Sales incentives 'better in firms with more diverse management'

Date: 10/09/2010

Firms with a higher level of diversity in their top ranks typically offer more competitive sales incentives, new research has suggested.

The School of Management at the University of Texas At Dallas has published research suggesting that companies which follow this boardroom strategy often adopt more aggressive sales and marketing strategies.

On average, those firms with highly-diverse management mixes launched 71 competitive actions per year compared to their counterparts, which adopted an average of nine.

Dr Orlando Richard, Professor of Organisations, Strategy and International Management at the university and Co-author of the paper, emphasised the benefits that adopting this structure can have on a company's bottom line.

He explained: "We illustrate how racial diversity brings the organization creative variety and alternative knowledge bases, which lead to more competitive actions and ultimately increased shareholder returns and market share."

Earlier this month, American Express reported that an effective sales incentive programme can have a major affect on employee motivation.

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Sales incentives 'better in firms with more diverse management'

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