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Small pharma cos’ staff reap big dividend
EMPLOYEES of smaller pharmaceutical and biotech companies are no more children of a lesser God. As business booms and the big dozen in India’s drug-makers look to touch the skies, they are swooping on the smaller companies for trained manpower.
Much to their delight, employees of the smaller companies are now being equally lured by the biggies and pampered by their existing small firms. Even middle management and executives are being offered profit shares, stakes in companies, high incentives and even sponsorship for children’s education. In the small and medium-sized companies, salaries have gone up by 20% in the last one year or so, say experts.
Ranbaxy SRI, part of India’s biggest pharma company, Ranbaxy Labs, is carrying out major expansion and will hire a large number of employees soon. The company’s HR head Niraj Goel knows that he will have to create alternate models of hiring to tide over the manpower crunch in the industry. “For industry neutral talent like IT, HR is easy. For medical specific talent, we look at smaller companies apart from hiring from rival firms,” he says. Such is the attraction of large corporate houses that several executives at smaller pharma firms are now willing to join them at a marginal salary hike or even for the same salary. “Needless to say, much akin to what happened in the IT industry, smaller companies in the pharma and healthcare sectors are also doling out various incentives to their managers to retain them,” says recruitment firm Elixir Web Solutions MD Vipul Prakash.
Adds Himanshu Baid, MD, Polymed, a medical device manufacturer, “Big pharma companies are setting up manufacturing units in states enjoying tax holidays. Employees in small companies are getting offers which are 50-60% bigger than their current salaries to shift to these locations. When we heard the alarms bells ringing, we also started offering flexible salaries with high incentives and perks. For our senior executive, we plan to provide stock options, which will be given to them after they stay in the company for a certain period of time.”
An growing number of contract manufactures are also going in for a hiring drive and senior-level managers, executives and employees of small domestic pharma companies are much in demand. What has compounded the matter for these small companies is that pharma and healthcare being a specialized sector, they cannot hire from other sectors.
Adds Achal Khanna country head of Kelly Services India, “Small pharma and healthcare companies have realized that they need to give their employees benefits. Employees are getting global exposure and companies are even sponsoring their kids’ higher studies.” She added that as a last resort, small companies have to get fresh graduates or people from other sectors and train them.
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