Tackling the UK’s pharma skills shortage

Ambitions are soaring for the UK’s pharma and biotech industry on the back of record investment but can it be sustained in the absence of workers with critical STEM skills? MHA’s Yogan Patel looks at strategies for attracting and retaining talent in an Expert View piece.

Last year saw record investment in the UK’s pharma and biotech sectors, estimated to be a 60%?increase on the back of the country’s success in sequencing the COVID genome, developing vaccines, and expediting clinical trials.

Life science is expected to remain a growth industry across the coming decade, fueled further by the government’s aim of becoming a world leader in disease research, and accelerating the development of new treatments, medical technology and digital tools.

It is a fine ambition, but difficult to achieve without the right skills. The Science Industry Partnership projects the sector will need to fill 133,000 jobs by 2030, with around two thirds required for R&D and manufacturing roles.

The sector has raised concerns that skills in STEM (science, technology, engineering and maths), including digital and AI skills, are in such high demand from other sectors, it may undermine the sector’s ability to achieve the full potential of the increased investment.

Without attracting people with the right skills to this growing sector, it will become challenging for life science companies to continue to attract the funding necessary and allow the UK to become a power on par with its peers.

So how can emerging companies attract the right people and keep the sector growing?

Retaining staff is a priority

Before organizations start thinking about how to attract new people to the industry, they should first prioritize retaining key staff who already have the appropriate skills and experience, which is much more cost-effective than recruiting new talent.

However, it’s not easy. Impeding recruitment efforts, particularly from technology and finance companies, are luring data and?digital specialists with eye-watering salaries that the life sciences sector cannot match.

To retain valued staff, business leaders must start thinking outside the box and consider programs such as the UK government’s Enterprise Management Incentive (EMI). This system enables companies to offer staff share options on attractive terms and is very tax efficient for both employees and employers. Alternatives such as share options also help make key employees feel like they are tied to the success of the products they’re working on.

There are other simple steps that organizations can take to enhance the attractiveness of the workplace. Wellbeing programs, social camaraderie, staff surveys, and flexible working conditions are vital to engagement with staff and grow a culture that supports retention.

Another element in successfully nurturing staff is helping them map out a career development plan which could include opportunities to work in offices abroad or support any further education aspirations such as a PhD or MBA.

Allowing key staff to visualize themselves in the business across the long term is critical to ambitious growth plans for both the employee and the business. Without that buy-in to the vision for the business, and that vision for their own career, other options will look more attractive.

Keeping investment strong

While life science investment has soared in the last two years, the UK trails China and the USA in financing inflows, highlighting the gap the government and industry need to cover to help it become a truly global pharma power.

The BioIndustry Association update for the first quarter of 2022 found the UK attracted ￡453 million ($520 million) venture capital financing to the sector. However, it also showed a drop in investment flows to IPO and follow-on financing markets, with both?close to drying up in the first quarter of 2022.

While this was likely the result of rising inflation in the USA causing investors to be more cautious, it underscores the sector’s dependency on investment for growth, which in turn impacts the sector's ability to attract top talent.

Exploring alternative means of maintaining investment is therefore critical for the industry. Many SMEs are not aware of grant funding or are intimidated by the application process, such as the Life Sciences Innovative Manufacturing Fund. There are also favorable tax breaks for individual investors in UK trading companies, receiving income tax relief at 30% if they hold the investment for three years, in addition to no capital gains tax on the sale of the shares assuming all the conditions have been met during the three-year period.

The government is also likely to expand R&D tax credits and is evaluating ways to enable certain financial institutions and their funds, including pension funds, to invest directly into the sector.

An industry in need of a makeover

COVID-19 has not only changed the game for the UK’s life science sector, it has transformed how employees view their own workplace, and their outlook on mental health. Ultimately, it means staff are seeking more from work than just work.

To adapt these new employee demands and expectations, the life science industry must present itself as a more attractive option for young graduates, in the same way that the tech sector was transformed more than a decade ago. The pandemic undoubtedly boosted the pharma industry’s reputation, however it is a highly competitive market for talent coming out of university.

Continued government investment into the sector will be vital in sustaining confidence of the private sector, however organizations must also change for the government and industry’s ambition to become a global hub to be realized. Greater focus should also be placed on increasing diversity and inclusiveness on graduates coming into the sector. For example, the visa system must adapt to attract more graduates, and unlock talent the industry is seeking within diverse populations.

After a transformative few years for life sciences in the UK, both industry and the government must do all they can to attract new talent and retain key employees. The success of both will underpin the next phase of sector growth and determine whether the government’s lofty sector ambitions are realized in the years ahead.