CROs engaging in a ‘war on talent’, Quintiles CEO says

By Staff reporter

- Last updated on GMT

CROs engaging in a ‘war on talent’, Quintiles CEO says

Related tags Contract research organisations Contract research organization

The fight between CROs for clinical research associates (CRAs) and people with certain other skillsets is hotting up, with both Icon and Quintiles identifying it as an issue faced by their businesses.

Contract research organisations (CROs) have competed with each other for talent in certain areas and geographies for years, a fact that has contributed to the high, and in many peoples’ eyes, problematic, turnover of staff at service providers.

The situation appears likely to be unchanged for the foreseeable future. “We have to be candid. It is truly a war on talent​,” Thomas Pike, CEO of Quintiles, said on a quarterly results conference call with investors.

Ciaran Murray, CEO of Icon, used less dramatic language than Pike to convey the same message. “I think it's fair to say the market is tight for some staff in certain areas​,” Murray told investors.

As in any market in which demand is outstripping supply, the shortage of staff with certain skillsets is leading to some CRO employees taking home larger and larger pay cheques. “You tend to see a little bit of wage inflation​,” Murray said.

Icon hired an additional 400 staff during the fourth quarter, swelling its headcount to 11,700 in the process. Quintiles also reported “an increase in billable headcount​” to support the startup of new projects.

The hiring contributed to an increase in service costs at the product development unit, but Quintiles should start to deliver a return on this investment as the projects on which the staff were hired to work take off. 

Offsetting costs

Faced with a job market that they can do little to tilt in their favour, at least in the near term, Icon and Quintiles have struck upon similar strategies to manage their wage bills while ensuring they pay the going rate for top talent.

What we're trying to do is really create the offsets in our business that we can compensate individuals and job categories where there is a war on talent​,” Pike said. In essence, the strategy at Quintiles is to move some jobs to low-income countries to free it up to spend more in other areas. 

Icon has a very similar approach to managing its wage bill. “We operate in 40 countries and you can kind of mitigate and hedge these things by where you do work and where you locate support functions​,” Murray said. 

Related news

Show more

Related products

show more

Using Define-XML to build more efficient studies

Using Define-XML to build more efficient studies

Content provided by Formedix | 14-Nov-2023 | White Paper

It is commonly thought that Define-XML is simply a dataset descriptor: a way to document what datasets look like, including the names and labels of datasets...

Overcoming rapid growth challenges with process liquid preparation

Overcoming rapid growth challenges with process liquid preparation

Content provided by Thermo Fisher Scientific - Process Liquid Preparation Services | 01-Nov-2023 | Case Study

A growing contract development manufacturing organization (CDMO) was challenged with the need to quickly expand their process liquid and buffer preparation...

Why should you use clinical trial technology?

Why should you use clinical trial technology?

Content provided by Formedix | 01-Nov-2023 | White Paper

New, innovative clinical trial technology is helping to revolutionize the research landscape. COVID-19 demonstrated that clinical trials can be run much...

Related suppliers

Follow us