As the life sciences industry pivots to new innovation, research and development projects following an acute focus on vaccine development for the past few years, the industry has seen consistent demand in the second half of 2024. In fact, over 10% of new jobs added in May of this year were in the life sciences sector, with some 32,400 new jobs being reported by the U.S. Bureau of Labor Statistics.
However, what looks like heightened demand can be more accurately described as a return to pre-pandemic normalcy for the industry, as it recovers from a period of dramatic fluctuation during and after the pandemic. As a result of COVID-19, the life sciences industry added an average of 11,144 jobs per month between June 2020 and June 2022, up from 6,259 in the comparable two-year period prior to the COVID pandemic (2018-2019), with top pharmaceutical companies hiring anyone they could get their hands on, investing billions into their clinical programs.
As the demand for vaccine development started to wane in late 2023 and early 2024, the market began to over-correct. Top pharmaceutical companies had over-hired, resulting in reducing headcounts and restructuring moves earlier this year. Consequently, this created an influx of candidates that were experienced, eager and on the market.
Now as the market normalizes, with more candidates available and demand starting to pick back up, life sciences companies are looking to invest in talent again. However, companies are no longer looking to scoop up all of the available talent, they are only interested in bringing on highly desired and experienced top-tier professionals. Since the top 1% of candidates are universally-desired, these businesses are shelling out higher compensation packages and offering additional perks in order to secure them, such as more hybrid flexibility for candidates, enhanced relocation benefits, higher sign-on bonuses, equity packages and more.
So, what do companies consider “top-tier” talent? And what are those candidates looking for in their next role?
Top Candidates: Who They Are and What They Want
While interviews may be more frequent as jobs are added and available candidates look for new roles, companies are being highly selective, and hiring is much less common. Companies are only willing to extend an offer and invest heavily in someone that meets their criteria. These candidates are usually mid-to-senior level and have a demonstrated history of tenure. Companies want candidates who have proven loyalty and a track record of tenure in previous positions, despite the industry’s quick and dramatic changes over the last four years.
As the industry normalizes, companies are prioritizing retention to ensure long-term stability. This starts in the hiring process and is why candidates who demonstrate a history and willingness to stay – especially through uncertain times – give a company peace of mind that their new hire will act as a top performer and improve business outcomes. Other characteristics companies are looking for include a demonstrated history of therapeutic experience and working on-site, both of which are crucial as research and development priorities expand.
Similarly on the employee side, candidates are looking for progression and an opportunity to work on other therapeutic programs outside of just vaccines or infectious diseases. The hottest areas right now include endocrinology or liver disease – with the rise of NASH – so companies who offer programs in these areas are going to be more attractive to top-tier talent who have an interest in exploring areas of medicine that weren’t as big a couple of years ago, like oncology.
Candidates also prefer companies that offer some flexibility with a hybrid-work model. While the allure of fully remote roles in the private sector are still prevalent, completely remote roles have lost their luster for some candidates in life sciences. These professionals understand that being in the office, at least in some capacity, is essential to building valuable connections and relationships. Another key factor prospective employees are looking for is the stability and growth plans of the company they are interviewing with. There’s a real fatigue amongst professionals who were affected by reduced headcounts and restructurings over the past few years, so companies that demonstrate solid financial backing or plans for growth are going to be more successful in hiring the top 1% of candidates.
Meeting Expectations
There’s sentiment from some candidates in the space that the job market is difficult right now, however this might be due to mismatched expectations rather than the state of the market itself. For those that are aligned with certain criteria companies are expecting, the hiring process can be pretty seamless. Candidates that want to build relationships in-office, to stay for the long-term or eventually be in the leadership seat, will find the market extremely forgiving.
Candidates who are struggling are likely the ones expecting fully remote positions or 30-40% increases in compensation. These types of offers might have been normal during the pandemic, but the industry is no longer in that position. Candidates who align their expectations with the realities of the market and are flexible should feel confident that a new and exciting role is out there for them.
Looking Ahead
It’s an exciting time in life sciences. As demand returns to pre-COVID levels and budgets are set through 2025, the job market will stay steady through the end of this year. Smaller to mid-sized companies will see increased hiring in the coming months, and by early 2025, overall stability and demand for all levels and areas of interest will rise.
For both candidates and companies, it’s essential that expectations are managed and understood from both sides of the coin as the industry continues to recover. If both parties accept these criteria, there’s nothing stopping a flurry of mutually beneficial hiring decisions over the next year.
Jae Yoo
Jae Yoo is Executive Director for EPM Scientific, a Phaidon International brand.
