Sales Compensation Trends Making the Biggest Impact
Six sales compensation trends making the biggest impact
The world has changed. Life Sciences and Analytical Instruments companies have had to adapt their go-to-customer models in response to these new market realities. Management systems like sales compensation need to be aligned. Alexander Group’s recent research captures the leading and prevailing sales compensation design practices companies are employing to reinforce growth strategy and job execution.
Watch practice leaders Matt Greenstein and Arshad Carim as they take a deep dive into each of the top sales compensation design practices that are trending in the life sciences industry.
The Revenue Model Dictates Design: Instrument and consumable oriented plans feature different measures, mechanics and crediting. Hybrid plans feature complexity.
Sales Job Evolution and Emerging Trends: Companies are emphasizing revenue and goal achievement accountability. Strategic plan components emphasize retention and expansion.
The Rise of Inside Sales: Support versions of the job are fading. Designs feature growth and quota accountability. Frameworks emphasize consumable, service and run-rate business.
One Size Fits All: Companies operate global design frameworks and nuance designs to support local market strategy, opportunity and needs. Regional differences focus on pay levels and mix.
Motivating Teams: While manager and overlays roles naturally result in team measures, the sales compensation program is not the management lever used to motivate teaming and collaboration.
Connecting Commercial to Corporate: Manager designs often balance alignment with their direct teams with overall company financial performance through low-weighted profitability measures.
Arshad Carim is a principal in the San Francisco office, with over 24 years of business and consulting experience. Arshad is a leader in the firm’s Life Sciences and Manufacturing practices. He also leads consulting engagements and teams, manages key account relationships, drives business development activities and supports talent development. With experience across multiple industries including life sciences, health insurance, medical device, high technology, and general B2B, Arshad leverages his cross-industry depth to create and implement high-impact solutions.
Matt Greenstein is a principal based out of the New York office. He works with clients across technology, life sciences and healthcare. He has responsibility for leading the firms Life Science and Analytical Instrument and Digital Transformation practices. His areas of focus include large scale transformation and integration across all commercial functions–tactical marketing, sales and service. Matt has global consulting experience and is known for his fact-based, hypothesis-driven, problem-solving style.