What happens in an already tight labor market when a sector requires increasingly specialized skills? The need for financial talent with industry-specific life science skills and experience has never been greater. National and global trends — including aging populations, increased political pressure, and rising consumer expectations — are forcing companies to look for new, sustainable business models and practices.
We spoke with Aston Carter Account Manager Andrew Honore to learn more about what’s trending and for tips on crafting hiring solutions that work.
What’s Behind Increased Specialization
Multiple factors contribute to the narrowing of the life sciences financial talent pool.
A major driving force is the high cost of research and development to bring a new drug or medical product to market. When companies turn to mergers, acquisitions and consolidations in response, they need a talent strategy to support the change.
“One of the things that happens as a result of a merger is you need to bring work in-house,” says Honore. “If company A is acquiring either the products or the entirety of company B, that work from an accounting and finance standpoint needs to be consolidated. This creates a lot of project-based work for companies around the M&A activities — and once they've acquired that company — transferring of knowledge and processes to consolidate the work.”
The global reach of the industry means that accountants need working knowledge of international standards – the International Financial Reporting Standards (IFRS) and Employee Matters Agreement (EMA). And with the increasing uncertainty surrounding Brexit, keeping abreast of what’s happening globally ups the ante even more.
Companies are also increasingly looking for finance and accounting talent with specific software experience. Analysis performed around commercial, Medicaid and Medicare rebates not only requires industry-specific knowledge, it relies heavily on Model N rebate management software.
External Factors Contribute, Too
Health care was the number one issue for voters in the 2018 midterm elections. Scrutiny on cost, profit-margins and price transparency will only increase as the national debate continues.
“There's always different legislation that's being passed that impacts our customers in this space,” Honore explains. “There’s the Food & Drug Administration (FDA), and then you have all the different governing bodies that impact companies from the accounting and finance standpoint in general. They need experts who can come in and help make sure that they're compliant.”
For example, the call for greater transparency in clinical trials budgeting requires financial analysts working in the space to develop specific competencies.
“When you're looking for a financial analyst to manage a clinical trials budget —which is a very specific skill set— you need somebody who has that experience,” says Honore. “Our clients can't just take a candidate who's done financial analysis for an HR, sales or marketing department, because the work is very different.”
The 2018 Supreme Court ruling in South Dakota v. Wayfair, Inc. – that states can tax purchases from sellers who are located out-of-state – adds another layer of complexity: Financial analysts and accountants need to understand with the variable tax thresholds established by each state and ensure compliance.
Learn from Best Practices
Given the complexities facing the life sciences sector, it’s not surprising that there isn’t a one-size-fits-all hiring solution. Recruiters who focus on the industry are able to play a consultative role that adds value above and beyond job placement.
Because he focuses solely on the life sciences and pharmaceutical industries, Honore notes that he is able to share his industry insights with clients, often collaborating on solutions.
“A client might tell us that they don’t have a plan to deal with a new requirement or piece of legislation,” says Honore. “We can tell them how other companies are handling it and come up with a plan that works for them.”
Sharing best practices is particularly valuable to smaller companies that don’t have the same resources as their larger competitors.
“For example, the cost for Big Four support is astronomical,” Honore explains. “What we can do is come in and, rather than outsourcing, we can bring a resource in-house who can do a lot of the day-to-day stuff, while at the same time, saving quite a bit of money.”
Solve Business Problems, Not Staffing Issues
Honore takes a unique view of his role. In the end, he collaborates with clients to identify and solve business problems.
“The problems that our customers have aren't staffing problems, they're business problems, and they need business solutions,” says Honore. “And how we help them create those solutions happens to be through bringing in people with the knowledge and talent they need.”
Often those solutions require flexibility, open-mindedness and a realistic sense of the market.
Honore notes that smaller companies may not be able to meet the salary demands that the current market has set on niche industry skills. In those cases, he’s able to present clients with a candidate who has 90% of the necessary skills and the ability to learn the rest through a performance plan. Or, he can backfill lower level positions to enable existing in-house talent to focus on a short-term project without having to put in 60-hour work weeks.
Honore concludes: “I never tell clients no. I give them options of things that they can say yes to."
If your company could benefit from a free conversation about hiring options in retail and consumer sales, contact Aston Carter now.
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