Are You Losing the War for Sales Talent?
MedTech companies are feeling both the positive and negative effects of a healthy economy and increased innovation across the industry.
On the positive side, industry growth and product pipelines are healthy. On the negative side, the competition for talent is exceptionally high. Aggregate cost of sales and total pay are increasing. Performance expectations are on the rise along with attrition of both regrettable and non-regrettable sales personnel.
In recent discussions with 50+ leaders across the healthcare ecosystem, some recurring themes emerged about priority investment and opportunity areas:
- Human Capital Management: Increased investment in hire-to-retire programs, including onboarding/ramping programs and sales manager coaching programs
- Junior Reps and Career Pathing: Building a cost-effective bench of sales talent that can rise through the ranks with a true track to professional sales
- Sales Incentives: Better aligning reward systems to reflect new GTM realities, particularly in the areas of goal setting and incentive compensation
Findings from the Alexander Group’s ongoing research shows sales rep turnover stands at 14%, up 9% from 2017, especially among high performers. Sellers across the industry are demanding both higher total pay and base salaries. Coupled with the need for new skills, the new war for talent means MedTech leaders need to rethink their commercial strategy.
Is your organization aligning reward systems to reflect new GTM realities, particularly in the areas of goal setting and incentive compensation? Contact an Alexander Group Healthcare leader today!
Learn more about the Alexander Group’s ongoing healthcare research efforts aimed at providing insights around the strategies, roles and investment across the buyer journey.
