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Maintaining a high-performing IT team within the pharmaceutical sector is a crucial challenge for organizations looking to innovate and stay competitive. How to achieve this, or at least how to be prepared to meet it?

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Surely this is not the best time to ask questions that can destabilize us emotionally: enjoying the summer, rest and a well-deserved vacation is now the priority. But while we are immersed in it, having closed and reviewed the planning of the projects we are developing, and that we hope to resume on our return, the truth is that the world keeps turning.

And while it turns, new circumstances may appear that we will have to manage on our return: and surely among these possible surprises when we return to our current projects, one of the most feared is the one that has to do with the cursed word: job rotation.

If our area of work is related to the latest technologies such as Data Science, Big Data, Artificial Intelligence or the digitalization and IT environment in general, it is quite possible that we will find some surprises of this type after the first days of our return; but if we are also in the Pharma sector, it is almost likely that this could happen.

Is there a pattern to turnover in our area or sector? What factors make it more likely? How can I minimize the risk? Isn’t it true that turnover is actually healthy for high-performing teams, or at least a certain level of turnover?

Annual patterns

There is no study that uniformly identifies the specific months of the year when labor turnover is highest for all industries. However, there are some general trends that can be observed in both the IT and pharmaceutical industries.

General trends in IT: Turnover tends to increase at certain times of the year, particularly at the beginning of the year (January – March) and in the summer (June – August). This can be due to several factors, such as project completion, company budget restructuring at the beginning of the year, and staff turnover after receiving annual bonuses or meeting certain tenure periods.

Pharmaceuticals: In the pharmaceutical industry, variations in turnover can be influenced by new product development phases or regulatory processes. In this sector, turnover can also be influenced by major organizational changes, such as mergers or acquisitions, which tend to occur in specific cycles during the year, often related to financial and regulatory calendars.

Patterns linked to the evolution of the sector

IT turnover trends within Pharma: The introduction of new technologies and accelerated digitalization, such as the implementation of artificial intelligence platforms and the use of big data for research and development, have increased the demand for specialized IT professionals. This has generated fierce competition for qualified talent, which increases turnover, especially after the completion of key projects or when there are opportunities in other sectors that offer better returns.

Impact of mergers and acquisitions: In the pharmaceutical industry in particular, M&A moves have a significant impact on labor turnover, particularly in IT departments. During and after these actions, IT employees can be affected by restructurings, which can lead to increased turnover at certain times of the year, generally aligned with the company’s financial cycles.

In general, in both sectors, spikes in turnover are often observed during periods of accelerated innovation or significant economic change, which create opportunities in new technology areas or drive internal restructuring.

Others

Impact of the economic climate: Economic uncertainty also plays a significant role. During periods of economic stability, workers tend to change jobs more frequently in search of better opportunities. However, in times of uncertainty, turnover may decrease, as employees prefer the security of their current job.

Talent retention and specific challenges: Despite high demand, IT talent retention within the pharmaceutical industry can be affected by the perception of limited career development opportunities compared to other more dynamic sectors, such as pure technology. Pharmaceutical companies that fail to provide a work environment that integrates technological advances with clear development opportunities may experience higher turnover rates.

How to minimize risk

While for some of the patterns we have analyzed, we can manage some foresight and leverage some levers to minimize risk, many others are clearly beyond fully effective management control. 

Therefore, seeking as much flexibility as possible is perhaps the best prevention. If a changing environment cannot be modified, the best option is to be flexible and adapt quickly at the lowest possible cost.

Collaboration with technology partners that allow us to quickly incorporate talent trained and updated in the technology needed in each phase of the project, without burdening the fixed structure of the organization, is a good solution to obtain the necessary flexibility and minimize the impact of labor turnover that will inevitably come to a greater or lesser degree.

As is well known, turnover at controlled levels is healthy and we must live with it, but if it is too high or we are not able to react to it with the necessary speed, the results will be far less satisfactory than we expect.

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References:

• Turnover Trends So Far in 2024 (and What Recruiters Should Know) .- interviewstream (2024)
• What’s behind industry employee turnover rates? .- Reward Gateway (2024)
• Employee Turnover Rate: Definition, Formula & 2024 Trends .- Toggl Track (2024)
• Trends And Estimates For The Pharmaceutical Industry In 2023 .- World Pharma Today (2023)
• Across 25 industries, pharma staffers most satisfied with compensation: analysis .- FiercePharma (2024)