At the moment, the biopharma industry is nothing if not turbulent. Layoffs soared in 2022 and continued into 2023, and M&A activity has rebounded after a years-long lull. Economic uncertainty, failed programs, shifting focus and other forces are at play.
That's why more companies are turning to biotech RPO solutions to keep hiring on track.
Small- to mid-sized biopharma companies have been hardest hit because instability means investors shy away. And organizations can’t move therapies forward without the money for R&D and testing. Startups have struggled unless they’ve been gobbled up by bigger biopharmaceutical companies.
While large pharma companies are not expected to be significantly affected by the credit crunch, small biotechs and generics makers may experience the squeeze for a while longer.
It may be debatable if it's a downturn, recession or just market fluctuations. But what's not disputable is the toll it's taking on the talent front. The economics of hiring have changed, and lean teams are being asked to do more with less.
What is recruitment process outsourcing in biotech?
Recruitment process outsourcing (RPO) is a model where a specialist third-party provider handles all or part of an organization's recruitment process.
In the biotechnology and wider life sciences sector, an RPO solution might cover every hire, a single division such as clinical or manufacturing, or one significant project like a new site launch.
The RPO provider's recruiters work directly alongside your hiring managers and coordinators, so they understand the technical requirements and the culture you're hiring for.
They also bring the recruiting technology to support it, from applicant tracking systems and interview self-scheduling to AI tools for sourcing and screening.
It's a flexible setup, and it suits biotech well. Hiring cycles in the industry swing with funding rounds, trial milestones and product launches, so demand for recruiters rarely stays level for long.
3 ways RPO firms enhance biopharma recruiting efforts
The biopharma industry has faced talent shortages for years (and it’s especially tough for emerging organizations).
Working with a recruitment process outsourcing (RPO) firm can help biopharma companies navigate recruiting uncertainties by building strong talent pipelines, improving candidate experience and increasing agility and scalability.
Hands down, RPO firms can engage and hire top-tier candidates more quickly and efficiently.
Here's how working with an RPO partner can help you navigate biopharma recruiting challenges.
#1: Building strong talent pipelines
Pharma and biotech are historically recession-proof industries. Demand is always there; we need new and better medicines and treatments to combat illness, disease and other biological problems.
The problem is predicting when, where and what talent may be needed – in the near and distant future – to see the development of these drugs through.
Building talent pipelines in advance is critical for winning the war for talent in the biopharma industry. Finding the total addressable market (TAM) and regularly engaging these potential future candidates will help ensure you have a talent pool to approach when it’s time to hire.
Using a labor market intelligence tool, like Claro, can allow you to identify passive talent to add to your talent community and determine what companies talent is moving to and from.
Early-career routes matter too. Internship programs with local universities are a low-cost way to build relationships with future lab talent long before you need them.
By investing in talent networks today, biopharma companies can ensure they have access to the right candidates when they need them in the future.
#2: Improving candidate experience
Despite layoffs in the biopharma industry, it’s still a jobseekers’ market. The skills required to be successful in the biotech and pharmaceutical industries are hard to come by. This means potential candidates have the upper hand when it comes to job opportunities and negotiations.
The competition is real, and it's only going to get fiercer. The U.S. Bureau of Labor Statistics predicts 18% job growth in the bio and pharma industries by 2026. And biopharma firms aren't only competing with each other. Hospital systems, diagnostics companies and wider healthcare providers are all chasing the same clinical and scientific talent.
Organizations in this space must provide a seamless candidate experience throughout the recruitment process, starting from the first engagement and a simple application. And it should carry through to onboarding and employee experience to increase retention of top talent.
It helps to think of candidates the way you'd think of a customer. Scientists tend to know each other, so one slow, clunky process can spread by word of mouth. Providing a positive candidate experience is important for building relationships and ensuring favorable brand association (useful for the future).
RPO firms will brand as their client and provide "white glove" treatment for every candidate, resulting in turnkey candidates for future openings.
#3: Increasing agility and scalability
Especially in turbulent markets, organizations may not want to staff an entire talent acquisition team that they aren't using to capacity. Working with an RPO firm provides greater agility and scalability that can adjust to fluctuating needs and an ever-changing market.
RPO firms can offer a dedicated team of recruiters who are well-versed in the pharma, biotech and medical device industries and will work to improve hiring metrics. Their expertise allows them to develop sourcing strategies focused on uncovering hard-to-find talent and building pipelines of candidates with specific skill sets or experience. It also frees up internal teams, allowing them to focus on other strategic talent initiatives.
Recruiting in any industry that’s experiencing market fluctuations and persistent labor shortages is difficult. In the biopharma space, it’s essential to consider growth opportunities, pipeline maturity and targeted therapies in recruitment efforts.
But, with the help of an RPO and cutting-edge technology, it’s possible to refine recruiting processes and emerge stronger on the other side of this market. Taking proactive measures and embracing cost-saving technology could create positive long-term changes for the biopharma industry.
What rolling out an RPO solution looks like
Bringing in an RPO provider doesn't have to mean a big-bang change. Most implementation plans follow a similar shape:
- Discovery. The provider maps your current workflow, hiring volumes and pain points.
- Setup. They connect with your ATS, systems, and hiring managers, and agree service levels and reporting.
- Phased rollout. Many companies start with one site or function, such as clinical operations, before rolling the program out more widely.
- Ongoing delivery. Recruiters, sourcers, and coordinators, plus support services like interview scheduling, talent intelligence, and talent advisory, with regular reporting so you can see what's working.
For companies planning a geographical expansion, the right provider can also bring local market knowledge for each new hub. Biotech is built on innovation, and your hiring needs to keep up. A good RPO partner helps you stay competitive without carrying a full in-house recruiting function.
Narrowing the biopharma talent gap
Recruiting in any industry that's experiencing market fluctuations and persistent labor shortages is difficult. In the biopharma space, it's essential to consider growth opportunities, pipeline maturity and targeted therapies in recruitment efforts.
But, with the help of an RPO and cutting-edge technology, it's possible to refine recruiting processes and emerge stronger on the other side of this market. Taking proactive measures and embracing cost-saving technology could create positive long-term changes for the biopharma industry.
