In this article, we're going to shift our focus back to pharma sales ...
Not long ago, you've read my answer to the dispute on why pharma sales reps were offered doctor's perk. You've discovered that the whole issue is about time-frame, and given enough time, reps could not play income 'catch-up' with doctors.
And today, we're going to address another concern that one of you might have ...
And it's all about the sources of income (or lack of it) for pharmaceutical sales reps:
Typically, there are two sources for pharmaceutical sales income: basic salary and incentives
Many factors influence these two, and no two sales reps are alike when it comes to them. Different companies would have used different metrics as benchmark and standards, and in that manner, no two companies are alike.
Let’s talk about the first income: basic salary.
What is The Baseline For Pharmaceutical Sales Reps Salary?
The immediate answer is the experience.
If you are a brand new person who just graduated and enters the job market, your salary package will be pretty much according to the current salary average in the industry. There is some sort of baseline that many companies follow, but they never admit it.
It is something like an unwritten contract, and the source for such info is pretty much doubtful at its best. I mean, since I got involve with this job slightly over a decade ago, I believe the company’s best resource for how much to offer a new rep is the figure he or she puts in the resume.
And often times, to avoid complication in candidate selection, the salary amount is stated in the advertisement. Smart move, maybe, but it never meant to be final, if you know how to bargain.
For those who already have a previous job, the situation might be a bit different. If the previous employment is highly relevant to the position applied, for example, a sales executive applied for a pharmaceutical sales position, the chance is good that you can bargain for higher than average standard basic salary.
There is no guarantee that you are going to get it, but you have a shot at it. It is strongly recommended that you go ahead and ask for it.
Of course, the most fortunate candidate is perhaps the one whose previous employment is with other pharma company, no matter whether it is generics or ethical.
But the scenario nowadays, explicitly starting in 2008, is totally different.
Many companies, including multi-national companies, preferred fresh graduates than experienced people because of a cost-cutting exercise. Heck! Even the experience one will have to enter the war zone, so to speak, to ask for what is deemed right, relative to what she or he brings to the table.
And many were left heart-broken.
In general, the world is having a job market slump. Companies are taking their operation somewhere else where the capital outflow can be minimized, and there is a high tendency to cut the unnecessary.
The simplest is to cut job. A sales job is right behind clerical or redundant admin job.
Pharmaceutical sales representative used to enjoy 11% higher basic pay than the industrial average but no more. If you just entered the market, do not get discouraged. Bite the bullet and move along.
Incentive Payouts Are Also Affected
This is another source of income for pharmaceutical sales but lately, just like its close cousin, ‘basic salary,’ it too suffers severe cutbacks.
It is obvious. Since sales numbers are coming in lesser than they used too, the portion that was reserved for incentives was also shrunk. And there is very little a rep can do about it. In fact, many of them have to multitask and get the same amount of pay.
This is precisely following the theory that says: People work enough to be paid and the company pays sufficient for them to keep working.
Doesn’t that sound like NEW forced labor? Perhaps!
Right now, as of today, at the date this writing is created, pharmaceutical sales income sources are severely diminishing due to the alleged economic crisis.
No one really knows what that supposes to mean since some senior managers and supervisors are still enjoying all the perks and privileges, but that is the reality. I say, “Suck it up and move along!”
Does pharma rep income influence by the medical sales qualification?
If it does, how?
What about those without qualification?
I can say that there's no precise answer to this ...
... It's a 'YES - NO' situation.
Let's take the turn to look at both situations and answers:
When I applied for the drug rep job ten years ago, the company offered me a certain amount of basic pay.
Of course, basic pay varies according to the company, industry, and candidates. There's no telling of the actual amount, but it's predictable.
Here's what I mean:
A new grad, with a degree, will be offered slightly higher basic pay than non-bachelor, diploma, or certificate grad, provided all start from ground zero, i.e., no working experience.
Multinational pharma companies (MNC) pay, in general, higher salary than local generic companies.
If everything added in, like for example traveling allowance, overnight allowance, and incentives, it's possible that the amount will be more or less the same.
So, it's predictable that candidates with a degree, working for an MNC, will have higher basic pay than the non-degree candidate, working for the local generic company.
It's safe to say so.
How huge the fundamental salary gap?
It's everyone guessing.
In this scenario, YES, medical sales qualification does influence pharmaceutical sales rep income.
Let's look at the situation where it has no influence ...
... the 'NO' situation.
The pharmaceutical industry is not recession-proof.
I can swear to that. I've been through one VSS and one restructuring myself.
The industry is vulnerable. In good times, like the early 2000s, pharmaceutical companies throw in a lot of money to their employees. I remember earning incentives from hitting the monthly target, and from excess boxes sold.
It was heaven!
I see people, who know what's going on, lining up to join a pharma ...
... People with working experience, not related to medicine, also jump on the bandwagon.
These candidates, arm with experience and no medical sales qualification, often command a higher basic salary than newcomers, even new grads.
I guess that's just the way it goes.
In this scenario, obviously, the qualification has no influence ...
... Experience weighs more.
Throughout this write-up, I've used the word 'basic pay' as a benchmark for pharma sales income.
Of course, basic pay alone is only part of the whole income list, which includes incentives and bonuses, or commissions. It's possible for a sales rep to earn more in perks than basic pay every month.
But basic pay seems to illustrate our discussion more objectively; hence, I used it as a predictor.
As you can figure out, medical sales qualification, may or may not, influences pharmaceutical sales reps income.
Feel free to look around this blog for sales job opportunities, and remember what we've talked about when setting your expectation for the pharmaceutical company interview:
The company might not know your hope, but you do, so, play your card right and succeed.
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