Recruitment, retention centre stage in competition for scarce talent
The competition for talent in the pharmaceutical industry is reaching a fever pitch in Canada, and there’s no easy antidote for it. “It’s going to get worse before it gets any better,” is the prognosis one HR leader offered.
For signs of a brisk recruiting competition among the country’s pharmaceuticals, look no farther than Report on Business magazine’s survey of the 50 best companies to work for in Canada. Eight of the 50 companies on the list are from the pharmaceutical industry, an indication “that all companies recognize that, from a demographic standpoint, it’s gonna get worse before it gets better,” says Luc St-Pierre, vice-president, human resources for Pfizer Canada.
“It’s really important, if you want to be able to continue attracting good employees, to position yourself well in the market. So that’s probably why eight of the pharmaceuticals went through the process of participating in the ROB top employer survey.”
Altogether, pharmaceuticals in Canada employ about 22,000 people, according to an Industry Canada report. After a period of restructuring in the first half of the 1990s, the workforce has become more highly skilled as many companies sold off manufacturing and distribution departments, and turned their focus to research and development, and sales.
As growth in the life-sciences sector turned up the competition in the past few years, St-Pierre has seen the rise of two industry-wide phenomena: the counter-offer and the signing bonus. “I think we’re more inclined to offer signing bonuses when we find a good candidate and if there are issues around their losing their bonus or something that they have at their current employer,” says St-Pierre, adding that the bonus can reach 10 to 25 per cent of the salary.
He also notes that when counter-offers are made, it’s not always money that seals the deal.
“We had an employee who came here and went through an interview process. We made an offer and the employee accepted. Then the current employer came back with not more money but more flexibility. The employee had wanted to work more from home but in the past was always refused. And now, faced with the threat of that employee leaving, the employer said, ‘Okay, you can have your office at home.’ So the employee decided not to come to Pfizer.”
Other tactics at Pfizer include a $1,500 employee referral bonus, and a vacation policy that would award extra vacation time to new employees who bring substantial work experience.
In a way, the “war for talent” describes what has always been the case at the pharmaceutical industry, says Shelley Brown, vice-president of human resource at Novartis Pharmaceuticals Canada. The industry is very small and very competitive, with almost all of the pharmaceuticals based either in Toronto or Montreal, she adds. For that reason, “we want to recruit from our competitors in an ethical manner, just as we would expect them to try to recruit from us in the same way. It is an unspoken rule that we approach a potential candidate through a third party — an external search firm.”
With such a competitive and geographically clustered market, a certain amount of talent poaching does take place, all those interviewed acknowledge. Last fall, for example, the generic pharmaceutical company Apotex advertised its openings on giant billboards put up near the facilities of its competitors.
At Novartis, said Brown, the company wards off poachers by taking defensive measures to make sure employees stay content at the workplace.
A defection risk analysis process has managers and leaders on the lookout for signs of dissatisfaction. In one example last year, “we identified someone in our medical group who might be at risk. So we looked at her salary, how long she has been in her job, how she ranks her manager. And we found that her salary was 13.5 per cent below the market rate.”
The company then went to the employee and offered her a raise that puts her 10 per cent above market. “We said, ‘Let’s talk about whether you’re happy, whether you’re looking for the next move.’” That person has now moved up and is now manager to her peers.
The shortage of talent has also compelled the industry to drastically revise its past insistence on hiring candidates with industry experience. Whereas, in the past, very little attention was given to new university graduates, companies are now working to create relationships with life-sciences students through internships and a new stress on co-op work programs. It’s about “building a robust pipeline of talent,” says Ruth Kemp, vice-president of human resources at GlaxoSmithKline (GSK).
“We’re engaging with students while they’re in school,” says Kemp. “At any given time, we have 250 students either in internship programs or co-op programs, as well as summer students who come in just for the summer. We see all these as potential talent for our pipeline and we treat them as such.”
The 250 students are placed in all divisions of the Mississauga-based company. Kemp notes, however, that there are areas where it’s difficult to place candidates with little industry experience. For those, GSK recently created a handful of positions reserved for “high potential recent graduates with relevant education background but who have little or no experience.”
Strategic employers know that talented people look for opportunities to develop. For companies in this industry, new opportunities include international work experience. Pfizer, for example, is building an infrastructure “that would allow people to develop themselves and put to use new skills that they’ve acquired. And as result of that, you will see people moving from one country to another.” says St-Pierre.
“And traditionally, it has been that if you accept the job in England or France, it could be for an indefinite length of time. Obviously this is creating issues for people. They’re saying, ‘I’m willing to move, but not under those circumstances. I’d prefer a secondment for two years or something.’ So more and more, we’re getting more flexible around that issue.”
But the biggest recruiting challenge is still finding someone who fits in with the corporate culture, says St-Pierre. That’s why Pfizer Canada, like a number of other pharmaceuticals, puts an emphasis on internal recruiting.
“We want people with leadership, a focus on performance, we want results-oriented people. From a technical standpoint, there’s no problem in being able to identify, at least, potential candidates. But from a fit standpoint, it’s very difficult. Finding people who, for example, are not paralyzed by change is not easy. Finding people who understand what real teamwork is, and who don’t have issues with teamwork, is not easy.”
In this climate, it almost goes without saying that competitive compensation and rewards are all must-haves. Where companies vie to outdo one another is the package of amenities and facilities to make workers’ lives easier. At GSK, employees are given a state-of-the-art fitness program, which includes on-site chiropractic massage therapy. The company has an extended compassionate leave program where staff can take an indefinite hiatus to take care of a critically ill family member.
At Novartis, the extra perks include exercise classes, a dry-cleaning service, a film processing service, a postage service for personal mail, take home meals, and free fresh fruit every morning.
“These are all things that don’t cost much, but they make employees feel that the company understands their day-to-day needs,” said Brown. “And when we help them take care of those little things, they don’t mind staying until 5:30 to finish their work.”
For signs of a brisk recruiting competition among the country’s pharmaceuticals, look no farther than Report on Business magazine’s survey of the 50 best companies to work for in Canada. Eight of the 50 companies on the list are from the pharmaceutical industry, an indication “that all companies recognize that, from a demographic standpoint, it’s gonna get worse before it gets better,” says Luc St-Pierre, vice-president, human resources for Pfizer Canada.
“It’s really important, if you want to be able to continue attracting good employees, to position yourself well in the market. So that’s probably why eight of the pharmaceuticals went through the process of participating in the ROB top employer survey.”
Altogether, pharmaceuticals in Canada employ about 22,000 people, according to an Industry Canada report. After a period of restructuring in the first half of the 1990s, the workforce has become more highly skilled as many companies sold off manufacturing and distribution departments, and turned their focus to research and development, and sales.
As growth in the life-sciences sector turned up the competition in the past few years, St-Pierre has seen the rise of two industry-wide phenomena: the counter-offer and the signing bonus. “I think we’re more inclined to offer signing bonuses when we find a good candidate and if there are issues around their losing their bonus or something that they have at their current employer,” says St-Pierre, adding that the bonus can reach 10 to 25 per cent of the salary.
He also notes that when counter-offers are made, it’s not always money that seals the deal.
“We had an employee who came here and went through an interview process. We made an offer and the employee accepted. Then the current employer came back with not more money but more flexibility. The employee had wanted to work more from home but in the past was always refused. And now, faced with the threat of that employee leaving, the employer said, ‘Okay, you can have your office at home.’ So the employee decided not to come to Pfizer.”
Other tactics at Pfizer include a $1,500 employee referral bonus, and a vacation policy that would award extra vacation time to new employees who bring substantial work experience.
In a way, the “war for talent” describes what has always been the case at the pharmaceutical industry, says Shelley Brown, vice-president of human resource at Novartis Pharmaceuticals Canada. The industry is very small and very competitive, with almost all of the pharmaceuticals based either in Toronto or Montreal, she adds. For that reason, “we want to recruit from our competitors in an ethical manner, just as we would expect them to try to recruit from us in the same way. It is an unspoken rule that we approach a potential candidate through a third party — an external search firm.”
With such a competitive and geographically clustered market, a certain amount of talent poaching does take place, all those interviewed acknowledge. Last fall, for example, the generic pharmaceutical company Apotex advertised its openings on giant billboards put up near the facilities of its competitors.
At Novartis, said Brown, the company wards off poachers by taking defensive measures to make sure employees stay content at the workplace.
A defection risk analysis process has managers and leaders on the lookout for signs of dissatisfaction. In one example last year, “we identified someone in our medical group who might be at risk. So we looked at her salary, how long she has been in her job, how she ranks her manager. And we found that her salary was 13.5 per cent below the market rate.”
The company then went to the employee and offered her a raise that puts her 10 per cent above market. “We said, ‘Let’s talk about whether you’re happy, whether you’re looking for the next move.’” That person has now moved up and is now manager to her peers.
The shortage of talent has also compelled the industry to drastically revise its past insistence on hiring candidates with industry experience. Whereas, in the past, very little attention was given to new university graduates, companies are now working to create relationships with life-sciences students through internships and a new stress on co-op work programs. It’s about “building a robust pipeline of talent,” says Ruth Kemp, vice-president of human resources at GlaxoSmithKline (GSK).
“We’re engaging with students while they’re in school,” says Kemp. “At any given time, we have 250 students either in internship programs or co-op programs, as well as summer students who come in just for the summer. We see all these as potential talent for our pipeline and we treat them as such.”
The 250 students are placed in all divisions of the Mississauga-based company. Kemp notes, however, that there are areas where it’s difficult to place candidates with little industry experience. For those, GSK recently created a handful of positions reserved for “high potential recent graduates with relevant education background but who have little or no experience.”
Strategic employers know that talented people look for opportunities to develop. For companies in this industry, new opportunities include international work experience. Pfizer, for example, is building an infrastructure “that would allow people to develop themselves and put to use new skills that they’ve acquired. And as result of that, you will see people moving from one country to another.” says St-Pierre.
“And traditionally, it has been that if you accept the job in England or France, it could be for an indefinite length of time. Obviously this is creating issues for people. They’re saying, ‘I’m willing to move, but not under those circumstances. I’d prefer a secondment for two years or something.’ So more and more, we’re getting more flexible around that issue.”
But the biggest recruiting challenge is still finding someone who fits in with the corporate culture, says St-Pierre. That’s why Pfizer Canada, like a number of other pharmaceuticals, puts an emphasis on internal recruiting.
“We want people with leadership, a focus on performance, we want results-oriented people. From a technical standpoint, there’s no problem in being able to identify, at least, potential candidates. But from a fit standpoint, it’s very difficult. Finding people who, for example, are not paralyzed by change is not easy. Finding people who understand what real teamwork is, and who don’t have issues with teamwork, is not easy.”
In this climate, it almost goes without saying that competitive compensation and rewards are all must-haves. Where companies vie to outdo one another is the package of amenities and facilities to make workers’ lives easier. At GSK, employees are given a state-of-the-art fitness program, which includes on-site chiropractic massage therapy. The company has an extended compassionate leave program where staff can take an indefinite hiatus to take care of a critically ill family member.
At Novartis, the extra perks include exercise classes, a dry-cleaning service, a film processing service, a postage service for personal mail, take home meals, and free fresh fruit every morning.
“These are all things that don’t cost much, but they make employees feel that the company understands their day-to-day needs,” said Brown. “And when we help them take care of those little things, they don’t mind staying until 5:30 to finish their work.”
