THE IMPACT OF REMUNERATION ON SALES TURNOVER IN DUBAI’S AUTOMOTIVE AFTERMARKET: PRE-COVID AND AMIDST COVID

Abstract

The Global Automotive Aftermarket sector was valued at USD 392.5 billion in 2020 and is predicted to surpass USD 525 billion by 2028. The automotive aftermarket of the United Arab Emirates, led by Dubai, is the fastest-growing market, which is expected to reach USD 634.4 million. However, the Covid-19 pandemic diminished the growth rate and profitability of the sector, pressing small and medium enterprises to reduce their costs, including employees' remuneration. This empirical paper aims to analyse the impact of changes in salesforce remuneration on sales turnover and the role of Covid-19 in influencing this causal relationship. The data, before Covid (2019) and during Covid (2020-21), were collected from 80 automotive aftermarket enterprises in Dubai using a single-stage convenience sampling method. The correlation analysis and ANOVA test highlight the significant difference in sales commission within the group and between the groups caused by Covid-19. The results indicate how the reduction in remuneration, especially sales commission, during the crisis significantly declined the sales turnover in automotive aftermarket enterprises. The study proposes guidelines and tips that business leaders, the human resources professionals can implement to revive their sales turnover post-Covid-19 and manage such crises in future. © 2022, Czestochowa University of Technology. All rights reserved.