Contract research organizations may be critical outsourcing partners for the pharmaceutical industry but a survey of CROs indicates that turnover remains an issue. Although it has declined a bit in the U.S., turnover remains relatively high in many countries outside the U.S. It’s cause for concern because it’s an industry with a steep learning curve.
The report on CRO turnover concludes that better use of incentives could help companies keep employees.
Japan has the highest turnover rate at 40 percent followed by Mexico with 36 percent. Singapore and China each had a 33 percent turnover rate. Where were turnover rates lowest? Canada, Colombia, Hungary and Chile each had 10 percent.
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
The survey by HR+Survey Solutions, a compensation consulting and research firm, tracks CRO Industry Global Compensation and Turnover Data. It included participation from 20 public and private CROs. Size varied from under 500 to more than 12,000 employees
In the U.S., CRO employees receive lower long-term and annual incentives than other industries. CRO pay tends to be heavily weighted toward base salary. Salary represents almost half of the compensation package for executives. Annual incentives account for 19 percent of compensation packages and long-term incentives account for 34 percent.
For directors, long-term and annual incentives combined only account for 14 percent of compensation. Clinical research associates in the U.S. have the dubious distinction of having the most turnover.
Judy Canavan, managing partner with HR+Survey Solutions, said the CRO industry could do more to reduce staff departures. “With continued high turnover levels, companies need to take steps to strategically utilize compensation to motivate and retain employees rather than continuing to run fire drills in an attempt to fill open positions.”
