Are all salespeople scammers?
Salespeople are all too often viewed negatively: as liars, smooth-talkers, and greedy individuals willing to do anything to make a sale—and this is true in most countries around the world. Take, for example, the character of Michael Scott in the TV series *The Office*, who is willing to get a business partner drunk to pressure him into signing a sales contract. This stereotype seems to be nearly universal.
Christophe Fournier, University of Montpellier
Peggy / Pixabay, CC BY-SA
Some might say, “Business is business”—that’s just the way it is, and it’s up to consumers to be vigilant. At a time when concerns about sustainable development are growing, when there is increasing talk of corporate social responsibility, and when the benefits of ESG (environmental, social, and governance) assessments are being touted, it seems legitimate to ask: Is it possible to have an ethical approach to sales, and if so, why and how?
Beyond moral considerations, there is a general consensus in the scientific literature that ethical business practices have consistently proven to be more profitable than those that are not. This is especially true when viewed from a long-term perspective and, therefore, in the context of customer relationship management.
Our research, however, shows a positive effect from the workforce’s perspective: the more a company prioritizes ethics, the more top-performing salespeople are motivated to stay. In other words, a strong ethical culture is an excellent way to reduce turnover and retain top talent. Given the high turnover rates that can occur in sales and the sector’s recruitment challenges, it appears that investing in an ethical approach allows a company to kill two birds with one stone.
Once you're alone, the temptation is strong
Working with 132 French sales representatives from a variety of companies, we examined the well-studied relationship between sales performance and turnover. Although some studies fail to identify a significant relationship between these two variables, most conclude that there is a negative correlation: the lower the performance, the higher the turnover.
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Our findings paint a somewhat more complex picture. The relationship between these two variables appears to be moderated by the ethical climate. The more successful salespeople are, the more likely they are to want to leave the company if the ethical climate is weak. This is especially true because, due to their results, they are highly employable in the job market and are offered attractive opportunities at other companies—whether competitors or not—that have a favorable ethical climate.
The less productive employees, on the other hand, will tend to stay with their current employer, as they will be in little demand on the job market. To meet certain performance standards, they will also be more willing to tolerate a less ethical work environment.
Once you're alone, the temptation is strong
How, then, can we foster the kind of ethical environment that attracts the most talented employees? Given the unique nature of the profession, this does not seem obvious at first glance.
One of the defining characteristics of salespeople is, in fact, that many of them enjoy a dual independence: physical, since many work in the field, and above all psychological. Alone with the client or buyer, they must find solutions, answer questions, and sometimes deal with pressure. It is therefore easy and tempting, in certain situations, to “cut corners” and thus engage in behavior that could be described as unethical or borderline unethical.
However, there are several simple tools that can be easily implemented to foster a positive environment, such as setting appropriate and achievable targets. It has been clearly demonstrated that the higher these targets are, the greater the temptation to fall short.
Be careful with incentives
Rather than setting so-called “production”—and thus sales—quotas, it is better to establish quotas based on more qualitative metrics, such as customer satisfaction, or assessments of key behaviors to adopt or master during the sales process. From an ethical standpoint, strong oversight and close guidance using largely subjective metrics are preferable to a more results-focused approach. Beyond that, the goal is also to maintain—or even strengthen—the customer relationship.
Similarly, sales contests and other sales challenges launched by a large number of companies can also quickly get out of hand—especially if care isn’t taken to set goals that align with an ethical vision and are consistent with the company’s strategy.
More broadly, the compensation and incentive package for sales representatives is under scrutiny. Numerous studies show, for example, that from an ethical standpoint, it is always preferable to prioritize fixed compensation over variable compensation that includes commissions based primarily on sales.
Gatekeeper and guardrails
It is also important to mention the key role of the leader, who can serve as both the initiator and the promoter and guardian of the company’s ethical values. By setting an example, the leader will show the way forward for employees, who will then be less inclined to stray down the wrong path. Indeed, the leader’s focus on these issues should begin as early as the recruitment phase.
However, these measures may not be enough. Finally, it is worth noting the importance for the company of adopting a code of ethics or an ethical charter, a key element in fostering a positive work environment. In just a few lines, the main rules of conduct will be formalized, which sales representatives can refer to in case of doubt or questions about certain practices. This formalization of ethics serves as an important safeguard, not to eliminate all unethical behavior, but at least to limit it.
Of course, it won’t be possible to completely prevent misconduct by salespeople, but implementing a few simple measures can be a great help. Sales and ethics are not a contradiction in terms.
Christophe Fournier, University Professor, IAE Montpellier, Montpellier Research , Member of the Business Science Institute, President of AUNEGe, University of Montpellier
This article is republished from The Conversation under a Creative Commons license. Readthe original article.