Something keeps biotech startup founders up at night. They need world-class scientific talent. They’re burning through the limited resources they have at an alarming rate.Hiring a whole staff of scientific personnel sounds great.
The burn rate just skyrocketed, and they’ll be out of cash in eight months.So, it’s one of the more awkward balancing acts in business.A biotech startup doesn’t have the resources to hire a big, well-paid staff. But it needs expertise. Calling on your cousin the software engineer for monoclonal antibody development isn’t going to cut it.
The Problem with an “All Hands-on Deck” Approach
Here’s how it normally works with the typical hiring model. A biotech startup secures a healthy dose of Series A funding. They’re keen to ramp up excitement about their development pipeline.Five ads go out. One seeks the equivalent of an entire scientific staff dedicated to product development, plus some admin assistance.
All hands get hired, and they’re not cheap. Salaries are competitive (they’re not looking to attract underwhelming talent). Benefits are sorted out too.And then, all of a sudden, burn rate goes through the roof.Real-world research doesn’t work like this, though.
Some months, everyone needs to roll up their sleeves and get on with it. At other times, periods of deep reflection are required, and everyone needs to slow down and think… a lot.
The company has to survive those slow periods while bleeding cash (in the slow periods), wondering whether it’ll survive until they secure additional funding.
And let’s not forget that the role of some specialists has a fundamentally limited shelf-life. The regulatory affairs guru you need to guide you through the FDA bottleneck will not be needed after submission day.Biostatistics experts will be invaluable once your product is in trials but useless once the data is crunched.
The Case for Flexibility in the Life Sciences
The life sciences development process almost demands a flexible approach to staffing.Research products increase and decrease in intensity. Clinical trials require varying levels of expertise at different times in different phases. A company in the early stages of drug development needs a different set of skills than one on the brink of commercialization.
Clever companies are starting to understand that inflexible rules regarding staffing are irrationally risky. When companies recruit specialists through Life Sciences Staffing firms, they gain experience without the burden of long-term employees.
It’s more than meets the eye, though.A startup might need a dedicated product formulation scientist in the early phases of its development.
Once the product is formulated, they’ll need regulatory affairs experts.Hiring someone to do this job may seem like a good idea because they’ll have invaluable experience.Paying them $200,000 a year looks a lot less appealing once the formulation stage is over.Contracting expertise when it’s needed costs a tiny fraction of that amount.
Smart Scaling Looks Flexible
The best biotech companies usually have a lean but flexible structure of essential (dedicated) staff and flexible contract roles for specialized knowledge.The core team usually consists of one or two key leadership positions, a principal investigator or two leading the research, and a few scientists that share the company’s vision.
Once you have your flexible core, you can then scale and build outward depending on your projects. This will often include scientists or lab techs that come and go depending on the project’s needs.
This flexible staff arrangement does not come at the expense of people’s contributions.It simply reflects the realistic understanding that people can contribute differently depending on the different stages of product development.
Contracting expertise is a great idea in situations like this.A biotech company transitioning from drug development to preclinical trials may, for example, need toxinologists for nine months.
That’s a great opportunity for companies needing expertise on a contract basis instead of having to hire someone with a $200,000+ contract.You’d be amazed at how easy it is to sell people the idea of flexible staff arrangements once financial considerations come into play.
Companies weighing the benefits of simply carrying someone who now doesn’t have a job worth doing against what cost-cutting will save them almost jump for joy.
They can use those savings to extend their funding lifespan until they reach the next critical milestone in their growth phase, like a merger.
Managing Quality Without Committing to Permanence
The question that people often ask is whether contractors will care about delivering quality work.That’s a fair question. But contractors need not worry about their reputation for quality work anymore than full-time employees need to.
Specialized contractors in the life sciences industry are often seasoned professionals who take immense pride in what they do, no matter how they’re paid.
In fact, many contract scientists and researchers prefer this arrangement. They get to work on interesting projects, avoid getting caught up in corporate politics, and get paid even more as a contractor than they would as a full-time employee.
Companies get access to someone who knows their craft and won’t be unfamiliar with the problem you’re trying to solve; they’ve probably come across it elsewhere.
To do this properly, you need to work with life science staffing companies, not generic recruiters who wouldn’t know a pipette from a wrench.
You want someone who’s heard of good laboratory practice or relevant analytical methodologies relative to your project.There are firms that use sensible industry standards to refine and hone in on possible candidates until they find someone with the applicable skill set.
Specialized firms have endless networks of candidates with pre-vetted experience and who already possess the credentials that biotech/pharmaceutical firms need.Stretching resources without stretching timeframes
It doesn’t take a genius to identify which positions should be permanently staffed by committed employees:
- Leadership positions
- Scientists working on ongoing projects that require dedicated attention can also be considered continuing sources of institutional knowledge.
All other specialized positions should be managed flexibly according to shifting project demands and the life cycle of products that may come and go.The firms best suited to deal with uncertainty in the biotech and pharmaceutical industry are the ones best able to shape their hiring practices accordingly.
They’re not bound by resource-heavy commitments that may have made sense six months ago, but don’t feel right now.When priorities shift (and they always do), so should your team.This is not about cutting corners regarding hiring talent of substance.
It’s about making careful decisions regarding how to use scarce resources respectfully, so your firm doesn’t get caught in a structure that doesn’t work for the journey your employees are taking.What matters is getting to where you need to be rather than being bogged down by an org chart designed to impress while it drains resources faster than necessary.
