STRATEGIES TO COMBAT THE SHORTAGE OF SKILLED PROFESSIONALS IN THE PHARMACEUTICAL AND IT INDUSTRIES

REGISTRO DOI: 10.69849/revistaft/pa10202212161628


Thaís Pereira Pires1


Abstract

The shortage of skilled professionals in the pharmaceutical and IT industries represents a global challenge that directly impacts the competitiveness of companies. Rapid technological evolution, increased demand for innovation, and strict regulations widen the gap between available skills in the market and business needs. Although many organizations have sought solutions through the importation of foreign talent, this approach faces significant obstacles, such as language and bureaucratic barriers. In this context, the most sustainable solution seems to be investing in the development of local professionals through internal training programs and partnerships with educational institutions. Studies, such as those by Diel and Kirchhoff (2018) and Szeinbach and Miller (2003), show that the lack of skilled professionals is not limited to highly specialized positions but also affects intermediate-level roles, such as those in industrial and chemical engineering. To address this shortage, companies must adopt broader strategies, combining the attraction of international talent with the strengthening of local development programs. Effective recruitment strategies, including attractive packages and adaptations to work practices, can help mitigate the workforce shortage and improve organizations’ competitiveness. Additionally, Greilinger’s (2015) study in the craft sector emphasizes the importance of improving employer brand perception and adopting effective practices in the recruitment and retention of apprentices. Company visits and presentations can significantly increase enrollment rates and reduce dropout rates during training programs. An integrated approach, combining the attraction of skilled talent and continuous investment in internal training, is essential to ensure a qualified and competitive workforce.

Keywords: Shortage of skilled professionals, Pharmaceutical industry, IT industry, Internal training programs, Recruitment and retention of talent. The shortage of qualified workers has become an increasingly challenging issue in the pharmaceutical industry. This problem is fueled by advancements in biotechnology, the growing demand for innovation, and the strict regulations governing the sector. Companies have struggled to recruit highly skilled professionals for critical roles in clinical research, regulatory affairs, and drug production. The difficulty in filling these strategic positions has had a direct impact on the industry’s overall competitiveness. A similar challenge is evident in the Information Technology (IT) sector, where rapid technological advancements demand continuous updates to professional knowledge. Both industries face a mismatch between the training available in the market and the specific needs of companies, which leads to global competition for top talent. In Brazil, IT professionals are often recruited by foreign companies due to their high qualifications and competitive wages. A parallel situation occurs in the pharmaceutical industry, where many companies must recruit internationally to meet the demand for specialized expertise.

Figure 1: Pharmaceutical Industry Challenges.
Source: Viseven.

In response to the difficulty of finding qualified professionals locally, some organizations have opted to bring in international talent to fill key positions. However, this approach presents its own set of challenges, such as language barriers, bureaucratic obstacles, and the need to comply with local regulations. To address these challenges sustainably, many pharmaceutical companies are investing in developing talent within their own country. Strategies such as internal training programs, partnerships with universities, postgraduate courses, and trainee programs have proven effective in reducing the skills gap. By focusing on the development of local professionals, companies can ensure a continuous flow of skilled workers, stimulate innovation, and maintain their competitive edge in an increasingly demanding market.

The research conducted by Diel and Kirchhoff (2018) sheds light on how the shortage of skilled labor is particularly impacting the pharmaceutical industry in Germany. While, in general, companies in the pharmaceutical sector experience fewer labor bottlenecks compared to other industries, they still face significant challenges in filling certain strategic positions. The sector has a higher proportion of skilled workers, but specialized roles in fields such as mechanical engineering, industrial engineering, and technical production planning are especially hard to fill. Additionally, there is a shortage of professionals in specific technical areas, such as chemistry, which plays a critical role in pharmaceutical production. The shortage of qualified workers in these specialized fields has a more severe impact on the pharmaceutical sector compared to other industries, highlighting that the shortage extends beyond highly specialized professionals to include mid-level technical roles.

Szeinbach and Miller (2003) emphasize the strong influence of market conditions on the recruitment strategies of pharmaceutical companies. In a dynamic and competitive environment, companies in this sector often seek professionals with broad, multidimensional skills who can bridge gaps between areas like product development, marketing, economics, and clinical sciences. During times when the labor market is tighter, companies are more likely to rely on recruitment firms to design attractive job packages, particularly targeting recent graduates. Their study reveals that pharmaceutical companies dedicate considerable time, effort, and resources to these recruitment activities. In addition to analyzing the strategies and incentives used by these companies, the authors offer recommendations to improve recruitment efforts and reduce associated costs.

In their study, Backes-Gellner and Sartore (2007) argue that avoiding the shortage of skilled workers is one of the most significant challenges for companies in highly competitive sectors with tight labor markets. The ability to prevent such shortages, measured by the number of unfilled positions, varies greatly across firms and cannot be explained solely by differences in wages or benefit packages, as traditional economic theory might suggest. The authors emphasize that intangible factors such as organizational climate and job autonomy are crucial in professionals’ decisions when selecting a job. Since these factors are not easily observable by outsiders, potential employees often use other company characteristics as signals of the work environment’s quality. Using a modified version of Spence’s labor market signaling model, the study analyzed data from around 700 companies and found that formal aspects of labor relations, even if seemingly irrelevant, had a significant impact on recruitment success and reducing the number of unfilled positions.

Vinten (1998) focuses on the challenges of skills shortages and recruitment within the SME sector, particularly in human resource management. The study, which examined over 300 organizations employing between 20 and 200 people, provides insight into the recruitment and selection practices of both large and small SMEs. It found that SMEs benefit from the flexibility of offering part-time work, job-sharing, and outsourcing, although full-time employment remains the most common arrangement. Furthermore, the study reveals that SMEs typically determine pay levels based on the job’s value to the organization and the skills or abilities of the new employee. Interestingly, most respondents reported not experiencing significant skills shortages.

Willis, Muslin, and Timko (2016) propose a theoretical model aimed at addressing the nursing shortage by improving recruitment strategies for qualified applicants. The study highlights labor shortages in critical industries such as nursing and trucking and reviews recruitment strategies, including the use of realistic job previews. By employing game theory, the authors examine cooperative and competitive recruitment strategies and their effects on the applicant pool. The findings suggest that these strategies can either increase or decrease the number of applicants. The study concludes that industries facing labor shortages should adopt cooperative strategies and use realistic job previews to attract more applicants, encouraging self-selection into the pool. Additionally, the authors advocate for a macro-level perspective on nursing recruitment, suggesting that a broader industry-wide focus could yield better results.

Greilinger (2015) conducted a study comprising three essays aimed at assisting small and medium-sized enterprises (SMEs) in the craft sector with the recruitment and employment of apprentices. The first two essays explore whether participation in site visits and company presentations can improve potential apprentices’ perceptions of the employer brand and increase their intention to apply. The third essay shifts its focus to the post-recruitment phase, examining reasons for dropout at various stages of apprenticeship training. This comprehensive approach provides valuable insights for SMEs, helping them improve their recruitment practices and reduce dropout rates during apprenticeship programs.

The shortage of qualified professionals, both in the pharmaceutical industry and the IT sector, highlights a global challenge that directly impacts the competitiveness of companies. The increasing demand for innovation, coupled with strict regulations and rapid technological evolution, creates an expanding gap between the skills available in the market and the needs of businesses. While the importation of foreign talent has been a solution adopted by many organizations, this alternative presents significant obstacles, such as language barriers and bureaucratic processes, which hinder the adaptation of professionals to local requirements. In this scenario, the development of internal training programs and partnerships with educational institutions becomes an essential strategy to ensure the continuous supply of skilled professionals.

Moreover, studies such as those by Diel and Kirchhoff (2018) and Szeinbach and Miller (2003) indicate that the shortage of qualified professionals is not limited to highly specialized positions but also affects mid-level roles, such as those in industrial engineering and chemistry. These deficiencies require companies to adopt more comprehensive and multifaceted approaches to address the labor shortage, balancing the attraction of international talent with investments in the development of local professionals. The use of more effective recruitment strategies, including attractive packages and the adaptation of work practices, can help mitigate the shortage and strengthen companies’ positions in the market.

Finally, Greilinger’s (2015) research on the recruitment and retention of apprentices in the crafts sector illustrates the importance of investing in internal training programs and post-recruitment stages. Implementing practices that improve the employer brand perception, such as site visits and company presentations, can significantly increase application rates and reduce dropout rates during apprenticeship programs. Thus, an integrated approach, combining the attraction of qualified talent and continuous internal training, is crucial to address the shortage of skilled labor and ensure the competitiveness of companies in an increasingly challenging market.

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1Bachelors in business administration