Up to 40% of drug reps' earnings are incentive-based bonuses
Some pharmaceutical sales representatives in the USA receive up to 40% of their total compensation from merit-based rewards and recognition programs, according to a report released by pharmaceutical business intelligence firm Cutting Edge Information.
Using both monetary and non-monetary incentives, pharmaceutical companies can motivate sales reps to meet ever-increasing sales targets, says the study, noting that well-planned programs are easy to understand, clearly communicated to stakeholders and have a direct connection to strategic objectives.
Companies studied by Cutting Edge used various sales compensation models. For example, company II added a non-monetary reward system to boost rep performance. Reps in the top 10% were given a free week's vacation to an exotic location. The next 10% were given a weekend trip. The objective of their system is to reward good performance, while motivating reps to reach excellence.
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