the shifting workforce composition in LIFE SCIENCES BY KEVIN D. DUFFY Vice President, Global Solutions
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1 the shifting workforce composition in LIFE SCIENCES BY KEVIN D. DUFFY Vice President, Global Solutions
2 2 TODAY S LIFE SCIENCES INDUSTRY is thriving and maturing rapidly. Business is still concentrated primarily on medical therapies and pharmaceuticals, but growth drivers extend far beyond traditional therapeutics. There have been dramatic increases in the growth of niche drugs and generics. Research is leading to dramatic technological innovation in areas of biotechnology and medical devices. Developments in assisted technologies, such as mobile health and e-health, are increasing self-sufficiency for millions of Americans. The aging population in the United States, a burgeoning demand for healthcare due to the massive influx of newly insured patients, and more holistic approaches to medicine are driving the future of life sciences.
3 3 There is an increasing need for employees who can manage outside partnerships and regulatory requirements, as well as data analysis, health economics, and outcomes research.
4 4 Most life sciences executives agree that these advances are hampered by a shortage of talent with traditional skills in chemistry, microbiology, technology, and engineering. But the shortage isn t nearly that simple and straightforward: today s industry needs more than science. Companies are partnering more often with research organizations and academic institutions to help with R&D, so there is an increasing need for employees who can manage outside partnerships and regulatory requirements, as well as data analysis, health economics, and outcomes research. Today s expanding global marketplace has driven new legislation that affects business operations, and regulatory compliance concerns have led to increased oversight of workforce management. Companies no longer need just scientific professionals they need scientists who also have people skills that help them take a multi-departmental, multinational view of business operations.
5 5 A CHANGING WORKFORCE FOR Executives in life sciences see a dramatic evolution taking place, with a variety of implications for the workforce. Because many economic concerns can be addressed with life sciences solutions such as waste management, biofuels, water quality, and industrial biotech, skills shortages have the potential to impact economies around the world. Biotechnology will increase non-science hiring as the sector s focus shifts to product commercialization. Major R&D functions will be increasingly contracted to partners, such as contract research organizations. Manual technical processes will be increasingly automated. The accumulation of genetic information and the ability to use it will drive the demand for geneticists and genetic laboratories, adding new skill sets to the required baseline for workers in the biotech sector. New diagnostic technologies will call for strong computational and technical skills to manage complex equipment and mountains of data. As innovations are developed, new hires will need a broader set of skills and knowledge that also include people skills such as communication, problem solving, and time management.
6 6 The business of managing science while developing commercial products is increasingly important in successfully meeting the challenges of an industry in transition.
7 7 A CHANGING WORKFORCE FOR Along with the challenges posed by the evolution of life sciences, companies need to look at overarching operational trends such as healthcare reform, regulatory requirements, government funding, and other considerations that affect strategic workforce planning. Science is still essential for anyone working in life sciences, particularly CEOs and business leaders who need to understand what drives the scientists and where the science is leading the business. But the business of managing science while developing commercial products is increasingly important in successfully meeting the challenges of an industry in transition.
8 8 A company that isn t prepared to redirect resources quickly in response to changing business needs can suffer a significant drop in productivity.
9 9 Since the turn of the century, there has been a gradual shift in the types of employees that compose the life sciences workforce. The traditional approach to staffing has been an employee-based model that requires a company to make a commitment to full-time employees. Nearly 20 percent of an employee s base pay consists of vacation, sick leave, workers compensation insurance, unemployment insurance, and payroll taxes. If an employee doesn t work out or business needs change, the cost of termination can include a severance package, unused vacation pay, and possible negative effects on unemployment insurance ratings and company morale. In an uncertain economy, a direct-hire approach to staffing can be costly. As a result, many companies have made the switch to more flexible and focused staffing options. According to the U.S. Bureau of Labor Statistics, the percentage of independent contractors in the workforce across all industries has been steadily rising over the last decade. Contract workers can provide just-in-time skills and quickly fill in skills gaps that can t always be filled by full-time workers. A company that isn t prepared to redirect resources quickly in response to changing business needs can suffer a significant drop in productivity. Therefore, contract staffing is critical to strategic workforce planning for any company particularly small or midsize businesses with smaller workforces.
10 10 On average, three in 10 life sciences companies now have a workforce that is comprised of flexible R&D or scientific staffing options.
11 11 On average, three in 10 life sciences companies now have a workforce that is comprised of flexible R&D or scientific staffing options. These workers are long-term contract resources, temporary consultants, freelancers, independent contractors, or talent hired for specific project work. For nearly a third of employers, more than half of their R&D or scientific work is conducted virtually (e.g., cloud collaboration) by professionals who are directly employed by the organization. And most employers anticipate that amount rising over the next two to three years. Making a workforce more flexible by hiring contract talent can reduce costs beyond just compensation and benefits. Contracting spreads out administrative costs and creates a performance review period to be sure the employee is a good fit. If the end goal is a permanent placement, then contracting is a cost-effective way for both employer and employee to evaluate each other. For short-term projects, this staffing strategy is easy to implement and requires minimal commitment from employers and employees.
12 12 Companies need to be more involved with academic institutions at a high school and college level to generate interest and educate students on the skills needed by the industry.
13 13 CREATING AN IDEAL WORKFORCE As with other high-growth sectors, recruiting top talent in life sciences is most successful when hiring managers use a variety of staffing strategies and consider recruiting outside of their traditional hiring channels. Hiring managers may be able to look outside the industry for general development specialists and expertise in implementation. And companies need to be more involved with academic institutions at a high school and college level to generate interest and educate students on the skills needed by the industry. Employers can attract skilled workers while they are still in school by offering rotation projects or internships so students can discover the skills they will need in order to pursue a career in life sciences after they graduate. At the opposite end of the spectrum, a valuable recruitment opportunity for finding highly experienced professionals is the 60+ market. Retirees are increasingly likely to seek supplemental income after they leave the workforce, and they can often step right into a job with no learning curve or training. Companies can tap into this wealth of intellectual capital by offering reduced work programs and contracts for tenured individuals.
14 14 CREATING AN IDEAL WORKFORCE Employers also need to be willing to invest in developing people. If employers ignore intelligent, experienced candidates because they re looking for skills those people don t have, they may miss out on the perfect talent for their organization by not being willing to invest in their most critical asset: human capital. Certain skill sets that deal with the challenges of today s life sciences industry cannot be developed in a classroom environment, but are acquired on the job. Companies that take it upon themselves to grow their own talent will end up having a workforce with skills perfectly suited to the company s business objectives, and the investment in training and developing employees will foster loyalty and increase retention. Because of the changing needs for life sciences talent, outsourcing to a staffing solutions provider can be the best option for creating a customized workforce. Professional recruiters can offer valuable assistance in locating niche skills and speeding up the hiring process to fill positions for permanent employees as well as independent contractors. Workforce solutions companies such as Kelly Outsourcing and Consulting Group (KellyOCG ) know how to help employers assess changes in their organization to identify the talent they need and quickly fill skills gaps before problems arise. Experienced staffing professionals have access to skilled job seekers and an extensive network of candidates they can evaluate to ensure a good fit.
15 15 The trend toward having a diverse workforce that can seamlessly adapt to changes and challenges in the world will continue to grow.
16 16 THE LIFE SCIENCES INDUSTRY is continually changing, and companies need to take stock of the past and pay attention to the future. A key challenge for hiring managers is to ensure that their talent strategy is closely aligned with the business strategy of the organization. Talented professionals who can drive success need to be identified, recruited, and developed so they are prepared to move into pivotal roles as needed. The trend toward having a diverse workforce that can seamlessly adapt to changes and challenges in the world will continue to grow. The companies that thrive will be the ones that consider all workforce strategies that lead to the development of a flexible, focused workforce.
17 ABOUT THE AUTHOR KEVIN D. DUFFY Vice President, Global Solutions Industry Vertical Leader, Life Sciences KellyOCG Kevin D. Duffy is vice president of Global Solutions and industry vertical leader for life sciences at KellyOCG. Mr. Duffy directs the strategic oversight of the global account strategy in the biopharmaceutical and medical device market sectors across all Kelly workforce solutions. With more than 30 years of experience in the healthcare, scientific, clinical research, and drug development industry, Kevin has broad global expertise in clinical operations, sales and business development, marketing, public relations, and managing national accounts. He holds a Master of Business Administration degree from Pepperdine University and a Bachelor of Arts degree in economics from the University of Michigan. About KellyOCG KellyOCG is a global leader in innovative talent management solutions in the areas of recruitment process outsourcing (RPO), business process outsourcing (BPO), human resources consulting, career transition and organizational effectiveness, executive search, and contingent workforce outsourcing (CWO), which includes independent contractor solutions. Further information about KellyOCG may be found at kellyocg.com today. kellyocg.com 2015 Kelly Services, Inc EXIT
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