Sector Spotlight
New Challenges for Leadership Recruitment
The transformational changes taking place across the life sciences industry are having huge impacts on leadership recruitment – shaping both the type of skills that life sciences companies need and the ways in which they can best attract and appoint new leaders during these uncertain times. This article reflects on the key changes that are taking place in the life sciences sector and looks at the implications for leadership recruitment.
A transforming industry environment
The life sciences industry is always changing and this is, of course, what makes it such a vibrant and exciting sector to work in. A number of key trends are now combining to drive an unprecedented period of change:
An increasingly challenging economic environment – public healthcare providers are pushing to reduce costs, which is driving associated regulatory, reimbursement and pricing pressures.
The maturity of the blockbuster – as many of the industry’s blockbuster products reach the end of exclusivity, companies are looking for new ways to extend the life cycle opportunities for these key assets, with major consequences for business strategy.
The increasing pace of the science and technology revolution in life sciences and the convergence of technologies – which brings with it the opportunity to make life-changing differences to patients worldwide in previously under-served disease areas, notably in oncology and neuroscience.
Patient power – as patients’ involvement in healthcare decision-making increases, this is changing the nature of the industry’s involvement with patients and patient groups.
The pattern of global growth is changing – with accelerated expansion in countries such as China and India, and reduced growth in more mature markets.
New Business Models are driving skills and knowledge requirements
The responses to these challenges are many and varied. At DHR International, we are seeing some significant changes to our clients’ business strategies, organizational structures and, of course, to the skills and type of people the industry seeks to recruit.
For example:
R&D and Operating priorities have been reappraised across the industry – with significant reorganizations to improve efficiency while maintaining the quality and scientific rigor that are the hallmarks of the sector.
Greater specialization and focus – the rise of the specialty life sciences organization, focused on a niche segment or therapy area where they have special expertise.
Simultaneously, some larger companies are widening their interests – building diverse expertise across pharma, biotech, devices and consumer health sectors, for example.
A significant increase in M&A activity – as large companies seek to boost their pipelines through strategic acquisitions, joint ventures and alliances, and specialty companies seek reliable investment to enhance the value of their assets.
Increasing levels of partnering – including off-shoring, out-sourcing, and collaborations, and the consequent growth within the services sector of the life sciences industry globally.
New customers are emerging – and with this, new ways of engaging with customers and patients, which is changing the shape of commercial organizations across the life sciences industry.
A re-shaping of the global life sciences industry is taking place – expansion in emerging markets such as China and India, alongside a focus on leaner, more focused organizations and teams in more mature markets.
The industry is looking to learn from other sectors – there is an increasing appetite from companies to search for people from outside of the industry, to gain the know-how and experience of other sectors, such as FMCG and Technology.
New Challenges for Leadership Recruitment
As the life sciences industry reshapes itself to meet the needs of a changing world, companies are often competing for the best talent to drive their businesses forward. In the search for new leaders, the following factors will be increasingly important and will help to differentiate successful organizations.
An intense demand for key talent – it is increasingly important to work actively to retain and develop key talent and, when seeking new key leaders for your company, it is vital to devise an innovative and compelling platform from which to hire people who can provide differentiation.
Key talent is still scarce – at a time when we hear so much about contracting job opportunities, it is often assumed that it will be easier to attract great people, yet the industry’s best people are usually in employment and thriving. And so, although this may sound counter-intuitive, it can be more challenging for even the strongest companies to hire the best people in a down-turn. It is certainly as important as it has ever been to run a professional, well-managed, efficient executive search and hiring process that impresses your candidates.
Candidates are more reflective – allow time for their decision-making. At this time of high M&A activity, suppressed house prices and economic volatility, candidates are often more cautious about making a career move, especially when they have built a history and reputation within their current company. It can therefore be tougher for them to make the decision to move, even to a fantastic opportunity, and this requires a highly supportive and rigorous approach from your search firm and full engagement from your own senior leaders in the search process. There is nothing more powerful than a call from the CEO or another Board member at the critical point in a candidate’s decision.
Widening the net – historically the industry has usually recruited from its own sector. Increasingly, as well as identifying the industry’s key talent, we are searching outside of the life sciences sector, into other industries and customer environments. By doing this our clients can often gain access to new thinking, a fresh perspective, especially for commercial and operational roles, and this can provide important differentiation.
“Talent gaps” – as the industry reshapes, the need for talented people in some critical functional areas has increased and they are often areas in which there is a scarcity of industry talent. We have seen an increased level of search activity for key people in these “high priority/low talent availability” areas of the industry, including a higher than usual requirement for C-suite, VP and Director level appointments within drug safety, market access, licensing and acquisition, medical, regulatory, and change leadership.
An increasingly international market for leaders – around 90% of our search assignments now involve seeking talented individuals from across Europe or globally. It’s increasingly important to search the International, not just local, market for the best people.
Location flexibility – candidates are often more reluctant to relocate their families in uncertain times. If you can be flexible about where a role can be located, or enable some element of remote working, this can enable you to gain access to talented people who may otherwise not be available.
And one final thought. Our clients are, quite rightly, not willing to take risks in appointing their senior leaders. At DHR International we have seen this reflected in the fact that our search briefs have become more specific as companies seek the most talented people who can create competitive advantage and help them to negotiate the new industry challenges. At this time, it is even more important to select the right search partner who can provide specialist understanding of the industry and find innovative ways to search for and attract the key talented people to drive an organization forward.