New era of collaborative R&D drives demand for new breed of scientist and bigger role for HR
NEW YORK, February 4, 2013 – A talent gap in the scientific workforce has biopharmaceutical companies searching outside for fresh skills and alternate approaches to R&D staffing, according to PwC’s Health Research Institute (HRI) in a new report published today. New R&D organizational models based on partnerships, alliances and even crowd sourcing are changing talent needs, challenging traditional talent management strategies and redefining the role of human resources (HR) in R&D productivity.
HRI’s report, New Chemistry: Getting the biopharmaceutical talent formula right takes an in-depth look at the changing R&D model and what it means to workforce design. Pharmaceutical companies have long relied on a highly educated workforce of scientists and researchers to replenish their product pipelines. In response to a host of challenges to its business model, the industry has right sized its workforce and is changing how it conducts R&D. Demand for productivity is as high as ever, from a workforce with fewer resources and new expectations of performance based on improved health outcomes and/or lower costs.
HRI suggests that new R&D models need equally innovative HR strategies to find the right mix of scientific talent, skills and incentives. The knowledge-intensive pharmaceutical industry had the highest reported difficulty in hiring top talent of the 19 industries featured in PwC's 2012 Global CEO Survey. CEOs identified talent gaps as one of the biggest threats to future growth prospects.
Research conducted by HRI, including a survey of human resource and R&D executives at U.S. biopharmaceutical companies found:
“The scientific community produces the golden eggs of medical scientific discovery, and as biopharmaceutical companies aggressively overhaul their R&D engines, they also must create an environment where the source of innovation can thrive,” said Michael Mentesana, U.S. pharmaceuticals and life sciences R&D Advisory services leader, PwC. “Scientists are driven by the chance to tackle tough problems, but not when they are operating in a pressure cooker environment with incentives that aren’t well aligned with company goals or their own sense of satisfaction. Real R&D transformation will not be complete until the R&D culture itself is rebooted and unless HR, R&D and senior management work together from the beginning.”
New Era of Collaborative Research and Development
HRI research found that one in three U.S. biopharmaceutical companies has revamped its approach to research and development (R&D), looking to boost productivity by reconfiguring R&D operations and organizational structure, increasing their focus on biologics and/or seeking partnerships and alliances outside their organizations.
The two most common outside partnerships biopharmaceutical companies have been pursuing are with academic medical centers and third parties such as contract research organizations, according to HRI. Some companies also are teaming up with traditional competitors through consortiums, alliances with foundations, crowd sourcing and other relationships that enable them to build R&D capacity and share risks and rewards with external partners.
As companies pursue more external collaborations, their R&D talent needs are changing. HRI’s survey of biopharmaceutical executives found:
These skills have not been part of typical scientific training, but a new breed of cross-trained scientists is emerging, says HRI. Star scientists in the new R&D culture are likely to be those who have dual degrees in science and business or experience in management, quality or clinical operations. To recruit this type of talent, human resources leaders may need to cast a wider net to draw from other industries and alliances.
New Role for Human Resources in R&D
While many biopharmaceutical companies are looking outside for talent in new partnerships, HRI found others are restructuring their own scientific workforces and incentive structures. Either way, HR is playing a bigger role in strategic planning, organizational design, compensation, incentives and professional development of the scientific workforce. Internal barriers have limited HR’s role in the past to hiring and firing tasks, but HR’s ability to have a big influence on R&D productivity may depend on how tightly it is integrated with R&D organizational decision-making going forward.
HRI’s research found:
HRI’s report provides an in-depth look at the changing R&D model, its impact on human capital and key considerations for human resources and R&D leadership. To download the full report, visit: www.pwc.com/us/newchemistry.
About the Research
The research for this report included in-depth interviews with HR and R&D executives in pharmaceutical and medical device industries. HRI also commissioned a telephone survey of 130 such executives on human capital issues. The survey was completed in October 2012. The report also references findings from PwC’s 15th and 16th annual Global CEO Survey.
About PwC's Health Research Institute (HRI)
PwC's Health Research Institute provides new intelligence, perspectives and analysis on trends affecting health-related industries. HRI helps executive decision makers navigate change through primary research and collaborative exchange. Our views are shaped by a network of professionals with executive and day-to-day experience in the health industry. HRI research is not sponsored by businesses, government, or other institutions. For more information, visit: www.pwc.com/hri.
About PwC’s Health Industries Group
PwC’s Health Industries Group is a leading advisor to public and private organizations across the health industries, including healthcare providers, pharmaceuticals, health and life sciences, payers, employers, academic institutions and non-health organizations with significant presence in the health market. For more information, follow PwC Health Industries at @PwCHealth or visit www.pwc.com/us/healthindustries.
About PwC US
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