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Hiring is up, recruiters say, and soft skills are in short supply. Survey respondents say they’re happy now, but will likely change employers within five years.
June 5, 2014
By: Agnes Shanley
Editor
In the pharma job market, it may not be the best of times, but it’s far from the worst. The industry has recovered from the economic slump of 2011 and 2012, and, even if salaries are not going up, companies are hiring again, recruiters and placement specialists agree. “Employment came back in 2013, and, so far, this year has seen a remarkable increase in activity,” says recruiter David Jensen, managing director of Kincannon & Reed Executive Search. “But it matters what niche you’re in. For instance, bioprocessing is still a good niche, and manufacturing and process development.” Chemical engineers face fairly strong demand, he says. But some traditional career tracks may soon be disappearing, or silently moving offshore. “Here in the U.S., demand for workers in pharmaceutical sales will continue to shrink due to industry mergers, increased use of digital marketing and stricter regulations that limit sales reps’ contact with physicians and healthcare providers,” says John Challenger, CEO of Challenger, Gray & Christmas, an executive placement firm based in Chicago. “Meanwhile in R&D, big pharmaceutical companies appear to be cutting their budgets and staffs, though they still remain large, and concentrating them into specialty drugs,” he adds. Today, there is increased demand for experts in drug development and commercialization. In fact, there is a shortage of professionals with the ideal skill sets. Often, companies have had to hire foreign graduates to fill these positions. But, as the U.S. government restricts the number of H1B visas it grants to foreign professionals, some positions have become quite difficult to fill. According to the U.S. Citizenship and Immigration Services (USCIS), for the first time since 2008, 124,000 H1B visa petitions were received for 2014 by the first week in April. A lottery was hold to meet the cap of 65,000 and masters cap of 20,000, USCIS reported. All this change is having an impact on the way that pharma professionals approach their jobs and career planning. Where, 10 years ago, few people were willing to relocate, even to another state within the U.S., today more people are moving to other parts of the world, recognizing that global experience will add luster to their resumes. Pharma’s huge mergers have taken their toll (Box, p. 74), and recent news of Pfizer potentially buying AstraZeneca has led to some wild speculation on the impact that a merger of that size could have on the industry. Some are skeptical that real change is taking place. “We keep hearing that the market is improving,” says Maryellen Ruvolo, CEO of PharmStorm, an employment website launched last year, “but we keep forgetting that companies laid off thousands and are now hiring hundreds.” Layoffs at Actavis and Forest Labs had a huge impact on professionals based in her area, the northeastern U.S., in New Jersey and Long Island, she says. However, even if the numbers are not huge, hiring is on the rebound, and respondents to Contract Pharma’s 2014 Salary and Job Survey describe themselves as rather happy in their positions, and relatively secure, if somewhat stressed. Most expect to be moving on in the next five years. This article will look at hiring trends and summarize results of this year’s survey. The brightest spot appears to be biopharma. “The biotech boom has been going on for the past two years and isn’t letting up,” says Megan Driscoll, president and founder of PharmaLogics Recruiting, whose Boston-area-based company has doubled revenue every year since 2011. “Today, we see a lack of good candidates. It’s a strong labor market,” she says. However, the emphasis is on the “D” rather than the “R” in R&D. In addition, the skills required today have changed considerably. (For a sample job description, see Box, p. 76) Unfortunately, what is lacking in most job applicants today is the “soft skills,” recruiters agree. Especially important is the ability to lead and influence others, Jensen says. “Today, companies are using a matrix employment structure, so people don’t typically manage a large number of employees. However they need to be able to demonstrate influence and authority.” “Success today has less to do with technical acumen than it does with emotional IQ,” says Driscoll. “There are a lot of niched experts out there, but what employers are looking for is the ability to work on teams, unusual skills and leadership. You have to be able to present your subject of expertise well, and to communicate to people varying backgrounds,” he says. “Social skills are very important.” Challenger blames the industry for allowing a mismatch between needs and skills to happen. “There may be a shortage of workers with the right mix of technical and nontechnical skills to ‘hit the ground running’, he says. “However, the industry may be partly to blame for not spending the time and money to develop its own workforce.” He quotes a 2013 industry blog on talent shortages: “There are specific skill sets such as regulatory affairs, alliance management, that are not learned in a classroom environment but are acquired on the job. Companies are looking for these skills but only want to hire people that already have experience in these areas, ignoring the simple fact that a very smart person (i.e. layed-off [sic] scientist) could easily be trained in these skills…” Soft skills are always important in any industry or workplace, Challenger says. When they are lacking in technical positions in pharma, he says, the result can be difficulties communicating with colleagues, superiors, and subordinates. “Lack of communication or writing skills, poor leadership due to lack of training, all can lead to instances of low morale, or worst case, a talent drain,” he adds. Jensen suggests that industry and universities work together to solve this problem. “Universities are slow to change, and some grads emerge as if they were miniprofessors, and aren’t prepared, don’t know how to handle projects,” he says. “Universities and companies need to coordinate training and to focus on soft skills.” There is no more “on the job training,” Jensen says. Maybe someone gets hired to the cGMP group and gets sent to a course, but then they need to dive in.” In short, job seekers need to educate themselves, he says. Another change is that pharmaceutical companies are seeing themselves as more global, Driscoll says. This may be ironic since pharma has always been considered one of the more international industries. But this has brought change to the way pharma professionals view relocation. “Mergers and acquisitions, as well as exploring untapped markets, have made the pharmaceutical industry global. It may not be a given that top executives need to work abroad, but those with international experience and expertise will be viewed as more attractive as more and more companies bring their products overseas,” Challenger says, noting that this trend cuts across all industries. “Our economy is shifting, and all industries will want leaders who know the ins and outs of international business. In the past, relocation was a big deal, Driscoll says, and people stayed in one place for a really long time. Today, the mindset is changing. “U.S. employees used to be confined to a state or country, but now our discussions are much broader and people are more open about moving overseas. I see that as a shift, “she says.”Even if companies aren’t offering any tangible incentives such as cushy relocation packages, candidates are willing to make the move, seeing that it makes them more marketable,” Driscoll says. But what do Contract Pharma readers have to say about their salaries and jobs? Most of you say you feel great, good or pretty good about your job. (Figure 1). Nearly 40% of you said you are satisfied or very satisfied with your compensation levels (Figure 2). 72% of you say you have received raises (Figure 3), Only 4.7 of you say you’ve taken pay cuts (Figure 4) and roughly 7% say their benefits were reduced (Figure 5). 96% of respondents said they were not layed off last year (Figure 6), 16% say they have had to lay others off, and around 31% say their department’s budget has been reduced (Figure 9). Responses were quite interesting on the topic of life-work balance. Only 7% said it was extremely easy to achieve. Some readers describe having to do more with fewer people. Most respondents describe having three weeks of vacation each year, but half of the respondents say they didn’t take all their vacation last year. “At my level, it is a given that one never takes all one’s vacation,” writes one respondent. Many describe a high level of stress. Complains one respondent, “I’m taking work home at night and on weekends.” Another describes always being “on.” Recruiters say this level of stress is a given today, and it’s a phenomenon that goes well beyond pharma. Some of this may be due to globalization, says Driscoll. When you are working with colleagues, especially in Europe, who have more work holidays than we do here in the U.S., who turn off their cell phones during vacations, and who may not use instant messaging that frequently, it can remind one of cultural differences and exacerbate stress. Challenger notes that smart companies will provide incentives to attract and retain talent. That may mean allowing flexible work schedules, telecommuting, or fostering an environment where one would want to come every day, including free meals, a gym, day care, and other perks. If these kinds of perks are not available and the worker feels overworked or underappreciated, they may look at other opportunities,” he says. Jensen sees this as inevitable, and a trend that affects us all. “Access is far more than simply 9 to 5 today,” he says.” This is a new phenomenon. We’ve always had workaholics, but now a majority of people are affected.”
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