Originally posted 2-Jun-2021 on LinkedIn:
1. Biopharma R&D outsourcing continues to grow 6%+.
2. Most service companies in the sector are targeting far more than 6% revenue growth.
3. Compensation indices continue to point to ~4% wage increase expectations this year and beyond. Broader inflation trends, especially in the US, may pressure these expectations higher.
4. EVERYONE is hiring.
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Most employees know most of these facts. Each fact is a few clicks away.
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So if your employees' comp went nowhere last year, and you only budgeted 2-3% for merit/promo in this environment, what messages are you sending to existing employees?
Here's a few:
- we value your contributions, just not as much as we value filling these new positions
- working towards that promotion won't have much of a payoff
- this industry will always have turnover; we can handle it if you leave
Compare these messages to your corporate values. Are they aligned?
And re: inflation-
Whether you think inflation is longer term or "transitory", it's here NOW and employees expect better than 2-3% this year.
Or they'll leave.
"People don't leave for money" doesn't work during inflationary times.
