Tania de Decker, Managing Director—Global Strategic Accounts, Randstad Enterprise Group04.22.24
If you haven’t noticed, manufacturing productivity has been middling even though overall U.S. output is strong. According to the U.S. Bureau of Labor Statistics, durable manufacturing fell 0.4% in the fourth quarter of 2023 when compared with a year ago and 2.9% lower from the quarter before.1 Productivity in manufacturing is notably lower than that of all non-farm businesses, which rose 3.2% over 2022. Compared with the benchmark year of 2017, productivity for the past two years has been markedly lower.
This is, of course, a concern for medical device manufacturers. At a time when growth is slowing, declining productivity is especially worrisome as companies look to maintain profits through efficiency gains and accelerated approval tracks. Trying to do more with less has become a priority for medtech employers.
To raise output and performance during a time of budget constraints, employers must focus on improving two critical areas: creating a positive workplace culture and talent experience. Only by enhancing these elements can organizations achieve their output goals. These are key levers to motivating and engaging employees. Moreover, strategic initiatives that nurture culture and amplify experience have a more lasting impact than other measures2 such as a one-time pay bump or other financial rewards.
To fulfill their goals, many leaders are turning to fortifying company culture, with nearly 1 in 5 life sciences companies saying they want to invest more in the way they articulate strong company values and their value proposition to employees. A majority (68%) are already investing budgets in workplace culture, employee feedback, and engagement systems.
One of the ways medtech companies are enhancing the talent experience is by continuously assessing their hybrid work arrangements. With many employers still struggling with the return to the office, getting their policies right for all workers remains a critical issue. In fact, 41% of life sciences leaders say they will focus much more on implementing a remote/hybrid talent model this year, while 49% will continue to devote the same amount of attention as before.
Organizations that succeed are leveraging these arrangements to drive talent attraction and engagement. Companies are also coaching their people to use offsite days as a time to focus and improve the quality of work produced, undertake uninterrupted learning and development, and even indulge in wellness breaks that improve productivity.
J&J, for example, rolled out its flex policy, which gives office-based workers hybrid work options.4 Initiated in 2021, the company continues to use this policy to guide best practices around remote work, part-time schedules, compressed weeks, and other options. In a 2022 interview, CHRO Peter Fasolo said it’s up to HR to meet the priorities of employees in the post-pandemic era, and the company has upheld that responsibility ever since.
Knowing people are invigorated by growth and learning, human capital leaders are placing more emphasis on potential and inherent skills when recruiting. In fact, in the Talent Trends research, 84% of life science leaders say a person’s potential to learn and grow into a position is an important consideration when recruiting early career talent, compared with 69% who say previous work experience matters. By attracting high-potential candidates who can develop in a job—supported by a tailored skilling curriculum—employers can build workforces that are fit for their purpose. This is why some employers believe the most effective talent experience is one that is enriched with learning and career advancement opportunities.
An example is Medtronic, which has earned recognition as an early career magnet in the medical device industry. It was named as one of the best employers for new graduates by Forbes Magazine in 2020 and 2021, and won a Campus Forward Award for its early career candidate experience, investments in inclusion and diversity, and meaningful internships and entry-level programs. It offers myriad internships and rotation programs6 to help its people learn and acquire new skills as they work.
References
Tania de Decker is the managing director of global strategic accounts for Randstad Enterprise Group. She works with Fortune 500 companies to develop and implement processes that improve and drive recruitment and retention solutions. de Decker has more than 28 years of recruitment experience and has worked more than 18 years with life sciences companies. The emphasis has always been on improving the quality of her clients’ talent acquisitions.
This is, of course, a concern for medical device manufacturers. At a time when growth is slowing, declining productivity is especially worrisome as companies look to maintain profits through efficiency gains and accelerated approval tracks. Trying to do more with less has become a priority for medtech employers.
To raise output and performance during a time of budget constraints, employers must focus on improving two critical areas: creating a positive workplace culture and talent experience. Only by enhancing these elements can organizations achieve their output goals. These are key levers to motivating and engaging employees. Moreover, strategic initiatives that nurture culture and amplify experience have a more lasting impact than other measures2 such as a one-time pay bump or other financial rewards.
A Year of Empowerment
For many companies, this is unfolding to be a year of empowering their people. According to Randstad Enterprise’s 2024 Talent Trends research, a comprehensive survey of more than 1,000 human capital and C-suite leaders in 21 markets across all industries, employers are prioritizing the creation of empowering talent experiences through their workplace cultures.3 They recognize the importance of not only meeting talent expectations but also keeping workers highly engaged with a willingness to display sustained discretionary effort. For many leaders, accomplishing this goal is a must at a time when engagement and morale are down, especially because many tech employers have been reducing headcount.To fulfill their goals, many leaders are turning to fortifying company culture, with nearly 1 in 5 life sciences companies saying they want to invest more in the way they articulate strong company values and their value proposition to employees. A majority (68%) are already investing budgets in workplace culture, employee feedback, and engagement systems.
One of the ways medtech companies are enhancing the talent experience is by continuously assessing their hybrid work arrangements. With many employers still struggling with the return to the office, getting their policies right for all workers remains a critical issue. In fact, 41% of life sciences leaders say they will focus much more on implementing a remote/hybrid talent model this year, while 49% will continue to devote the same amount of attention as before.
Organizations that succeed are leveraging these arrangements to drive talent attraction and engagement. Companies are also coaching their people to use offsite days as a time to focus and improve the quality of work produced, undertake uninterrupted learning and development, and even indulge in wellness breaks that improve productivity.
J&J, for example, rolled out its flex policy, which gives office-based workers hybrid work options.4 Initiated in 2021, the company continues to use this policy to guide best practices around remote work, part-time schedules, compressed weeks, and other options. In a 2022 interview, CHRO Peter Fasolo said it’s up to HR to meet the priorities of employees in the post-pandemic era, and the company has upheld that responsibility ever since.
Accelerate Potential with Learning
Without a doubt, fulfilling worker expectations for hybrid arrangements is one way to boost engagement and enhance talent experience. In addition, so is helping them grow in their jobs, Randstad research shows. The 2024 Workmonitor survey of more than 27,000 workers in 34 markets found one-third would quit a job that doesn’t offer learning and development opportunities to future-proof their skills.5 Slightly more (36%) say they would leave if their employer didn’t support their career ambitions.Knowing people are invigorated by growth and learning, human capital leaders are placing more emphasis on potential and inherent skills when recruiting. In fact, in the Talent Trends research, 84% of life science leaders say a person’s potential to learn and grow into a position is an important consideration when recruiting early career talent, compared with 69% who say previous work experience matters. By attracting high-potential candidates who can develop in a job—supported by a tailored skilling curriculum—employers can build workforces that are fit for their purpose. This is why some employers believe the most effective talent experience is one that is enriched with learning and career advancement opportunities.
An example is Medtronic, which has earned recognition as an early career magnet in the medical device industry. It was named as one of the best employers for new graduates by Forbes Magazine in 2020 and 2021, and won a Campus Forward Award for its early career candidate experience, investments in inclusion and diversity, and meaningful internships and entry-level programs. It offers myriad internships and rotation programs6 to help its people learn and acquire new skills as they work.
3 Keys to Success
As the medtech industry looks to raise productivity and innovation, nurturing talent will be key to making this possible. Based on the market trends we have observed, companies can achieve this through three important levers.- Nurture a culture of performance. Device makers can elevate productivity and innovation by providing their people with regular assessments, ongoing skilling opportunities, channels to give feedback to the C-suite, and strong DEI values. These elements all support individual accountability and recognition with a mechanism for rewarding those who outperform.
- Create a consistent and holistic talent experience. Organizations can inspire their employees to outperform when they create a positive talent journey throughout their entire tenure. This starts with a talent attraction strategy that is aligned with the company’s values and mission, which are reinforced throughout a person’s time on board, and further reaffirmed during the offboarding process. Such an approach builds trust and confidence in the employer-employee relationship.
- Consider a skills-based model for talent. A growing number of companies are dropping college degree and experience requirements for certain roles to access talent best suited for their business, especially among early career candidates. Hiring and advancing based on people’s potential and aspirations can raise engagement and productivity in the long run. At the same time, a skills-based approach also broadens the talent pool to provide better access to the right candidates.
Conclusion
Economic uncertainty is leading many medtech companies to sharply raise productivity with fewer investments. There are many ways to achieve this goal—technology, reduction in force, outsourcing services—but one of the most effective ways is to inspire and incentivize the workforce. By delivering a strong talent experience offering a healthy work-life balance, career advancement opportunities, and skilling support, employers position themselves to reap long-term gains that one-off initiatives can’t replicate.References
- tinyurl.com/3kbfywjd
- tinyurl.com/4cmnmk74
- tinyurl.com/4u3ejdhd
- tinyurl.com/38ba2hwm
- www.randstad.com/workmonitor
- tinyurl.com/248hyptp
Tania de Decker is the managing director of global strategic accounts for Randstad Enterprise Group. She works with Fortune 500 companies to develop and implement processes that improve and drive recruitment and retention solutions. de Decker has more than 28 years of recruitment experience and has worked more than 18 years with life sciences companies. The emphasis has always been on improving the quality of her clients’ talent acquisitions.