What Is The Medtech's Compensation Program
The MedTech Company has been in business for four years. The sales force consists of 150 salespeople throughout the United States. The company sells patented drugs for skin cancer treatment. The patients will expire in three years. The Company has had good sales; however sales have not met company expectations. The sales strategy includes a 100 percent commission approach, and a limited reimbursement plan. The writer would completely overall the compensation program. The writer’s compensation program would include a salary and commission strategy, a direct reimbursement plan, and a contest. The salary and commission approach would include a yearly salary and a commission incentive for salespeople. The commission incentive would include a bonus
for the amount of sales achieved. The direct reimbursement plan would include direct payment for expenses associated with entertaining clients. The use of contest would include bonus payments based on competition between salespeople, and sales volume achieved. The goal of the compensation overhaul would be to minimize salespeople’s turnover, increase sales calls, improve motivation, and ultimately increase sales volume. The company has three years before the patient period expires. The writer contends that this approach will secure MedTech’s place in the industry (Johnston & Marshall, 2016). The writer found an article that reviews the use of incentives and its effect on performance. The article clearly states that incentives have a positive effect on overall performance (Merriman, Turner, Galizzi, & HaynesBaratz, 2016).
for the amount of sales achieved. The direct reimbursement plan would include direct payment for expenses associated with entertaining clients. The use of contest would include bonus payments based on competition between salespeople, and sales volume achieved. The goal of the compensation overhaul would be to minimize salespeople’s turnover, increase sales calls, improve motivation, and ultimately increase sales volume. The company has three years before the patient period expires. The writer contends that this approach will secure MedTech’s place in the industry (Johnston & Marshall, 2016). The writer found an article that reviews the use of incentives and its effect on performance. The article clearly states that incentives have a positive effect on overall performance (Merriman, Turner, Galizzi, & HaynesBaratz, 2016).