Question

Which of the following is NOT true of sales force compensation? a. Sales managers often offer rewards or incentives to motivate their sales force. b. Compensation needs to be competitive enough to attract and motivate the best salespeople. c. Companies and industries with lower levels of compensation have lower turnover rates. d. Recognition and rewards may help increase overall sales volume.

Answer 1

Answer:

c. Companies and industries with lower levels of compensation have lower turnover rates

Explanation:

Sales force compensation refers to how a company compensates its sales team for its efforts. They are the methods applied to pay sales representatives.  A company may decide to pay, either a fixed salary, salary plus commission, or commissions only.

If sales representatives feel that they are not adequately compensated, they may opt to look for better-paying jobs elsewhere.  Companies that pay lowly will always have a challenge in attracting and retaining the best sale people in the market. Sales incentives serve as a motivating factor to the salespeople.  A business or industry that pays poorly will have high employee turnover, as its workers will be always be seeking greener pastures.