Tania de Decker, Managing Director—Global Strategic Accounts, Randstad Enterprise Group11.01.23
By all accounts, this year has been a challenging period for human capital leaders. Economic uncertainty, geopolitical instability, and rising interest rates have all made workforce planning difficult, especially in the tech and medtech sectors. Even so, the labor market has remained resilient as job creation steamed along with little concern. Recessionary pressure never seemed to materialize as consumer demand kept the jobs market buoyant, with 336,000 jobs added in September1 to pad an already strong year of growth.
Even if the broader labor market slows in the months ahead, it might not come at the expense of the medtech sector. That’s because some projections show U.S. healthcare spending expanding more quickly than inflation, reflecting strong expansion in Medicare (8% in 2023) and Medicaid, as well as hospital spending.2 Both durable and disposable device makers are expected to benefit from the market’s expansion. How will higher spending drive competition for talent?
Demand for many high-skill professionals will rise as companies look to accelerate innovation. According to McKinsey, one-quarter of the industry is projected to grow at 6% or higher through 2025.3 To sustain such growth, device makers will need to fill their pipelines with ambitious projects requiring specialized talent. In particular, the focus on connected and intelligent care is fueling the need for sensor technology, data analytics, AI, cloud, augmented reality, and advanced broadband experts.
As any medtech recruiter knows, these skills are already challenging to acquire today due to competition from other industries. Job postings seeking AI skills have risen 2,000% since March.4 Workers possessing expertise such as cybersecurity, cloud engineering, data science, and UX design remain sought after in the global jobs market. This demand has led to some of the highest job vacancy rates in medtech today.
At the same time, the growth of some roles requiring specialized, non-tech skills is also rising. In Randstad’s research, compliance and audit experts are some of the most in-demand in this year’s market. Similarly, a high number of job postings are seeking professionals with stakeholder communication skills.
1. Worsening of Talent Scarcity
This year saw significant reductions in hiring and an uptick in layoffs in the technology sector. This enabled some medtech companies to finally acquire sought-after talent they have had difficulty winning two years ago.
Our research shows, however, demand in the third quarter for these skills has only slightly eased from a year ago. Some data have also indicated some of the technology companies that made layoffs earlier this year are now rehiring again.
If economic activity continues to gain traction, and a “soft landing” materializes, it’s likely competition for specialized skills will heat up once more. Device makers will be in the undeniable position of trying to convince high-caliber talent to choose them instead of Silicon Valley stars such as Google, Amazon, or Tesla.
2. Demand for Even More Specialized Skills
The pace of innovation within the medical device industry has accelerated in just the last three years, led in part by an acceleration in digitalization, telehealth, self-directed care, and other trends. The explosion of data and remote monitoring has forced many manufacturers to acquire certain competencies more quickly than otherwise. And of course, the adoption of AI is driving tremendous transformation of many existing medical technologies. According to EY, the number of FDA approvals for AI algorithms in 2022 rose to 205, nearly twice as many in the decade from 2008 to 2017.5
3. AI/Technology Transform How Work Gets Done
AI, automation, and other technologies won’t just affect how therapies are administered; they will transform how OEMs and their suppliers get work done.
A Randstad Workmonitor survey of workers around the world found one-third are already using some type of AI in their jobs, and 53% believe AI will affect their role and industry.6 Whether it’s natural language processing or generative AI, many companies are rapidly embracing the technology to get work accomplished more quickly and cost efficiently.
4. Acceleration in Upskilling and Reskilling
Facing a growing skills gap, manufacturers in all specialties will either have to acquire talent or grow their own. And with competition expected to increase in 2024, redeploying internal resources may be their best option.
This year has witnessed a significant increase in upskilling and reskilling initiatives across many industries and companies. According to LinkedIn, 41% of learning and development leaders expected to spend more in 2023.7 This trend will likely continue into 2024 and beyond as a result of more innovation expected for the medtech sector.
5. Broadening of Diversity, Equity, and Inclusion Recruitment Strategies
Device makers have actively invested in diversifying their workforces, with the industry’s biggest companies prioritizing equity, diversity, and inclusion in their workforce goals.
While gender and racial equality have always been on their roadmaps, expect some employers to expand those maps in 2024. This means enhancing talent attraction strategies to include neurodivergent candidates. Dyslexic Thinking, for example, is a unique skill set that can benefit employers immensely.8 Additionally, as the workforce becomes older, companies increasingly look to recruit older workers to help address their talent scarcity concerns.
6. Focus on Skills-Based Hiring Intensifies
Not overlooking promising talent will be a key theme next year as employers reconsider how they attract and screen talent. Some companies no longer require college degrees for applicants, focusing instead on skills and experience. Beyond just a degree or certification, employers increasingly seek out workers with demonstrated leadership or people skills in addition to learned hard skills. Additionally, those with aspirational skills—capacity to learn, for instance—may be a much better fit in the long term.
References
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 improving the quality of her clients’ talent acquisition.
Even if the broader labor market slows in the months ahead, it might not come at the expense of the medtech sector. That’s because some projections show U.S. healthcare spending expanding more quickly than inflation, reflecting strong expansion in Medicare (8% in 2023) and Medicaid, as well as hospital spending.2 Both durable and disposable device makers are expected to benefit from the market’s expansion. How will higher spending drive competition for talent?
Demand for many high-skill professionals will rise as companies look to accelerate innovation. According to McKinsey, one-quarter of the industry is projected to grow at 6% or higher through 2025.3 To sustain such growth, device makers will need to fill their pipelines with ambitious projects requiring specialized talent. In particular, the focus on connected and intelligent care is fueling the need for sensor technology, data analytics, AI, cloud, augmented reality, and advanced broadband experts.
As any medtech recruiter knows, these skills are already challenging to acquire today due to competition from other industries. Job postings seeking AI skills have risen 2,000% since March.4 Workers possessing expertise such as cybersecurity, cloud engineering, data science, and UX design remain sought after in the global jobs market. This demand has led to some of the highest job vacancy rates in medtech today.
At the same time, the growth of some roles requiring specialized, non-tech skills is also rising. In Randstad’s research, compliance and audit experts are some of the most in-demand in this year’s market. Similarly, a high number of job postings are seeking professionals with stakeholder communication skills.
Prepare for a Bumpy Road Ahead
Ensuring adequate access to talent should be one of the top priorities for device makers as we approach a new year. There is simply too much at risk at a time when the market is looking for more innovation. For instance, development of some medtech specialties, such as those powered by AI, is gathering greater momentum. As companies make critical investments in technologies and therapies, they are also considering how to acquire the talent it takes to get products to market. To optimize their strategy, they will need to consider the following six trends sure to impact the year ahead.1. Worsening of Talent Scarcity
This year saw significant reductions in hiring and an uptick in layoffs in the technology sector. This enabled some medtech companies to finally acquire sought-after talent they have had difficulty winning two years ago.
Our research shows, however, demand in the third quarter for these skills has only slightly eased from a year ago. Some data have also indicated some of the technology companies that made layoffs earlier this year are now rehiring again.
If economic activity continues to gain traction, and a “soft landing” materializes, it’s likely competition for specialized skills will heat up once more. Device makers will be in the undeniable position of trying to convince high-caliber talent to choose them instead of Silicon Valley stars such as Google, Amazon, or Tesla.
2. Demand for Even More Specialized Skills
The pace of innovation within the medical device industry has accelerated in just the last three years, led in part by an acceleration in digitalization, telehealth, self-directed care, and other trends. The explosion of data and remote monitoring has forced many manufacturers to acquire certain competencies more quickly than otherwise. And of course, the adoption of AI is driving tremendous transformation of many existing medical technologies. According to EY, the number of FDA approvals for AI algorithms in 2022 rose to 205, nearly twice as many in the decade from 2008 to 2017.5
3. AI/Technology Transform How Work Gets Done
AI, automation, and other technologies won’t just affect how therapies are administered; they will transform how OEMs and their suppliers get work done.
A Randstad Workmonitor survey of workers around the world found one-third are already using some type of AI in their jobs, and 53% believe AI will affect their role and industry.6 Whether it’s natural language processing or generative AI, many companies are rapidly embracing the technology to get work accomplished more quickly and cost efficiently.
4. Acceleration in Upskilling and Reskilling
Facing a growing skills gap, manufacturers in all specialties will either have to acquire talent or grow their own. And with competition expected to increase in 2024, redeploying internal resources may be their best option.
This year has witnessed a significant increase in upskilling and reskilling initiatives across many industries and companies. According to LinkedIn, 41% of learning and development leaders expected to spend more in 2023.7 This trend will likely continue into 2024 and beyond as a result of more innovation expected for the medtech sector.
5. Broadening of Diversity, Equity, and Inclusion Recruitment Strategies
Device makers have actively invested in diversifying their workforces, with the industry’s biggest companies prioritizing equity, diversity, and inclusion in their workforce goals.
While gender and racial equality have always been on their roadmaps, expect some employers to expand those maps in 2024. This means enhancing talent attraction strategies to include neurodivergent candidates. Dyslexic Thinking, for example, is a unique skill set that can benefit employers immensely.8 Additionally, as the workforce becomes older, companies increasingly look to recruit older workers to help address their talent scarcity concerns.
6. Focus on Skills-Based Hiring Intensifies
Not overlooking promising talent will be a key theme next year as employers reconsider how they attract and screen talent. Some companies no longer require college degrees for applicants, focusing instead on skills and experience. Beyond just a degree or certification, employers increasingly seek out workers with demonstrated leadership or people skills in addition to learned hard skills. Additionally, those with aspirational skills—capacity to learn, for instance—may be a much better fit in the long term.
Conclusion
As medtech companies face a year of uncertainty ahead, their workforce strategies must be more agile and inclusive than in the past. Human capital leaders will be called upon to scale people resources up and down as needed, and companies that can do this most effectively will be best positioned to drive innovation and growth in 2024.References
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- bit.ly/3s0WQmM
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 improving the quality of her clients’ talent acquisition.