Are all salespeople con artists?
Salespeople are all too often viewed negatively: liars, smooth-talkers, greedy, 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, however, to ask: Is it possible to have an ethical approach to sales, and if so, why and how?
Beyond moral considerations, there is a certain 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, on the other hand, shows a beneficial 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 therefore examined the relationship—which has been studied many times—between sales performance and turnover. Although some studies fail to identify a significant relationship between these two variables, most conclude that a negative relationship exists: 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 better salespeople perform, 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 at their current company, since they will be in low demand in the job market. To achieve a certain level of performance, 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 characteristics of salespeople is, in fact, that many of them enjoy a dual independence: physical—since many of them work in the field—and, above all, psychological. Faced alone with a client or buyer, they must find solutions, answer questions, and sometimes cope 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 at best questionable.
However, there are several simple tools that can easily be implemented to foster a virtuous environment, such as setting appropriate and achievable quotas. It has been clearly demonstrated that the higher these quotas are, the greater the temptation to engage in misconduct.
Be careful with incentives
Rather than setting so-called “production”—and thus sales—quotas, it is better to set quotas based on more qualitative factors, such as customer satisfaction, or assessments of key behaviors to adopt or master during the sales process. From an ethical standpoint, strict oversight and close guidance based on largely subjective metrics are preferable to a more results-oriented approach. Beyond that, the goal is also to maintain—or even strengthen—the customer relationship.
Similarly, sales contests and other 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 being called into question. Numerous studies show, for example, that—again from an ethical standpoint—it is preferable to prioritize fixed compensation over variable compensation with commissions based primarily on sales.
Goalkeeper 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 spirit. By setting an example, the leader will show the way 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 of the team.
However, these measures may not be enough. Finally, it is important to consider the value for the company of adopting a code of ethics or an ethical charter, which is key to 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 an oxymoron.
Christophe Fournier, University Professor, IAE de 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.