Marketing Letters

, Volume 3, Issue 4, pp 331–341 | Cite as

Do bonus payments help enhance salesforce retention?

  • Kissan Joseph
  • Manohar U. Kalwani


Our primary aim in this research is to examine if the existence of a bonus component in the sales compensation structure can enhance salesforce retention. We also study the impact of total sales compensation, relative to industry norms, on salesforce retention. We find that bonus payments do enhance salesforce retention among firms whose total compensation is above industry average but not among firms whose total compensation is below industry average. Further, we also examine the role of sales training, non-financial motivational tools, and length of the selling cycle on salesforce retention.

Key words

Salesforce Turnover Bonus Payments Sales Compensation 


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Copyright information

© Kluwer Academic Publishers 1992

Authors and Affiliations

  • Kissan Joseph
    • 1
  • Manohar U. Kalwani
    • 1
  1. 1.Krannert Graduate School of ManagementPurdue UniversityWest Lafayette

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