Effects of Depression on Salesperson Performance
Due to its prevalence, depression has been called the “common cold” of mental health. About 4% of the global population, or around 280 million people, experience depression, according to the World Health Organization.1 This estimate is likely a conservative one given the varied reporting and diagnostic standards around the globe. In any event, depression— described as a negative affective condition marked by sadness, inactivity, and a lack of interest2—is undoubtedly a significant problem in society. Moreover, its effects are exacerbated in high-stress occupations like sales, where individuals are arguably more vulnerable to mental health disorders resulting from isolation, uncertain income, and the constant threat of failure.
Depression has direct negative effects on employees such as increased deviant workplace behavior and decreased productivity, and this relationship extends to the salesperson role. Moreover, global crises like the COVID-19 pandemic have further intensified the negative effects of depression, as the transition from in-person to remote workplaces deprived employees of potential mental health support, leaving them susceptible to the pressure of enormous change with little guidance. Because of this situation, the potential for future crises, and the constant pressure that salespersons face daily, we studied how certain personal resources—work adaptability and family work support—along with supervisor support can mitigate the consequences of depression on salesperson performance.
The Workplace in a Crisis
The modern workplace can be an extremely stressful environment that places high demands on employees. For employees experiencing depression, this can often lead to decreased employee confidence, decision-making, planning, and problem-solving. The start of the pandemic left salespeople with little guidance—they were forced to handle an entirely new sales environment, some having to relocate to maintain relationships with clients or maintain sales quotas without direct access to clients.3 COVID-19 made us consider how salespeople with higher levels of depression would respond in crisis situations.
Due to the lack of structural resources in a virtual, restricted workplace, we explored personal resources, as previously mentioned. First, among these, is work adaptability. With a known positive impact on performance, adaptability refers to an individual’s ability to be flexible and to alter his or her behaviors based on perceived information about the work situation to meet the demands of change.4 Second, a more well-known factor is family work support, referring to whether salespeople have family members who provide encouragement, understanding, attention, positivity, and guidance regarding an employee’s work role.5 This one is likely the most critical due to the preventative effect that a strong family support structure has against mental health disorders. Lastly, a personal but also structural aspect is supervisor support—defined as the supervisor’s willingness to provide feedback, assist in learning and improvement, and provide useful information.6 Since supervisors are often the direct contact for work, they can be a great resource in times of crisis, depending on the relationship between the employee and supervisor. We wanted to understand the influence these resources had on salesperson performance for salespeople facing depression in a crisis, such as the COVID-19 pandemic.
Our Study
To study the relationship between the identified resources, depression, and sales performance, we collected data from a large North American B2B financial organization. We measured salespeople’s depression along with the availability of the previously mentioned personal resources, and we then matched these measures to actual sales performance over time. This matching allowed us to investigate the impact of the three kinds of personal resources on performance during the pandemic and to determine which personal resources could actually mitigate the effects of depression.
As anticipated, we found that higher levels of depression led to larger declines in sales performance as the COVID-19 pandemic progressed. Additionally, out of the personal resources we studied, work adaptability and family work support decreased the negative effects of depression in a crisis. As expected, work adaptability in highly depressed salespeople led to easier adaptation to the situation as seen in sales performance. Likewise, highly depressed salespeople with greater family work support performed better at the beginning of the crisis than colleagues with less family work support, but, unfortunately, family work support has little effect on depression overall. What was unexpected was how supervisor support initially detracted from performance during the pandemic but was later instrumental in supporting performance over time. These results indicate how external actors and a salesperson’s personal characteristics can affect sales performance in a time of crisis.
Real Estate Implications
During the pandemic, residential real estate demand severely increased in suburbs and less populated areas around the country, while commercial real estate supply drastically outpaced demand, as many firms transitioned to remote workplaces. This situation illustrates how crises can alter the sales landscape and the workplace, forcing firms to adapt. Real estate agents face the same pressures, if not more, as salespeople in other industries, due to trust placed in real estate agents by their clients.
To address sales performance in times of crisis, especially when mental health issues arise, real estate firms should develop resources to ensure that employees receive support. We find that it is essential that firms raise awareness of depression, provide self-assessment tools, and provide access to mental health professionals. Such early investment can pay off in the long run, as salespeople perform better with reduced depression. Work adaptability can be fostered through training and workshops that build confidence and abilities, thus enhancing salespeople’s adaptability in a rapidly changing world. Additionally, there is potential in training supervisors through information sessions or guides on how to best support the mental health of salespeople, providing another source of support in the stressful real estate environment.
We believe that combatting depression is a necessary step for a real estate firms and leaders. Salespeople will feel more satisfied with their jobs, creating a more positive work environment that supports productivity. Customers will likely notice the difference and prefer firms with happier, more satisfied employees.
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Recommended Reading
Lusier, Bruno, Lisa Beeler, Willy Bolander, and Nathaniel N. Hartmann (2023), “Alleviating the Negative Effects of Salesperson Depression on Performance During a Crisis: Examining the Role of Job Resources,” Industrial Marketing Management, 111, 173-188.
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References
- World Health Organization (2023), “Depressive Disorder (Depression),” https://www.who.int/news-room/fact-sheets/detail/depression.
- Toker, Sharon and Michal Biron (2012), “Job Burnout and Depression: Unraveling Their Temporal Relationship and Considering the Role of Physical Activity,” Journal of Applied Psychology, 97(3), 699-710.
- Hartmann, Nathaniel N. and Bruno Lussier (2020), “Managing the Sales Force through the Unexpected Exogenous COVID-19 Crisis,” Industrial Marketing Management, 88, 101-111.
- Weitz, Barton A., Harish Sujan, and Mita Sujan (1986), “Knowledge, Motivation, and Adaptive Behavior: A Framework for Improving Selling Effectiveness,” Journal of Marketing, 50(4), 174-191.
- King, Lynda A., Laura K. Mattimore, Daniel W. King, and Gary A. Adams (1995), “Family Support Inventory for Workers: A New Measure of Perceived Social Support from Family Members,” Journal of Organizational Behavior, 16(3), 235-258.
- Jaworski, Bernard J. and Ajay K. Kohli (1991), “Supervisory Feedback: Alternative Types and their Impact on Salespeople's Performance and Satisfaction,” Journal of Marketing Research, 28(2), 190-201.
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About the Authors
Bruno Lussier, PhD
Associate Professor of Marketing, HEC Montréal (Canada)
Dr. Bruno Lussier (PhD – Grenoble University) conducts research primarily on sales force effectiveness. His research interests include sales management, business-to-business (B2B) selling, relationship marketing, mental health, and ethics. He has published multiple articles in outlets including the Journal of the Academy of Marketing Science, Journal of Business Ethics, Industrial Marketing Management, European Journal of Marketing, and Journal of Business Research, among others. Prior to his academic career, he held various positions in professional sales and marketing in several B2B firms.
Lisa Beeler, PhD
Assistant Professor of Marketing and Sales Innovation Program Director of Student Development, Clemson University
Dr. Lisa Beeler (PhD – University of Tennessee, Knoxville) is a professor, researcher, and consultant who explores how firms and managers can drive sales performance, especially within business-to-business industries. Her research, which often focuses on the critical seller-buyer dyad, has been published in numerous top marketing journals, such as the Journal of Personal Selling & Sales Management, Journal of Business Research, and Industrial Marketing Management, among others. Her research is also shared at both academic and practitioner conferences and has served as the foundation for sales training she conducts across the nation. All of her experience informs the application-based learning approach she uses in her classroom to prepare students to be great salespeople, valuable co-workers, and good citizens.
Willy Bolander, PhD
Rader II Professor of Industrial Distribution, Texas A&M University
Dr. Willy Bolander (PhD – University of Houston) studies influence, persuasion, and leadership in business relationships. He has published in the Journal of Marketing, the Journal of the Academy of Marketing Science, the Journal of Business Ethics, and the Journal of Retailing, among others. Willy also hosts The Sales Lab Podcast (www.thesaleslab.org), featuring discussions where the world’s top sales leaders share their secrets.
Nathaniel N. Hartmann, PhD
Assistant Professor of Marketing and Senior Researcher, Marketing and Sales Innovation Center, University of South Florida
Dr. Nathaniel N. Hartmann (PhD – Purdue University) works with companies to perform managerially oriented research on issues related to sales force effectiveness as evidenced in (1) salesperson outcomes such as revenue generated, conversion rates, and turnover, and (2) customer-centric outcomes such as customer satisfaction and retention. Nathaniel has been the recipient of the Shelby D. Hunt/Harold H. Maynard Award for making the most significant contribution to marketing theory in Journal of Marketing within a calendar year. His research has appeared in the Journal of Marketing, Journal of the Academy of Marketing Science, Journal of Service Research, Journal of Product Innovation Management, and Journal of Personal Selling and Sales Management, among others.
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