Compensation plans, including salary, commissions, incentives, promotion, recognition, and rewards, are critical in motivating and influencing salespeople. While commissions are often considered a key component of companies’ compensation and reward structures, past studies have overlooked commissions when studying salespeople’s relative preferences for rewards. The present study extends Chonko, Tanner, and Weeks’s (1992) research by examining salespeople’s preferences for commissions versus other rewards. The findings of this study support the importance of increases in commissions as a reward for salespeople across different industries and different demographic profiles. Higher commission rates were the most preferred reward, followed by pay raises. Promotion and recognition were the least preferred rewards. Managers can utilize the results of this study as they design compensation plans within their companies.
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