Change is inevitable for survival
A new study examines the challenges facing HR in the pharmaceutical industry and suggests a course of action.
“The Future of Pharma HR” was prepared by PricewaterhouseCooper. It identifies six major forces that will affect the pharmaceutical industry in the future and have a profound effect on HR:
•globalization;
•technological convergence;
•blurred boundaries (between nations, industries, companies, departments and disciplines;
•generational divides (generations are split by technology, values, etc.);
•expectation gaps (gap between rich and poor and between need and supply); and
•smart markets (both consumers and investors).
These forces will produce three key issues the pharmaceutical industry will have to face in the next few years: the battle for talent, working with new organizational models and the future of HR.
The study identifies certain specific challenges for Pharma HR:
•Finding new sources of talent. As the working-age population shrinks and there are fewer science grads and those wishing to pursue a career in scientific research, pharmaceutical companies will have to look beyond their traditional sources for employees. The study recommends looking to Asia: English is widely-spoken, standards of education are generally high, and communication and technology facilities are equivalent. Moreover, sciences are more popular with students in emerging countries than they are in the Western world. The cost of an educated workforce in Asia is also lower. However, this means that pharmaceutical companies will have to relocate their research facilities, hire large numbers of expatriates or engage in e-enabled R&D. Companies will also have to have a small army of globally-mobile leaders.
•Creating the right reward scheme. Increasing competition for the most talented individuals will result in a shift away from benefits packages based solely on pay to reward systems tailored to meet the needs of each individual in the organization. Companies will also have introduce more flexible practices to accommodate part-time employees, older workers, people with childcare duties and those seeking to improve their work-life balance.
•Re-organizing for the 21st century. Two basic organizational structures are emerging for the pharmaceutical industry. One is the “superpharma,” where mega-mergers result in large companies that can single-handedly make a full range of products and services. In these companies, senior executives will have to motivate and manage thousands of people. The other is the “supernet,” where a number of specialist organizations cluster together for strength and flexibility, requiring team work and contract management.
The report does more than simply highlight the challenges for Pharma HR and the reasons for them. It suggests solutions:
•give HR professionals sufficient authority to engage fully in strategic planning for their businesses;
•create a culture that stimulates learning with knowledge management systems, mentors, coaching, e-learning, etc.;
•use shared service centres and outsourcing to reduce the administrative burden on HR staff to enable them to spend more time on strategic issues;
•use Web-based HR services to permit employees to find answers for themselves;
•adopt a change in attitude that will result in employees being perceived as customers who can take their business elsewhere, rather than as “hired hands”.
“The Future of Pharma HR” was prepared by PricewaterhouseCooper. It identifies six major forces that will affect the pharmaceutical industry in the future and have a profound effect on HR:
•globalization;
•technological convergence;
•blurred boundaries (between nations, industries, companies, departments and disciplines;
•generational divides (generations are split by technology, values, etc.);
•expectation gaps (gap between rich and poor and between need and supply); and
•smart markets (both consumers and investors).
These forces will produce three key issues the pharmaceutical industry will have to face in the next few years: the battle for talent, working with new organizational models and the future of HR.
The study identifies certain specific challenges for Pharma HR:
•Finding new sources of talent. As the working-age population shrinks and there are fewer science grads and those wishing to pursue a career in scientific research, pharmaceutical companies will have to look beyond their traditional sources for employees. The study recommends looking to Asia: English is widely-spoken, standards of education are generally high, and communication and technology facilities are equivalent. Moreover, sciences are more popular with students in emerging countries than they are in the Western world. The cost of an educated workforce in Asia is also lower. However, this means that pharmaceutical companies will have to relocate their research facilities, hire large numbers of expatriates or engage in e-enabled R&D. Companies will also have to have a small army of globally-mobile leaders.
•Creating the right reward scheme. Increasing competition for the most talented individuals will result in a shift away from benefits packages based solely on pay to reward systems tailored to meet the needs of each individual in the organization. Companies will also have introduce more flexible practices to accommodate part-time employees, older workers, people with childcare duties and those seeking to improve their work-life balance.
•Re-organizing for the 21st century. Two basic organizational structures are emerging for the pharmaceutical industry. One is the “superpharma,” where mega-mergers result in large companies that can single-handedly make a full range of products and services. In these companies, senior executives will have to motivate and manage thousands of people. The other is the “supernet,” where a number of specialist organizations cluster together for strength and flexibility, requiring team work and contract management.
The report does more than simply highlight the challenges for Pharma HR and the reasons for them. It suggests solutions:
•give HR professionals sufficient authority to engage fully in strategic planning for their businesses;
•create a culture that stimulates learning with knowledge management systems, mentors, coaching, e-learning, etc.;
•use shared service centres and outsourcing to reduce the administrative burden on HR staff to enable them to spend more time on strategic issues;
•use Web-based HR services to permit employees to find answers for themselves;
•adopt a change in attitude that will result in employees being perceived as customers who can take their business elsewhere, rather than as “hired hands”.
