Contact Information: CONTACT INFORMATON: David Richardson 919-433-0216
Bonus Compensation Accounts for Nearly 25% of Pharmaceutical Sales Reps' Pay
| Source: Cutting Edge Information
RESEARCH TRIANGLE PARK, NC--(Marketwire - March 27, 2008) - Pharmaceutical companies heavily
weight bonuses when compensating sales reps, according to a recent study by
competitive intelligence firm Cutting Edge Information. On average,
primary care reps receive 22% of their compensation in the form of bonus
pay, while their specialty care counterparts receive 23% of their pay in
the form of bonuses. The study, entitled, "Pharmaceutical Sales Management
2008," is available at http://www.PharmaSalesManagement.com.
According to the study, most companies' primary care reps receive between
20% and 25% of their total pay by way of bonuses, with some reps receiving
as much as 27% of their pay via incentive-based compensation. By assigning
nearly a quarter of compensation to bonuses, pharmaceutical companies allow
reps to reap rewards commensurate to their sales performance. If a rep
performs exceptionally, that fact will be reflected in his or her pay.
"These companies want to ensure that their reps are 100% vested in
achieving their sales targets," says David Richardson, senior analyst at
Cutting Edge Information. "Tying their compensation directly to
performance is one of the best ways to do that." According to surveyed
companies, the focus on rep-physician relationships encourages reps to
think about long-term strategies rather than have a near-sighted view of
sales.
In addition to the bonus strategies discussed here, "Pharmaceutical Sales
Management 2008" also delves into the compensation levels for primary and
specialty care reps, as well as compensation for district, area and
regional managers.
"Pharmaceutical Sales Management 2008" explores the latest trends, budgets
and strategies of top pharmaceutical companies. Key metrics in the report
include:
-- Budgeting and Financial Support
-- Structure and Headcounts
-- Product Prioritization, Territory Alignment and Coordination
-- Sales Operations and Contract Sales
-- Training and Development
-- Rep Activities
-- Segmenting and Targeting
-- Overcoming Reduced Physician Access
-- Optimizing Time Earned with Physicians
To download a free, online summary of this report, visit
http://www.cuttingedgeinfo.com/pharmasalesmanagement/PH103_Download.asp#body.