The leadership actions that make a big difference for talent retention and attraction in pharma

As Christmas disappears into the rear-view mirror, most are planning for the year ahead and trying to keep up with our new year resolutions. For many, this involves seeking out new employment. According to data from Glassdoor, January sees 17% more job applications started, with the busiest day for job seekers falling on the Tuesday of the first full business week of the year.

This annual job-seeking surge underscores a perennial challenge faced by organizations across all sectors: retaining top talent. While competitive compensation and attractive benefits packages certainly play a role, research consistently points to a different, more fundamental factor as the primary driver of employee attrition: the quality of line management.

This issue is particularly acute in the pharmaceutical sector, where the competition for skilled professionals is fierce. According to AMS, 80% of manufacturing facilities and 36% of drug developer are currently struggling with talent shortages.

So, as we move into the new year, what are some of the leadership practices that create a positive and motivating work environment that keeps the best talent in house? What can leaders do to keep their best people engaged and thriving?

What can leaders do to keep their best people engaged and thriving?

Here are five key leadership actions that can significantly impact talent retention and attraction in the pharmaceutical industry:

1. 1. Provide regular, constructive feedback. This may seem obvious, but its importance cannot be overstated. Feedback should not be confined to annual performance reviews. Instead, it should be an ongoing dialogue that helps employees understand their strengths, identify areas for development, and feel genuinely valued for their contributions.

In an industry where projects are complex and timelines are tight, regular feedback can provide the necessary guidance and support to keep employees on track and motivated. It also provides opportunities for managers and employees to align on goals and expectations, ensuring everyone is working towards a common purpose.

2. 2. Offer opportunities for progression and development: In any industry – but particularly one driven by innovation and scientific advancement – ambitious employees are constantly seeking opportunities to learn, grow, and expand their skill sets.

It is essential that leaders are proactive in helping employees chart a clear path for growth within the organization. This could be anything from providing access to specialized training programs, to establishing formal mentoring programs, or simply creating internal opportunities for employees to take on new challenges and responsibilities.

A key part of this is making time for career conversations and working collaboratively to develop individual development plans.

3. 3. Encourage diversity of thought and create a culture of inclusivity. Any industry thrives on diverse perspectives and innovative thinking. Leaders must actively cultivate an environment where all team members, regardless of their background, experience, or role, feel empowered and safe enough to share their ideas, challenge the status quo, and contribute their unique insights.

4. 4. Create a strong sense of purpose and connect employees to the bigger picture. Most people working in pharma are driven (at least in part) by a desire to make a real difference in the lives of patients. For leaders, the challenge is often to clearly articulate the organization's mission and vision, and to help employees understand how their individual contributions directly contribute to achieving those overarching goals. Connecting employees to this bigger picture can foster a deeper sense of engagement, and loyalty.

5. 5. Celebrate successes and acknowledge the hard work of the team. In any role, it's easy to get caught up in the relentless pursuit of milestones and deadlines. Leaders must make a conscious effort to pause, recognize, and celebrate the hard work, dedication, and achievements of their teams.

There are a whole host of ways this can be done, and it doesn’t always need to be a grand gesture. Celebrating successes, both big and small, can make a lasting impact on team morale and create a sense of loyalty and belonging.

6. 6. Consider whether exit interviews are really enough: While exit interviews can provide valuable insights into the reasons why employees leave, they are often too little, too late. ‘Stay interviews’ could be much more valuable. These are conversations with current employees designed to understand what motivates them, what aspects of their work they find most rewarding, and what factors might be causing them to consider leaving. By proactively seeking this feedback, leaders can identify potential issues before they escalate into major problems and take steps to address them.

It’s also crucial to take action on the feedback received in exit interviews, even if the departing employee is already out the door. This demonstrates a commitment to continuous improvement and shows remaining employees that their voices are heard and valued.

Helping to underpin all these efforts is the fundamental concept of psychological safety, which we covered in more detail in a recent blog.

Psychological safety refers to a shared belief that it is safe to step out and declare ambitious goals. In a psychologically safe environment, employees feel comfortable speaking up, sharing their ideas, challenging the status quo, and admitting mistakes without fear of judgment or reprisal.

Combining this with the simple leadership behaviours outlined above can be a powerful force in keeping teams motivated and together.

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