Question: suggest a reply to this post. have thought - provoking replies that support their arguements and discussion. provide a personal example or experience. In my

suggest a reply to this post. have thought-provoking replies that support their arguements and discussion. provide a personal example or experience.
In my role within the telecommunications industry, I directly support sales but am in operations. My organization heavily incentivizes sales personnel with commissions, but the operations team lacks a significant reward mechanism. This situation exemplifies the second type of reward problem: the production of the desired behaviour and undesirable consequences.
Our sales team is highly motivated to close deals due to their commission-based rewards, which successfully drive aggressive sales tactics and increase our top-line revenue. However, this arrangement has unintended negative impacts on the operations team. We work diligently to meet or exceed customer timelines and ensure smooth service delivery, but we do not receive similar recognition or rewards. This imbalance leads to decreased morale, misalignment of goals, operational inefficiencies, and reduced collaborationthe lack of rewards for operations results in feelings of underappreciation and demotivation. While our sales counterparts are celebrated and financially rewarded, our efforts go unnoticed, leading to frustration and decreased job satisfaction. The commission-based structure also encourages sales to prioritize closing deals quickly, sometimes without fully considering the feasibility or impact on operations. This can result in overpromising to customers and putting undue pressure on the operations team. The pressure to meet aggressive sales targets often forces us to work overtime and stretch resources thin, leading to burnout and declining work quality, affecting customer satisfaction and the company's reputation. The significant reward gap fosters an environment of siloed working, where each team focuses solely on its objectives without considering broader organizational goals, hindering overall performance and growth.
Addressing these difficulties requires the development of a more balanced compensation structure that recognizes both sales and operational efforts. Introducing operational Key Performance Indicators (KPIs) aligned with the company's overall goals and tied to performance-based awards might be a positive move. Creating a Short-Term Incentive Plan (STIP) based on customer happiness, on-time delivery, and operational efficiency will guarantee that the operations staff is recognized for their efforts. Revising the existing STIP to consider operational performance alongside top-line sales would create a more equitable and motivating environment for all employees. By addressing the reward problem of producing desired behaviour with undesirable consequences, our organization can foster a more cohesive, motivated, and high-performing workforce.

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