Best Practices for Managing Biopharma Sales Compensation During the COVID-19 Pandemic and Beyond: Benchmarking Report

STUDY OVERVIEW
BENCHMARK CLASS
STUDY SNAPSHOT
KEY FINDINGS
VIEW TOC AND LIST OF EXHIBITS

With many biopharma organizations having moved to a virtual model in response to the COVID-19 pandemic, field sales teams are facing numerous challenges in achieving their goals and targets.

In this new scenario, organizations are developing fair and motivating sales compensation programs, which simultaneously deliver administrative and cost efficiencies.

Best Practices, LLC conducted this benchmarking research to understand how leading biopharma companies are refining their sales compensation and reward programs to ensure their sales force remains productive, motivated, and effective during and post the COVID-19 pandemic.

This report examines the changes in sales compensation and incentives, adjustments in staffing levels, and effective performance measurement metrics implemented during the COVID-19 pandemic. It also highlights the anticipated short-term and long-term challenges, lessons learned, and new strategies for managing sales compensation and incentives plans during the COVID-19 pandemic and in the future.

Industries Profiled:
Medical Device; Biopharmaceutical; Biotech; Pharmaceutical; Health Care; Manufacturing; Diagnostic; Clinical Research; Laboratories

Companies Profiled:
AeroGen; Inc.; Aimmune Therapeutics; Alcon; Allergan; Alnylam Pharmaceuticals; Astellas; AstraZeneca; Avanir; Avantor Performance Materials; Baxter Healthcare; Biogen; Consensus Orthopedics; DiaSorin; EyePoint Pharmaceuticals; Iridex; Karyopharm Therapeutics; Leica Biosystems; LeMaitre Vascular; Lundbeck; Mayne Pharma; Medexus Pharmaceuticals; Medrobotics; Novartis; OTSUKA; Pfizer; Sanofi; SK Life Science; Smith & Nephew; Sumitovant BioPharma; Takeda Pharmaceuticals; Theravance; Thompson Surgical Instruments; UCB Pharma

Study Snapshot

Best Practices, LLC engaged 44 leaders from 33 life sciences companies in this research through a benchmarking survey. More than half of the benchmark class serves at the Director / Head level or above.

Key topics covered in this report include:

Evaluating Sales Compensation Plans
Change in Staffing and Sales Quota
Measuring Performance and Rewarding
Short-term and Long-term Challenges
Lessons Learned during Pandemic

Key Findings

Select key insights uncovered from this report are noted below. Detailed findings are available in the full report.

Top Metrics to Evaluate KPIs: Almost 90% of the executives use “productive virtual conversations with HCPs” as a primary performance measurement tool.

Managing Sales Force in Pandemic: Companies are generating new ways to engage teams in return for compensation (digital coaching, data cleaning, etc.).

Table of Contents

Sr. No.	Topic	Slide No.
I.	Overview	p. 3
	Universe of Learning	p. 4
	Key Takeaways in Addressing Incentive Correction during COVID-19	p. 5
II.	Evaluating Sales Compensation Plans	p. 7
III.	Change in Staffing and Sales Quota	p. 14
IV.	Measuring Performance and Rewarding	p. 17
V.	Short-term and Long-term Challenges	p. 21
VI.	Lessons Learned during Pandemic	p. 24
VII.	Demographics of Study Participants	p. 27
VIII.	Appendix: Detailed Data Slides	p. 30
IX.	About Best Practices, LLC	p. 33

List of Charts & Exhibits

I. Evaluating Sales Compensation Plans

Change in sales compensation and incentives during COVID-19
Percentage of base pay typically offered as sales incentive by benchmark organizations
Adjustments made to sales compensation
Interview narratives around motivating the sales force during the COVID crisis
Effectiveness of listed approaches to adjustments in incentives and compensation plans for field operations during the current COVID-19 pandemic
Effective compensation/incentives adjustments in COVID-19

II. Change in Staffing and Sales Quota

Changes in staffing levels of sales reps since COVID-19; percentage change of sales staffing levels
Redefining the quotas for sales teams since COVID-19

III. Measuring Performance and Rewarding

Effectiveness of listed performance measurement metrics during the COVID-19 pandemic
Interview narratives around adapting virtual environment in COVID-19
Time period in consideration to reward sales teams with incentive package

IV. Short-term and Long-term Challenges

Interview narratives around anticipated challenges on the sales compensation and incentives plans in future because of COVID-19 pandemic
Challenges anticipated in the short-term and long-term around sales compensation and incentives plans

V. Lessons Learned during Pandemic

Key learnings on managing sales compensation and incentives during this COVID-19 pandemic
Interview narrative around managing teams and stakeholders in COVID-19

Best Practices for Managing Biopharma Sales Compensation During the COVID-19 Pandemic and Beyond

ID: CM-8

Features:

Pages: 33

Published: 2020

Delivery Format: Shipped

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