Aligning Compensation System Strategies With Ethical Conduct: Lessons From Call Centers

• Published in: Compensation and benefits review Vol. 57; no. 4; pp. 276 - 292
• Main Author: Bell, Connie Y.
• Format: Journal Article
• Language: English
• Published: Los Angeles, CA SAGE Publications 01.09.2025; SAGE PUBLICATIONS, INC
• Subjects: Banking; Behavior; Compensation; Ethics; Incentives; Leadership; Qualitative research; Research design; Sales; Telecommunications; incentive design; ethical leadership; compensation systems; call centers; ethical behavior; performance targets
• ISSN: 0886-3687; 1552-3837
• DOI: 10.1177/08863687251356525

In high-pressure sales environments, compensation systems serve as both motivators and behavioral signals, influencing not only performance but also ethical conduct. This qualitative study investigates how call center sales managers across telecommunications, retail, banking, and healthcare sectors structure compensation systems to foster ethical behavior. Drawing on interviews and focus groups with 19 managers, the study identifies five key themes: equitable pay, realistic and attainable targets, ethically designed pay-for-performance incentives, evaluation and monitoring systems, and leading by example. While participants acknowledged the performance value of incentive schemes, they stressed the risks of unethical behavior when systems lack ethical boundaries or fairness. Findings confirm and extend prior research in compensation design, ethical leadership, and organizational justice. The study highlights the importance of leadership behavior, adaptation, and evaluation systems in shaping ethical climates. By embedding ethical principles into compensation design, organizations can simultaneously reduce misconduct and enhance employee trust, accountability, and performance.