Warren is deciding what portion of his salespeople's compensation should be incentive pay. He should base his decision on:
A) The financial needs of his salespeople
B) When the company wants to expand
C) Which salespeople he wants to retain
D) The degree of relationship selling involved in the job
E) Who his salespeople call on

Question

Quizplus · Accepted Answer

The degree of relationship selling involved in the job is the best choice because incentive pay is most effective in jobs that require relationship selling, where the salesperson has a high level of control over the sales process and where their efforts have a significant impact on the outcome. In jobs that are more transactional in nature, incentive pay may not be as effective. The other options are not relevant factors in determining the appropriate amount of incentive pay.

Warren Is Deciding What Portion of His Salespeople's Compensation Should