PHARMACEUTICAL & BIOTECHNOLOGY INDUSTRY RESEARCH REPORT

Transcription

1 PHARMACEUTICAL & BIOTECHNOLOGY INDUSTRY RESEARCH REPORT

2 Contents of the Presentation Objectives Secondary Research & Client Interaction insights Flow of Analysis Big Picture Industry Priorities - Key indicators - Key drivers Differentiating Features Key findings & Next Steps 2

3 OBJECTIVES Creating an overall understanding of the Indian Pharmaceutical & Biotechnology industry from a people perspective in order to identify the strengths, weaknesses, opportunities and threats in the talent engagement space. Establishing Great Place To Work at the fore-front of driving a thought leadership that transcends into industry-specific forums and discussions in addition to creating better relationships. Mining our internal knowledge bank to enrich our own research repository as well as looking to leverage this research report as an invaluable source of exclusive information in the public domain.

4 Top 10 players in India

5 The growth story of the Indian Pharma & Biotech industry Among the TOP 5 emerging pharmaceutical markets in the world World s rd largest pharmaceutical industry in terms of volume Estimated to be worth $4.5 billion Growing at a rate of about 8-9% annually Expected to reach US$ 55 Billion by the year 2020

6 Interesting insights gathered Industry Highlights MARKET POTENTIAL - The Indian Pharmaceutical & Biotechnology industry is a financially stable industry. It is currently in a phase of aggressive growth given the facts that patents are expiring, new dugs are coming into India and medicine is reaching the deepest parts of the country INCREASED FOCUS ON THE PEOPLE FUNCTION Since the last 5 years, major Pharmaceutical companies are hiring HR leaders from non-pharma companies, in order to bring in the good people practices of other mature industries into Pharma. ETHICAL STANDARDS Due to absence of proper regulations, the practice of bribing doctors to prescribe the medicines of a particular company has become commonplace. Unless the political establishment enforces strict checks to prevent this, the industry will continue to be marred by corruption. FUTURE THREAT Other countries like China might come up with cheaper manufacturing resources, hence taking away the India advantage.

7 Interesting insights gathered What are the advantages of being employed here? WAR FOR TALENT Attracting Talent Pharma is not an attractive industry for a career choice, often playing second fiddle to Medicine. It is missing the glamour quotient present in other industries due to which talented people are not swayed by this industry. In order to attract talent, India needs to be the one to develop and introduce a new drug in the market in the next 10 years. Retaining Talent - People take advantage of the ample opportunities available to them and tend to switch at the slightest raise. It is also difficult to satisfy the career aspirations of every individual, especially those in the intellectual field of R&D. INTENSIVE TRAINING REQUIREMENTS This being a knowledge-based industry, training is a hygiene factor. Also, compliances have to be strictly adhered to and regulatory authorities have to be answered to, which can only be handled by a person thoroughly trained in this business. In addition to technical training, leadership training is highly necessary since it s primarily the scientists who rise up to the levels of senior management and have to be trained in that space.

8 Interesting insights gathered What are the major challenges in the people space? JOB SECURITY Since the industry is growing, people have a lot of opportunities to either, move to a similar company or, grow within the same company. FINANCIAL STABILITY Talent is in demand here and talent is paid well to stay. Also, given the nature of its products, the industry is not likely to decline in terms of business or get hit by recession. THE HOME ADVANTAGE People living in smaller cities/towns need not move out in search of employment. Since, medicine has to be present in every corner of the country, companies manufacturing them have plants established in various locations throughout India. This is unlike some other industries (like IT) which are promarily present in metro cities. REPRESENTATION OF WOMEN Due to the physically demanding nature of the job in sales as well as manufacturing plants in remote locations, the low number of women employees is a trend that is likely to persist. MANAGEMENT COMPETENCY The people who came into this industry in its formative years have left behind a legacy of risk-aversive attitude. New people who are joining now have a significant scope of bringing in an innovative mindset and a passion to drive success.

9 In the coming sections, we shall look for the answers to the following questions : What would it take for an employee to stay longer in a Pharmaceutical & Biotechnology company in India? What are the key factors that differentiate the best employers from the rest in this industry? What are some of the best people practices that companies in this industry can emulate?

10 Analysis Design Overall Design 62 Trust Index statements Culture Audit data Survey Statistics Survey Number Statistics of unique companies studies over the last years 22 Number of companies studied in Number of people who responded to the survey in Top Performers 4 companies in Top 100 Monsanto India Ltd. (5), Lupin Ltd. (8), Dr. Reddy s Laboratories Ltd. (56), Venus Remedies Ltd. (68) 10

11 Flow Of Analysis BIG PICTURE Taking a look at the Trust index and Culture Audit scores of the Pharma & Biotech industry and comparing it with benchmarks INDUSTRY PRIORITIES Areas that should be the priority focus of all companies in this industry arrived at by looking through various lenses like key indicators, key drivers and year-on-year trend DIFFERENTIATING FEATURES Areas that should be focused by those companies that are aiming to rise up to the level of the best-in-class arrived at by looking into the key differentiating factors between the Best and the Rest

12 100 81% employees across companies feel that their workplace is a Great Place To Work! Perception comparable with all companies in other industries Overriding Statement: Taking everything into account, I would say this is a great place to work. Trust Index :Average of the score on 56 Core Statements Overriding statement Trust Index India Biotechnology & Pharmaceuticals India Top India All Companies Overriding statement refers to the statement, Taking everything into account, I would say this is a great place to work. Trust Index score represents the average of percentage of positive responses of the other 56 statements in the survey instrument and excludes the score for the overriding statement and the customized statements.

13 Relatively Strong practices Developing is an overall strength for the industry Scope to improve practices around Grievance Redressal, Rewarding and Inclusion Developing.5 Thanking Listening Welcoming Contributing Celebrating Supporting Balancing Collaborating Speaking Inspiring Hiring Grievance Redressal Practices that need Rewarding most focus Including Pharma & Biotech Average of Best Workplaces Pharma & Biotech % difference shows that even the nonranked companies have similarly strong practices as the best workplaces, hence indicating that Training & Development is an essential industry need % difference of Best and Rest Pharma & Biotech % 40% 20% 20% 20% 20% 20% 20% 50% 20% 20% 20% 0% 25% 67% Average of India Top

14 While the best workplaces have remained stable, perception across Pharma & Biotech has declined from the previous year Fall in perception on cooperative colleagues, fairness and talent fitment Key areas where perception has India Biotechnology & Pharmaceuticals India dropped Top 50from last year India All Companies 1. Cooperative Colleagues (65 vs 72) 2. No favoritism(52 vs 56). Hiring right (69 vs 74) 4. Politicking (57 vs 61) Trust Index score represents the average of percentage of positive responses of the other 56 statements in the survey instrument and excludes the score for the overriding statement and the customized statements.

15 Pride in the organization appears to be significantly high; a factor that may be a cause for the high retention indicator Need to manage perception around motivation to come to work Key drivers of motivation (CoC): 1. Family/Team feeling(0.6) 2. Management delivers on promises (0.62). Management s Motivation actions match words (0.62) Retention Indicator Indicator Good Facilities (0.62) Discretionary Effort Indicator Advocacy Indicator People look forward to coming to work here. I want to work here for a long time. People here are willing to put in extra effort to get the job done. India Biotechnology & Pharmaceuticals India Top India All India Biotechnology & Pharmaceuticals - Grand Mean I'm proud to tell others I work here.

16 Key areas arrived at so far Pride in Job & Organization Highest employee perception on Advocacy indicator Facilities & Resources One of the key drivers of motivation; essential to bring up the fall in perception on motivation over the years Management Reliability & Ethics One of the key motivation drivers; Management ethics is also a unique driver of retention for this industry Family & Cooperative Environment Favoritism & Politicking Talent Fitment & Development One of the areas that have witnessed highest decline in perception from previous year; also a key retention and motivation driver One of the areas that have witnessed highest decline in perception from previous year; also a key retention driver One of the areas that have witnessed highest decline in perception from previous year; also a key retention driver and an essential industry need

17 Key differentiators between the Top & Bottom companies in Pharma & Biotech in the last 2 years What differentiates the Best from the rest? We have special and unique benefits here I feel I receive a fair share of profits made by this organization Benefits & Profit share This is a fun place to work Fun At Work Analysis of other key differentiators Management s actions matches words & Management delivers on its promises has been presented in the previous section.

18 Key findings Employees in this industry are proud to work here but motivation to come to work is a declining trend. Reliability is a key reason. better assigning and coordination of people as well as employee involvement will address this Sustaining perception on Management Ethics and Family/Team feeling shall help in better employee retention. Money is a key differentiator of this industry. Offering better remuneration and investing more in organizing leisure activities/events shall prove beneficial. Companies in this industry need to sustain their strong developing practices, while, better practices need to be designed and implemented around Inspiring, Celebrating, Fair Evaluations and Rewarding

19 Questions for the future What are some of the ways that this industry can be more attractive for potential candidates? What are the measures and metrics that will enable companies to identify the right talent internally? What are the ways to measure the productivity of people? Which skill sets are most in demand today in the Pharmaceutical & Biotechnology industry? How can they be built in the future?

20 Next Steps We look forward to taking this initiative to the next level and bringing together some key people from the Indian Pharmaceutical & Biotechnology industry for round-table discussions on the issues highlighted here and to plan actions to be implemented for enhancing the overall employee experience which shall drive better talent attraction, retention and business performance.

21 References A Brief report on Pharmaceutical industry in India - Corporate Capitalist India Pvt. Ltd. Indian Pharma Propelling access & acceptance, realizing true potential Mckinsey & Company

22 Thank You! Global Headquarters Great Place to Work Institute, Inc. 222 Kearny Street, Suit 800, San Francisco, CA India Office Great Place to Work Institute, India 02 Apple Plaza, S B Road, Dadar (W), Mumbai Phone: +1 (415) Phone: