High Turnover in Pharma Sales: How Would You Address Employee Dissatisfaction?

Ric09
AMBER PHARMACEUTICALS

In a pharmaceutical company manufacturing and marketing drugs and medicines, the research staff has developed a number of new products and formulations that are effective. However, it has to meet severe competition from stalwarts with foreign collaboration. Mr. Shah, the Vice President of Marketing, has a very successful Pharma Marketing background. He has been with the company for the past 4 years. Mr. Shah had made ambitious plans for capturing a sizeable share of the market in the Gujarat State. The company, being medium-sized, Mr. Shah had kept his marketing department and the marketing team lean and trim. The field sales staff was given aggressive targets and were virtually pushed to reach their respective targets. The field staff worked to their best abilities to compete for their respective targets. Mr. Shah had himself been working hard almost 11-12 hours a day. There was no formal appraisal and reward system in the company. During the last 5 years, more than 60 Medical Representatives and the Area Supervisors had left the company due to unsatisfactory increments and promotions. Those who left the company were star workers. However, Mr. Shah did not care for this high turnover. He was overconfident that he would be able to hire freshers and also select candidates who were not happy with their remuneration in their respective company. Mr. Shah had never communicated to the field sales staff about their performance or reasons for not recognizing their outstanding performance in a few cases. There was, on the whole, great dissatisfaction, and good performers were leaving the company.

What are the steps you will take sequentially to correct the situation?
nashbramhall
Dear Ric09, this is the second case study that you have posted. May I know what you do and where? Also, are you seeking solutions for the case study? If so, why? If I were you, I would have given my views and then asked for comments on mine.

Have a nice day.

Regards,
Simhan
A retired academic in the UK
Ric09
I apologize for not posting my view earlier. However, it doesn't mean that I didn't try to solve the case study.

Problem Identification at Amber Pharmaceuticals

I think the basic problem at Amber Pharmaceuticals is the absence of a formal appraisal or reward system. As a result, the growth of employees is stagnant. Employees have been working there for many years without receiving any promotions or salary hikes. Consequently, the attrition rate is increasing as employees leave the company due to unsatisfactory increments and promotions.

Solution: Implementing a Performance Appraisal System

Therefore, the company needs to introduce a performance appraisal system. Through performance appraisal, it will be possible to measure the performance of the employees, which will help increase productivity and reduce the attrition rate. The morale of the employees will also increase when they receive promotions and increments based on their performance.
Ric09
I have sent my views on this case study, but I am not sure whether I am right or wrong. Please send your views.
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