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The researchers at MIT in a 2005 study for the Federal Reserve Bank concluded that : As long as the task involved only mechanical skills, bonuses and rewards work. But once the task required “even rudimentary cognitive skills” a larger incentive “ led to poorer performance”. The higher the pay the better the performance.
Salesmanager: I’d like to know what rewards the reps would like for our next incentive. Sales rep: Cash! Salesmanager: Sounds good. You may be a seasoned salesmanager, fatigued by trying to come up with innovative ways to motivate your reps. Are incentives obsolete? Don’t do it.
After completing my Executive MBA, I moved from financial services sales to customer experience consultancy. Henceforth from 2005, my belief about sellers’ relationship with buyers and customers changed. We at Scale Your Sales podcast celebrate the achievements of women and campaign for a world where we can all #BreakTheBias. .
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