Incentive Compensation Guiding Principles #3: Create Fairness / Equity

Equal Earning Opportunity (Unbiased Plan) When territory differences are not accounted for in an IC plan the differences in payout may have more to do with differences in territory dynamics such as product potential, product share, managed care or accessibility than with individual performance. This is often referred to as a biased plan. Establishing fair [...]

Incentive Compensation Guiding Principles #2: Be Motivational

Driving intended positive behaviors Every single IC Plan, no matter how well thought out or off-the-cuff, has one thing in common – in impacting pay, it also drives emotions and behaviors. However, the type of emotions and behaviors (which can be positive or negative) that are driven will vary for every plan. In order to [...]

Incentive Compensation Guiding Principles #1: Align with Strategy

Aligning with company or brand strategy Every organization and brand carries a strategy for commercialization success to which an incentive plan should be aligned. These strategies can vary significantly based on brand characteristics and requirements, the brand’s position in its life cycle, market or policy situations, and the list goes on. Strategic alignment becomes even more complex [...]

A Roadmap to Success: Five Guiding Principles to Incentive Compensation Planning

Attracting and retaining productive and satisfied sales representatives is paramount to the success of any commercialization effort. Likewise, the sales force incentive plan (IC Plan) is critical to achieving these goals. When properly designed, the IC Plan is an investment that promotes exceptional behavior and motivates sales reps to exceed expectations. In addition, it leads [...]

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