Direct Reimbursement Case Study

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Expense reimbursement accounts and how they are managed can be an integral component of a company’s total compensation package for sales reps and can impact the type of sales talent the company attracts and retains. Subsequently, companies must take a thoughtful and strategic approach to deciding how they intend to reimburse sales reps for various business related expenses incurred by sales reps. Therefore, most companies have elected to employ either a direct or limited reimbursement plan for sales reps.

Direct Reimbursement plans allow companies to craft reimbursement policies to reimburse sales reps for all allowable business related expenses. Therefore, companies are able to proactively provide sales managers and sales reps with clear direction regarding the size and total amount of reimbursement for various sales activates. Thus, encouraging sales reps to dedicate their time, energy, and efforts towards sales
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As a result, since this circumstance applies the sales reps at MedTech, I would recommend MedTech add a direct expense reimbursement process to their sales compensation package. To start, it would allow MedTech to align with industry norms and enable their sales reps to compete on a level playing field with sales reps from other pharmaceutical companies. Second, it would give MedTech the opportunity to proactively establish policies to ensure sales reps are reimbursed for sales activities MedTech deems integral to closing a sale. Finally, it would provide MedTech greater control over their sales reps activities towards sales activities that will enable them to utilize their direct reimbursement account in alignment with company policy and their sales manager’s

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