Tania de Decker, Managing Director—Global Strategic Accounts, Randstad Enterprise Group06.01.22
Among the most worrying challenges medical device manufacturers face are the ongoing supply chain crisis crippling nearly every industry, escalating prices on raw materials, and the Great Resignation wreaking havoc on the global workforce.
Among other unexpected dynamics, the pandemic has accelerated digital transformation for the world’s economies. This means demand for engineers, mathematicians, and programmers increased even more. At the same time, we are seeing unprecedented wage inflation in addition to raw material price increases, putting medtech employers in an extraordinary squeeze.
Both the supply chain crisis and inflation may ebb in the near future as suppliers play catch-up and tighter monetary policy goes into effect. The scarcity of skilled medtech workers, however, has been an ongoing problem rooted in structural deficiencies in the labor market. Addressing the labor shortage will require significantly greater effort and time.
As many people already know, STEM skills have been in short supply for a long time. Earlier this year, IndustryWeek reported the U.S. is falling further behind in creating and developing these high-demand digital skills, and they’re not alone.1 In fact, economies everywhere are failing to train enough workers for STEM careers.2 Each year, the skills gap grows wider.
Randstad Sourceright’s 2022 Talent Trends survey found talent scarcity is the top pain point cited by life sciences leaders (33 percent).3 Life sciences leaders report talent scarcity for R&D specialists to HR and procurement to general strategy, marketing, and customer service roles. Many of these require the digital skills in high demand.
For instance, the Randstad Sourceright’s 2021 Global Future In-Demand Skills Report found the top nine skills sought after in 26 markets are urgently recruited for across most sectors.4 These include competencies in:
1. Obsess Over the Talent Experience
To become more competitive and attract talent, life sciences organizations are focusing on creating a better talent or employee experience. In fact, noted industry analyst Josh Bersin has called the employee experience not an HR initiative but a business imperative.5 Beyond the employee experience, employers are also taking a closer look at their candidate experience, which is the journey a company creates for its job applicants.
Why? According to a 2020 Glassdoor study, 17.3 percent of job applicants rejected offers,6 a figure that has only been rising since the Great Resignation. Employers that offer a poor or opaque talent experience are less likely to win over applicants, who have more opportunities in today’s labor market. A bad applicant journey—or a reputation for having a bad employee experience—can cost them more in recruitment and compensation costs simply because they will need to offer more to get candidates to say yes.
As a result, companies are really considering their image, culture, and what makes them attractive to talent. Talent marketing, for example, focuses on how employers message and promote their employee value proposition (EVP) to potential hires, highlighting their differentiators and providing compelling reasons for job seekers to join their organization.
The Talent Trends research shows a majority (57 percent) of life sciences companies are spending more on talent marketing aimed at temporary staff, and nearly three-quarters (73 percent) are doing so for freelancers and independent contractors.
Half (50 percent) are also doing this for permanent employees. At the same time, this is much lower than the 72 percent across all sectors who are doing the same. Life sciences organizations may want to amp up efforts further to improve their advantage when competing against other sectors.
2. Amplify DEI Efforts to Drive Talent Attraction
Another way companies across all sectors are driving talent attraction and widening their talent pools is through workplace diversity, equity, and inclusion (DEI) efforts. But here, life sciences organizations are also trailing.
While 57 percent of life sciences leaders say they benefit from talent with a broader range of talents, skills, and experiences, 50 percent say they're better able to attract a more qualified workforce; and 40 percent are attracting a wider range of candidates to fill vacancies as a result of DEI efforts. Just 41 percent say their hiring practices supported their diversity goals last year. This is the lowest percentage of all surveyed sectors, highlighting that there is an opportunity to prioritize DEI for a competitive advantage.
3. Make Purpose More Prominent
Additionally, companies are stressing the value and importance of the work they do for society, customers, and each other. The pandemic has shifted people’s expectations of their job and employers. Many want their work to have meaning and purpose; others see it as a way to connect with co-workers, customers, and other people.
The 2022 Randstad Workmonitor report affirms this.7 More than half (57 percent) of workers surveyed say they feel a sense of purpose through employment. Many, especially younger workers, also say their job must enable them to be happy, with 56 percent of those age 18-24 willing to quit a job if it prevented them from being happy. And 58 percent of all ages surveyed said they wouldn’t accept a job if it negatively affected their work-life balance.
These are important considerations for medtech companies as they look to compete with each other and other sectors for high-demand skills. Digitalization has pushed companies of all types into the same global talent pool, so to stand out, device manufacturers must be transparent about their values, work environment, and how they can help employees thrive. Only by creating a compelling EVP will they be able to attract the skills that are most in demand today.
References
Tania de Decker is 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 over 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 and achieving cost savings without compromising their capacity to pursue growth opportunities or manage risk.
Among other unexpected dynamics, the pandemic has accelerated digital transformation for the world’s economies. This means demand for engineers, mathematicians, and programmers increased even more. At the same time, we are seeing unprecedented wage inflation in addition to raw material price increases, putting medtech employers in an extraordinary squeeze.
Both the supply chain crisis and inflation may ebb in the near future as suppliers play catch-up and tighter monetary policy goes into effect. The scarcity of skilled medtech workers, however, has been an ongoing problem rooted in structural deficiencies in the labor market. Addressing the labor shortage will require significantly greater effort and time.
As many people already know, STEM skills have been in short supply for a long time. Earlier this year, IndustryWeek reported the U.S. is falling further behind in creating and developing these high-demand digital skills, and they’re not alone.1 In fact, economies everywhere are failing to train enough workers for STEM careers.2 Each year, the skills gap grows wider.
Access to Talent Is Challenging
If higher wages were their only concern, medical device makers could overcome this challenge through efficiency improvements, price adjustments, and a host of other measures to protect margins. The concern, however, is the availability of skills. A human capital leader at one of our largest medical device clients recently explained to me how competition from non-adjacent industries is making it more difficult to recruit the skills his company needs. This isn’t surprising because a growing number of industries have been encroaching on each other’s talent pools for some time.Randstad Sourceright’s 2022 Talent Trends survey found talent scarcity is the top pain point cited by life sciences leaders (33 percent).3 Life sciences leaders report talent scarcity for R&D specialists to HR and procurement to general strategy, marketing, and customer service roles. Many of these require the digital skills in high demand.
For instance, the Randstad Sourceright’s 2021 Global Future In-Demand Skills Report found the top nine skills sought after in 26 markets are urgently recruited for across most sectors.4 These include competencies in:
- AI and machine learning
- Augmented and virtual reality
- Blockchain
- Cloud computing
- Cybersecurity
- Data science
- Internet of things
- Robotic process automation
- User interface/experience design
1. Obsess Over the Talent Experience
To become more competitive and attract talent, life sciences organizations are focusing on creating a better talent or employee experience. In fact, noted industry analyst Josh Bersin has called the employee experience not an HR initiative but a business imperative.5 Beyond the employee experience, employers are also taking a closer look at their candidate experience, which is the journey a company creates for its job applicants.
Why? According to a 2020 Glassdoor study, 17.3 percent of job applicants rejected offers,6 a figure that has only been rising since the Great Resignation. Employers that offer a poor or opaque talent experience are less likely to win over applicants, who have more opportunities in today’s labor market. A bad applicant journey—or a reputation for having a bad employee experience—can cost them more in recruitment and compensation costs simply because they will need to offer more to get candidates to say yes.
As a result, companies are really considering their image, culture, and what makes them attractive to talent. Talent marketing, for example, focuses on how employers message and promote their employee value proposition (EVP) to potential hires, highlighting their differentiators and providing compelling reasons for job seekers to join their organization.
The Talent Trends research shows a majority (57 percent) of life sciences companies are spending more on talent marketing aimed at temporary staff, and nearly three-quarters (73 percent) are doing so for freelancers and independent contractors.
Half (50 percent) are also doing this for permanent employees. At the same time, this is much lower than the 72 percent across all sectors who are doing the same. Life sciences organizations may want to amp up efforts further to improve their advantage when competing against other sectors.
2. Amplify DEI Efforts to Drive Talent Attraction
Another way companies across all sectors are driving talent attraction and widening their talent pools is through workplace diversity, equity, and inclusion (DEI) efforts. But here, life sciences organizations are also trailing.
While 57 percent of life sciences leaders say they benefit from talent with a broader range of talents, skills, and experiences, 50 percent say they're better able to attract a more qualified workforce; and 40 percent are attracting a wider range of candidates to fill vacancies as a result of DEI efforts. Just 41 percent say their hiring practices supported their diversity goals last year. This is the lowest percentage of all surveyed sectors, highlighting that there is an opportunity to prioritize DEI for a competitive advantage.
3. Make Purpose More Prominent
Additionally, companies are stressing the value and importance of the work they do for society, customers, and each other. The pandemic has shifted people’s expectations of their job and employers. Many want their work to have meaning and purpose; others see it as a way to connect with co-workers, customers, and other people.
The 2022 Randstad Workmonitor report affirms this.7 More than half (57 percent) of workers surveyed say they feel a sense of purpose through employment. Many, especially younger workers, also say their job must enable them to be happy, with 56 percent of those age 18-24 willing to quit a job if it prevented them from being happy. And 58 percent of all ages surveyed said they wouldn’t accept a job if it negatively affected their work-life balance.
These are important considerations for medtech companies as they look to compete with each other and other sectors for high-demand skills. Digitalization has pushed companies of all types into the same global talent pool, so to stand out, device manufacturers must be transparent about their values, work environment, and how they can help employees thrive. Only by creating a compelling EVP will they be able to attract the skills that are most in demand today.
References
- bit.ly/mpo220621
- bit.ly/mpo220622
- bit.ly/mpo220623
- bit.ly/mpo220624
- bit.ly/mpo220625
- bit.ly/mpo220626
- bit.ly/mpo220534
Tania de Decker is 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 over 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 and achieving cost savings without compromising their capacity to pursue growth opportunities or manage risk.
