EVANSTON, Ill., Aug. 25, 2015 /PRNewswire/ -- Leading medical equipment companies are turning to incentive schemes to accelerate their growth, according to the 2015 Incentive Practices Research study for the medical products industry published this week by ZS Associates. Informed by better use of data, companies are able to make bold moves, motivating sales teams by removing payout caps and increasing budgets for incentives while tempering risk with more aggressive quotas and building in quota refinements to respond to changing market conditions.
Bolder incentive plans
Surveyed companies reported significant growth in 2014, with a median revenue increase of around 7.5% from the previous year. Findings suggest the participating organizations are using incentive plans more forcefully to preserve and accelerate revenue growth.
Access the 2015 Incentive Practices Research Report here: http://pages.zsassociates.com/Medtech_Incentive_Practices_Research_Press_Release_Download_Page.html
To retain and motivate excellent performers, companies plan to pay the top 10% an average multiple of 2.3 times the target incentive this year, an increase from 1.9 in 2014. Additionally, 25% of companies now pay as much as three times the target incentive to these top performers.
Increasing challenges in incentive plan administration
Bold incentive schemes must be enabled by robust and flexible administration systems and processes, yet few companies are very satisfied with their administration. Administration was consistently cited by respondents as the most common issue that their organizations struggle with. Spreadsheets are frequently used by this year's sample (60%) and these respondents expressed the least satisfaction with their administration; software users and outsourcers are significantly happier with their administration systems.
About the Incentive Practices Research Study
ZS has conducted the Incentive Practices Study for the last ten years. For the 2015 study, participants from 30 U.S.-based medical products, devices and services companies completed an online survey for their sales teams between April and June 2015.
ZS is the world's largest firm focused exclusively on improving business performance through sales and marketing solutions, from customer insights and strategy to analytics, operations and technology. More than 4,000 ZS professionals in 21 offices worldwide draw on deep industry and domain expertise to deliver impact where it matters for clients across multiple industries. To learn more, visit http://www.zsassociates.com.