In the face of the great global demand for qualified personnel to work in the development of new drugs, there are a wide variety of new business models. In this context, it seems interesting to review both the current situation and the business risks faced by the sector from a strategic, legal and even ethical point of view.
From the old renting/leasing of personnel to the current service models, there are several hiring formulas in accordance with the current legislations (which can vary significantly by country). Thus, we find two models based on contracting individual services of candidates (Outsourcing of personnel services), as well as large pre-negotiated projects for contracting local, regional or global work teams (the well-known FSP – Functional Service Provision).
Functional Service Provision as a service outsourcing activity is proving to be a double-edged sword for all parties, since FSP negotiations are based on business strategies without delving into the impact that these negotiations may have on local work teams. In many cases, teams are seen as a numerical unit that must produce results and benefits. Obviously, this is where the first questions arise: Who really looks after employee satisfaction and career development? Who looks after the interests of client retention and the negative impact of talent drain? Who is interested in the real value that this service brings? In other words, who really cares about the employees, their expectations, development, and their talent?
The assignment of a Line or Operations Manager is essential to guarantee the continuity and well-being of the assigned resource, but when the project is approached only from the point of view of direct and immediate economic benefit, without considering the value of the service itself and the investment that any company must make in its talent, consequences arise. Thus, the main risk of FSP models with global dimensions is that employees might become numerical values. Very few if any of the largest CRO’s have a firm and continuous commitment to personal development with the employee under the FSP modality.
Another mistake that is often made in FSP negotiations is the lack of flexibility and communication between the head offices and the affiliates in each region. Precisely, because human capital is the root of this service, there must be sufficient local knowledge and the necessary flexibility to offer the most appropriate service for each need. Initially, FSPs appear to offer a global solution and benefit the business, however its continued mismanagement, lack of investment in the project and lack of flexibility lead to a delicate strategy that can become the worst companion of both the CRO and its prestige.
In contrast, traditional service contracting models offer flexibility, exclusivity, trust and above all direct, efficient and effective treatment for a service that should never stop focusing on PEOPLE (the main asset and value of any company that intends to grow rationally). There is no trick or hidden secret, it is something very simple to understand, but really complicated to put into practice on a daily basis, because it requires handling different business terms and concepts of which we have lost the habit. Concepts that TOP Management and Middle Management should re-evaluate and put into practice:
- Caring for the employee as a non-numerical unit
- Worrying about the day-to-day running of your team
- Investing in employee’s talent and satisfaction
- Demonstrate and convey passion for the work.
- Focus on personal details and on the professional and personal growth of each individual employee.
Carlos Fernandez
Vice President
Pharma Resourcing Solutions