Cultivating salesforces Performance – Empirical Evidence from Insurance Companies on North Sumatra Indonesia

ABSTRACT: Aim of this research is to identify and discuss direct and indirect effects of salesforce incentivesand organizational justice on their performance,where the causal relationshis were intervened by jobsatisfaction, organizational commitment, and work engagement;Analysingsalesforces attitude and behavior incultivating their performance. Technique of data analysis used a structural equation model with lisrel. Samplesamount of three hundredsalesforces with a minimum of two years service. Salesforce incentives andorganizational justice influence job satisfaction; Job satisfaction and sales force incentives effect organizationalcommitment; Job satisfaction, organizational commitment and organizational justice effect work engagement.Job satisfaction, organizational commitment, and organizational justice influence salesforce performance.However, work involvement and salesforce incentives do not influence directly their performance.Organizational commitment had a strongest effect on salesforces performance. Even though there is no directimpact of salesforce incentives on performance, job satisfaction can mediateit so that there is a strong indirecteffect. Job satisfaction is also a strong mediator in mediating salesforce incentives toward job involvement.Programs and policies associated withsalesforce incentive are better emphasized on stabilizing and escalatingsalesforces’ job satisfaction. Novelty of this study is: Job satisfaction full mediating effect in the causalrelationship of incentives towards salesforce performance.

Keywords:Job satisfaction, Organizational commitment and justice, Salesforce incentives, Salesforceperformance,Work engagement