Everyone likes to be rewarded for their efforts – especially when those rewards bring measurable value to their lives. And once rewarded, most people are extra motivated to keep putting out great work.
This is especially true when it comes to the modern workplace. Not only do job benefits attract high-quality talent, but they motivate employees to work that much harder at their jobs. If you’ve been looking for that extra little something special to inspire your team, you might consider adding a few more perks to their work experience.
As we’re all aware, the pandemic has radically shifted the kinds of benefits employers will consider offering. Some, like health coverage, have been standard since the inception of the modern workplace. Others, like the flexibility to work from the living room couch, are more of a hot new development. To give you an overview, here we’ve outlined some of the most important job perks to the workforce of 2023.
Traditional Benefits – The Indispensables
Health, dental and life insurance, sick days, vacation days… these benefits have been around for a while, and for good reason. Who wants to worry about where their next filling or pair of eyeglasses is coming from? And heaven forbid they should have a health emergency, candidates will want to know that you’ve got them covered. As for vacation days, it’s 2023 and we all value our leisure time. So the more of them you can offer, the better!
Another job perk never goes out of style: growth opportunities. Candidates won’t want to feel like they’ve hit a ceiling, especially not if they’re just starting out in their career. Make sure to have regular meetings with each team member in which you present them with options for how they can advance within the company if they’re interested.
Work From Home – How Important is it?
As of December 2022, nearly 30 percent of workdays were completed on a work-from-home basis. According to a recent survey, employees value part-time work-from-home opportunities (2-3 days per week) in a position at 8 percent of their wage. Flexibility is the currency of the modern workplace – so offer as much of it as you can.
Millennials, in particular, prioritize flexibility much more than previous generations. In fact, 67 percent of them feel that working on a remote and flexible basis promotes good work-life balance. If you can offer your younger candidates a schedule they jibe with, they’ll be likely to perform well in their roles, enjoy their work, and speak highly of your company to their peers.
The Fun Stuff – Job Perks
Office parties, work socials, group escape room excursions: these social perks might seem a little excessive to some, but others can really thrive on them. With workplace culture a more and more important driver of where quality candidates choose to work, it may be worth it to invest in a social scene for your employees.
If team-building retreats aren’t your style, though, you can focus your efforts on creating a positive workplace environment. Full-time employees spend a huge chunk of their waking hours at work – more than ever, they want the atmosphere to be pleasant. Luckily, there are tangible ways you can help to foster a friendly workplace.
One simple, easy to implement idea: creating a “social spot” as a designated area for employees to relax. This could be something as simple as a staff room, where team members can reheat their coffee, run into each other, and even sit down for important one-to-one chats when needed.
And speaking of fun: what about coffee? Turns out that when coffee isn’t offered for free at the office, 25 percent of employees will leave the workplace to get it for themselves. On average, these trips take 14 minutes, and probably longer when you consider their full impact on the flow of the workday. So keep in mind… coffee is always a plus!
Benefits That Work Both Ways
With the ideal benefits package, employees won’t have to feel burned out from too many days in the office – or lonely and isolated from their fellow team members. The right job perks will reassure your top candidates that if they choose to work for you, they will feel valued, heard, and fully equipped to deliver top-notch work in their roles.
Let’s talk Biotech Culture. Biopharma* start-ups often tout the noble aspiration of curing all that ails the world. And in many instances, they have been successful. Advances in drugs and vaccines are a huge contributing factor to our ability to live longer and lead more active and productive lives.
Many biopharma companies, however, have systematic cultural & values issues that are far from apparent when reading their well-groomed press releases and perusing their flashy websites. Many of these illustrious, high-flying organizations are in fact perpetuating ‘mistruths’; their claims of a virtuous, meritorious, transparent and science based approach are often misleading or outright untrue. Careful observation reveals some serious rifts, cultural divides, and outright lies beneath the surface.
Interviewers beware! Here are some clues there might be a more complicated truth beneath a company’s attractive exterior:
Interviewers beware- here are some clues :
No one is willing to talk about why previous employees have left the company.
The interview feels like an interrogation, and no one thanks you for coming in.
No one at the company seems to be smiling or making eye contact.
You were left waiting with no apology, or there were hasty last minute cancellations.
The leaders have elaborate offices while everyone else is in micro cubicles.
You weren’t offered parking or expense reimbursement.
The interviewer focused on your weaknesses and lack of experience.
Read between the lines and observe the body language of your interviewers. Much of the time, interviewers won’t be forthcoming about problems within the company, so it’s important to pay special attention to visual cues and behaviors. Many rely on employer rating sites like Glassdoor for honest reviews of a company directly from employees, but these are hard to trust and tend to attract fringe reviews, both the good and the bad.
The problem often starts with executives that don’t truly live the values they espouse, because they feel that they are above them. This can create a downward cultural spiral as cynical employees observe the disconnect, or, worse yet, they may emulate and spread this negative behavior until it feeds into the general population.
beware biotech interviewers
It’s important to first differentiate culture from values. Culture can be defined as the personality of a company, which establishes the climate of the environment. Corporate values can be defined as philosophies or principles which guide an organization’s internal conduct as well as its relationship with its customers, partners, and shareholders. The two are different, yet closely intertwined.
For sure, biopharma can’t be completely singled out for its empty corporate values and cultural insincerity. Most every biotech or pharmaceutical industry has its share of guilty companies, but biopharma is a special case.
To be fair, there are many well managed, promising biotechs run by executives who truly care, and who adhere to respectable values while building healthy, robust company cultures. The typical biopharma values list has good intentions of trying to conjure a harmonious environment, where people work as a team and have each other’s back in finding a cure for a particular disease area. However, many would be more appreciative of honest statements about a current culture, rather than a phony, contrived or even aspired one. Just admit that you are incomplete, that there are gaps but opportunities. Be real. Be sincere. Confess that you intend to monetize your technology/drug/vaccine. Don’t partake in the charade of a selfless, philanthropic institution just to attract talent. Employees will resent it if they discover the truth is not what was advertised. It’s ok to be for profit, and in this business with less than 10% of drug programs succeeding to commercialization, there has to be a prospect of high profitability or few would partake.
an illusion at many places
The fact is, for many pre-commercial biotechs, the corporate values may come across well, but are often disingenuous. The issue is, once this hi-po person has landed s/he quickly realizes the truth and has buyer’s remorse. This partially explains the high turnover rate of biotechs. Of course, the volatility of proof of concept and the fact that you need a mountain of cash to succeed are major factors as well.
quitting a start-up biotech
There are other high-beta industries that churn and burn people as well. High-tech is similar in this respect. Biotech is probably a more egregious offender, though, because of its stark stages and higher regulatory hurdles. These companies often grow in ways that management hadn’t anticipated or expected. Example: most ‘platform technology’ biotech companies re-brand themselves as ‘drug companies or Pharmas’ as they show progress clinically. Drug Development companies in turn may quickly change therapeutic focus after a clinical failure or competition. They are often bought by bigger companies, after which their brand and values will change yet again. Ultimately, these companies can change into very different entities at these inflective junctions, and it can all happen in a very compressed period of time: often only a couple of years.
The talent base, of course, changes too. A pre-clinical discovery company will rotate out early research-based talent in its clinical stage, focusing primarily on development, medical and regulatory staff. Then it will refocus dramatically as it approaches commercialization, bringing on sales and marketing teams. The skills needed change rapidly, as well as the personality types, and many of the individuals who seeded the company, the ones who set the tone of the company’s values, will be long gone by the time you get to the commercial stage.
So how did the set of core values by which a company operates become so important, and in turn become so often misleading?
It seems to have gained popularity after the Jim Collins and Jerry Porras business classic Built to Last, was published in 1994. This book offers evidence that the “best” companies follow a set of principles or core values, and that created a sort of cultish blueprint that every company feels compelled to now follow. This book offers evidence that the “best” companies follow a set of principles or core values, and that created a sort of cultish blueprint that every company feels compelled to now follow. To quote Patrick Lencioni in the July 2002 Harvard Business Review: “The values fad swept through corporate America like chicken pox through a kindergarten class. Today, 80% of the Fortune 100 tout their values publicly—values that too often stand for nothing but a desire to be au courant or, worse still, politically correct. Organizations follow the lead and behavior of their CEO, and this establishes a company’s culture. This culture is perpetuated, for better or worse, by corporate values that either ring hollow and or are eschewed, or truly mean something and therefore are adhered to. Because of the industry’s expansion, it’s been harder to find experienced, talented leaders who possess the necessary qualities of leadership, integrity, and sincerity along with the experience and competence necessary to lead biotech start-ups.
In the end, culture can be a moot point for biotechs because of the very business of drug development. You can have a culture and values system that enriches the corporate environment, but if your drug flunks a Phase IIb that fantastic culture won’t guarantee a buyer. Just the same, even if a company has clinical success but keeps bleeding talent because employees are unhappy within the company culture, things can unravel quickly that way. Company culture and values do matter, and can either drive organizational success or hasten systemic failure.
Ultimately, it’s best for companies to say what they mean and mean what they say. It’s okay if your culture needs work, but transparency about this goes a long way; just admit that the culture is evolving and you’re building towards a set of core values. Don’t use hollow words just because you think they will resonate; they won’t if your leadership doesn’t embody and adhere to them. For CEOs: don’t commit yourself to a carved-in-stone system of values that is likely to change. The nature of the life-cycle in this business is not simple, and cannot easily be mapped-out ahead of time. It isn’t realistic to pretend that you’ve summed up all the outcomes, values, and necessary competencies before you begin the journey. Start by acting with integrity and sincerity, and realistically describing the current state of your team, and where you strive to improve. Honesty is crucial; your employees will thank you for it.
say it like you mean it
Disclosures/postscripts
*Differentiating: biotech(nology) and biopharma (pharmaceutical) companies. Both produce medicine. Biotechnology companies produce medicines which have a biological basis, and pharmaceutical companies’ produce those with a chemical basis. Biotechnology companies use live organisms or parts of living organisms, such as bacteria or enzymes, to manufacture their drugs. In this use of the word, we refer to any pre-commercial biotech or pharma company.
Do you know who to hire for which role? Gone are the days of the lab-only scientist. Nowadays, positions in STEM fields can call for a variety of communications skills, whether that be writing, management, design, or something else. These science communications positions are all the rage nowadays, but because they require at least two skill sets, they can be difficult to fill.
When hiring for a science communicator role, there’s no one-size-fits-all background to look for – so screening applicants can be tricky. What keywords do you search for? Who do you rule out? Many qualified applicants won’t have had a separate career to match every skill required for a role. So, you’ll need to find other ways of assessing their potential to succeed.
Types of multi-skilled roles in the sciences
As careers in science communications become more and more well-known, interest in the field is burgeoning. Examples of positions in science communications include scientific communications specialist, medical writer, and research analyst. Some positions will skew more communications-based, and some more science-based. The trick for who to hire for which role is to discern which skillset comes first for a particular job. Then, you can comb through the applicant pool with that information top of mind.
Positions that are often more science-based can include roles in technical editing, data management, and curriculum development. Such roles absolutely still require communications skills – just perhaps not the same kind of verbal acuity that might be required of a presenter or writer. There are no hard and fast rules, though! Always use your judgment about the skill set that would work best for a particular position.
Who to Hire for Which Role
A role that primarily involves research or leadership, but seldom calls for in-depth or on-the-spot scientific knowledge, is often well-suited to a communications professional. If you’re on the lookout for a Director of Communications for a life science business, for example, don’t hesitate to choose someone who’s well-versed in leadership and project management, and less experienced (but highly trainable) in research analysis.
For roles that hinge on a deeper STEM knowledge base, consider hiring scientists – albeit that they boast some natural writing acumen. For instance, you may be on the hunt for a data science consultant who can not only solve problems, but effectively communicate their solutions. Because data science is not usually a skill that people pick up “on the fly”, you’ll probably want to first gather a pool of candidates with experience in the field. Then, to form your “top tier” of potential hires, you can identify the strongest communicators within that pool.
Some positions get especially tricky, though. Let’s say, for example, that you’re on a mission to find the perfect technical editor to fill an opening. In this case, you might actually be better off hiring a trained scientist. That’s because editing, while communications-based, is very detail-oriented and factual. Of course, any editor should have a good handle on grammar and paragraph structure, too – but in this case, finding someone who knows the ins and outs of the subject matter may prove to be the most important factor.
What to screen for
For science positions that involve preparing presentations, articles, or other written materials, ask your shortlist of candidates to show you a couple of relevant samples. A candidate’s portfolio may include brochures, slide decks, even emails – as long as it gives you a sense of their writing style, it should offer valuable insights into their suitability for a communications role.
Ultimately, when you’re hiring for a multi-skilled position, the most important thing to screen for is ability to learn. If a candidate sounds terrified, or perhaps just bored, by the thought of becoming well-versed in a subject that’s new to them – this may not be a recruitment match made in heaven. But if their eyes light up when you tell them more, and they can describe times they’ve used a similar skillset somewhere else – you may just have a winner on your hands.
The most important skill – who to hire for which role
Figuring out which candidate is likely to make the best hire can be a tricky balancing act – especially when it comes to science communications roles. As you search for suitable candidates, keep an eye out for those who are sharp, enthusiastic, and above all ready to learn – even if they don’t have the perfect resume.
And remember: people can always surprise you. Just because a writer hasn’t researched scientific topics before doesn’t mean they aren’t cut out to learn some new ropes. If your new science news editor has advanced technical degrees in their subject matter but little to no writing experience, you can assess their language skills another way. Keep a critical but open mind, and you’ll find a candidate who brings to the table an impressive skillset – and a willingness to keep learning more.
Yes, you can improve your memory! We’ve all been there. Someone approaches you whose name you don’t remember. You’ve met each other a few times, but your mind goes blank… You manage to get through the interaction with a “hey, you!” and feel too embarrassed to ask for their name again, especially since they know yours. Whether they notice you didn’t remember their name or not, it is difficult to forge a strong relationship with the person if you don’t know their name!
Why does your memory fail you in moments like this? There could be a number of reasons. Research shows that the average American consumes at least 100,000 words and 34 GB of data per day! Given all of the information you consume on a daily basis, your brain cannot possibly store everything in your long term memory. Indeed, common reasons why you can’t remember something could be because it was never encoded into your memory in the first place, or you don’t have any “retrieval cues” to call the memory back into your mind.
Despite these challenges, remembering aspects about a person is essential not just for creating new relationships with people, but also for strengthening existing relationships. Forgetting someone’s name or an important detail can be a sign that you are not interested in the other person, which is the opposite of making a good first impression! Conversely, being able to remember details about your boss’ kids or a client’s favorite hobby goes a long way because it shows you genuinely care about them. What’s more, recalling details and asking additional questions about them will cause them to associate positive memories with you, since psychologically, people love to talk about themselves.
Ways to Improve Your Memory
Try these techniques the next time you want to commit important facts to memory:
Repeat it to yourself. According to research, your short term memory only lasts for 20- 30 seconds, unless you try to repeat the information out loud or in your head. You can ask a clarifying question using the person’s name or restate what you just heard to make sure you understood correctly. After the interaction, try to repeat it again mentally to commit it to memory so you can retrieve it later. In fact, experts recommend “overlearning” the things you want to remember through repetition so that your new memory does not interfere with your existing memories.
Write it down. Studies show that your short term memory only holds about seven pieces of information. Since you’re not exactly in control of which seven pieces your brain will remember, a good idea is to write down important details in case you forget later. After a conversation with someone, make a note on your phone, on their business card, or on your laptop’s notepad with their name and any critical data. This is particularly important if you’ve offered to provide them with further information or connect them with someone.
Remove distractions. Don’t multitask when absorbing the new facts. Unless you’re using your phone to take notes about what you want to remember, put it away. If you’re juggling more than one task or multiple inputs, your brain has no choice but to prioritize one thing over the other. Another common distraction occurs when you’re not actively listening to the new information, and you’re thinking about something else or planning your next response. Instead, try to focus your complete attention on listening to the other person, and you’ll be more likely to remember what they say.
Make associations. To help yourself retrieve the memory later, make an association between the person and something easy to remember. This can help trigger the memory of the person and their name or important details. For example, if Sarah mentioned she’s going on a sailing trip, remembering “Sarah sails” will be easier to recall the next time you try to retrieve information about Sarah. Another example is comparing the person to someone famous or someone you’ve met before. If your new acquaintance Matthew has brown hair like your cousin Matthew, making this association may help you recall his name the next time you interact with him.
Get enough sleep. Research shows that sleep is essential for the formation of long-term memories. Furthermore, if you’re sleep deprived and tired, your ability to focus and learn new information will be impaired. After your next networking event or big meeting, make sure to get a good night’s sleep to increase your chances of being able to retain the significant facts you were exposed to during the day.
Final Thoughts on Memory and Relationships
Remembering details about a person is a meaningful part of establishing a new relationship or strengthening an existing one. By failing to remember someone’s name or a significant aspect of someone’s life, it could be interpreted as you not being interested in them. Solidify important facts in your mind by trying these tips to improve your memory. You will reap the rewards in your relationships!
The collapse of the SVB on March 10, 2023 made national headlines, and prompted fear of a looming financial crisis and a return to government bailouts. For biotech investors and employees, the collapse of the tech-focused bank raises additional concerns about the stability of the biotech sector.
What is the Silicon Valley Bank?
The Silicon Valley Bank (SVB) was the 16th largest bank in the USA. Founded in 1983, it catered almost exclusively to technology companies by providing the venture capital funds necessary for biotech start-ups to grow. Prior to the events of early March, the bank was worth $212 billion.
Why did it collapse?
In early March 2023 the SVB announced it needed to raise more money, citing rising interest rates and inflation. This announcement caused panic, and customers and investors rushed to withdraw their money, leading to the collapse of the bank’s value. Within 48 hours the damage was done, and the Federal Deposit Insurance Corporation (FDIC) took over the emergency operation of the bank.
The FDIC is currently trying to sell SVB as part of its break-up plan.
Is this a repeat of the 2008 financial crisis?
Following the collapse of the SVB, Silvergate Bank and Signature Bank fell in quick succession a few days later. Although the successive liquidation of US banks is alarming, and the overall likelihood of a recession in the next few years has risen, the fallout from the SVB collapse is mostly contained to the biotech sector and other medium-sized banks who cater to a narrow selection of industries (both Silvergate and Signature focused on cryptocurrencies).
Some issues appear unique to SVB’s downfall, such as the role of a chief risk officer being unfilled last year. The bank also stored its money in long-dated Treasury deposits, which give modest returns on investments. When inflation rose, the bonds no longer yielded satisfactory returns.
How does the Silicon Valley Bank affect the biotech industry?
Silicon Valley Bank was seen as the bank of choice for young biotech companies, because they tailored their services to venture-backed start-ups and agile biotechs looking to grow. Unlike commercial banks, most of SVB clients deposited amounts greater than $250,000, which is the maximum amount of savings protected by the FDIC in the event of a financial collapse. It’s estimated that 85% of SVB’s bank deposits were uninsured. It’s therefore not clear how much damage has been wrought on the biotech sector, and it will take a time for companies to disclose any losses. It’s possible the US government will bail out companies who lost uninsured deposits if the crisis deepens, but that’s not happened yet.
In early 2023, biotech start-ups are already struggling thanks to rising interest rates and a hiring slowdown. Established companies have the diversified portfolio necessary to withstand economic shocks better than start-ups with only one or two pipeline products.
However, the failure of Silicon Valley Bank may see a slowdown in the biotech sector as venture capitalists become more cautious about investing in biotechs, or the regulations around life sciences investment increase. What this does for the biotech sector as a whole remains to be seen.
There are plenty of good reasons for Biotechnology and Pharmaceutical companies hiring contractors (Independent Contractors) versus hiring employees to meet company objectives. Here are just a few: lack of funding, clinical failure, and scarce talent in niche areas. These factors create a fertile and lucrative landscape for qualified independent contractors. Clinical Development, Regulatory, and CMC business segments face some of the stiffest competition for talent. So it’s no surprise that they turn to ICs to fill expertise and workforce gaps. In 2022, there were over 70 million ICs in the US and a mind-boggling 1.4 billion worldwide. But many companies have learned the hard way that there are hidden risks in engaging “1099 workers.” Misclassification and other payroll pitfalls can lead to stiff penalties, fines, and even legal action. In the first part of this article, we’ll consider the basic choices employers face when engaging talents, and the pros and cons of each alternative.
Part One: Pros and Cons of Engaging 1099 Contractors vs. Hiring W2 Employees
In the view of the US government, labor, and tax authorities, ICs are more like external vendors than internal employees. They are expected to work independently, providing their own tools and resources. They are responsible for their own paperwork and taxes. The IRS tax form that companies use for engaging ICs is what gives “1099 workers” their name. But the government makes clear that ICs must meet strict criteria, highlighted in the table below, guiding employers to take care not to misclassify a worker e as an independent contractor when they should be an employee.
There may be other criteria depending on the jurisdiction and/or the agency or law at issue. In some states, the standard is particularly difficult to satisfy. Employers are responsible for classifying correctly the work relationship. Relationships may morph over time, so even a classification which was correct at first may not be so later on. Subsequent audits or lawsuits can punish heavily any errors, evasions, or misrepresentations.
At First Glance, Engaging 1099 Contractors is Easier and Costs Less
It may be tempting for employers to engage independent contractors as a quick, low hassle means of filling skill or labor gaps. Many online apps, marketplaces, and platforms have arisen to expedite the process. Clearly there are compelling reasons for a company to engage ICs:
Lower Insurance obligations and liabilities
Ineligibility of ICs for costly company benefits
Easier termination and offboarding process
Simpler tax reporting
Less HR hassle: reduced onboarding, training, and evaluation burdens
The attractiveness and ease of taking the 1099 route has led to widespread use and, sometimes, abuse. It has also attracted more scrutiny and audits, with the IRS focusing on misclassification or, more harshly, “payroll fraud.” The growing volume of IC engagement, and the rising price of getting it wrong, has made efficient and cost-effective management of many such contractors more difficult, and at the same time absolutely essential.
Hidden Risks and Costs When Engaging 1099 Workers
Despite the cost savings and conveniences of engaging ICs, there are strict limitations on when and how employers can exercise this option legally. There are disadvantages and risks in taking this route, which may be unforeseen. Improper usage, whether inadvertently or intentionally, can lead to stiff fines, penalties and/or legal action.
Limited control over independent contractors
Companies have less control over independent contractors.1099 workers are not obliged to work according to company practices and policies. They act as they see fit, at least within their contractual terms. In practice, this can result in breaches and behavior inconsistent with employer norms potentially leading to reputational damage and even lawsuits. In general, the company has less leverage to elicit behavior or work product beyond the strict confines of the contract.
Complicated ownership of work and intellectual property
Companies also have less control over the contract worker’s output and inventions. When an employee creates, writes, or invents something while employed by the business, the company generally owns all rights to that product or idea. But if the 1099 worker makes a product or discovers a better method, they own the rights, unless the hiring company explicitly clarifies ownership and intellectual property issues contractually. This can add complications, costs, and hassle. This is a nuanced area that may require consultation from experts in this specialty.
Competition and potential exposure of company or trade secrets
Employees may be legally bound in their employment contracts and/or applicable law to protect company secrets. The company can require employees not to moonlight or work for a competitor. With 1099 workers, however, there is less loyalty, less control over secrets, and less ability to restrict concurrent or subsequent work for a competitor. While non-disclosure and non-compete agreements (if they do not undermine the IC classification) can reduce the risk, control over independent contractors is far less than over employees. Even unintentional classification mistakes can result in liabilities, penalties, and unforeseen costs. Worse: the intellectual property, competitive and reputational risks of 1099 workers can dwarf savings of time and money, especially for firms in tech, life sciences, biomedical and pharma. In Part Two, we’ll look at steps companies can take to reduce risks and costs, increasing recruitment efficiency and improving management of their independent contractors. Consider Sci.bio as a reliable and cost-effective resource for finding and managing Independent Contractors for your organization. We can efficiently find and deliver high caliber expert consultants for virtually any biopharma segment so you can focus on your business and avoid compliance and payroll headaches associated with hiring ICs. Want to learn more? Contact us today.
Part 2: Optimizing the Engagement and Management of 1099 Workers
For most organizations, small and large, recruitment and ongoing management of human resources is not an either/or choice between employees hired with a W-2 form and engagement of independent contractors (ICs) with a 1099. Similar choices face business in other jurisdictions. In Part One, we looked at the pros and cons of engaging ICs in place of full-time employees. However, in practice, there is a spectrum of nuanced alternatives which strike a balance between hiring employees as opposed to engaging 1099 workers. Here, in Part Two, we’ll consider options for achieving “the best of both worlds.”
Is Hiring Direct Fixed-term Employees Truly a “Middle Ground”?
One “middle ground” alternative used by some companies to mitigate risks and costs of long-term commitments to W-2 employees is to hire such workers on a fixed-term rather than open-ended basis. This is often done when filling temporary personnel gaps due to pregnancy, parental leave, employee sickness/injury, or for staffing up a project with a predictable duration. But more and more companies are taking this route without these circumstances. Fixed-term W-2 employment can be a tempting and less risky alternative to engaging ICs, allowing an employer to exercise more control over workers without incurring long-term obligations. As is well known, the costs to a company of open-ended, long-term employment involves a variety of risks and costs. Defining the period of employment to shorter, clearly-defined periods can ameliorate at least some of these drawbacks and cumulative expenses. However, fixed-termers are eligible for the same benefits as non-fixed-term employees. Employers must recruit these employees and then provide onboarding, internal resources, equipment, and treatment equivalent to all other W2 employees. This may amount to 35% or more of a compensation package. Fixed-term employees are often eligible to collect unemployment benefits which also costs the employer. With this in mind, fixed term employment is not a clear solution to temporary or unpredictable staffing needs.
Outsourcing 1099 Worker Management to External Agencies: The Basics
Due to the complexities of recruiting and managing ICs themselves, many firms have sought to mitigate risks, potential complications, and legal entanglements by outsourcing recruitment, contracting, and HR-related management of 1099 workers to external agencies. Such firms can provide a one-stop shop for identifying, recruiting, negotiating and closing employment contracts with specialized workers in their target industries. They offer a streamlined hiring process, including all the documentation needed to get a new IC onboarded. They have the knowledge and expertise to find “best of both worlds” balance in the workforce and relieve their clients of the many hassles and reduce the risks of engaging 1099 workers. Such agencies multiply the benefits of working with independent contractors, providing a management layer of recruitment and HR expertise to reduce risks, cut costs, relieve hassles, and deliver top-flight talent. Of course, there is an added cost for these value-added benefits, usually in the form of a salary markup by the agency. This can be as low as 25-35% for “payrolled individuals” found by the client company and formally hired via the agency. On the high end, markups can be 200% of salary for agencies that have highly technical, ready-to-work experts on call, or who can recruit these specialists fit-for-purpose.
Benefits of Partnering with an Agency to Manage 1099 Workers
The general benefits of working with a 3rd party agency for engaging and managing ICs include:
Choose a 3rd party firm familiar with your industry segment
After making the decision to partner with an external agency to source and manage 1099 contractors, the next steps is to find the one that’s well-suited for you and your industry. This last point is key: working with industry-specialized HR agencies can relieve paperwork burdens and deliver cost-saving benefits, but so can generalist staffing firms. However, the latter are unlikely to have the ready access to the top talent and industry know-how that you require. If they don’t know your niche, they will be hard-pressed to deliver the highest caliber contractors. Far better to seek out a firm which focuses on your industry, with broad and in-depth knowledge of your business and skills ecosystem. This is especially true in biopharma, with its complex niches and business slants. Additionally, biotech and pharmaceutical segments often have unique worker compensation insurance codes that less specialized firms may not know about. Some advantages of partnering with specialized firms:
Cutting Time to Hire
Pharma, medical, and life sciences industries are notorious for their difficulties in sourcing, recruiting, and onboarding suitably qualified employees. Agencies which specialize in these industries know the territory, have the databases and contacts, and know where to look for which skills. They can make it much easier to fill positions and get qualified talent up to speed. So there’s less likelihood of a new contract hire stumbling out of the gate.
Gaining the Perspective and Insight of a Specialized Staffing Agency
By partnering with a staffing agency experienced in your industry, with deep insights about where and how to find talent, you will gain an active ally with specialized know-how about filling a role with a higher quality candidate than you’re likely to find with a generalist firm. Your agency ally should prove to be a go-to partner providing ongoing recruiting and market insights.
Attracting the Highest Quality Consulting Talent: Recruiting Experience Matters
Top-caliber candidates are picky and they can be fickle. Some may not even respond to recruiting from generalist agencies with limited knowledge of “what they do.” Candidates are far more likely to respond to recruiters who possess in-depth domain knowledge and a high reputation for recruitment within their field. Experienced consultants prefer to be represented by a recruitment firm that knows their niche inside and out, who can “walk the talk” with credibility.
Protect Your Brand Reputation with a Staffing Agency That Makes You Look Good
Clients should consider third-party staffing and recruitment firms as an extension of their brands. Partnering with an agency that fails to appreciate or fill their role as your brand steward can have negative consequences in the short-term and the long run. When interviewing candidate agencies, consider the professionalism, integrity and quality of their interactions with you. If their professional self-presentation is anything less than superb. seek out a firm that can represent you in a manner commensurate with your brand values. That will pay big dividends over time.
Conclusion: Seek out a Specialized Agency to Recruit Top Talent
The bottom line is clear. When you’re operating in fiercely competitive industries like biopharma and life sciences, the quality of the people working with you and for you is the key differentiator. While 1099 contractors can provide many advantages over W-2 employees, it is advantageous to seek specialized guidance in recruiting them, hiring them, and managing their contracts. Working with a recruitment and staffing agency specializing in your industry gives you a clear edge in bringing in top talent, increasing contractor quality while reducing your risks and costs. Consider Sci.bio as a reliable and cost-effective resource for finding and managing contractors for your organization. We can efficiently find and deliver high caliber consultants on a contractual basis for virtually any biopharma segment, letting you focus on your business and avoid the compliance and payroll headaches associated with hiring 1099s directly. We are domain life-science domain experts and we’re here to help. Want to learn more? Contact us today.
