Canada’s biotech HR landscape revisited 2017

Special Report:

| by Nestor Arellano

Canada’s biotech HR landscape revisited: A new force in the horizon Are millennials poised to make an impact on Canada’s biotechnology sector?

October/November 2017 BIOTECHNOLOGY FOCUS 13

Special Report:

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the Biotechnological HR landscape in Canada

Employee Opinion the Biotech EmployeeofOpinion of the Workplace Biotech Workplace Employee Opinion of the Biotech Workplace Participation and Geographic Participation andBreakdown Geographic Breakdown

ndustry benchmarks were created Participation and Geographic Breakdown when we first launched the first-ofits-kind employee survey of Canada’s Participation and Geographic Breakdown biotechnology industry in 2015.

• 148 responses from employees infrom 8 provinces/territories were received.were received.

• 148 responses employees • 148 responses from employeesinin88 provinces/territories provinces/territories were received.

Recently, Biotechnology Focus, Strat• Corporation, More than half of the survey respondents were from Ontario. ford Managers and BioTalent • More survey respondents werefrom from Ontario.

• than More half than of halfthe of the survey respondents were Ontario.

Canada sought to take another look at the Canadian biotech human resources landORGANIZATION TYPE LOCATION ORGANIZATION TYPE ORGANIZATION TYPE scape. The poll gathered responses from LOCATION LOCATION Nunavut 1% 13% employees in eight provinces and territories Northwest Territories Nunavut 0% 1% 19% Nunavut 1% 13% Yukon 0% 13% Territories 0% 19% Northwest Territories 0% Northwest across the country – more than half the re19% Newfoundland 0% Yukon 0% Yukon 0% Prince Edward Island 0% spondents were from Ontario.

5% Newfoundland 0% Nova Scotia 0% Newfoundland 0% Prince Edward Island 0% New Brunswick The results of our 2017 Bio Employee 1% 5% 6% Prince Edward Island 0% Nova Scotia Quebec 0% 16% 5% survey were largely encouraging but our Nova Scotia 0% Ontario 52% 6% New Brunswick 6% 1% Manitoba 4% 1% New Brunswick Biotech Quebec pollsters also detected some ripples of 6% 16% 1% 50% Saskatchewan 7% Quebec 16% Ontario Biopharma 6% Alberta 9% change which might bring about a wave of Ontario 52% 6% Medical Device Manitoba 4% 1% British Columbia Biotech 11% 50% transformation in the future.

Clinical Research Organization Manitoba Saskatchewan 4% 1% 0% 20% 7% 40% 60% Biotech Biopharma

Biopharma Clinical Manufacturer Organization

50%

Medical Device Other

Medical Device

Prefer not to say Clinical Research Organization

Clinical Research Organization

Clinical Manufacturer Organization

Clinical Manufacturer Organization Other Prefer not to say

Alberta 7% 9%British Columbia

Saskatchewan Alberta British Columbia

11% 20%

0%

©Stratford Managers 2017

52%

9%

0%

40%

11% 20%

40%

60%

60%

Other

Prefer not to say

Employee Opinion of the Biotech Workplace

©Stratford Managers 2017

©Stratford Managers 2017

Definitions

™

Definitions

Employee Opinion of the Biotech Workplace

Organizations are scored on four key Definitions indices.

• Organizations are scored on Performance four in keyeach indices.index is a score out• of 100 points.

Performance in each index is a score out of 100 points. is excellent

• 80-100 • 80-100 is excellent performance performance 60-79 isperformance strong performance • 60-79 is •strong • 40-59 is fair performance • 40-59 is •fair performance 39-0 is poor performance • 39-0 is performance • poor The relative performance of

each index should drive The relative performance organizational effort. of each index should drive organizational effort.

Job Clarity Understand job requirements and how employees contribute to organizational success.

Job Clarity Understand job requirements and how employees contribute to organizational success.

Organizational Climate Organizational Climate Design aspects of the organization and job that Design aspects of the organization and job that empower employees to be most effective. empower employees to be most effective.

Recognition and Reward Recognition and Reward Acknowledge employee dedication and contribution Acknowledge using availableemployee organizationaldedication resources. and contribution using available organizational resources.

Visionary Leadership Focus effort and develop commitment toward achieving theVisionary organization's Leadership mandate.

Focus effort and develop commitment toward achieving the organization's mandate.

©Stratford Managers 2017

©Stratford Managers 2017

14 BIOTECHNOLOGY FOCUS October/November 2017

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Special Report:

the Biotechnological HR landscape in Canada

“When you look at the survey results at a high level, there was pretty good consistency between what we saw in 2015 and what we are seeing in 2017. But the one demographic whose responses showed more strongly than in 2015 — probably a reflection of the changing workforce — was from employees who have less than 10 years of tenure…” — Dean Fulford, Vice President of HR Consulting with Stratford Managers Corporation

Employee Opinion of the Biotech Workplace Response by Index Reward and Recognition Index 2017

Search for reward and recognition

Reward and Recognition Index Q21. This organization provides flexibility that enables me to balance between work and non‐work activities.

54%

Q20. I am satisfied with the benefit plans that are offered or available.

52%

18%

Q16. I am encouraged to continually develop my skills.

44%

Q17. This organization invests in my continuous learning and development.

43%

17%

Q19. I am compensated fairly based on my performance and contribution.

41%

23%

Q18. I feel that my hard work and contributions are recognized.

39%

28%

0% N=124

Strongly agree (6‐7)

5

4

15% 2% 9%

20%

26% 14% 11%

15%

7% 8%

15%

6% 8%

7%

19%

13%

12%

11% 9%

13%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3

Strongly disagree (1‐2)

©Stratford Managers 2017

Reward and Recognition Index 2015

With birthdates bookmarked by the cultural and technological upheavals of the 1980s and early 2000s, millennials have been alternatively dismissed as a tech-immersed generation or savants of the future depending on who you speak to.

Disdained in some workplaces, embraced in others, it is an inevitability that millennials will be taking over the roost once held by exiting baby boomers in every sector.

Although millennials were not a specific focus of this year’s survey, there was a palpable sense of their presence in the feedback pollsters received, according to Dean Fulford, vice-president of HR consulting at ™ Stratford Managers.

“When you look at the survey results at a high level, there was pretty good consistency between what we saw in 2015 and what we are seeing in 2017,” said Fulford. “But the one demographic whose responses showed more strongly than in 2015 — probably a reflection of the changing workforce — was from employees who have less than 10 years of tenure…This group is seeking increased recognition, more responsive feedback from managers and supervisors, and a change in the reward practices of employers.”

This requirement of employers, he said, is generally associated with millennials.

October/November 2017 BIOTECHNOLOGY FOCUS 15

Special Report:

the Biotechnological HR landscape in Canada

Employee Employee Opinion of Opinion the Biotech of the Workplace Biotech Workpl mployee Employee Opinion Opinion of the Biotech of the Biotech Workplace Workplace Respondent Demographics Respondent Demographics Respondent Demographics Respondent Demographics

pondentRespondent Demographics Demographics GENDER

ORGANIZATION SIZE SIZE AGE GROUP AGE GROUP ORGANIZATION

GENDER

10% 0%

10% 0%

8%

5% 5%

3% 5%3% 5%

8% 29%

50% 40%

50% 39%

Female

Other

Male Prefer not Female to say

Other

1 to 9 employees 10 to 49 employees 50 to 99 employees 100 to 499 employees 25-34 18-24years yearsold old 500 employees or more 35-49years yearsold old 50-64 Don’t know 65+ years old Prefer not to say Prefer not to say

18-24 years old 35-49 years old 65+ years old

Prefer not to say

10%

In 2015, when asked to comment on the phrase “I feel that my hard work and contributions are recognized,” 41 per cent of respondents signified that they strongly agreed with the phrase. Twelve per cent said they strongly disagreed with it.

Two years later, there was a slight drop (down to 39 per cent) in the number of employees that felt their suggestions were wel-

18%

™

24%

©Stratford Managers 2017 ™

18%

16%

24%

2 to Less 5 years than 2 years

2 to 5 years

6 to 10 years

11 to615 years to 10 years

11 to 15 years

16 to 20 years

Over16 20toyears 20 years

Over 20 years

Prefer not to say

©Stratford Managers 2017

™

disagreed went down to 12 per cent.

Stratford Managers believe there is a substantial population of millennials in the biotech sector.

Fulford estimates that that about 13 per cent of survey respondents have less than two years of tenure on their workplace. Even accounting for other factors, he said, at least five to 10 per cent of the responses were from millennials.

EmployeeEmployee OpinionOpinion of theofBiotech Workplace the Biotech Workplace Respondent Demographics RespondentRespondent Demographics Demographics ROLE TYPE ROLE TYPE Prefer not to say Other Product and Customer Support Marketing and Sales MIS/IT Intellectual Property (IP) Management Manufacturing Quality Assurance Administration Business Development Regulatory Affairs Research Clinical Research

Prefer not to say Other 10% Support Product and Customer 4% Marketing and Sales MIS/IT 6% Intellectual Property (IP) 0% Management 3% Manufacturing Quality Assurance Administration 3% 1% Business Development Regulatory Affairs 8% Research 5% Clinical Research

5%

16%

JOB LEVEL JOB LEVEL

4% 6%

10%

22%

0% 3%

66% 16%

4% 10%

20%

30%

40%

4% 0%

10%

20%

16 BIOTECHNOLOGY FOCUS October/November 2017

22%

31%

3% 31% 1% 8% 5% 5%

0%

6%

6%

4%

4%

30%

66% Entry Level Intermediate Level Don’t know

40%

Junior Level Senior Level Prefer not to say

Entry Level Junior Level Intermediate Level Senior Level ©Stratford Managers 2017 Prefer not to say Don’t know

©Stratford Managers 2017

13%

Less than 2 years

Prefer not to say

comed. Thirteen per cent said they strongly disagreed with the phrase.

When asked in 2015 if they were “compensated fairly” based on their performance and contribution, 42 per cent on the respondents strongly agreed and 13 per cent strongly disagreed.

In 2017, the number of employees that strongly agreed went down a notch to 41 per cent. The number of those that strongly

3% 18% 18% 8%

16%

10%

19%

TENURE

13%

8%

18%

1 to 9 employees 10 to 49 employees 50 to 99 employees 100 to 499 employees 25-34 years old 500 employees or more 50-64 years old Don’t know Prefer not to say Prefer not to say

©Stratford Managers 2017©Stratford Managers 2017

Respondent Demographics

18%

39% 19%

Male

3%

29%

42%18%

42%

40%

3%3%

18%

TENURE

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Special Report:

Employee Opinion of the Biotech Workplace the Biotechnological HR landscape in Canada

ToptoEmployee Commitment professional Engagement Drivers Top Employee Engagement Drivers development sought The number of people strongly agreeing that their organizations is committed to professional development also slipped.

Two years ago, 47 per cent of respon19 different dents strongly agreed that they were encouraged to continually develop their skills. organizational Forty-four per cent strongly agreed that their activities organization invested in their were continuous learning and development. reported as being In 2017, those numbers slid to 44 per cent to and 43 per centimportant respectively.

Employers need to do a better job of proemployees; the moting what they are doing for employees’ top 5 most development, Fulford said.

“This is a critical factor in talent retention and a very weighty important are factor when it comes to employee engageshown ment in any workplace.”

19 different organizational activities were reported as being important to employees; the top 5 most important are shown Opportunity for career advancement

23%

Professional development opportunities

24%

Challenge employees with greater responsibility or increasing variety of their tasks

28%

Strong leadership from senior management

30%

Flexible work schedules

31%

0%

10%

Employee Opinion of the Biotech Workplace Response by Index

Visionary Leadership Index 2017

Visionary Leadership Index

Q7. Our organization provides value to the public/community.

©Stratford Managers 2017

71%

Q1. I feel a strong sense of belonging to this organization.

17%

56%

23%

11% 2%

8% 6% 7%

Q2. I would recommend my company as an employer to a friend.

52%

22%

11% 6% 8%

Q4. I believe strongly in the organization’s vision and values.

51%

23%

11% 7% 8%

Q5. In this organization, senior management provides great leadership.

45%

Q6. I am confident that senior managerment strategies will help the organization achieve success.

44% 0%

N=142

Strongly agree (6‐7)

5

4

13%

13%

11%

22%

14% 9%

15% 14%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3

Strongly disagree (1‐2)

©Stratford Managers 2017

Visionary Leadership Index 2015

20%

30%

There’s a perception that employers are not investing in professional development

Thumbs up on leadership Employers received positive feedback when it came to showing leadership.

“The responses showed an increase in the perception of leadership strength,” Fulford noted. “Whatever it was that leaders have taken on since 2015, they seem to be getting a positive reaction.” ™ Forty-five per cent of respondents in 2017 strongly believe that senior management “provides great leadership” in their organization. Two years ago, that number was only 43 per cent.

Forty-four per cent of respondents also said they were confident that senior management strategies will help the organization achieve success. That’s up one per cent from the 2015 survey results.

“Overall, we see an increased confidence in leaders because leaders are communicating sound plans for the organization and its goals,” according to Fulford. “What generally contributes to this sense is a stronger and more specific communication of business strategies, where the organization is headed, and how employee effort directly contributes to this success. Leaders, keep it up!”

October/November 2017 BIOTECHNOLOGY FOCUS 17

40%

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Special Report:

the Biotechnological HR landscape in Canada

Employee Opinion of the Biotech Workplace Response by Index

Job Clarity Index

Job Clarity Index Q13. I can generally decide for myself the best way to get my work done.

83%

9%

4%

Q9. I understand how my work directly contributes to the overall success of the organization.

81%

12%

2%

Q8. I know what is expected of me at work.

74%

Q12. I have the information I need to make decisions about my work.

59%

Q10. We have indicators that measure the performance of my team.

46%

Q11. Information and knowledge are shared openly within this organization.

5

4

3

20%

8%

12%

23%

42% 0%

Strongly agree (6‐7)

12%

18%

24%

14%

20% 40% 60% Strongly disagree (1‐2)

2% 6%

5% 8%

8% 80%

12% 100%

bilities. Also significant, is that more than half of the respondents said they are encouraged to “openly and honestly” communicate their views at work.

Workplace flexibility and open, professional communication practices are elements of a workplace that drive employee engagement and motivation.

Sectoral growth anticipated “Overall, the survey demonstrates that working in biotech remains exciting,” said Janet LeClair, senior HR consultant with Stratford Managers. “It is a growing industry and in Canada, we need to focus on two key areas.”

These areas, according to LeClair are: • The continued encouragement of entry into the science, technology, engineering, and ™ math (STEM); and, • Preparing for growth in the sector.

Employee Opinion of the Biotech Workplace N=130

Response by IndexOrganizational Climate Index ©Stratford Managers 2017

Organizational Climate Index Q14. I am encouraged to make suggestions to improve our work processes.

62%

Q22. This organization cares about the health, safety and well being of its employees while at work.

61%

Q3. Knowing what I know now, I would apply to work here again.

16% 22%

53%

Q24. I am provided with the resources (tools, technology and processes) needed to fulfill the responsibilities of my…

22%

50%

Q23. I am encouraged to openly and honestly communicate my views at work.

50%

Q15. I receive constructive feedback from my manager that helps me improve my contribution at work.

43%

11% 2% 9% 6%2% 8% 11% 6% 8%

27% 19% 24%

8% 10% 5% 16% 15%

8% 7% 9%

9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% N=143

Strongly agree (6‐7)

5

4

3

Strongly disagree (1‐2)

©Stratford Managers 2017

Job clarity and organizational climate

Job clarity was an important factor that came up in the 2015 survey.

This year, a majority of respondents continued to show overall awareness of the impact of their jobs to their organization’s success.

Additionally, a large number of respondents were also positive about different aspects of the organizational climate they encounter in the workplace.

Over 90 per cent of respondents said they generally can decide for themselves the best way to get their job done. Furthermore, 81 per cent strongly agreed that they are cognizant of how their work directly impacts the overall success of their organization. Another 74 per cent said they know what is expected of them at work.

Job clarity is a crucial driver of employees’ engagement in their organization. Being clear 18 BIOTECHNOLOGY FOCUS October/November 2017

on job and outcome expectations allows employees to keep their focus on tasks that are more relevant to success – both theirs as well as that of the organization.

Biotech employers are also showing that workers’ health and well-being are important to the organizations.

Nearly three-quarters of respondents agree that their organization provides the flexibility they need to integrate work and life responsi-

Boosting enrollment in STEM courses will ensure a solid pipeline of educated professionals for the local biotech sector. As the industry grows, LeClair said, employers need to prepare how they will transition from small start-ups to large-scale operations requiring a bigger pool of diverse skill sets.

As these developments unfold, it will become increasingly important to develop new leaders, she said.

“Leadership development, coaching and mentoring are necessary components in growing businesses and more especially so in the fast-growing biotech sector where it is common for technical experts to be placed in leadership positions often pre-maturely,” LeClair™ pointed out. “Continuous leadership training may foster increased confidence in the organization and increase buy-in to overall senior management strategies.”

Even start-ups should pay attention to employee rewards and recognition, she added.

“As competition heats up and employees have more choice of where to work, the most robust recognition and employee development programs will win the day,” according to LeClair.

“Boosting enrollment in STEM courses will ensure a solid pipeline of educated professionals for the local biotech sector. As the industry grows, employers need to prepare how they will transition from small start-ups to large-scale operations requiring a bigger pool of diverse skill sets.” — Janet LeClair, Senior HR Consultant with Stratford Managers Corporation

Special Report:

the Biotechnological HR landscape in Canada

For 2017, employees gave their employers high marks.

“Employers should be happy because employees are showing a high level of commitment to the organizations they work for,” according to Fulford. “Overall it’s a very positive set of results and employers should be heartened by that.”

However, while sectoral key indicators remained largely unchanged since 2015, Fulford said, this year’s survey contains several Performance key takeaways which Performance biotech employers onto.all indices should pay close attention

Index Performance

Employee Opinion the Biotech Workplace Performanceof on all indices remains strong, and virtually Employee Opinion of the Biotech Workplace unchanged since 2015 Index Performance

Organization Climate Index • This index is weaker for employees in the 6-15 year tenure range, indicating a point where employees are increasing their expectation of their organizations (more involvement, more feedback, better tools).

This is after years 1-5 where employees are still learning their role.

• Performance in this index weakens as organization size grows, driven by perceived organizational constraints on communicating openly and contributing toward ongoing improvement.

2015 2015 2017 2017

77% 77% 77%

-1 -1

67% 67% 66% 66%

2015 2015 2017 2017

©Stratford Managers 2017

Strong Strong Performance Performance

Recognition and Reward Recognition and Reward

0 0 77%

Organizational Climate Organizational Climate

Strong Strong Performance Performance

judgment to complete work at the expected level of contribution.

• Performance continues to be strongest in organizations with less than 100 employees alluding to increased access to relevant information for their work and more awareness of the direct impact of individual contribution to organization success.

Strong Strong Performance Performance

on all indices remains remains Top among them are: strong, and Job Clarity Index strong, and virtually • This index continues virtually to rise with organiunchanged zational tenure, indicating an improved unchanged awareness of job impact to organizational since 2015 since 2015 success and improved capability to use

Job Clarity Job Clarity

Strong Strong Performance Performance

Index Performance

Visionary Leadership Visionary Leadership

-1 -1

73% 73% 72% 72%

-1 -1

71% 71% 70% 70%

2015 2015 2017 2017

2015 2015 2017 2017

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©Stratford Managers 2017

Recognition and Reward Index • Marginally weaker performance is fueled by perception about organizational commitment to professional development and recognition practices.

• Index performance is weakest among junior level employees (typically with less than 3 years of experience). This likely indicates the growing expectations of personal development and recognition in millennial group employees.

Visionary Leadership Index • The perception of employees in organizations with more than 50 workers of a decreased sense of belonging and lesser

™

confidence in senior leadership strategies, caused a slight dip in this index.

Employers should pay particular attention to the “slight dip” in scores pertaining employee perception of employers commitment to professional development.

“This is an important matter,” said Fulford.

“There’s a perception that employers are not investing in professional development.”

He pointed out that employer commitment to professional development is one of the key drivers of job satisfaction and talent retention.

Fulford suggests employers revisit and enhance the way they communicate their professional development strategies to employees, and directly influence that perception positively.

Employers should keep an eye on the rise of millennials in the workplace and develop strategies that would maximize the benefits gained from the strong points of this cohort.

“The numbers don’t lie, this is the group that will more and more be a part of all these organizations’ workforces going forward,” said Fulford.

To see this story online visit www.biotechnologyfocus.ca/ canadas-biotech-hr-landscaperevisited-a-new-force-in-the-horizon/ October/November 2017 BIOTECHNOLOGY FOCUS 19

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