Axtria, a global leader in cloud software and data analytics for the life sciences commercial business, released a research paper exploring COVID-19's effects on sales reps' incentive compensation (IC), as well as potential solutions for sales executives. The in-depth research paper – "Coronavirus Pandemic Effects on Incentive Compensation" - is amongst a series of Axtria COVID-19 content, including research papers, blogs, and webinars.
The series is available on the Axtria Insights virtual library. This content offers pharmaceutical stakeholders perspectives from industry thought leaders on ongoing issues, as well as next-best-actions for future commercial success.
Research Paper Details: "Coronavirus Pandemic Effects on Incentive Compensation"
Authors: George A. Chressanthis, Ph.D., Principal Scientist, Daniel Stewart, Director Abhijit Paul, Director
The rapid spread of the coronavirus contagion has resulted in pharma companies facing significant ramifications on their business. As a result, companies require changes in assumptions, thinking, and decisions going forward in critical areas – one such area being IC.
Pharma company investment in the sales force is significant in both personnel and economic terms. Mandates on social distancing, travel disruptions, shelter-in-place state orders, closures of physician offices and hospitals to sales reps, and company concerns for the health of their field force have significant effects on the personnel dimension of implementing of IC plans. Pharma companies also rely on sales reps to effectively deliver healthcare professionals (HCPs) critical scientific/medical/clinical information. Thus, having the right incentive strategies in place is essential to help drive sales rep-physician engagement and relationship-building while also motivating the sales force to achieve performance goals.
Spending on direct sales forces accounts for close to 50% of all sales and marketing costs. Therefore, effectively managing IC considering effects from the coronavirus pandemic has significant personnel and economic implications that a pharma company must weigh and balance.
This paper focuses on coronavirus pandemic effects on IC for pharma companies in the short-term, medium-term, and long-term. Further, the document prescribes to sales executives potential actions to take for each time frame scenario.
Click here to read "Coronavirus Pandemic Effects on Incentive Compensation!"
Click Here To Learn More About Axtria Incentive Compensation Benchmarking Study – 2020 Results
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