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What happened to the Silicon Valley Bank – Should I be worried?

What happened to the Silicon Valley Bank – Should I be worried?

Author:  Claire Jarvis

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.

Biotech Recruiting into the Dark: Hiring in Uncertain Economic Times

Biotech Recruiting into the Dark: Hiring in Uncertain Economic Times

Author:  Claire Jarvis

Is there a Biotech Recruiting Slowdown?

Workforce statistics from the past two years paint a concerning picture of the biotech recruiting sector in 2023. The COVID-19 pandemic led to a boom in hiring and growth, but now that the initial biotech demand is leveling off, many companies are ‘right-sizing’ to pre-COVID-19 levels. Statistics predict the growth of the biotech sector slowing in 2023, in part to rising inflation.

The overall trend means biotech companies are slowing down their hiring. It’s not clear how much growth will slow in 2023, and hiring managers might wonder whether it’s worth adding more workers to the payroll if layoffs are coming. Due to its ability to consolidate and diversify their portfolio, Big Pharma is in a stronger position than agile biotech start-ups, but industry experts still urge caution.

Attracting Biotech Talent in 2023

Despite an economic slowdown, the biotech sector is continuing to grow, and companies are still looking to hire top talent. Here are a few ways biotech recruiting is filling positions and attract candidates.

First, it’s important to understand candidates’ motivation for switching roles, because there are many professionals considering a job switch, even if they’re currently employed. A lot of candidates are seeking appropriate salary increases to combat inflation. Or, perhaps instability at their current company has created a threat of layoffs.

As a recruiter, there are several ways to appeal to these candidates and fill your client’s vacancies.

  • Highlight remote, hybrid and flexible working options. Thanks to rising gas prices, commuting is expensive, and many employees don’t like feeling pressured to come into the office. Flexible working remains a high priority for jobseekers as they explore new roles.
  • Emphasize supportive work culture for new hires. Work culture is not just about throwing money at employees, but thoughtful initiatives to support new hires and integrate hybrid teams. The COVID-19 pandemic has left many workers feeling adrift from their colleagues, and they want to better integrate into their teams, virtual or not.
  • List opportunities for career growth and developmental opportunities within the company. The new hire is more likely to make long-term commitment to the role if they think they can progress in their career without needing to switch companies again.

With over ten years’ experience serving biotech companies in the Boston area, Sci.Bio knows how to guide your company through economic changes. Schedule an appointment with us today to learn more.

Communication Strategies for Biotech Recruiters

Communication Strategies for Biotech Recruiters

Author:  Claire Jarvis

Few people enjoy job hunting, and most job candidates have a story or two about bad application or interview experiences. For this reason it’s important for recruiters to make a good impression on candidates, and ensure they have a positive experience being guided through the application process. These days, there are plenty of communication tools tailored to help you stay in touch with candidates without increasing your own workload.

Communication Strategies:  Automate What You Can

Calendly is a simple tool that allows candidates to schedule screening calls with you. It gives the candidate a feeling of control and easy ability to reschedule, while reducing the time you spend arranging (and rearranging) screening calls via email or over the phone.

Providing a chatbot (such as Mya or FlashRecruit) that addresses basic jobseeker questions is another way to reduce clutter in your inbox, by allowing the candidate to receive pertinent information about your opportunities and the application process at their own convenience.

Small and steady check-ins

It’s likely your job candidate is working with multiple recruiters and balancing a lot of job applications – all at different stages. For this reason, regular touchpoints with your candidate are vital. Don’t leave them waiting on promised updates, or wondering where their application is in the pipeline: if it’s with the hiring manager, if the hiring team is scheduling interviews yet. A candidate will prioritize applications where the timeline/anticipated next steps are clear, because it helps them plan the remainder of their job search and anticipate when offers might be made.

To help reduce your email inbox clutter, use personalized email templates sparingly. Job candidates don’t want to be on the receiving end of constant cookie-cutter responses, but email templates can be helpful when you have a range to draw from. Tools like Gorgias and Followup.cc allow you to manage customized email templates and keep on top of follow-up messages.

Keep innovating

New software is constantly being launched or upgraded, and communication trends change quickly. Be sure to check your workflow and organizational tools are still meeting your needs. How many hours a day are you actually fielding questions from candidates, for instance? Don’t be afraid to try new processes and experiment with the levels of workflow automation.

At Sci.Bio, we specialize in finding top biotech talent and adapting to meet your recruiting needs. Schedule an appointment with us today to learn more.

How to Boost or Build Your Brand Reputation

How to Boost or Build Your Brand Reputation

Author:  Tess Joosse

Your business’s brand reputation comes down to a simple scenario: What is the first thing that comes to mind when a candidate or client hears the name of your company? How you’re perceived has a huge impact on business, and maintaining a good reputation is key to attracting high quality talent, especially in the competitive biotech world. It’s a no-brainer — candidates want to work at and align themselves with a great workplace!

In addition to impacting recruiting, having a good reputation boosts employee morale and increases retention. But how do you build a positive reputation from the ground up if you’re starting a new company? Or perhaps you have been in business for a while but have neglected to intentionally build your brand reputation and don’t know how to tackle the task. Or uh-oh!  Your reputation has taken a hit after you received a negative critique on a company review website. Here are some tools and strategies to consider as you build or revamp your brand reputation:

Create a positive candidate experience from start to finish.

Whether you have been in business for decades or are the new company on the block, your first priority should be to make every interaction with a candidate a positive one. Not only will candidates be more inclined to want to work for you, but their positive impression of your company will spread via word of mouth or online reviews.

This starts with the job listing: make sure it’s detailed and clear in explaining who you are as a company in addition to the duties and benefits of the position. Create a short and simple application, and communicate openly about the hiring process with candidates to ensure they know that you value them and their time. Keep them updated on timelines, create a seamless interview experience, and reject applicants gently. In these cases, or if a candidate receives but turns down an offer, a positive experience will still leave a good impression and they’ll pass along that sentiment to their networks.

Use your website, social media, and other marketing tools to tell your brand’s story.

If a candidate is unfamiliar with your company, they will likely head to Google and see what they can learn in a quick search. Your company website should be the first thing they click on, and it should tell your company’s story with clear and engaging copy and design. A testimonials page can add credibility and help people get to know how others have benefited from your company’s services and products. A blog or section with updates on company news can add credibility, keep interested parties in the loop, and boost your SEO ranking to get more eyes on your website. In biotech this is a great opportunity to publish content on industry topics and trends that intersect with your company’s work, from personalized medicine to artificial intelligence and beyond.

Social media is another tool to use to build up your company’s credibility. Share content that reflects your company’s values and work across your social channels, including company updates and any blog articles you do create for your website. LinkedIn is particularly powerful: it’s often where candidates come across and apply for open jobs in addition to reading and engaging with an employer’s content.

Address any negative reviews with levelheaded empathy.

In a perfect world, you’d never need to use this tip – but on the long road of building a brand, a negative impression inevitably will pop up. If you encounter a negative review of your company online, step back and read and think through the comment carefully. Avoid the overreaction that can come from reacting too quickly and evaluate how best to address the criticism in order to tamp down on the long-term effects. Respond in a friendly and apologetic manner that takes the reviewer’s perspective seriously.

Take feedback as an opportunity to grow.

You should listen to and consider all feedback, but if you notice many people leaving the same feedback or criticism that may be a sign to make a change. Are multiple candidates commenting they’re unhappy they had to come in for several in-person interviews, spend many unpaid hours on a test exercise, or wait weeks with no communication about the status of their application? These critiques present opportunities to re-tool your hiring process for the better.  Building a robust and well-established brand reputation can take years, but is well worth it to attract great talent and keep your existing employees happy at your company.

References

  1. Revamping Brand Reputation: Why Is It Important for Every Employer?
  2. The Case for Providing a Positive Candidate Experience
  3. The Top Benefits of Having a Strong Employer Brand
  4. Four Powerful Ways To Build Your Brand Reputation
Off the Beaten Path: Life Science Jobs You May Not Have Considered

Off the Beaten Path: Life Science Jobs You May Not Have Considered

Author:  Tara Smylie

Life Science Jobs – When you think about what it means to be employed in STEM, do you think of syringes, microscopes, and lab coats? If so, you’re not alone! In reality, however, lab jobs are just one path you can take as a life science graduate.

Within STEM and biopharma, there are many hidden-gem positions that simply don’t get as much attention as they should. If you have an interest in science but also enjoy analysis, management, or communications, there is no shortage of exciting and non-traditional job prospects out there for you to explore.

STEM (Life Science Jobs) and Business

Not all STEM positions are primarily scientific. Most will require at least a foundational understanding of STEM concepts, but some also call for a strong big-picture grasp of business operations.

As such, if you possess both a science background and a keen understanding of economics, markets, and/or human behavior, you’re in luck. Job-seekers with passions for both science and business can consider the following options:

  • Medical science liaison: this position requires both people skills and a knack for clearly communicating important information. The main duty associated with this role is the provision of medical product information to key players in the pharma and life science industries.
  • Life science recruiter: if you have a strong network and enjoy the thrill of the chase, this position may be for you. Recruiters in the life sciences have the chance to make new connections across many different fields, and to gain an insider perspective on the back-end of science-based business operations.
  • Biopharmaceutical sales rep: if you have an advanced science degree, a go-getter attitude, and are a self-professed “people person”, you may find a perfect match in this position. The earning potential is very high, and for the right fit, the work environment can be exhilarating.

STEM and Communications

Any job in scientific communications will require both a keen analytical mind and the ability to articulate high-level concepts. If you’ve cultivated that elusive blend of “soft” communications skills and “harder” data and research skills, this may be the niche you’ve been searching for.

If you’re interested in finding a job in this field, here are some positions to keep on your radar:

  • Technical/Medical Writer: If you feel comfortable communicating scientific concepts to wide audiences, consider looking into medical or technical writing as a career. Some science writers work on a freelance basis, while others are employed by corporations.
  • Science Journalist: science journalism is similar to technical writing, but potentially broader in scope. A scientific journalist produces copy for not only scientific media but also blogs, websites, newspapers, etc.
  • Scientific Instructional Designer: this position is ideal for anyone with a teaching background as well as a scientific mind. Instructional design is a growing field, with many roles currently available at life science/biotech companies.

Another path less travelled: health informatics

When it comes to lab-coat-free science positions, health informatics jobs are just about as good as it gets. For one thing, they tend to pay well. And for another, the work they involve usually proves to be both stable and stimulating – the perfect combo. Positions in this field tend to involve management, advising, communicating, and/or analysis. If you possess one or more of these skills, consider that HI could make for a very fulfilling career path.

Here are just a few health informatics jobs available today:

  1. Clinical Informatics Analyst: this position is all about the data. It involves compiling and analyzing health information, and using that analysis to make policy and workflow changes within an organization.
  2. Health Information Technology Project Manager: think regular project manager, but with a little added expertise. For an employee in this role, projects often center on the implementation of new technology and the optimization of existing workflows.
  3. Health Informatics Consultant: often contracted for on a per-project basis, an employee in this role advises a healthcare organization on health-informatics-related challenges, questions, and initiatives. Because of its broad scope, the nature of this position can vary greatly from client to client.

Look before you leap (into a career)

Depending on your skill set and personality, a lab position may be ideal for you. But no matter where you end up, you’ll never regret having explored your options. Remember: modern career paths are not always linear! What you learn now could come in handy years down the line.

Whether you’re looking for a medical writing position, a senior lab job, or just for some career guidance, Sci.bio’s recruitment services can help you get where you want to go.

References

  1. What Does a Medical Science Liaison Do?
  2. So You Want To Be A Recruiter? Do You Have What It Takes?
  3. Top 11 Alternative Careers for Biotechnology & Life Science Graduates
  4. 12 Careers for PhD Life Scientists Outside of the Lab
  5. Instructional design helps you create classes, trainings, and apps that people actually learn from.
  6. 6 Top Careers in Healthcare Informatics