5 Ways to Maintain a Talent-Centric Mindset, Even During Economic Uncertainty

As 2023 brings more economic and geopolitical uncertainty, medtech talent leaders face the unenviable task of ensuring their organizations are ready for any contingencies. Is the global economy headed for a soft landing, as many are hoping for, or will we see a more severe downturn that could impact the medical device industry in a meaningful way? Whichever way we are headed, one thing is clear: the need for business-driving talent is not going away.

Last year brought many headlines of significant layoffs in the technology sector, and medical device manufacturers were not spared from this trend. Some of the largest manufacturers in the world announced workforce reductions amid slowing sales and cost trimming.¹ This shouldn’t come as a surprise to anyone as greater economic forces have hurt sales in key medtech markets such as China, the U.S., and others.

But in a challenging business environment, demand for certain hard-to-find skills remains strong. The December U.S. jobs data shows continuing growth in the labor market, albeit at a slower rate.² The last jobs report of the year pointed to more uncertainty ahead, with some sectors (such as technology) weakening and others (such as healthcare) rising. This creates a complexity that presents unique challenges. Businesses are likely facing hiring freezes, while simultaneously being pressed to acquire high-demand skills that will help them continue innovating in an increasingly competitive market.

Despite widespread layoffs in the broader tech sector, medtech’s need for digital skills remains strong. According to EY, the sector’s 2021 revenues reached their highest level before the financial crisis of 2008, driven by therapeutics development.³ Cloud computing, data science, consumerization, and other patient-centric developments continue to drive talent demands, especially for new and innovative skills. In our work with clients, we see them shed headcounts in some areas but add elsewhere. For many companies, the economic cycle has not markedly alleviated their skills gaps.

In Randstad Sourceright’s forthcoming 2023 Talent Trends research, a survey of more than 900 C-suite and human capital leaders, 60% of life sciences and pharma employers say their organizations hired extensively in 2022.⁴ More than one-third (37%) say they plan to hire over the next 12 months to address talent scarcity, and nearly three-quarters (72%) say the skills gap in their organization is widening and will create greater challenges in the future.

Talent Experience Remains a Priority

To close the skills gap and ensure adequate resources are available to drive innovation, medical device makers must not let up on their talent experience strategies. Talent experience will continue to be critical when it comes to your employer brand and talent attraction, as well as workforce engagement, satisfaction, and retention.

According to Randstad’s 2023 Workmonitor survey of more than 35,000 workers in 34 countries, people increasingly turn to their employers for monetary and non-financial support, even in their personal lives.⁵ A new social contract between employer and talent has emerged in the past three years, with expectations that companies will help them manage today’s higher cost of living, offer more job flexibility, and guarantee work will fit within their personal lives. With this in mind, what does it take to find and hire top candidates with the skills your business needs the most?

Randstad Sourceright’s 2022 Global In-Demand Skills research shows there are five areas medtech manufacturers can focus on to attract, acquire, and retain the best people.⁶ By emphasizing a talent-first experience in their strategy, employers are best positioned to build an agile and effective workforce. The areas to focus on are:

1. Highlight Your Purpose

Our research finds the life sciences sector simply doesn’t have large talent pools from which to draw candidates, especially for digital skills like big data or AI, as compared to non-tech skills. Competitors for talent in the tech and finance industries are luring digital talent away with incentives like high compensation and cutting-edge projects. This gives life sciences employers an opportunity to attract candidates by highlighting the personal satisfaction they’ll gain when working on life-changing and life-saving innovations.

2. Partner to Engage Emerging Talent

One of the reasons life sciences companies recruit from a smaller talent pool is many roles require industry-specific experience, education, and/or certifications. In the U.S. alone, the top five fields of study for non-tech talent in the industry include business administration, nursing, psychology, healthcare administration, and biology. Employers can gain an advantage by working with universities through internship programs, for instance. This can help establish relationships with emerging talent while highlighting the long-term careers they can have with your organization.

3. Fill Gaps with Talent in Other Markets

Non-tech talent, such as customer service, sales, and finance individuals—each among the 10 most in-demand skills—is in greater supply in the Asia-Pacific region. Hiring people here can help overcome the talent scarcity found in North American and European markets. Meanwhile, businesses in the Asia-Pacific and European regions may have more success hiring tech talent in North America where the supply is more abundant.

4. Continue Making Gender Diversity a Priority

While there is always room for improvement, the life sciences sector is ahead of others in advancing gender diversity at work. Women represent 54% of the non-tech workforce across North America, Europe, and Asia-Pacific regions. Although women represent just 35% of the tech roles overall, there are some notable exceptions. For cybersecurity roles, women make up 50% of the workforce, for example. Employers in this sector should highlight their DE&I strategy and continue building workplaces where diverse talent can thrive and grow.

5. Embrace Long-Term Flexible Working

Employers in North America offer the most remote work opportunities among life sciences and pharma companies—especially in the fields of cloud computing (36%), big data (35%), and UI/UX (30%)—and employers in Europe offer a fair amount. The Asia-Pacific region, however, offers the fewest remote working opportunities, based on job postings. Employers that want to effectively attract and retain digital and customer service skills will need to embrace remote and flexible working long-term. This is especially true for the life sciences industry, which trails 10% behind average.

Conclusion

Without a doubt, retention will be critical to the talent strategies of many medtech companies in 2023. By offering and articulating a compelling value proposition to talent—both prospective hires and existing employees—talent leaders enhance their company’s ability to access the best people when and where they are needed. And that is a powerful way to have a measurable business impact. 

References

1. bit.ly/mpo230191
2. on.mktw.net/3vZ8ahw
3. go.ey.com/3QD3pUh
4. bit.ly/mpo221133
5. bit.ly/mpo230195
6. bit.ly/mpo230196

---

Tania de Decker is the managing director of global strategic accounts for Randstad Enterprise Group. She works with Fortune 500 companies to develop and implement processes that improve and drive recruitment and retention solutions. de Decker has more than 28 years of recruitment experience and has worked over 18 years with life sciences companies. The emphasis has always been improving the quality of her clients’ talent acquisition.