Case Study

Global pharma company implements smarter tools to validate incentive compensation and payouts for 6,500 reps

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A global pharmaceutical manufacturer

Life sciences

Business need addressed:
Unacceptable variability and delays administering incentive compensation to 6,500 independently contracted reps

Genpact solution:
Automated tools for data validation and administration of incentive compensation; standardized processes ensuring use of appropriate, verified data to speed up and simplify compensation administration

Business impact:
Greater efficiency through automation, improved accuracy, reduced wait-time for payment, and decreased need for manual intervention

This drug maker needed to address unacceptable variability and delay in how incentive compensation was administered to 6,500 independently contracted reps worldwide. Genpact helped identify and rectify data consistency issues, ensure standardized calculation of compensation, reduce processing costs and mistaken over-payments, and simplify associated reporting/reconciliation.

Business challenge

  • Inconsistency in how performance data was collected and qualified led to unacceptable variance in manner and pace of comp to independent contractors
  • Erroneous determinations (regarding which reps met what compensation eligibility criteria) routinely led to over-payment to some and delayed payment to others
  • Unreliable and uneven application of comp eligibility meant that the client struggled to meet process target timelines and schedules

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The Genpact solution

Develop and deployed a validation tool to identify, aggregate, and integrate data from different business units, thus ensuring data consistency. The team also implemented an Incentive Compensation (IC) administration tool that:

  • Computes incentives for the various IC pay plans
  • Computes IC plans by business units and product lines
  • Compares compensation results
  • Compares output to scorecard parameters

Business impact

The company reduced risks and data errors in the system to reduce costs, increase process speed, and reduce over-payments. Automation helped improve the efficiency of IC operations, which not only accelerated IC processes but also enabled the company to reallocate its IC admin resources to more strategic functions.

Result: The company now has a simpler process and smarter reporting using an automated IC tool to calculate and validate compensation for 6,500 reps.

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