Factors influencing sales force motivation: A study of insurance companies in Kenya

Abstract

Companies in Kenya today are operating in a very competitive environment and survival of firms will depend on their managers' ability to understand and respond to the external environment. All insurance companies use the same sales agents especially the brokers and agencies to find and bring business to them. The difference comes in the use of direct sales agents who are tied to the company. The company that invests in direct sales people and develops the right motivational programs to retain the sales people loyal to them will compete effectivelyin the changing business environment. Given that companies rely more on sales agents for their business, they need to effectivelymotivate their salepeople. In view of this the objective of this project was to determine what motivates the insurance agents in Kenya, establish how insurance companies in Kenya motivate their sales agents and determine if there is a difference between how companies motivate their sales agents and what they (sales agents) consider as motivating them.There were two types of populations of interest ;the sales managers from 21 insurance companies and direct sales people. Stratified sampling was used to determine the sample size of direct sales people. The data was collected with a structured questionnaire. Percentages, frequencies, mean and standard deviation were used to analyse the data. The findings of the study were that the factors that motivate sales people in the insurance industry are compensation, incentives, recognition programs, supervision, counseling, job enrichment, field coaching, feedback and appraisal, communication, training and development, nature of work and work conditions. There is a difference in the way companies motivate their sales agents and what the sales agents consider as motivating them. The report recommends that companies need to understand the factors that motivate the sales people and use these factors to motivate them. Further research can be conducted to determine factors influencing sales force motivation in other industries and to find out why there are more men than women in the selling career.