Impact of the Type of Information Displayed on Sales Force Outcomes

Abstract

Performance rankings are a widely used motivational tool in sales organizations, yet their effectiveness in influencing important salesperson outcomes remains largely underexplored. Moreover, the impact of presenting different types of information alongside rankings has not been previously investigated. This research, spanning two studies with more than 27,000 salespeople from over 170 firms representing 83 countries, directly addresses this research gap, examining the effects of three distinct information conditions: anonymized performance rankings, identifiable performance rankings, and identifiable rankings with quotas on salesperson quota attainment and turnover. Additionally, the authors examine the role of variable compensation share and ranking group size, offering nuanced insights into their moderating effects. The findings reveal that anonymous rankings, while beneficial for quota attainment, increase turnover. On the other hand, identifiable rankings coupled with quotas do not significantly improve quota attainment but effectively reduce turnover. The authors find that disclosing performance rankings with salespeople’s identities is the sole condition that simultaneously elevates quota attainment and reduces turnover. By delineating these nuances, this research provides new and important implications to several literature streams and equips sales managers with strategic guidance on tailoring the presentation of performance rankings to enhance critical outcomes within the specific context of their organizations.