Enhancing Pharmaceutical Sales Force Performance:

Leveraging Variable Pay Through an Enterprise Incentive Management Application

Pharmaceutical companies have embraced variable pay as a way to motivate their field forces and align behavior with corporate strategies. Many of these companies, however, are discovering that their current compensation management systems are inadequate and don’t provide the expected results.

Pharmaceutical companies face a number of compensation management challenges that are unique to their industry:

How to reward sales appropriately when prescriptions migrate from one sales territory or ZIP code to another or properly accounting for them in hospitals and large clinics where there isn’t a one-to-one professional sales relationship
How to organize the sales force so that two reps don’t compete against each other across therapeutic portfolios
How to balance rewards between field force sales and managed care sales

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