Work Place Invaders

by IainBate 5. March 2013 15:46

We’re often plagued by the idea that somehow – perhaps in a different city, company or even civilisation – we could be reaching new, higher, dizzier heights. Especially when you see rival colleagues using the latest mobile, tablet devices or driving off into the sunset in that brand new hatchback – yes, the one with the heated seats you saw on Top Gear last month – and giving you an obscene salute as they do so.

But is there any definitive way of knowing if you’d be better off somewhere else? Of course, there are those generic online tools that give you the average salary of every Londoner under the age of 90. But they are probably not the best benchmarking tools to use when plucking up the courage to ask your boss for a pay rise, during one of those awkward appraisals. Although, there is another way.

The Pf Company Perception, Motivation and Satisfaction Survey – which is now in its 12th year – provides a comprehensive temperature check on the essential elements of everyday working life for those toiling away in the medical sales sector. It gives those working within the pharmaceutical industry in the UK the opportunity to have their say on what matters the most to them.

The Survey has now been completed by more than 14,000 medical sales professionals since it was first launched in 2001. It accurately portrays the views of the industry on important motivation and satisfaction factors such as remuneration, bonuses, work-life balance, job security and company culture. Pharmaceutical bosses can also see how long their staff actually spend on CRM systems whilst in the field and also discover whether employees have had their head turned by that eye-catching aqua blue sports car and are ready to jump ship.

Yet it’s not just pharmaceutical companies who bene t from the results. The Survey is a friend to all. Much like a Swiss army knife, it has various tools and attributes to help those who access it. It’s a pen knife one minute slashing dated contracts of employment then a bottle opener the next popping open the bubbly to celebrate an improved Employer of Choice ranking place.

The Employer of Choice

Another facet to the Survey is the coveted Employer of Choice rankings. Respondents are asked to choose the company they’d most like to work for within the industry – bar their own of course! ­The company chosen the most wins the Employer of Choice gong. Simple.

In recent years it’s been a two horse race for the EoC accolade. Boehringer Ingelheim and Roche have got toe-to-toe for the top spot since 2007. But it’s been Boehringer which has come out on top for the last six years as the company which is deemed to be the most desirable to work for within the industry. Nick Doe, Sales Director, BI, says the credit must be placed at the company’s skilled workforce for keeping the company in the prized top spot for so long. “It is a real credit to everyone in our field force, our managers and all at Boehringer Ingelheim who are dedicated to putting the patient at the centre of the everything we do.”

The Employee

One experienced key account manager – who wished to remained anonymous, from a medium-sized pharmaceutical company – used the salary comparison tool to negotiate an improved deal after finding out she was being paid less than her industry counterparts. “I was quite surprised actually when I first read in Pf that I was being paid less than other people doing my job in the industry. In fact, I always considered myself to be well paid for the job that I do. For that reason I’d never really explored what other KAMs with the same level of experience were on – especially as I’d been with my company for a few years. I just assumed we’d all be on around the same figure. However, when I read one of the articles on salary in Pf and realised I could be getting more money elsewhere I couldn’t just ignore that fact.

“I went to speak with my superior to discuss a pay rise and showed him the comparison with other key account managers with my level of experience and how much more money they were receiving compared to me. Discussing money is always a tricky subject but the facts and figures were there in black and white to support my case. Thankfully the matter was addressed pretty swiftly. I’m so glad I took part in the survey and read the survey articles. Without the Pf Survey results I’d still be underpaid and none the wiser.”

Anonymous Key Account Manager from a medium-sized pharmaceutical company: you’re welcome.

The Employer

€The results from the Survey may have seen certain pharma companies having to dig a little deeper into their pockets to ensure valued staffŠ members are kept happy and motivated. But the data resulting from the survey results is valued in other ways. It’s not only field-based employees who keep a keen eye on the main motivating factors which matter to respondents. Pharma companies use these to entice hot talent away from competitors and keep their own main players happy.

When employees at Astellas raised concerns around a recent change to the car policy one year, the survey witnessed the biggest ever shift in one parameter when it acted upon the suggestions of staŠff and improved its company car scheme. Astellas wasn’t the only pharma company to listen to its staffŠ after the survey results were published.

Lundbeck UK calls upon its staffŠ to voice opinions on important decisions – a move which has seen them outscore industry rivals in a number of parameters. “€The scores that we have had for the latest survey results are significantly higher than that of our industry colleagues,” Helen Carberry, Lundbeck UK Head of Human Resources and Development said.

“We consistently outperform in the industry averages. Ratings for ‘belief in products’ is really strong and that is our highest satisfactory score. Also, for ‘company culture’ we are almost double the score across the industry in that parameter,” Helen added.

Yet these top-of-the-table rankings have not come about by chance, as explained by Helen. “We do have a real focus on people here at Lundbeck UK,” she said. “It’s something which is important to us because that is ultimately how we achieve our results. We have high levels of loyalty and commitment within the organisation, and our own internal satisfaction survey highlights that.

“In terms of our strategy, there are three pillars which support everything that we do. One of those pillars is being great place to work. We set out this year, very much like the 12 months prior to that, that our focus is on delivering excellent results, delivering value to customers, whilst also being a great place to work. As part of that, developing people and living our culture are the two main foundations which support that strategic pillar of being a great place to work. People are really, really important to us.”

This was re™flected as Lundbeck UK was awarded the Best Companies One Star Accreditation in 2012. € The company now aims to build on the success of its survey results as it adapts to the changing market place in the UK. “We are a lean organisation, which means we are very, very ™ exible. We have developed a structure that can be either built on as and when new products come through or simply added to over time. Lundbeck UK can only go from strength to strength.”

€The 2013 Company Perception, Motivation and Satisfaction Survey can now be completed at www.pharmasurvey.co.uk. It is managed by Dr B Payne of Conker Statistics (a fellow of the Royal Statistical Society) and provides a benchmark of field force remuneration, motivation, satisfaction, perception and recruitment. Confidentiality is of paramount importance and your anonymity is therefore guaranteed. It takes only minutes to have your say at pharmasurvey.co.uk.

Following the stars of 2012

by IainBate 17. December 2012 10:41

As Santa starts to think about who he is going to reward for good behaviour, it would seem appropriate for Pf to look at which pharma companies deserve the biggest slice of Christmas cake, what made them stand out during 2012 and the resolutions they have for the New Year.

Stars - web There can be no denying it’s been another turbulent twelve months for the pharmaceutical industry. Job losses across the majority of departments, generic exposure on key products and failing pipelines have been enough to make bosses choke on their deep-filled mince pies and turn to the brandy butter.
Yet there are still plenty of gifts under the tree to get excited about. Last year’s survey found that pharmaceutical employees continue to get paid well above the national average. Meanwhile, fewer people are looking to move company compared to the year before and pharma reps have maintained a belief in company culture, despite major departmental reforms.

Here is a selection of the standout companies who defied the recession to top the Employer of Choice charts.

Abbott

Offering an open and supporting environment where employees can develop a career path across a diverse portfolio of businesses, Abbott sees the development of its people as “key to long-term commercial success”. The company boasts an “exceptional compensation and benefits package”, plus strong pipelines for all its businesses, from biologics and molecular drugs to medical devices.

After being voted one of the Best Multinational Workplaces in Europe by the Great Place to Work® Institute and listed in the Dow Jones Sustainability World Index for the seventh consecutive year, the company hopes to build on these successes in 2013. The company adds that “ethics and compliance will continue to underlie” everything it does to continue to improve access to treatment for patients across the globe.

Astellas

Size matters at Astellas. It says it is “small enough to be agile but big enough to make a difference.” This, coupled with a focused approach, has enabled it to achieve category leadership in urology and transplantation and a major presence in the anti-infective market. Collaboration between all team members and customers is “key to achieving success as outlined in our core values of teamwork, adaptability and mutual respect,” the company says. 

A recent company survey showed that almost 90% of employees were proud to work for Astellas and would recommend the company to a potential colleague. Astellas successfully implemented two patient information campaigns within the last 12 months to address dispensing errors in transplant medicine, enhance patient safety and to increase over-active bladder awareness through an extensive campaign. 

Boehringer Ingelheim

After recently celebrating 50 years of being in the UK, Boehringer Ingelheim went on to top the EoC rankings for the sixth year in a row. BI was also ranked one of the best companies to work for in the 2012 Sunday Times Top 100 ‘Best Companies’ survey. Using a culture of transparency and respect for individuals, it aims to “empower people and listen to their ideas”. An excellent standard of training is complemented by the emphasis being placed on personal development and improvement.

The company will now be focusing its efforts on ‘Painting BI’s Future’ – a strategic review in response to the changing environment. Recommendations are now being further developed through the initiative, with eight cross-divisional teams exploring how to make the recommendations a reality. Additionally, ‘Making more health’ is a global partnership with Ashoka focused on identifying and supporting innovative health solutions. 

LEO Pharma

LEO’s unique Foundation status allows it to be financially independent and means that decisions are based on “what is best for the business in order to build long-term growth”, it says. This also provides a platform from which to implement focused, long-term R&D programmes – 17% of global annual turnover is allocated to R&D, enabling LEO to make fast decisions and respond quickly to innovative ideas.

The company has enjoyed a successful 2012 with double-digit sales growth in its two focus areas – Dermatology and Thrombosis – plus continued US growth and a robust pipeline. A series of patient-centric initiatives have also been successful. Ambitious plans have recently been released outlining how LEO intends to build a global and patient-centric organisation designed to bring it even closer to patients around the world and better listen and respond to their challenges.  

Napp Pharmaceuticals Ltd

Napp has two key strengths that underpin its commercial success: its people and the culture they create. The company believes that everybody should have the “opportunity and responsibility to perform to the best of their abilities”, which ensures employees are supported to develop and have the opportunity to play an active role in planning for its future.

The Company has introduced Napp Account Selling, an approach to key
account management through which all departments work together to find innovative ways to support the NHS in achieving its goals whilst ensuring business sustainability. In 2012, it launched a new respiratory product, and is committed to becoming a long-term partner to the NHS in respiratory medicine, whilst maintaining its position as a leader in pain and continuing to grow its oncology business – focusing on treatments for patients with blood cancers.

Roche Products Ltd

Roche says its values – integrity, courage to reach beyond boundaries and passion for they do – allow its employees to “express themselves in an open and respectful environment”. Its evolving business creates numerous internal opportunities both locally and globally for staff. Highlighting the importance of collaboration, Roche uses feedback, knowledge sharing, debate and co-operation as the foundation of its performance culture. The result, it says, is “one of the most exciting and open-minded places to advance your career”. 

After celebrating more than a century of innovation, the company continues to carefully balance long-term investment decisions with near-term deliverables. Roche continues to improve motivation through instilling energy, creativity and passion into all of its staff pursuits. Expertise in the field and leadership are displayed through a host of cross-industry initiatives to address inequalities in access to medicines for eligible patients.

The Pf Company Perception, Motivation and Satisfaction Survey – which launches in January 2013 – gives key account managers and their colleagues a chance to air their opinions on the good, the bad and the ugly sides of the industry.

The Survey also includes the coveted Employer of Choice guide – where respondents get the opportunity to voice who they’d most like to work for – not including their own company, of course!

Hakuna matata: pharma’s philosophy?

by IainBate 5. September 2012 12:17

Why have employees kept a belief in company culture despite major structural reforms to sales forces?

grown - web If you cast your mind back to the mid-1990s you’ll probably recall tapping along to a song sang on screen by a warthog and a meerkat in one of the most memorable scenes in The Lion King. The moral of hakuna matata was that regardless of your surroundings you have to make the best of them. The same could be said for key account managers working within in today’s medical sales sector.

There’s no getting away from the fact that the way pharmaceutical companies conduct internal operations has changed and continues to evolve. The same could be said of their philosophies. A few years ago – in an era of feet on the ground before the patent cliff – pharma companies could rightfully claim holy values, visions, beliefs and habits. However, after widespread job cuts where thousands of people have lost their jobs can the same still be said?

It seems the answer may be a resounding ‘yes’ – and that’s coming from employees! Respondents to the Pf Company Perception, Motivation and Satisfaction Survey again highlighted the importance of company culture after it was voted the fifth highest motivating factor for more than 1,200 people working in the medical sales industry. However, its fifth placed ranking shows there’s still room for improvement.

Employees working for contract sales organisations placed less emphasis on company culture than those employed on a permanent basis within the pharmaceutical industry. Interestingly, it was younger respondents who felt more motivated than older colleagues. Respondents aged less than 25 voted company culture as their main motivating factor whilst at work. But those aged 54 or over said it was only the seventh most important factor to them.

But what have the sweeping job cuts done to satisfaction levels? Overall, 59% of respondents claimed to be satisfied with their company culture with slightly more than a fifth (22%) claiming to have concerns. Women (61%) were slightly more satisfied then men (57%), with a higher proportion of males (26%) saying they were disillusioned with existing policies. Despite ranking company culture as only the seventh most motivating factor, those aged between 25 and 34 were the most satisfied of respondents with 68% saying they were happy. But those aged 54 and over said they were the least satisfied with 27% voicing their opposition.

Leading the way
The importance of company culture has long been recognised. It forms the environment in which people judge the appropriateness of their behaviour and their actions. A positive company culture – one which staff ‘buy in to’ – will influence how individuals work on a daily basis and reflects their motivation and performance.

As the pharmaceutical industry strives to be more transparent the emphasis placed on company culture has increased. The importance of leadership where company culture is concerned cannot be underestimated. The leadership structure of an organisation almost drip feeds the principles it wishes to be known for. However, overall success usually results from effective leadership, an engaged workforce and good lines of communication between the two.

Yet open conversations only play a minor part in establishing and developing company culture. There has to a commitment by managers and their own leaders to act in a way which they would expect from those at the lowest run of the ladder. Training and competence, compliance with procedures and organisational learning also make up essential values.

While it’s not easy to establish and maintain company principles it’s even more difficult to change and introduce new methods. A cultural change can take several years to introduce. Humans are creatures of habit and employees are no different. Teaching old dogs new tricks really is a time consuming process – regardless of how much investment there may be.

Choosing the one
The website learnmanagement2.com says there are four main types of company culture. The first, usually found within small or medium sized organisations is power culture. Here, control is a key element. Decisions within a business are usually centralised around one key individual. That person usually has control over decisions and the power to enforce them. This allows efficient decision making. However, this method does have its problems. A lack of consultation between other members of staff can lead to a feeling of being undervalued and a lack of motivation. A high turnover of staff is also associated with this type of company culture.

Then there’s role culture – possibly the most common and logical in organisations across the globe. Here, businesses are split into divisions or groups where individuals are assigned particular roles and responsibilities. This has the benefit of specialisation where bosses can rely on individual skill sets and employees to highlight their worth to a company through performance measures.  

Task culture sees a team-based approach assigned to a particular project. Popular in today’s business society, task culture offers benefits both to staff and their employers. Individuals feel motivated when tasks are completed or achieved and a sense of value after being selected for projects by senior management. NASA is one high-profile organisation which promotes task culture through its missions into space.

Finally, there’s personal culture. This is more commonly found in charities or non-profit organisations. In this instance a focus is placed on the organisation without any thought for personal progress or gain.

Changing principles
Research has shown that the most successful companies all have a strong culture – whatever it may be. The two are interlinked. But it’s not a question of luck either bringing the two together. The CIPD says that evidence has shown that organisational success is dependent on having the “right mix” of human resources in place. Also, there must be an ability, motivation and opportunity for staff to support cultural ideologies. Firstly, companies must recruit the correct people with the ability to understand and promote set values. Managers must then ensure that staff are effectively motivated in the workplace and to provide them with the right opportunities to use their skills in well-designed roles. 

It’s in the initial stages of recruitment where company culture CAN be defined and discussed between employees and their bosses. During induction days it’s rare for company culture to be discussed, let alone a handbook given out. However, during the interview process, bosses can get the chance to assess whether those sitting in front of them will be able to meet and enhance set beliefs.

So there you have it. If you want to improve your levels of company culture it’s important to find an organisation with the same philosophy as yourself. If you can find a company whose values match your own you’ll soon be tapping along again to hakuna matata – it’s a problem free philosophy!

Bringing it all back home

by IainBate 5. September 2012 11:59

Research suggests that the best work-life balance involves strong commitment to both areas.
Does that happen in pharma – or only in Narnia?

134086167 Medical sales professionals are likely to be wary of work-life balance (WLB). The traditional sales model has been associated with a workaholic mindset – the more you work, the more commission you earn – and an attraction to the freedom of the road. But these days, travelling light is likely to mean you have nothing to come back to. As medical sales has developed towards long-term selling and key account management, so its professionals have come to rely more on domestic stability as a support.

A perfect circle
A recent study by Working Families challenges the idea that home life and work are competing priorities. They surveyed over 2,000 high-achieving professionals, mostly female, working in the private sector in South-East England – supposedly the yuppie heartland. What they found was a strong, bidirectional correlation between ‘work engagement’ and ‘relationship quality’. As either factor improved it strengthened the other factor instead of detracting from it.

They also found that problems at work affected home life and vice versa – but whereas many professionals could escape from domestic stress at work, few could leave work issues behind when going home. Where a vicious circle existed between the two, the driving force was usually trouble at work. Where steps were taken to reduce stress at work, the domestic picture normally improved.

Working Families concluded: “Work-life balance is not the bringing together of two separate and competing domains, but rather the two need to be understood as two aspects of the same dynamic. Those who are more fulfilled at work may also be more fulfilled at home.”

These important findings suggest that work-life balance does not have to be seen in terms of managing a conflict. Far more importantly, it can be seen in terms of creating a mutual reinforcement to the benefit of the individual and the company.

Bending the rules
The big question for employers is how they can achieve this perfect circle for the dysfunctional individuals who make up their sales teams. Giving staff more flexibility – in terms of when and where they work – is the most popular solution among companies and staff alike.

However, Working Families notes, flexible working is no bed of roses. For women in particular, flexible working is likely to impact negatively on home life by allowing a conflict to develop. Conversely, men tend to take up flexible working “far less often” than women, perhaps due to fear of such a conflict. Employers should therefore ensure that there is an “embedded culture of flexibility” in which such conflicts and anxieties can be resolved.

The Work Foundation even makes flexible working definitive of WLB: “Work-life balance is about people having a measure of control over when, where and how they work.” But the truth is that WLB cannot be wholly separated from other issues such as accountability and autonomy.

The CIPD’s Employee Outlook for summer 2012 notes that 60% of employees report satisfaction with their WLB. Women are more likely to feel that they have the right WLB (65%) than men (55%). The CIPD reports a strong positive correlation between employee engagement and satisfaction with WLB.

A delicate balance
The Pf Company Perception, Motivation and Satisfaction Survey 2012 shows that for medical sales professionals, work-life balance ranks fourth in a list of 18 priorities (after salary, relationship with direct manager and job security). Overall, 42% of survey respondents are ‘satisfied’ with their WLB and 28% are ‘dissatisfied’.

These figures suggest that WLB is neither a major problem nor a big success for the pharma industry. Given that WLB is a predictor of work engagement, they do not encourage complacency.

Women surveyed are happier with their WLB (44%) than men (39%), which may reflect greater skill in balancing the relevant factors. Employees working part-time are happier (49%) than those working full-time (41%), which may reflect a trade-off between income and WLB.

Industry satisfaction with WLB is fairly consistent across regions in England, but is much lower in Wales (31%) and Scotland (30%). In Scotland, the proportion actively dissatisfied with WLB is 35%, making the issue a negative one for the nation’s pharma companies.

The age-related figures show highest satisfaction with WLB (68%) among employees aged below 25, with lowest satisfaction (35%) among those over 55. That does not suggest that starting a family is a trigger for major WLB concerns – and indeed, Working Families states that such a view is a myth. Rather, WLB becomes steadily more important with age.

Employees whose sales are above average are more likely to feel they have the right WLB (45%) than those whose sales are average or below average (both 36%). However, for those with the highest sales, WLB satisfaction drops to 34%. That suggests that the correlation between professional success and WLB works only up to a certain point.

Roles associated with associated with industry average or better WLB are nurse advisor (57%), primary care specialist (47%) and KAM (45%), while sales management is associated with WLB well below average: 31% for first-line managers, 26% (with a shocking 58% dissatisfied) for second-line managers.   

WLB satisfaction drops steadily with time in role, from 48% after less than six months to 37% after eight years. This contrasts with the effect of time in the industry, where WLB satisfaction rises to a peak between four and eight years (53%) before trailing off.

The whole picture
The Pf survey broadly supports the view that work-life balance is about the mutual reinforcement of work and home life, rather than managing a conflict. But it also shows that conflicts are possible in certain kinds of role, notably sales management, and where individuals may be aiming too high.

Companies need to support WLB, especially with older employees, and understand that WLB is a predictor of good performance. They should promote flexibility without seeking a ‘one size fits all’ model. Above all, they should be mindful that the strongest driver of successful WLB is fulfilment at work.

Medical sales reps hold on

by IainBate 5. September 2012 11:20

With jobs at a premium and the cost of living continuing to rise, job security has suddenly become a main priority for employees.

Hold on - web The global recession has affected each and every one of us in one way or another. Sweeping job losses throughout the medical sales sector – and in the pharmaceutical industry in particular – have seen even the most experienced personnel joining the queue at the job centre. For those lucky enough to have avoided the dreaded axe, it seems to have made us appreciate our job a whole lot more.

Last year was somewhat of a breakthrough year for as far as job security is concerned. Results from last year’s Pf Company Perception, Motivation and Satisfaction Survey highlighted how job security had gone from a passing thought to one of the main motivating factors for respondents. Ranked behind salary, relationship with manager and work-life balance in the 2009 survey, job security was suddenly thrust into the top-two motivating factors last year.

It has maintained its position this year behind salary as the second highest motivating factor after pharmaceutical companies continue to introduce ‘efficiency’ plans in an attempt to sustain profits and counter bleak pipelines. During an uncertain last twelve months it would seem that satisfaction levels in job security have also improved. Job security moved from 14th position last year to 11th in the latest set of results. Are companies doing more to reassure staff their jobs are safe, or are employees learning to live with the fact that their week at work may be their last?

Moving on
Attitudes towards job security have also affected respondents’ outlook on where they’d like to be within 12 months’ time – see Figure 1. In last year’s survey, 15% of respondents indicated they were searching for a move away from their current employers with 56% content to stay where they were. However, this year’s results show a slight increase in those figures with 13% of people within the medical sales sector looking for a new job and 59% happy where they are. 

Hold on - F1

Its men that indicated a stronger desire to change companies with 17% wishing to move organisations and a further 24% saying it was a possibility. However, female respondents were less sure about joining a new organisation with only a tenth wishing to move away from their current employers.

The importance now placed upon job security may also arise from the fact that employees are still very mindful of a turbulent few years – despite a glimpse of light at the end of a very, very dark tunnel. Dr John Philpott, Chief Economic Adviser at the Chartered Institute of Personnel and Development (CIPD) recently told a panel of directors from Yorkshire that modest economic growth in the UK would see unemployment levels stabilise this year. He also discussed the potential of a stronger recovery resulting in a sudden, sharp fall in unemployment levels and employers again going on the hunt for talented staff to meet increasing demand.

Job security works both ways. It shouldn’t be something that only staff on the ground worry about. Stability and medium to long-term assurance ensures employees are engaged and motivated enough to be committed to company goals and objectives.

Although job security may be a state of mind, there are ways of improving one’s mindset. If a company can ensure or encourage career development and progression, an employee will feel a greater sense of loyalty and commitment. With this in place a sense of dedication allows employees to focus on their individual skills and capabilities and become a consistent performer. In turn, an employer gets a happy and productive employee in the work place.

Trust levels
However, it’s not always that easy it? Memories of colleagues and friends being made redundant can last for a very long time. Geoffrey James, argues on the website inc.com, that job security is defined by who you are, what you do and who you trust. If you’re an individual who is happy going along with your job, undertaking everyday tasks and playing second-fiddle to other staff then you’re more than likely to receive your marching orders, James says. Individuals should strive to stand out from colleagues and be different to the majority of the workforce. “If you really want job security, there must be something about you that’s different, that makes you more relevant than anybody else who does what you do. More importantly, other people must perceive that difference and see it as valuable,” he says.

Then, of course, there’s the trust issue. Do you think you can rely on your boss not to put a red cross next to your name if there are further redundancies? James – who pens one of the world’s most-visited sales-oriented blogs – suggests a novel approach to assessing trust whilst at work or in the field. People that you speak with on a daily basis – be they family, friends, colleagues or business associates – should be placed into three categories: those who trust you completely, those who moderately trust you, and those who vaguely trust you. When these have been grouped together, remove the people in the final two categories – these are the people unlikely to return sales calls, James adds – and then calculate the number of people who you believe completely trust you. If, he says, you have more than 20 people on that list, then you have a greater sense of job security. If you haven’t, it might be time to start building some bridges.

So there you have it. Job security ultimately comes down to who you can trust and who trusts you. Can you hold on to trusted colleagues at work whilst the UK tries to climb out of a double-dip recession. Or, are the people who you believe you rely on merely providing a crocodile smile during work hours? It’s probably wise to start drawing up that list...

Pharma’s golden generation

by IainBate 5. September 2012 10:46

Medical sales executives continue to lead the way in the pay stakes, but how do they continue to defy remuneration odds?

148790304 A recent Channel 4 documentary exposed just how sensitive the issue of salary is in the workplace. Employees at a leading plumbing firm in London were asked, face-to-face, to reveal their salary to their colleagues. The outcome wasn’t pleasant. Employees working alongside each discovered they were, in some instances, paid tens of thousands of pounds less than the person working only a few feet away from them. Whilst employees’ pay was eventually brought in-line with their unsuspecting workmates, the moral of the film highlighted just how much people dislike being short-changed – especially in their wage packet. 
The Pf Company Perception, Motivation and Satisfaction Survey – now in its 11th year – again highlighted the importance of salary to those working within the medical sales industry. It’s of little surprise that in an era of austerity salary came out on top as the main motivating factor for respondents. While the significance of money is there for all to see, the satisfaction respondents feel when they open their wage slips is somewhat surprising – despite being paid well above UK average. Satisfaction ratings showed salary placed as the 13th out of 18 options.

Figures from the website Payscale.com show that the average salary for men in the UK is now a slightly more than £30,000. For women it’s around six thousand pound less. Short change when compared to figures from the Pf Survey where the median salary from men is £45,000 and women £40,000. Despite nearly all pharmaceutical companies announcing plans to tightening its belts, employees in the medical sales sector are clearly still extremely well paid.

Overall figures from the survey show that annual remuneration packages range from £11,000 up to a wallet-busting £107,000. The median salary for full-time workers travelling from job to job around their territories was £43,000. Even those on part-time hours earned a medium salary of £26,702 – with the highest earner working reduced hours taking home a cool 54k.

PGG - F1

The going rate
A career in the medical sales industry pays. The median salary for respondents who have less than six months’ experience within the sector was £23,000 - see Figure 1. One individual began their career within the industry taking home £58,000 per year! The median salaries of those with additional years of experience continued to rise with those clocking up eight years or more earning an average of £45,000. 
Age also plays an important factor.  The median salaries of those aged 25 and under continue to rise to respondents aged between 45 and 54 years old. Individuals in that age bracket reported a median salary of £45,000, yet those aged beyond their 54th birthday saw their median annual wage fall by two thousand pound. With an ageing workforce, has the medical sales industry targeted this age group to make savings?
Patients may suffer as a result of the postcode lottery but it also seems that medical sales executives do as well – see Figure 2. Median salaries ranged from £42,125 in Scotland up to £47,000 in London. The south east, south west and Wales all clock up median salaries of £45,000 with the north east and Midlands/east slightly behind.

PGG - F2

Individual roles
Pharma’s switch in methodology away from a traditional headcount approach to a key account model is reflected in the survey with the median salary for Key Account Managers being £10,500 more than that of a Primary Care Representative (£33,000). Primary and Secondary Care representatives reported a slightly better median salary at £38,880. However, that figure is almost doubled by the median salary of second-line managers at £74k. At the other end of the pay scale, nurse advisors reported the lowest median salary at 30k – as highlighted in Figure 3.

PGG - F3

Although public sector workers may have had to endure pay freezes, the same can’t be said of medical sales executives. For the second year running respondents have again reported hearty pay rises – one lucky individual banked a £20,000 rise! Overall, the median salary increase was slightly more than a thousand pound. Key Account Managers reported £100 on top of that figure with second-line managers again enjoying the largest slice of the pie, after receiving a median rise of £2,778.

On top of generous salary increases, respondents also enjoyed bonuses the majority of workers from other sectors – banking aside – could only dream of. In total, the survey found that sales executives received a median bonus of three thousand pounds. The maximum bonus was £50,000. Key Account Managers saw their bonuses fall in line with the average median figure, primary and secondary care representatives were rewarded a thousand pound less than everybody else, and first-line and second-line managers again enjoying generous gratuity sums.

However, very much like salary, respondents were clearly unimpressed with their bonuses. In the satisfaction stakes, only share scheme finished behind bonus in the minds of respondents. It would seem, much like pharma’s shareholders, medical sales executives are a difficult bunch to please – despite enjoying above-inflation rewards.

The seven sins of company culture

by IainBate 23. April 2012 15:46

Having the right balance where company culture is concerned is vital to a successful and growing organisation. Pf’s Iain Bate focuses on where companies often get it wrong.

The seven sins of company culture - Pharmaceutical Field Company culture is very much like gravity. You may not be able to see it, touch it, smell it or hear it, but, good or bad, it’s everywhere you turn in every organisation. But just what is it? And, more importantly, what makes the difference between a productive company culture and a damaging one?
In 1966, Marvin Bower from global management consulting firm, McKinsey & Company, described company culture as “how we do things around here”. Sure, it can seem to be as simple as that. But company culture is far more than preferences or working habits. It’s in the metaphorical bloodstream of a company. Or at least it should be. During induction days at a new job, company culture is very rarely mentioned. In fact, you may go throughout your whole working life in a job and it never be discussed. You may be given tips on sales techniques or how to walk in a single line to exit offices during a fire drill, but training on company culture is seldom given or heard of.

Gabrielle O’Donovan, a company culture expert who penned The Corporate Culture Handbook, said in an interview in 2007 that the role of company culture is to preserve the past via tradition while stimulating via innovation. However, if organisations are neglecting company culture and failing to express the principles from which they were founded upon, then how can they possibly move forward?

There are many facets of company culture. In fact, no two companies’ methodologies will be the same. These may include having a strong mission clarity, having committed and empowered employees, forging strong relationships between staff and highly effective leaders and a commitment to learning and development. Whilst there are many more to mention, if one element of these is badly wrong within an organisation it can affect ideologies towards company culture – especially from an employee’s point of view.

Each year, Pf’s Company Perception, Motivation and Satisfaction Survey gives those working within the medical sales industry the chance to vent their frustrations or express their gratification on the issues which matter the most to them. Participants are asked to outline what it is like working for their current employer and what they consider to be the most significant things that characterise their past twelve months in their job. Behind a shield of anonymity, respondents rarely pull any punches. And this year’s survey was no different. Pf took a look at some of the latest responses, and examine what they say about the key components of company culture. The following are real examples of feedback from the Pf Survey 2010/11. They outline some of the ‘deadly sins’ of company culture that, where they exist, can be very damaging.

1.  Job security
“It’s at an all-time low. My new manager is one of the most unprofessional, unethical and dishonest people I have ever come across with no integrity, drive or desire to assist in any way. I have been bullied and harassed; I’m demoralised with low self esteem.”

At a time of widespread industry job losses, one thing that employees value more than anything in the current market is security. Immediate managers and their seniors have an important role to play in ensuring a sense of security in the workplace. Dr Jill Miller and Rebecca Clarke, research advisers, CIPD, note that although job security may not seem an obvious or important factor in company culture, acknowledging and delivering this to employees not only eases any office-based worries but also creates loyalty and promotes retention – something which is important in an era when employees are less likely to have company affinity or search for a ‘job for life’. 

2. Leadership
“The Managing Director has been parachuted in and knows very little about the industry. He behaves like Napoleon and morale is at rock bottom. After 2009 being the best year ever, a 0% pay rise leaves everyone in the wrong frame of mind.”

As in any organisation, those at the top of the career ladder must lead by example. How are employees on the ground expected to promote a healthy and successful company culture if their superiors flaunt expected values? For example, the banking sector has again come in for wide-spread criticism recently for its bonus culture for senior leaders despite huge losses, whilst those working behind counters up and down the country still struggle to pay the bills. The same principles apply in any sector. If company culture is seen as the heartbeat of a company, then the brains – its leadership – must promote these elements and find ways of improving upon these at every opportunity.

3. Management
“The new line manager is not a great people person. He doesn’t answer his mobile and is slow returning calls. He also sends very blunt emails!”

The behaviour of line managers is equally important as those in senior positions. While staff on the ground may never even see or speak to a company chairman or a managing director, they are likely to have daily interaction with their boss. Dr Miller and Jill Clarke explain that managers throughout an organisation have a key role to play in “maintaining the company’s culture, role-modelling expected attitudes and behaviours”. As a result of the absence of training in expected values, many organisations find that articulation and communication of the expected values of the company, and how to maintain these, is a vital step in ensuring staff are aware of what is expected of them. Line managers are in the perfect position to do this on a daily basis.

4. Training
“My company is too self engrossed and not willing to develop talent. Instead it is more keen on supporting those who have worked for the company for longer despite knowing results are not being achieved. There’s no logic or rationale for recognising individuals. It is more likely to put people off trying to progress.”

At a time when pay rises are well below the rate of inflation – if you’re lucky to have one at all – and the fear of the axe looms large, training is seen as an avenue of progression. Sure you may not get paid for a promotion, but it looks good on your CV and new skills and qualifications can be gained in the process. But when training programmes are withdrawn or neglected by organisations there’s an immediate impact on the ground. These schemes offer a glimmer of light at the end of the tunnel. Without these in place, staying in the same role – or even company – for the next 12 months may seem a dark place to be.

5. Career development
“It’s difficult, as the company move the goal posts with reference to development.”

There’s nothing worse than being stuck in the same routine without a glimpse of career progression. But, as companies have tightened their belts, opportunities to work the way up the career ladder have decreased. The need to work longer has also seen positions which would’ve come available after retirement blocked by established colleagues. Dr Miller and Jill Clarke believe that a new approach is needed by organisations to increase the amount of opportunities open to staff. “Organisations need to think smarter about their approach to training and development, taking a strategic approach to ensure the development offered is closely aligned to the current and, most importantly, future needs of the business.”

6. Salary and bonus
“I love working for my company; there’s a great culture and the management are very approachable. However, there’s a lot of responsibility and the hours I commit cut into evenings and my personal life with a low salary.”

No-one likes to think they’re overworked and underpaid. But human nature suggests that many of us do. In last year’s Pf survey, the median salary of respondents was £46,000 – of which 46% were unsatisfied with. The Office of National Statistics published results in 2011 which revealed that median gross annual earnings for full-time employees was around £26,000 – considerably less than those working within the medical sales industry. However, where money is concerned, there’s never enough. With food, clothing and energy prices continuing to rise – coupled with low interest rates – every penny spent needs to be justified. So if companies are squeezed and cannot budget for pay increases, they need to consider other means of rewarding, recognising and, ultimately, motivating staff.

7.  Work-life balance
“It is competitive with a lack of regard for personal needs. There is a lack of recognition unless you are in the clique! Ideas and individuality are not respected. It’s very administration focused with more and more time being spent on the computer. We are expected to do the same daily job of seeing face to face customers contributing to a very one sided work-life balance.”

Despite being well paid compared to other professionals and the UK average, there’s no point earning thousands of pounds each year and not being able to enjoy it. The balance between time spent at work and with the family has been placed under the microscope recently when staff are expected to work longer hours without any reward. Employers have a responsibility to improve work-life balance. Full time employees in the UK now average 42.7 hours a week at work. It’s arguably more for those travelling up and down the country visiting clients. But a refreshed and happy worker is a productive one. While employers may be happy to drain every last ounce of energy from their staff, in the long run it’s doing them no good. Danish workers, who only work 39.1 hours a week, are unsurprisingly more productive than UK counterparts. It’s no surprise.

Culture change
So how can companies address issues with job security, leadership and management, training, career development, work-life balance and issues with remuneration? In its report, Developing organisation culture, the CIPD advises companies to plan any attempted switch in values. A clear, public plan of action should be devised that communicates the need for new working measures and thinking, and outlines how the new approach complements the overall vision of the organisation.

Next, employees should be engaged for their opinions with managers also encouraged to play an active part in discussions. Senior leaders and managers on the ground need to ‘buy-in’ to any new measures and be seen to be transparent in their approach.

The report says it’s also important to identify and develop the necessary skills and behaviours required from staff to incorporate any new elements set to be introduced. If resources are tight, companies are encouraged to be creative to develop staff capabilities.

Finally, it’s important to measure and assess the impact of the new culture change. Without having staff onside and willing to help introduce change, any attempts will be futile. Staff need to buy into a vision they really see and hear the next time they look around the office.

Fightback or cutback?

by JoelLane 16. April 2012 11:21

poverty Pipeline or P45? Blogger Maxine Vaccine asks whether the pharma industry is willing to put its money where its mouth is regarding its strategy for surviving the recession.

As the global recession spirals further out of control and the UK looks set to follow Greece, Spain and Ireland into deeper crisis, the online Pf readers’ poll asked: What’s the best way forward for the pharma industry?

The response has been impressive: 84 % ticked ‘Collaboration to enter specialist areas’, 16% ticked ‘Cheap generics and biosimilars’, and nobody agreed with ‘Cutting back to survive austerity’.

To be honest, the second answer was just us being sarcastic. We didn’t expect anyone to say that was a good thing. And the third answer, though bleak, so clearly reflects the realpolitik of the industry in 2012 that we expected it to be a strong contender – though we hoped confidence in the collaboration model would outweigh it.

So it’s quite striking to see that none of our respondents thought austerity measures were the answer. But is their view supported by the leaders of the industry?

On the face of it, yes. John Lechleiter, CEO of Eli Lilly, said recently: “I don’t think we can save our way out of the enormous challenge we face. The best course is to maintain our focus on advancing our pipeline.”

But in 2012 Lilly has announced a global salary freeze for most of its employees, including the CEO (whose bonus package remains at a tidy $16.4 million), after a quarter in which its ‘blockbuster’ antipsychotic Zyprexa lost 44% of its former market due to generic competition.

Pfizer is similarly talking a ‘pipeline’ game, but is reducing its employees’ redundancy terms from 12 to 8 weeks as a prelude to further layoffs, and may split into branded and generic drug businesses. The Lipitor patent cliff may have been seen from a long way off, but the parachute didn’t open.

Dashiell Hammett – author of that immortal satire on the commercial mentality, The Maltese Falcon – said that he took up drinking when he realised that what people say has nothing to do with what they do. Some of us may wonder what took him so long.

In recent years, the pharma industry has taken steps to repair its reputation with the public – who have never exactly seen pharma as the place where you go to learn integrity and honesty. In particular, much attention has been given to industry codes of practice on dealings with customers. From luxury flights to biros and biscuits, the industry is cultivating a new image as the Puritans of the commercial world.

But has trust between management and staff in the pharma industry improved? Are companies treating their employees better? Is the representation of staff within the industry stronger? You tell me. And wait for the Pf Survey 2012 results to find out how your peers feel.

Meanwhile, if – like us – you are genuinely impressed by the emerging culture of cross-sector collaboration and partnership, it may be worth just keeping two words in mind. Hostile takeover.

Maxine’s views are not necessarily those of Pharmaceutical Field.

In responsible hands

by IainBate 5. April 2012 11:02

Pharma Blogs As the industry switches to a key account approach and individuals are given more responsibility, medical sales professionals are basking in the additional accountability now placed on their shoulders. Pf asks why.

Autonomy has always been one of the most important satisfying factors throughout the history of the Pf Survey. Always included in the top five factors yet historically never reaching the podium, it’s officially the nearly man, or woman, of the survey. However, last year, things started to change for pharmaceutical sales representatives.

For the first time in more than a decade the additional responsibility and freedom placed upon the shoulders of sales representatives was finally appreciated. Autonomy was voted as the third most satisfying aspect of the collective field force. It had finally made it. Tears were shed as it stood on the Pf Survey’s satisfaction factors podium listening to the national anthem of ‘belief in present products’ – needless to say, it wasn’t listening to ‘The Final Countdown’.

This willingness to take on more responsibility may have come with the average age of respondents creeping up. In the 2006 Survey, those aged between 25 and 34 ruled the roost. At the turn of the decade, an older, possibly more mature, age group had emerged. Jaeger Bombs for lunch had been replaced with a latte from Starbucks – until the expenses account was closed down of course!

Yet there has been a requirement for medical sales executives to become more streetwise. As the industry has shed jobs in the last few years, employees have been forced to take on additional duties – whether they like it or not.

There’s also the psychology behind it. The more responsibility and duties you’re asked to take on for your boss and the company as a whole, the more you believe you’re trusted. It’s easy to overlook the fact it’s either you given the task of managing and working on an important key account or a colleague who still struggles with the Sat-Nav.

Whilst autonomy can now call itself a leading light in the satisfying stakes, it’s hardly breaking any records in the motivational factors. Last year’s entry in tenth position shows that it’s nice to feel wanted but it isn’t everything when it comes down to it. In fact, it even dropped a position from its listing in the 2009 survey.

But with the announcement from industrial giants that further job cuts are to come as pharma continues to tighten its belt in the face of generic competition on major brands and healthcare budgets being reduced, the responsibility placed upon pharmaceutical sales reps looks set to increase again.

Whether those with added pressure placed upon them still appreciate this responsibility remains to be seen. As does whether autonomy will again take home a cheap bunch of flowers and a medal filled with chocolate around its neck. There’s only one way to find out. Have your say here.

The road to reward

by IainBate 28. March 2012 15:29

Pf feature Attracting and retaining talent is a major challenge for UK employers. The battle to increase productivity while delivering cost-efficiencies is driving change in companies’ employee benefit strategies. Pf provides an overview of employee benefits.

Popular HR wisdom, backed up by respected psychologists and employment commentators, suggests that money is not generally the main motivator for employees. Satisfaction in the workplace depends on much more than our annual salary and, according to American psychologist Abraham Maslow, is only one of many ‘hygiene factors’ that determine whether or not we are happy at work. Maslow’s Theory of Human Motivation included his acclaimed ‘Hierarchy of Needs’, which outlined the most fundamental requirements for human satisfaction. It was written in 1943. Despite vast societal and technological evolution since then, its most salient messages still appear to resonate today.

The concept of benefits beyond salary is cemented into the modern workplace. ‘Employee benefits’, defined by the Chartered Institute of Personnel and Development (CIPD) as “non-cash provisions within the pay and benefits package, although they have a financial value or cost for employers”, have traditionally been regarded as a vital component in staff retention. In many cases they have been considered a moral obligation for employers.

In the 1970s, employers increasingly looked towards developing more generous benefits packages rather than rewarding employees via basic salary. But in recent years, as tax legislation has tightened its grip on non-cash provisions, the attraction of certain benefits over salary has been diluted. In response, employers have begun to adopt a more individualistic approach to how employees are rewarded and transferred more of the risk – and cost – of benefits onto their workers. For example, the days of final salary pension schemes are now all but over and have been replaced by the offer of money purchase plans for employees. At the same time, more employers are moving from fixed benefits to flexible and voluntary arrangements.

There is little doubt that the global economic downturn has had a demonstrable impact on the employment market and, by association, the employee benefits landscape. Across the board, companies are adopting a twin focus in which they are trying to balance a drive for productivity gains against the need to deliver cost-efficiencies. As such, employers need to attract and retain talent but, at the same time, secure the best possible return on investment with their human resource. Sustaining staff motivation and employee engagement during turbulent times is a major challenge for modern businesses. Benefits are, of course, one of the key weapons employers have at their disposal to address employee engagement; but with a widespread determination to control costs, companies are needing to be more creative in how they shape employee benefits packages.

Total rewards
The past year has seen a significant shift in the way companies are designing and presenting benefits packages to employees. According to a survey carried out by the UK magazine Employee Benefits, there is a growing trend towards the use of ‘Total Reward’ strategies among British companies. The poll, conducted in March 2011, showed that 45% of respondents received a benefits package that had been presented to them as a Total Reward scheme – an increase from 29% in 2010. CIPD defines Total Reward as a concept that “encompasses all aspects of work that are valued by employees, including elements such as learning and development and/or attractive working environment, in addition to the wider pay and benefits package.”
Total Reward is considered to be distinct from Strategic Reward, which, according to CIPD, is based on “the design and implementation of long-term reward policies and practices to closely support and advance business or organisational objectives, as well as employee aspirations.” But, says CIPD, strategic and total reward may often work in partnership. “An organisation might adopt a total reward approach encompassing the provision of both cutting edge training programmes together with flexible working options – as well as more traditional aspects of the pay and benefits package, in order to recruit, retain and motivate the high quality staff that are best placed to help it secure its business objectives.”
Changes to benefits packages are being driven by market dynamics in the wider business environment. The Employee Benefits 2011 survey identified the following issues as being instrumental in determining benefits packages last year:

  • Improving the perceived value of the benefits package.
  • A drive to control costs across the organisation.
  • Making benefits expenditure more cost-effective.
  • Matching benefits to employee need.
  • Ensuring benefits are competitive
  • Improving the effectiveness of the benefits package.
  • Harmonising benefit terms and conditions across the organisation.
  • Drive to reduce costs across the organisation.
  • Managing pension costs or deficits.
  • Encouraging pension scheme take-up.

These findings illustrate a diversity of considerations for managers responsible for employee benefits, and highlight the tensions between fixed, flexible and voluntary arrangements – as well as the challenges of balancing individual rewards for star performers against the desire for an organisation-wide template.

Feeling the benefit
Traditionally, employee benefits packages generally comprised the usual suspects: pensions, paid holidays and company cars. But today, the benefits market has expanded to include a wide array of arrangements that match the changing needs of modern society. So what kinds of benefits are included in a contemporary Total Rewards plan? The most common benefit is Life Assurance/Death in Service, which seems to be offered to all employees by the vast majority of employers. Alongside this, and perhaps in line with the thinking behind a Total Reward approach, most companies consider training and development to be an employee benefit and, again in the main, provide it to all members of staff. It is arguable whether employees themselves regard this as a significant benefit or simply as a natural and expected aspect of any job of work.

Behind Life Assurance and training and development, the Employee Benefits survey showed that more than two thirds of benefits packages (70%) include counselling/Employee Assistance Programmes (EAPs) – a benefit that appears to reflect modern demands in an era where many individuals are burdened with high levels of debt and stress, as well as being exposed to increasing instances of redundancy. The survey’s authors say that EAPs have now become a mainstay of many employers’ core benefits, having grown in popularity in the past few years. In 2004, only 30% of its survey respondents’ benefits packages included EAPs. Other popular benefits include childcare vouchers, extra holidays for long service and the option of additional voluntary pension contributions.

Outside of the core options, companies offer a wide range of additional benefits to their employees on an all-inclusive or selective basis. Some examples are listed below.

Taxing measures
Some employee benefits attract preferential tax treatment, often in line with government policy to support lifestyle choices – for example, childcare vouchers and cycle-to-work schemes. Alternatively, employees may enter into a salary sacrifice arrangement. Under such agreements, an employee gives up part of his/her gross salary in return for the employer agreeing to provide a benefit. For example, under a pension salary sacrifice arrangement, a member of staff gives up a percentage of their salary while the employer makes an equivalent contribution to the employee’s pension. The employee saves on income tax, while both employer and employee save on National Insurance contributions. However, salary sacrifice agreements may have implications for other provisions such as working tax credits or the national minimum wage. CIPD advises parties considering such arrangements to visit the HM Revenue and Customs website for further information.

Have your say
Has your benefits package changed within the last twelve months? Have you gone from having an enviable rewards scheme to one of the bare minimum after cost cutting measures from your employer? Now in its 11th year, the Pf Company Perception, Motivation and Satisfaction Survey offers those working day-to-day in the medical sales industry the opportunity to vent their frustrations at everything from horrible bosses to a measly bonus package – all behind the shield of anonymity. So, if you’ve had your company car taken away or your pension scheme has been reduced have your say today at www.pharmafield.co.uk/survey. The online survey takes only ten minutes to complete with a donation made to the charity Home from Hospital Care for every completed form.    

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