Tania de Decker, Managing Director—Global Strategic Accounts, Randstad Enterprise Group04.01.22
At no point in my career have I witnessed the intense competition for talent that exists today, and human capital leaders at medtech companies would probably agree. The global crisis created huge ripples in the labor market, accelerating the transformation of many companies and the need for new skills. At the same time, countless workers have been displaced due to the rapid transition from heritage businesses to digital ones. So what does the future of work look like in a post-pandemic economy?
Medical device manufacturers face a greater urgency to innovate and develop products required for a variety of needs. With significant amounts of healthcare spending diverted to COVID-19 needs, providers are now turning to device manufacturers to drive greater efficiencies and cost savings. This means accelerated development in telemedicine, using data to improve patient outcomes, and implementing AI and automation to alleviate overburdened healthcare workers.
According to one estimate, the global medical device industry is expected to grow to $603.5 billion by 2023, a significant jump from a market value of $457 billion in 2020.1 This projection will hinge on the sector’s ability to continue to innovate and drive more value for healthcare markets around the world. To do so, manufacturers must ensure they have access to the right talent and skills, but the current scarcity challenge may indeed slow development and rollout of new products.
Increased Competition Makes Talent Acquisition More Challenging
As medtech manufacturers shift their focus, human capital leaders will also need to reassess the skills their organizations need today and in the future. The challenge, however, is that life sciences employers are no longer only competing among themselves for important skills; they now fish in the same talent pool with the likes of Google, Microsoft, IBM, and other tech giants that have strong corporate and employer brands and are widely known for innovation.
Recent growth in the disposable and durable medical device businesses, along with accelerated digital transformation of the industry, has been a boon for many companies. This has resulted in unprecedented demand for traditional and future skills. In 2021, Randstad Sourceright conducted research that outlined the top nine most in-demand skills, and every one of these skill sets is heavily recruited by the medtech industry today. Data analytics, internet of things (IoT), artificial intelligence (AI) and machine learning, cybersecurity, and augmented and virtual reality are all in high demand and short supply, and critical to medtech innovation.
Differentiating Through Purpose
To attract the best candidates, manufacturers will have to do a better job of articulating the benefits of a career in the healthcare device field. While medical products are used regularly by most consumers, the companies that make them are hardly household names familiar to job seekers. Persuading talent to join their organization requires manufacturers to create a more compelling employee value proposition, emphasizing career growth opportunities, excellent compensation, a healthy work-life balance, and a compelling overall purpose of work (i.e., to improve and save lives).
Purpose has become especially important to job seekers in a post-pandemic environment and in light of the Great Enlightenment. According to Randstad’s Workmonitor survey of more than 27,000 workers in 34 markets, 70 percent of those surveyed said the pandemic has led them to achieve more clarity about their personal and professional goals, and 67 percent have been inspired to make changes to their work-life balance.2
The global crisis created a new social contract between workers and employers. Today, talent expects employers will be empathetic to their needs. COVID-19 forced many into an existential crisis, and seeing those around them fall ill—in some cases, lose their lives—has realigned goals and desires. While medical device professionals have always been at the forefront of addressing patient care, quality of life, and wellness, the past two years brought the value of medical innovation home to a personal level for a wider audience.
Selling purpose in the life sciences industry, however, may be difficult. Randstad Sourceright’s 2022 Talent Trends survey of 900 human capital leaders in 18 markets shows that, among human capital and C-suite leaders in the life sciences industry, only 33 percent believed job candidates see their organization as having a strong purpose and clear vision.3 Surprisingly, this is much lower than the global baseline that spans all sectors at 75 percent. It’s clear life sciences employers are missing an opportunity to attract great talent by more actively promoting their purpose.
With demand for talent expected to remain robust for all of 2022 in the sector—55 percent of life sciences companies said they plan to hire extensively this year—companies are scrambling to strengthen their employee value propositions, fine-tune their employer brands, and create recruitment experiences that will stand out in the minds of the job applicants they hope to attract.
Further, 53 percent report they’re working to create an easier, more transparent recruitment process for job applicants. Beyond this, companies in the industry are also focusing on retention through a better workplace experience. In fact, 57 percent are investing in workplace culture, employee feedback, and engagement systems to better gauge workforce sentiments; 77 percent are more focused on creating a positive talent experience.
Innovating Human Capital Practices
To mitigate talent scarcity challenges, employers will need to rethink how they get work done. Some medtech companies have transformed their talent strategies by embracing a concept called total talent acquisition.4 Under this model, organizations will consider all forms of labor to satisfy the needs of the business, including permanent hires, temporary staff, statement of work (SOW) contractors, freelancers and gig workers, and automation.
For example, whereas a new engineering development project might have required hiring six full-time workers in a traditional work model, a total talent approach will carefully assess the people resourcing needs of the project. This may lead to a more efficient utilization of different work arrangements, such as hiring three permanent workers, deploying seven temporary staff, and creating a statement of work for engineering the circuit board of the device.
This alternative approach often not only leads to cost savings but also a faster time to market. Instead of recruiting six workers, which can be time consuming and arduous, the employer can quickly staff-up using skills available through temporary or independent contractors.
Using Flexibility to Attract Talent
Adopting a holistic talent model is one way for manufacturers to contend with the crippling talent scarcity issue. Enhancing the employer brand and employee value proposition can also help with talent attraction and access to more candidates. Still, a robust recruitment strategy can only go so far when talent is simply in short supply.
Across all sectors, one in three employers surveyed in the Talent Trends research say they’re offering flexible working arrangements as a way to address talent scarcity, and 86 percent said this strategy is effective. As a result, life sciences organizations may need to do the same to remain competitive.
Unlike other industries such as professional services, consulting, and IT—which witnessed their talent pools expand significantly with the proliferation of remote work—medtech companies may still be bound by geography when recruiting for R&D, clinical, QA/QC, and other on-site roles. Flexibility, however, does not have to equal fully remote work; organizations should also consider accommodating variable schedules and hybrid options as a talent attraction and retention strategy.
More recently, companies are taking a closer look at retention and internal mobility as additional ways to hold on to workers, even if they lack certain competencies needed in a different job. Many employers are discovering they can mitigate the skills gap through up- and reskilling. In fact, 67 percent of those surveyed in the life sciences sector said reskilling is an effective way to counter the labor shortage.
Conclusion
While innovation is a continuous goal for medical device manufacturers, many haven’t brought that same level of rigor to their human capital practices. Operating in an industry that has traditionally shied away from making its workplace transparent, companies will need to rethink their talent strategies, approach, and execution to win over the best talent in today’s highly competitive labor market. By adopting a people-centric philosophy and creating a stronger talent experience, medtech HR leaders are much better positioned to drive value to their business.
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.
Medical device manufacturers face a greater urgency to innovate and develop products required for a variety of needs. With significant amounts of healthcare spending diverted to COVID-19 needs, providers are now turning to device manufacturers to drive greater efficiencies and cost savings. This means accelerated development in telemedicine, using data to improve patient outcomes, and implementing AI and automation to alleviate overburdened healthcare workers.
According to one estimate, the global medical device industry is expected to grow to $603.5 billion by 2023, a significant jump from a market value of $457 billion in 2020.1 This projection will hinge on the sector’s ability to continue to innovate and drive more value for healthcare markets around the world. To do so, manufacturers must ensure they have access to the right talent and skills, but the current scarcity challenge may indeed slow development and rollout of new products.
Increased Competition Makes Talent Acquisition More Challenging
As medtech manufacturers shift their focus, human capital leaders will also need to reassess the skills their organizations need today and in the future. The challenge, however, is that life sciences employers are no longer only competing among themselves for important skills; they now fish in the same talent pool with the likes of Google, Microsoft, IBM, and other tech giants that have strong corporate and employer brands and are widely known for innovation.
Recent growth in the disposable and durable medical device businesses, along with accelerated digital transformation of the industry, has been a boon for many companies. This has resulted in unprecedented demand for traditional and future skills. In 2021, Randstad Sourceright conducted research that outlined the top nine most in-demand skills, and every one of these skill sets is heavily recruited by the medtech industry today. Data analytics, internet of things (IoT), artificial intelligence (AI) and machine learning, cybersecurity, and augmented and virtual reality are all in high demand and short supply, and critical to medtech innovation.
Differentiating Through Purpose
To attract the best candidates, manufacturers will have to do a better job of articulating the benefits of a career in the healthcare device field. While medical products are used regularly by most consumers, the companies that make them are hardly household names familiar to job seekers. Persuading talent to join their organization requires manufacturers to create a more compelling employee value proposition, emphasizing career growth opportunities, excellent compensation, a healthy work-life balance, and a compelling overall purpose of work (i.e., to improve and save lives).
Purpose has become especially important to job seekers in a post-pandemic environment and in light of the Great Enlightenment. According to Randstad’s Workmonitor survey of more than 27,000 workers in 34 markets, 70 percent of those surveyed said the pandemic has led them to achieve more clarity about their personal and professional goals, and 67 percent have been inspired to make changes to their work-life balance.2
The global crisis created a new social contract between workers and employers. Today, talent expects employers will be empathetic to their needs. COVID-19 forced many into an existential crisis, and seeing those around them fall ill—in some cases, lose their lives—has realigned goals and desires. While medical device professionals have always been at the forefront of addressing patient care, quality of life, and wellness, the past two years brought the value of medical innovation home to a personal level for a wider audience.
Selling purpose in the life sciences industry, however, may be difficult. Randstad Sourceright’s 2022 Talent Trends survey of 900 human capital leaders in 18 markets shows that, among human capital and C-suite leaders in the life sciences industry, only 33 percent believed job candidates see their organization as having a strong purpose and clear vision.3 Surprisingly, this is much lower than the global baseline that spans all sectors at 75 percent. It’s clear life sciences employers are missing an opportunity to attract great talent by more actively promoting their purpose.
With demand for talent expected to remain robust for all of 2022 in the sector—55 percent of life sciences companies said they plan to hire extensively this year—companies are scrambling to strengthen their employee value propositions, fine-tune their employer brands, and create recruitment experiences that will stand out in the minds of the job applicants they hope to attract.
Further, 53 percent report they’re working to create an easier, more transparent recruitment process for job applicants. Beyond this, companies in the industry are also focusing on retention through a better workplace experience. In fact, 57 percent are investing in workplace culture, employee feedback, and engagement systems to better gauge workforce sentiments; 77 percent are more focused on creating a positive talent experience.
Innovating Human Capital Practices
To mitigate talent scarcity challenges, employers will need to rethink how they get work done. Some medtech companies have transformed their talent strategies by embracing a concept called total talent acquisition.4 Under this model, organizations will consider all forms of labor to satisfy the needs of the business, including permanent hires, temporary staff, statement of work (SOW) contractors, freelancers and gig workers, and automation.
For example, whereas a new engineering development project might have required hiring six full-time workers in a traditional work model, a total talent approach will carefully assess the people resourcing needs of the project. This may lead to a more efficient utilization of different work arrangements, such as hiring three permanent workers, deploying seven temporary staff, and creating a statement of work for engineering the circuit board of the device.
This alternative approach often not only leads to cost savings but also a faster time to market. Instead of recruiting six workers, which can be time consuming and arduous, the employer can quickly staff-up using skills available through temporary or independent contractors.
Using Flexibility to Attract Talent
Adopting a holistic talent model is one way for manufacturers to contend with the crippling talent scarcity issue. Enhancing the employer brand and employee value proposition can also help with talent attraction and access to more candidates. Still, a robust recruitment strategy can only go so far when talent is simply in short supply.
Across all sectors, one in three employers surveyed in the Talent Trends research say they’re offering flexible working arrangements as a way to address talent scarcity, and 86 percent said this strategy is effective. As a result, life sciences organizations may need to do the same to remain competitive.
Unlike other industries such as professional services, consulting, and IT—which witnessed their talent pools expand significantly with the proliferation of remote work—medtech companies may still be bound by geography when recruiting for R&D, clinical, QA/QC, and other on-site roles. Flexibility, however, does not have to equal fully remote work; organizations should also consider accommodating variable schedules and hybrid options as a talent attraction and retention strategy.
More recently, companies are taking a closer look at retention and internal mobility as additional ways to hold on to workers, even if they lack certain competencies needed in a different job. Many employers are discovering they can mitigate the skills gap through up- and reskilling. In fact, 67 percent of those surveyed in the life sciences sector said reskilling is an effective way to counter the labor shortage.
Conclusion
While innovation is a continuous goal for medical device manufacturers, many haven’t brought that same level of rigor to their human capital practices. Operating in an industry that has traditionally shied away from making its workplace transparent, companies will need to rethink their talent strategies, approach, and execution to win over the best talent in today’s highly competitive labor market. By adopting a people-centric philosophy and creating a stronger talent experience, medtech HR leaders are much better positioned to drive value to their business.
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.
