2024 US Incentive Compensation Benchmarking Study

Today’s healthcare providers and patients have complex needs and preferences that require personalized  and dynamic support. In response, the role of pharmaceutical sales representatives has changed by moving beyond traditional face-to-face interactions and embracing digital engagement.

Several notable trends are shaping the pharmaceutical industry. Among those are the growing use of omnichannel customer engagement, more sophisticated patient journeys, increased collaboration between medical and commercial teams, and the increasing role of GenAI and artificial intelligence. Adapting successfully to these changes requires sales representatives to make a behavioral shift supported by dynamic planning tools, near real-time guidance, and coordinated promotions across digital, virtual, and in-person touchpoints.

The field force remains the most critical customer engagement channel for pharmaceutical companies, and incentive compensation is essential for motivating the field force. Incentive compensation leaders need to be aware of the latest industry trends and best practices if they are to design incentive plans that drive business strategy and sales force performance. Axtria conducted its 2024 Incentive Compensation Benchmarking Study across 38 pharmaceutical organizations in the US to develop a robust and holistic set of anonymized benchmarks. These benchmarks will enable organizations to make informed decisions about incentive compensation plan designs.

Key areas covered in the complete study include:

• IC target pay and pay mix
• Common incentive plan design practices
• MBO prevalence and the most common objectives
• Data sources, sales-crediting, and goal-setting methodologies
• Annual award design approaches, contest budgets, and targeted win rates.”

Pharmaceutical companies continuously improve their incentive compensation programs and, plan designs to adapt swiftly to changing market dynamics. They realize that success lies in aligning incentives and performance.

Download Axtria’s 2024 US Incentive Compensation Benchmarking Study to assess and improve your company’s incentive compensation programs. Drive performance, profitability, and innovation in your incentive compensation plans-partner with Axtria to stay ahead of industry trends and drive your business forward.