Targeting Top Talent

With Kelly Scientific Resources’ Chris Jock, Kelly Engineering Resources’ Teresa Carroll, Randstad’s Joe Guariano and Vinay Nayak of Aerotek on the hunt for talent.

Human capital is the key to success in any industry – but is especially relevant to an industry such as biopharmaceuticals where knowledge is the name of the game. It has become increasingly important for pharmaceuticals and biotechnology companies to develop strategies to attract, develop and retain top talent, but what issues do they face as they look to get the most out of their human capital? And what resources are available to pharma companies to help them meet these challenges? NGP spoke to a number of leading experts to find out.

Chris Jock has been Vice President and General Manager of Kelly Scientific Resources, a highly specialized and rapidly expanding business unit of global staffing provider Kelly Services, Inc. since May of 2003. He oversees the worldwide operations of Kelly’s scientific business unit, which currently employs more than 4500 scientific professionals throughout more than 100 locations in 16 countries.

Teresa Carroll is Vice President of Kelly Engineering Resources, a business unit of Kelly Services, Inc. In this role she oversees the worldwide operations of Kelly’s engineering business unit, which currently employs more than 4000 engineering professionals throughout more than 40 company-owned and operated offices in seven countries throughout North America, Europe and the Pacific Rim.

Joe Guariano is Vice President and Director of Strategic Accounts at Randstad. He has over 12 years of experience within the staffing industry involving sales and operations management, including positions in National Account Management, International Account Management and Regional Operations Management at a global, national and regional level. Joe has experience in developing complex business relationships that involve non-traditional solutions.

Vinay Nayak is Vice President of Sales for the Pharmaceutical/Biotech/Healthcare vertical market at Aerotek, and has spent nearly eight years at the company. His extensive pharmaceutical staffing industry expertise has helped multiple pharmaceutical clients surpass their contingent workforce goals. He is responsible for managing all sales and recruiting efforts within the Aerotek Scientific division and developing targeted business strategies.

NGP. Human capital is the key to success in any industry – but is especially relevant to an industry such as pharma, where knowledge is the name of the game. How can pharmaceutical companies ensure they find and attract the right talent?

VN. As the economy changes, baby boomers retire and the number of candidates dwindles, it is more important for pharma companies to proactively seek long-term solutions to their employment problems. I believe that the best way to continuously find and attract the right talent is to go beyond the norm of traditional recruiting by tapping into the student population. Implementing programs that generate interest in pharmaceutical employment is crucial for developing a strong and talented pipeline of candidates.

JG. Many researchers are looking to immerse themselves in a cutting edge, innovative scientific environment where they can learn from the top minds in their respective areas. Therefore, developing a strong corporate culture that is well branded and respected among the scientific community will help attract top candidates.

CJ. Today, the term human capital – the collective sum of employees’ attributes, life experience, knowledge, inventiveness, and energy – is generating a lot of buzz. And in today’s constrained scientific and engineering labor market – which is projected to remain so for the next decade – companies are only as good as the people they employ. As the marketplace continues to tighten, finding and attracting the right talent will become more of a challenge for employers.

Recruitment firms, especially those with scientific or engineering expertise, can help. They’ve got the contacts, the experience and the infrastructure to assist with locating and evaluating suitable candidates. They can serve as a consultant to help companies evaluate their current workforce and create strategies for attracting and retaining the talent required to best meet their long-term goals and objectives.

TC. Developing a strategic partnership with a globally focused and wide-reaching staffing company may be beneficial for pharmaceutical companies. When working with a staffing provider, there are a few things a company must be mindful of. The right staffing provider needs to have proven stability, the ability to respond to the varying cycles of the business/industry, and be conscious of the existing forms in which talent is acquired by the organization. There needs to be high degree of trust and financial stability of the staffing partner given the high-risk, long product-development cycle, and protective IP environment of the pharmaceutical sector. A staffing company should have access to multiple sources for candidates, offer a wide range and scope of staffing services and solutions, and be affiliated within their local markets/communities, including professional organizations and higher learning institutes such as colleges and universities.

The staffing partner needs to be an integral part of and aligned with a pharmaceutical company’s business goals and objectives. They must be willing to share in both the rewards, as well as the risks. The staffing partner has to be one that acts strategically in its role and has solid, well-tested tactics to support it. With this, a pharmaceutical company is assured to have access to quality talent.

NGP. Is outsourcing search and recruitment functions to a specialist provider the way forward? What advantages does this model offer? And in a highly specialized field such as pharmaceutical, how can drug companies ensure their recruitment partner identifies candidates with the right skills?

JG. Outsourcing is a smart strategy. The pharmaceutical industry is so highly specialized technically, and it is constantly changing. Pharma companies focus their energy and apply their expertise to the discovery and development of life-changing drugs and therapies. The market for great talent is becoming more and more competitive. Companies also continue to experience cost containment pressures, which often results in a reduction in human resources and other corporate headcount.

Outsourcing recruitment functions to a company like Randstad enables a pharma company’s internal staff to focus on their technical and scientific expertise and the retention, development and long-term growth of internal talent. Specialized providers bring search and recruitment expertise and continuously build expertise in the pharma companies as relationships are built.

This allows the pharma company to focus on their area of expertise while partnering with a work solutions company that delivers staffing strategies in a cost effective and efficient manner. Furthermore, given the inherent peaks and valleys in the drug discovery process, this allows pharma companies the flexibility in utilizing the resource when necessary thus reducing their exposure to be being overstaffed during down cycles in production.

Any recruitment partner must bring two areas of expertise to the table – first, an expertise in strategic recruitment, placement, and workforce strategies in general. On top of that expertise, a successful partner will also commit to continuously growing expertise in the client company’s business and unique company culture. For example, the request for a clinical research associate may be different at each pharma company. One company may require a CRA who specializes in late stage oncology whereas another may not require any specialty at all. The commitment to know and truly understand the client and the work environment allow Randstad to better serve each individual client.

While you might assume that this is standard operating procedure, it is a step that is often minimized. At Randstad, before we begin servicing a customer, we make a significant time investment and follow a formal discovery process that ensures we truly know what strategy to implement to ensure the right candidates are sourced. Of course, this requires cooperation from the client, but our experience demonstrates that it is time well spent.

CJ. Outsourcing search and recruitment functions to a specialty provider is absolutely the way forward. For a staffing provider to provide the maximum economic value to a pharmaceutical company, they need to have and demonstrate the capacity to source globally in order to meet the needs of the enterprise. This is advantageous to the pharmaceutical field because a staffing partner that encompasses a global reach, range, and affiliation will be able to consistently keep the pool of professional, scientific and engineering talent refreshed and accessible.

They’re able to meet the complete staffing needs of their customers, because they are continuously and strategically recruiting from multiple candidate sources and are thoroughly immersed in the communities in which they operate. The success of this approach is dependent upon the staffing provider having a complete portfolio of specialty staffing lines that focus exclusively on individual disciplines such as science (i.e. chemistry, biology, biostats, informatics, physics, etc.) or engineering (i.e. bioengineering, chemical engineering, process technicians, plant operators, etc.).

TC. Staffing providers are able to identify candidates with the right knowledge and skills, because they are often professionals themselves. For Kelly Services, branches are often staffed and managed by seasoned, degreed professionals from these unique disciplines, so they have a true understanding of the candidates with the right skills. This is beneficial to the pharmaceutical company because the staffing provider is able to quickly and efficiently identify the talent that best meets their business objectives, including the product development lifecycle.

VN. Given the state of the market, it is wise for pharma companies to partner with one or more specialist providers to gain greater access to the available talent pool. Specialist Providers are always exploring ways to attract qualified candidates for their clients. Additionally, job seekers have many choices and often prefer to gain experience by working on various assignments through specialist providers. When pharma companies partner with Specialist Providers they benefit from a broad range of talent and qualifications. In essence, they are exposed to all of the talent the market has to offer.

When choosing a specialist provider, it is important that pharma companies do their research. I recommend that they go through an extensive request for proposal (RFP) process in order to ensure best pricing, quality service and an understanding each provider’s capabilities. This process will increase the chance pharma companies will pick the most compatible partner.

NGP. Attracting talent is one thing; retaining it is another matter. So what strategies should those involved in the pharmaceutical industry look to employ to retain and motivate key staff?

CJ. In a workplace study that’s been conducted by Lawrence Lindhal every decade since the 1940s, managers often state that employees want job security and opportunities for advancement when asked what they believe to be the key to employee retention. Meanwhile, when employees are asked that same question, they report that first and foremost, they want to be recognized, feel informed and believe they are working in meaningful jobs.

TC. Ultimately, there are four key strategies companies should employ to retain and motivate key staff. First, maintain ongoing communication to keep your employees feeling connected to what’s happening within the organization. Second, ensure opportunities for your employees to grow skills and have continuous learning/training in place. Next, make staff feel recognized and valued as a contributor. And finally, have solid compensation and benefit plans in place.

VN. It is important for organizations to ensure that they are paying competitive wages for each skill set and providing competitive benefits. Competition is tough, and therefore this information must be evaluated on a semi-annual basis. As an added benefit, pharma companies should also establish career paths that promise upward mobility within the organization. Competitive compensation will keep key employees for a period of time, but many also seek opportunities for growth and challenging assignments.

Maintaining a diverse workplace by valuing each employee’s unique talents and contributions will also improve retention. Over the next 20 years, the faces of our workforce will change significantly and it’s important that pharma companies take the appropriate steps to address their needs.

JG. According to pharma manufacturers, a major factor impacting production capacity expansion over the next five years will be the lack of trained and experienced staff – a trend mirrored in other areas such as R&D and clinical trials.

Understanding what truly motivates R&D professionals in the pharma arena is key to developing solid retention and development strategies. This talent pool is very concerned about growth potential and the opportunity to work in an innovative research environment where they can take part in developing products to improve someone’s life. Additionally, Randstad’s research has shown individuals stay with organizations based not on compensation alone. More often it is the fact that the person has been recognized for their accomplishments and is given challenging and varied tasks to complete. We also see firms with good leadership tend to have the best retention of staff. Leaders are the ones who set the direction and are key to motivating others. Companies who invest in leadership development along with effective communication tend to win in retaining staff.

NGP. According to pharmaceutical manufacturers, a major factor impacting production capacity expansion over the next five years will be the lack of trained and experienced staff – a trend mirrored in other areas such as R&D and clinical trials. What steps is the pharmaceutical industry taking to address this ‘skills shortage’?

JG. There will be a critical staffing shortage in all industries; however, the pharmaceutical industry faces the greatest challenge. We are seeing a cooperation among the pharma companies as it relates to this issue. Randstad as well is working with several of our large pharma companies to do whatever possible to minimize this impact of the talent shortage.

It is critical that a company be recognized as a ‘great place to work’. Company culture and a commitment to people go a long way in attracting and retaining great talent. Companies are focusing on career succession, reward and recognition and competitive compensation and benefits programs. Each company believes they must be at or very near the top in each of these areas. Beyond that, there is one clear strategy that all pharma companies are working very hard on and that is college recruiting.

We manage several intern/co-op programs for many of our large pharma and life science companies and have been asked to work with the HR leadership to more closely monitor the return ratio of interns year over year, as well as the conversion ratio upon graduation. Internships play a key role in addressing staffing challenges, and there are increased efforts to heighten interest in the sciences with high school and junior high school students. Reaching out to students at this age, while they are still uncertain about what career they’d like to pursue is critical in developing the future workforce in the biopharma industry.

CJ. There are four major steps the pharmaceutical industry is taking in order to address this ‘skills shortage.’ The first is in cases where medicines need to be developed for the large ‘local’ regional market. It makes more sense for companies to locate their facilities closer to the population where the demand is higher, and whereby these companies can access the local skilled talent population and there are favorable economics. They’ll invest in global regions where there is high supply of technical (information technology), engineering, and scientific professionals. This tends to be in the high population areas of India, China, Africa and Brazil.

The second step is that pharmaceutical companies are partnering with specialty chemical manufacturers that have large-scale production capabilities, and are equipped with the appropriate ‘re-tooling’ and cGMP modifications. They are leasing out this capacity in their continued evaluation and expansion of contract manufacturing tactics.

The third step is investment in technology that allows for more process automation, much like the power generation, automotive, and aerospace has over the past couple of decades.

Lastly, the pharmaceutical industry (as well as other knowledge and technology driven business sectors) along with federal, state, and local governments and institutes of learning are beginning to collaborate in order to solve the declining enrollment and graduation of young students (as early as the junior high) into the sciences and engineering disciplines. This is taking place in the form of increased media awareness, outreach programs, support of the more traditionally underrepresented parts of the our society, and investment in education systems that focus on core science, math and technical classes.

VN. Understanding that our workforce of trained and experienced staff will shrink over the next five years; it is important that pharma companies get involved at the high school and college level to generate interest and educate students on the skills needed to be employed within the industry. In addition, pharma companies should not rule out targeting the baby boomer market. Many baby boomers will seek supplemental income after retirement age and may continue to work in their field through adjusted work programs. These are just a few ways to bridge the employment gap.

NGP. With an effective, long-term recruitment strategy central to pharmaceutical’s future, should the industry re-evaluate its HR policies as its operating environment changes? And what trends will have the greatest impact on pharmaceutical HR in the next few years?

TC. Yes, the pharmaceutical business is high-risk, but also high-return. And it is absolutely under more scrutiny then it has been in its history. This comes from the fact we are in a new era of imbalanced, constrained availability of skilled talent due to retiring baby boomers, and a slowed growth of new skilled workers entering the workforce. Also, for many of today’s companies, the latest trend in meeting staffing requirements is to employ independent professionals, commonly referred to as ‘free agents’. Free agents are employees who, rather than stay with one company for their entire careers, choose to offer their skills to clients on a temporary basis. Free agents already comprise nearly one-quarter of the US workforce, and their share of the labor market will continue to grow.

Add to these dynamics, large issues like consumer-demand pressures, increasing regulatory barriers, government/congressional involvement, patent challenges, low-cost global providers, declining/stagnate R&D productivity, and investment community expectations, and you have a business environment that needs to be constantly evaluated. Companies will need to adjust their business models in order to remain competitive and become more nimble. With more choices and availability of medicines around the world, it is imperative that pharmaceutical companies re-evaluate their human resources policies as well. They should work to develop a long-term, strategic partnership with a globally positioned HR staffing company in order to achieve their overall business results quicker, consistently, and more cost-effectively.

VN. Pharma companies should always review and update their HR policies to address industry trends. Forecasting should be an integral part of determining the strategies needed to attract and retain the right talent.

The trends that will clearly impact the pharma companies over the next few years are the retiring baby boomers, shortage of skilled workers and diversity in the workplace. In order to proactively maintain a full staff, pharma companies will need to devise recruitment strategies accordingly.

JG. The most critical success factor in effective recruitment is ‘filling the funnel’ of great potential talent for the short-term and the future. The pharmaceutical industry must focus on the development of interest in the industry as early as possible in the career of a ‘student’. Once the funnel is filled with great candidates the challenge will be to attract the talent to your specific company. This will require the continuous update of HR policies and compensation and benefits for the top talent.

Technology has had such an impact on how we manage people over the last 10 years, from e-mail to virtual workers. It will continue to evolve at a rapid pace. The companies that align the technology that affects their employees with their HR will be ahead. HR can use these developments to change and shape how they recruit and retain staff. Within this flexibility is key, you must always be prepared to move up or down in your headcount as business and technology demands change.

Additionally, since the pharma industry is an ever-changing environment, the key to developing solid recruitment strategies for the pharma community is to really have a pulse read on what motivates the professionals that are at the center of drug discovery. This will require the continuous update of compensation and benefits that will help attract top talent. Therefore, being able to modify HR policies to better serve this industry will be essential in year’s to come.

Since 2000 we have seen a growing trend of acquisitions and mergers resulting in pharma companies getting bigger and bigger in order to broaden therapeutic areas. HR will play a critical role to ensure a smooth transition from one corporate culture to another to ensure that the collaborative research process isn’t hampered. The trend in utilizing advanced personality assessment tools in staffing pharma positions will continue to grow. Developing a top-notch corporate culture to attract the best and the brightest is just as critical as ensuring that the hard skills are met.