Contract Staffing Supports Life Science Business Models in Economic Downturn

Staffing needs in the life sciences industry during this current economic climate are seemingly different than what they have been in recent years. In the past, consolidation of big pharma companies had been limited and contracted work was less than prominent in this industry. But that was then and this is now.

Although the life sciences industry has proven to be more resilient than other industries during the current economic downturn, it certainly has felt the heat.

Earlier this year, the national unemployment rate reached its highest level since December 1983. The recession has changed the direction of the life sciences industry resulting in consolidation of big pharma companies and internal layoffs, forcing companies to be creative when finding solutions to fit their hiring needs. Many companies have chosen to partner with staffing companies that utilize contract or contract-to-hire models to staff project-based needs. Contract positions have the potential to develop into long-term opportunities in the future assuming there is a sufficient backlog of work but don't carry the risk of having to lay off the contract workers when the project is over.

Partnering With A Staffing Company
Companies within the life sciences industry have begun to partner with staffing firms that specialize in the industry, such as Aerotek to augment their staff through contract hiring. As a leading international staffing provider, Aerotek offers the flexibility to add staff to meet an immediate need while allowing companies to maintain their bottom line.

A working relationship with a staffing provider allows life sciences companies the financial flexibility to spread out the cost of an employee over the contract period in addition to the ability to focus on increasing its drug pipeline instead of concentrating on hiring full-time talent. Hiring an employee on a contract or contract-to-hire basis offers a flexible cost cushion because the cost to hire contract employees can be significantly less than the amount to hire and train a full-time employee directly.

For example, contract positions are currently gaining popularity in the life sciences industry as a result of the recent increase in mergers and acquisitions and internal layoffs that have been forced to occur as a result. As new projects develop, these companies must secure the appropriate personnel to work on these projects in a timely manner.

Staffing companies can do just that by providing qualified contract staffing employees with an agreed upon start and end date which will alleviate the need to lay off employees after the completion of a project. Hiring employees on a contractual basis can also open doors to potential future employment opportunities, such as converting an employee to a permanent position after the contract period is complete. In some cases, staffing providers have even been able to hire previous employees that were laid off for this contracted work.

Save Time And Money
Companies that take advantage of contract staffing services save time and money spent on hiring and interviewing candidates which can span over several weeks, making it a time-consuming process. Staffing companies such as Aerotek identify, screen and place candidates with a company and administer insurance, benefits and paychecks so internal resources are not overwhelmed with these tasks. Aerotek will take full responsibility for employee-related costs including unemployment, workers' compensation, benefits, 401(k) and more. Staffing companies can better absorb costs associated with workers' compensation, unemployment and benefits due to the sheer number of employees that they manage. By partnering with a staffing company to augment its staff, life science companies are able to retain control of all day-to-day management of roles and responsibilities of the contracted employees.

The economy will begin to turn around at some point and some indicators are showing that it may be sooner rather than later. The companies that are best positioned will be able to reap the benefits sooner.

While consolidation of big pharma companies has recently subsided, the life sciences industry has yet to see the full effect of these acquisitions. In the meantime, big pharma companies need to decide how to properly balance internal layoffs in respect to project-based work. Contract staffing is an option that warrants careful consideration for short- and long-term solutions that will have lasting benefit no matter what the economic climate. 

For more information
Aerotek, headquartered in Hanover, Md., is a leading provider of technical, professional and industrial staffing and program services. Established in 1983, Aerotek is an operating company of the Allegis Group, the largest provider of staffing services in the United States. Aerotek operates a network of more than 150 non-franchised offices throughout the United States, Canada and Europe. Whether you are searching for employment or seeking more information on staffing services within the life sciences industry, visit www.aerotek.com/sciences or call 1 (888) AEROTEK [237-6835] to see how Aerotek can partner with you.