The Impact of Compensation Structure on Salesperson Perceptions and Behaviors: Insights From the Sales Literature

Abstract

Compensation is one of the most effective methods used to align and motivate salespeople to accomplish sales and organizational objectives. For this reason, sales researchers have made considerable strides in understanding the impact that compensation structure has on salespeople and salesforce performance. In this article, we examine the theoretical foundations of the sales compensation literature. We then perform an extensive review of this literature to identify the perceptual and behavioral outcomes associated with incentive- and salary-based compensation. Finally, the limitations of the sales compensation research are identified, and future studies are proposed.