Why Pharma Companies Are Not Hiring Senior People:

A Look at the Emerging Trends in the Industry

The pharmaceutical industry is one of the most dynamic and innovative sectors in the world, with a constant need for new drugs, vaccines, and therapies to address the health challenges of the 21st century. However, the industry is also facing a multitude of external challenges, such as the COVID-19 pandemic, rising global demand, new modalities, supply chain pressures, inflation, geopolitics, and cybersecurity threats. These factors have created a need for pharma companies to rethink their operations strategy and adapt to the changing market conditions.

One of the consequences of this shift is the changing hiring trends in the pharma industry. According to a recent report by McKinsey, the focus for operational leaders in pharma may need to shift from the prevailing emphasis on continuous improvement to longer-term external challenges. This means that pharma companies may need to look for new skill sets and capabilities in their workforce, such as digital, analytical, and agile skills, as well as the ability to work across different functions and geographies.

As a result, pharma companies may not be hiring senior people as much as they used to, for several reasons:

- Senior people may not have the relevant skills or experience to deal with the new challenges and opportunities in the industry. For example, they may not be familiar with the latest technologies, such as artificial intelligence, biotechnology, or mRNA vaccine technology, or they may not be able to work effectively in a remote or hybrid environment.

- Senior people may have higher salary expectations and benefits demands, which may not be feasible for pharma companies in the current economic climate. According to a survey by PharmaOut , the average salary for a senior-level position in the pharma industry in the India was ₹400,000 in 2018, while the average salary for an entry-level position was ₹360,000. In addition, senior people may expect more perks, such as bonuses, stock options, or retirement plans, which may add to the operational costs of pharma companies.

- Senior people may not be willing to relocate or travel to different locations, which may limit their career opportunities and growth potential in the industry. According to the same survey by PharmaOut , 65% of pharma employees reported that they would not relocate for a job opportunity, while 35% said they would. Moreover, 55% of pharma employees said they would not travel for work, while 45% said they would. These preferences may restrict the talent pool and mobility of senior people in the industry.

On the other hand, pharma companies may be hiring more junior or mid-level people, who may offer several advantages:

- Junior or mid-level people may have the relevant skills or experience to deal with the new challenges and opportunities in the industry. For example, they may be more proficient in using digital tools, such as cloud computing, data analytics, or cybersecurity, or they may be more familiar with the new modalities, such as cell and gene therapy or mRNA vaccine technology. They may also be more adaptable and flexible to work in different settings and teams.

- Junior or mid-level people may have lower salary expectations and benefits demands, which may be more affordable and sustainable for pharma companies in the current economic climate. According to the same survey by PharmaOut, the average salary for a junior-level position in the pharma industry in the India was ₹ 180,000 in 2018, while the average salary for a mid-level position was ₹ 3,00,000. In addition, junior or mid-level people may be more willing to accept performance-based incentives, such as bonuses, stock options, or profit sharing, which may align with the business goals and outcomes of pharma companies.

- Junior or mid-level people may be more willing to relocate or travel to different locations, which may enhance their career opportunities and growth potential in the industry. According to the same survey by PharmaOut, 35% of pharma employees reported that they would relocate for a job opportunity, while 65% said they would not. Moreover, 45% of pharma employees said they would travel for work, while 55% said they would not. These preferences may expand the talent pool and mobility of junior or mid-level people in the industry.

In conclusion, the pharma industry is undergoing a significant transformation, driven by various external factors, such as the COVID-19 pandemic, rising global demand, new modalities, supply chain pressures, inflation, geopolitics, and cybersecurity threats. These factors have created a need for pharma companies to rethink their operations strategy and adapt to the changing market conditions. One of the implications of this shift is the changing hiring trends in the pharma industry, which may favor junior or mid-level people over senior people, due to their skills, experience, salary, benefits, and mobility. Therefore, pharma companies may not be hiring senior people to their companies as much as they used to, and may instead look for new talent that can help them navigate the future of the industry.