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Evaluating a Shift in Sales Compensation
A technology company's sales department currently pays its salespeople based on individual commissions. To encourage more collaboration, management is proposing a new system where the entire sales bonus is based on the team's collective sales target, with the bonus pool being distributed equally among all team members. Evaluate this proposed compensation plan. Your evaluation must analyze the most significant potential drawback related to individual motivation and weigh it against the intended benefit of increased teamwork. Conclude with a justified recommendation for the company.
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