Biotech’s Looming Talent Crisis: 5 Ways to Prepare for the Storm
Finding and keeping great talent has always been a limiting factor for building companies—and even more so in the life science industry, which requires highly specialized skills. As an executive recruiter focused solely on life sciences, I know firsthand the challenges of filling key executive roles, and I’m often the first to see signs of change in our industry.
Today, I fear we’re at the cusp of a full-blown talent crisis. While finding and keeping qualified leaders has always been a rate-limiting challenge, major demographic shifts are taking this scarcity to a whole new level.
Baby boomers soon will retire en masse, and the remaining talent pool—comprised of individuals from the Gen X and millennial generations—differ radically in their values and workplace expectations.
Meanwhile, a survey of the current labor market indicates high levels of discontent. More than half of American workers are actively seeking new positions, according to Gallup, and a growing number of employees are unafraid to leave their jobs. Some 3 million employees voluntarily left roles in August 2016, up from 2.1 million in August 2012. Another important finding from the survey: Only about a third of employees feel engaged in their work.
It’s essential for biotech companies to pay attention to these trends, and make proactive cultural changes that will ensure a robust and engaged workforce—and, quite frankly, will save them a lot of money. Talent turnover, particularly at the executive level, is estimated to cost twice the salary of that executive position.
The recession that led to major job losses in biotech a decade ago is now a distant memory. The industry is back in full force—and 2018 is off to a rocking start. We saw $2.8 billion of venture capital invested in biotech startups in the first quarter, already surpassing any year before 2014, according to Pitchbook. To sustain this growth, companies will need to work harder than ever to attract talent, as workforce demographics are quickly changing.
The enormous baby boomer generation has dominated the biotech workforce since its formative years in the late 1970s and early ‘80s. This generation, including individuals currently between the ages of 54 and 72, is known for its steady and loyal work—valuing 9-to-5 hours and showing loyalty to their company. But in a decade, nearly all boomers will be at or near their retirement age. Gen X and millennials will need to fill in the gap.
These successive generations, however, have substantially different values and expectations of their employer. For instance, Gen X (now between the ages of 38 and 53), and millennials (between 22 and 37) place a high value on flexibility, both in terms of where and when they work. Millennials, sometimes referred to as the “giving generation,” also are known to seek jobs that allow them to give back to society.
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