Can Medical Device Makers Keep Up with Their Talent Needs?

One of the most significant moments for the medtech industry is the recent acceleration of innovation. Digitalization, the rise of smart connectivity, and data harvesting are enabling products to deliver not just better but also more personalized care. In addition, as device makers incorporate more AI functionality, patient outcomes will only improve.

However, with the demand for innovation rising, how can companies keep up with the need for the unique skills required for specialties such as cardiology, digital care, pain management, robotics, and other growth areas? At the same time, as AI becomes more critical to future innovation, how can medtech businesses compete for these skills against all other sectors with similar needs?

There is no question the industry continues to experience talent scarcity in many functions, especially in design engineering, regulatory/compliance, data and security, and others. With innovation surging from FDA approvals and a robust product pipeline,¹ device makers must continuously augment their workforce to sustain this growth. According to McKinsey, last year, the FDA approved more novel technologies than any other time, and many of these were AI/machine learning enabled (up 33% from 2022). Moreover, this growth is expected to continue, and it’s one reason the agency recently published a paper on its approach to regulating these devices.²

Medtech’s need for AI skills is acute today and will be in the future. Software engineers, data scientists, and even ethicists are just some of the talent companies need to acquire, develop, and retain. Similarly, the robotics segment has grown more than 300% during the past decade,³ leading to a strong demand for design, UX, and electrical engineers with medical device experience.

Randstad Enterprise’s 2024 Global In-demand Skills Research found many of these skills remain challenging to fill despite a recent hiring slowdown in the tech sector. In fact, job postings seeking candidates with robotics skills reported having the highest job vacancy rates at 14%. In second place (11%) are roles requiring natural language processing expertise, a cornerstone of AI development. Additionally, employers seeking workers experienced in compliance and ethics also reported a high job vacancy rate of nearly 9%.⁴

These high vacancy rates pose significant challenges for the industry as healthcare customers expect device makers to deliver products more quickly. For instance, Bain & Company reported that most surgeons are interested in utilizing robotics in their practices (78% of those surveyed), but just 53% are doing so.⁵ Some of the main obstacles include limited clinical evidence and immature technology, which can be addressed with faster commercialization of products and services. Delivering the next generation of surgical robotics as well as other devices will require significant investments in people.

Access to this talent remains constrained. In our 2024 Talent Trends survey of human capital and C-suite life sciences leaders around the world, one in five said talent scarcity has negatively affected their business or is one of their biggest pain points. Even more concerning is that 79% said the skills gap is widening and will create greater challenges in the near future.⁶

This data affirms the concerns the industry’s association, AdvaMed, has voiced about scarcity. According to its website, the U.S. will need approximately 1 million more STEM workers in 2031 than it did in 2021, and the medical device industry will be among those with the greatest needs for such talent.⁷

How Are Leaders Addressing Scarcity?

With talent scarcity such a concern, what are companies doing to address scarcity, especially for skills high in demand? Our data reveals they are embracing a variety of measures ranging from adopting a skills-based model to providing more training and development to considering a total talent solution. Using AI to more readily augment the workforce is also often cited by many human capital leaders. All of these are effective long-term solutions to a worsening skills gap, but they require a sustained commitment to achieve success. Following are some of the ways organizations are applying such efforts.

AI and Humans Work Hand-in-Hand

AI is increasingly transforming product development, clinical studies, regulatory management, and sales, but the technology has not displaced workers in any significant way. That’s because these services still require a tremendous amount of human skills such as creativity, empathy, and relationship building. Technology’s promise is to help people accomplish their jobs more effectively. For instance, 25% of life sciences human capital leaders said AI adoption frees up their people to focus on more strategic projects. Case in point, appearing on CNBC, Medtronic CEO Geoff Martha pointed out AI is assisting surgeons in the operating room to improve procedures such as colonoscopies.⁸

Focus on Skills and not CVs

Budget constraints and scarcity of specialty skills present double the challenge of acquiring the resources some companies need. To overcome these, organizations increasingly are adopting a skills-based approach to hiring and mobilizing internal talent. Talent Trends data shows 84% of life sciences leaders consider a person’s potential to learn or grow into a role important, which is higher than having an undergraduate degree (77%) and nearly as high as a master’s (86%).6 One of our life sciences clients told us adoption of a skills-based model, in which they consider candidates based on inherent strengths as well as education and work experience, is a priority for the organization. To do this, the company has invested in an ontology (a taxonomy of skills) to identify employees who can fill vacant roles requiring skills similar to the ones they possess.

Deliver Robust Learning Resources and Channels

There is no question that learning and development are more of a priority for the medtech industry today. The rapid pace of innovation is redefining the skill sets needed in roles such as biomedical engineers and combination product specialists. Among life sciences leaders, 90% say reskilling and upskilling are necessary talent strategies for employers to overcome perennial talent scarcity. An effective strategy incorporates a mix of learning resources to help workers acquire skills more quickly—BD is one such example. The sharps manufacturer leverages a 60-20-20 model, where 60% of learning is from on-the-job experiences, 20% through coaching and mentoring, and 20% through formal learning. This approach, according to the company, enables its workforce to continuously upskill and contributes to better business results.⁹

Conclusion

As medtech companies keep pushing the innovation envelope, their need for novel skills will expand accordingly. From manufacturing associates to sterilization specialists to data engineers, these roles must evolve to support new devices and services. Whether through acquisition or internal development, building the workforce of the future is a challenging priority for the industry. However, by leveraging technology, redefining skills, and embracing comprehensive learning, the industry will ensure a robust and sustainable talent pipeline. 

References

1. tinyurl.com/mpo240631
2. tinyurl.com/mpo240632
3. tinyurl.com/mpo240633
4. tinyurl.com/mpo240634
5. tinyurl.com/mpo240635
6. tinyurl.com/mpo240636
7. tinyurl.com/mpo240637
8. tinyurl.com/mpo240638
9. tinyurl.com/mpo240639

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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 more than 18 years with life sciences companies. The emphasis has always been on improving the quality of her clients’ talent acquisitions.