Friday, July 18, 2008

Grow your own workforce talent

There is an old movement sweeping the country anew: people are growing their own food in backyard gardens. Growing your own is a great way to tailor your harvest, and you can reap the rewards year after year. Those in the biotech industry are familiar with this “wait for it” mentality. In fact, many biotech companies’ business models are based on this philosophy. Taking a product from the idea phase, through R&D, to the market is a deliberate and often lengthy process. Yet, the results are palpable when a fledgling product explodes onto the marketplace. Organizations would be wise to keep this long-term approach in mind when looking at building and maintaining their work forces.

It is now common knowledge the war for talent is on. Company leaders across all industries realize they have to compete for the best and the brightest. This can be even more challenging in the biotech industry where an organization’s needs are so specialized that the talent might not even exist yet, or it comes with such a hefty price tag it becomes cost-prohibitive. The question becomes how do you get the best people and keep them? There are two ways to build a work force: buy it or grow it.

Buying talent can be an attractive option, because professionals come to their jobs with a solid resume and work history. Unfortunately, the competition for scientific talent can be fierce — and organizations may end up in a bidding war. If your organization does win the bidding war, there is no way to ensure that the hire will be a good fit, because it’s difficult to screen for cultural issues. Paying people exorbitant salaries also doesn’t instill a sense of loyalty. Will they stay? There are no guarantees. But the more pertinent question may be, “will our organization always be in the position to pay top-dollar?”

For those organizations that can’t or don’t want to pay a premium, there is another option — cultivating your talent in-house, or growing your own. In this scenario, companies hire raw talent and tailor the development of those professionals to meet the needs of the organization. Many high-end consulting firms have used this model for years: They hire fresh college graduates, put them through a training program, give them a few years work experience with more on-the-job training, and have them get their MBAs so they have well-rounded experience when they really start working.

The keys to growing your staff successfully are to identify people early, invest in their experiences, and provide internal and external development. Of course, this approach can be a drain on resources, because it requires a financial investment and a time commitment. But it is an effective long-term strategy for winning the war for talent, because it allows companies to create “designer” staffs to meet their specific needs.

Growing your own talent can also help retain key employees. It has been proven that retention is not about salary. Employees who are happy in their jobs point to doing valuable work, being challenged, and being developed by their employer as the reasons they stay. Investing in your people builds loyalty.

The uncertain economy may cause some companies to pull back on their hiring plans. However, to remain competitive, biotech companies should be even more aggressive. Companies that are thriving have kept their internship programs even though such programs are expensive. Others are hiring smarter by implementing internally developed staffing criteria based on the future needs of the organization. With each hire, the company knows exactly how that person complements the organization and how he or she will need to be developed. This hiring criteria helps to ensure against frivolous hires.

Ultimately, most companies will have to strike a balance between buying and growing their talent. Building a sustainable workforce requires a combination of these two techniques. Investing in talent will ensure your organization has the right mix of experience and skill, and that it will continue to cultivate employees with a strong loyalty and a stake in the organization.

 

Elaine Varelas is managing partner at Keystone Partners, a career management firm based in Boston. She can be reached at 617-720-7300.