Here’s a puzzler: Although medical sales professionals are happy with their jobs, turnover in the field is surprisingly high. The answer to this mystery lies in part with the instability of the field, the realities of a changing medical industry, and increasing toughness of employers brought on by the economy.
A recent MedReps survey found 43 percent of responders were either somewhat or extremely satisfied in their jobs. Yet the same survey found 88 percent of those medical sales professionals polled were looking for new job opportunities. Two-thirds had worked for about two to three companies in the last 10 years alone, and the average length of stay for the currently employed was only 3.4 years.
If medical sales pros are satisfied in their jobs, why are they so eager to find a greener pasture? Here are some reasons why the job search for some medical sales workers is a never-ending story:
Layoffs and the Economy
The economic downturn has affected almost every industry, and medical sales is no different. The current state of U.S. unemployment is about 7.3 percent, meaning approximately 11 million Americans are out of work. The recession has impacted the medical sales field, and “reorganizations” resulting in layoffs are a huge concern for most workers.
Of the currently unemployed medical sales professionals, 71 percent were currently out of the job market due to layoffs. This explains why 43 percent of those surveyed were worried about the possibility of being let go.
Anxious workers means employees are always looking for the exit sign or an escape hatch. “This industry is so volatile, it’s rare to meet reps that have been with the same company for five years, much less ten,” said one survey participant. “I feel like I always have to have my resume updated, in case I’m once again a victim of layoffs.”
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Not surprisingly, anxiety over layoffs may in fact be a self-fulfilling prophecy. If an employee is worried about the possibility of layoffs, they’re probably not engaged in the workplace. In a Gallup poll, engaged workers were proven to be more productive by at least 22 percent. Therefore, worries about potential layoffs can actually make good workers more likely to be on the organizational chopping block.
Unrealistic Expectations
With a tough economy and layoffs seemingly around every corner, there’s more pressure than ever before on workers to deliver results every time. These unrealistic expectations might be a motivating factor for why so many workers have one eye on the door. After all, a recent Gallup poll actually showed 70 percent of workers are disengaged in the workplace. Unrealistic expectations are one reason workers might be found dreaming of a more supportive environment.
“There’s too much downsizing lately,” one MedReps survey respondent noted. “It’s doesn’t matter how hard you work – if you’re not in the top 10 percent, your job is at risk.”
In the survey, 35 percent admitted to being either very or somewhat concerned about meeting performance expectations. While many workers get into the medical sales field for a challenge (and for the resulting high salaries), it’s easy to burn out under this form of constant pressure. Stress can affect both physical and psychological health, and leads to more than $300 billion in associated costs for employers each year.
A Changing Industry
Another major problem for medical sales reps is the constant evolution of the industry. There are always new regulations, new device taxes, and new ways in which the industry is changing. With the implementation of the Affordable Care Act also comes a whole new set of rules and regulations to learn. All this industry change can lead to a feeling of instability and spur turnover.
Solutions?
Employee turnover is costly and certainly not in the best interest of any organization. The cost of replacing an employee can range from 20 to 213 percent of that employee’s annual salary. (The costs go up depending on the employee’s role within the company.)
To keep great people from walking out the door, companies need to work on fostering a more positive company culture. Make expectations more reasonable, clearly communicate with workers, and ensure everyone feels heard. With less workplace stress comes greater productivity, happier employees, and better employee retention.
Why do you think turnover is so high in the medical sales profession? Share in the comments!
