More Quotas, Data, Automation—but for the Better?

ZS’s 2014 Incentive Practices Research (IPR) study for the medtech industry shows noticeable shifts in how medical products companies are paying their sales forces and sales managers—shifts that reflect some of the major changes in the industry’s market dynamics.

The IPR, which surveyed incentive practices across the medical device industry, revealed several trends:

  • Quotas continue to replace traditional commission-based programs, despite their complexity.
  • More companies are installing caps and even reductions in payouts.
  • Companies are becoming more sophisticated in how they run their incentive programs.

This executive summary features specific findings from the IPR, while also addressing some of the fundamental questions that compensation plan administrators at medtech companies are asking: How are these shifts affecting my company now? What are my peers at other companies doing to address these issues?


About the Experts

Chad Albrecht is a ZS Principal based in Evanston, Ill. He leads ZS’s B2B Sales Compensation practice. Chad has helped numerous clients create and implement motivational sales incentive plans and set fair and challenging sales quotas. His clients include companies in the medical device, pharmaceutical, high tech, manufacturing and business services industries.

Russell Schubert, a manager in ZS’s Evanston, Ill. office, has worked with numerous medical device, products and services companies to find solutions for a variety of issues related to incentive compensation, helping to design and implement incentive compensation plans and quota-setting processes.

Ganesh Vedarajan is a Managing Principal for ZS, based in San Francisco, where he leads ZS’s global Medical Products and Services practice. Ganesh has worked with numerous clients across a range of issues, including brand marketing, marketing execution effectiveness, managed care-marketing and contracting, sales strategy, and commercial analytics and operations.