POWERING PERFORMANCE: THE IMPACT OF COMPENSATION AND INCENTIVE PRACTICES ON SALES FORCE EFFECTIVENESS IN THE PHARMACEUTICAL EQUIPMENT INDUSTRY
DOI:
https://doi.org/10.69980/s8py6q55Keywords:
Compensation, Incentives, Non-financial Recognition, Sales Force Effectiveness, Sales Personnel Performance, Pharmaceutical Equipment Industry, SmartPLS, Competitive CompensationAbstract
This research aims to determine how compensation and incentive practices affect the sales force’s effectiveness in the pharmaceutical equipment industry. This industry is notable for its high levels of pressure and complexity. Sales personnel must undertake product demonstrations, manage institutional customers, cope with long sales cycles, and carry out after-sales with an additional pressure of targets. The research used a quantitative methodology. A systematic questionnaire was used to gather data. The research looked at remuneration for recruiting and keeping people, compensation for performance, incentive alignment with sales objectives, motivating structure of compensation, compensation competition, non-financial appreciation, and sales staff performance. SmartPLS and SPSS were used to analyse the data. The results showed that the sales staff polled had a favourable opinion of the incentive and pay policies. The measuring model demonstrated the validity and reliability of the study components for further examination. The structural model stated that incentive and pay policies addressed sales staff performance. Within the studied variables, non-financial appreciation and compensation competitiveness were the strongest predictors of sales personnel performance. The study recommends that a balanced reward system, comprised of fair and competitive compensation, performance-based compensation, recognition, career advancement opportunities, and supportive practices be implemented to improve the effectiveness of the sales force in the pharmaceutical equipment industry.
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