Before anyone can build a great product, a great pipeline, a great biopharma company, they first need to build a good, strong team. Talent is everything. That’s part of the reason many startups launch in key life science hubs, such as Boston, San Francisco, and San Diego.
There’s talent on tap there, right?
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.
“I’m telling you, most CEOs are completely out of touch, in my experience,” said Robin Toft, founder and CEO of Toft Group. “They think that there’s a wealth of talent everywhere… and it couldn’t be further from the truth.”
The problem is that there are too many companies and too few free agents, Toft explained in an interview during the J.P. Morgan Healthcare Conference last week in San Francisco. On a macro level, commute times, the cost-of-living, and demographic shifts are all disrupting labor pools.
The latter is referred to as the ‘hourglass effect.’ There’s an abundance of baby boomers and a large group of millennials establishing themselves in the market. Bridging the two is Generation X, a much leaner cohort (the middle of the hourglass) that can’t and won’t step into all the 24/7 roles vacated by the baby boomers.
“There’s probably about 10 years and then it will totally flip to millennials,” Toft predicts. In the meantime, “there’s a giant talent void hitting our industry and probably all industries.”
What does this mean for executive teams? Simply put, there aren’t enough middle-aged white guys to go around. Companies need to diversify, focusing in particular on the big three; gender, age, and ethnicity.
Beyond filling seats, diversity can bring huge benefits to the company. There are all sorts of data showing that diversity creates innovation, Toft said. It brings different perspectives, skill sets, and new ways of thinking. Many companies know this, but it’s hard to put into practice at first.
“I think if you interviewed biotech CEOs, if you were standing outside the St. Francis and asked them: How many women do have in your leadership? Would you like to have more women in your leadership? I think every single CEO would say yes. Authentically yes,” Toft said referring to the Westin St. Francis hotel, which is the venue for the J.P. Morgan Healthcare Conference.
They just don’t know how to go about it. When diversity is visibly lacking in a company, it can seem hostile or incompatible to women and millennials. So it’s not just about hiring — a culture shift also needs to take place.
“I spend a lot of time working with CEOs to help them adjust the culture so that they are attractive and sticky,” Toft said, referring to talent retention.
At the end of the day, women and millennials want the same things. They want flexibility, to avoid long commutes, and to maintain a balanced life. It sounds simple, but Toft said many life science companies are stubbornly rooted in the antiquated mindset of a nine-to-five.
The hard hierarchical structure of the company may need to change, along with certain habits that all-male workplaces are prone to. At the top of the list is encouraging people to listen, instead of talking over the other person (commonly a woman).
If it’s done well, diversity will breed more diversity. Women will connect and bring other women on board. Millennials will infuse the workplace with a more modern vibe.
It’s a change of pace and some CEOs view that as harder to manage, Toft said. The really good CEOs, on the other hand, typically love it and lead from the front.
“I think it really needs to be a mandate from the CEO all the way through the organization and the best one I know is [Johnson & Johnson] right now,” she said. “If they’re asked to be on a panel and it’s not a diverse panel, they will not show up. It’s that much of a mandate from the top down and you have to admire that — that they have diversity rules.”
Toft recommends appointing a team member to be directly responsible for the company’s culture, be it a ‘chief people officer,’ or just a really good head of HR. “Culture committees” can help too.
If companies are still struggling, outside culture specialists can be brought in to help on a more granular basis.
Finally, Toft encourages life science companies to revisit their hiring strategy — though many skeptical executives stand by their “I hire the best athletes” defense.
“I’m like yeah, but you don’t have to define best athlete the way you have always defined the best athlete, with the exact same job description.”
That’s how you get the same type of employee over and over again. And chances are, his name is Michael.
Photo: Tinpixels, Getty Images
