Quota-Based Compensation on the Rise

The third annual Incentive Practices Research (IPR) study, conducted by global sales and marketing and consulting firm ZS Associates, finds an increasing number of companies in pharmaceutical/biotech, medical products, and high-technology industries are favoring quota-based compensation plans over ranking plans. ZS Associates' research reveals the following:

& 73 percent of pharmaceutical/biotech companies surveyed use quota-based plans, while 20 percent use ranking plans.

- 85 percent of medical device companies surveyed use quota-based plans, while 21 percent use ranking plans.

- 89 percent of high-tech companies surveyed use quota-based plans, while 26 percent use ranking plans.