Reducing CRO Turnover With Long-term Strategies vs. Short-Term Incentives

August 2, 2017

By Angela Woodall, Healthcare and Environmental Reporter.

Work among contract research organizations is growing at a healthy rate but the same can’t be said of contract research organization staffing. Supply struggles to meet demand and, even more bedeviling, double-digit turnover — in some cases as high as 50 percent — continues to be a problem.

This is according to HR+Survey Solutions, publishers of data about compensation and turnover among CROs. The firm reported in its May “Hot Topics Survey” that U.S. overall average turnover at CROs among all positions increased slightly to 22 percent in 2016 from 20.1 percent in 2015. Outside the U.S., the overall turnover rate increased to 19 percent in 2016 from the previous year’s level of 17 percent.

The Hot Topics Survey is one of two published annually by HR+. The results of both have been troubling for the past several years: the 2014 rate was 19.5 percent and has hovered near that for more than a decade. Clearly the industry has not solved this issue, Judy Canavan, author of the survey, said.

And with a national unemployment rate under 5 percent the trend appears unlikely to let up. In the meantime, CROs have responded to the problem by offering signing bonuses and perks that, while welcome, haven’t had much success in mitigating turnover, which can cost CROs business and make them less competitive: Canavan said that many sponsors ask contract organizations to report turnover level in their proposals. Having people leave is a disruption for both sides and can slow down the study, she said. “The institutional knowledge walks out the door with them.”

It’s all about the team

There may be a number of reasons for staff to leave their employer. Pay is one of them.

In a typical scenario, clinical research associates (CRAs), who have the highest rate of turnover in the United States — 25 percent in 2016 — become highly marketable after they have a year or two of experience under their belt. It’s the “sweet spot,” as Canavan put it, that outside recruiters look for. Recruiters can try to lure away employees by offering them higher pay than associates would otherwise earn with normal raises. Workers can thus catapult themselves to a higher salary every few years. (It’s worth noting that sponsors typically require two years of monitoring experience, which, if loosened, might also help with the turnover by increasing the supply of CRAs.)

Contract research organizations have tried a number of tactics, such as travel perks and even bonuses for staying. However, competitors have started to buy out the stay bonuses. Others have had results keeping their best talent by also cultivating an environment that makes staff feel like they are a valuable member of a team working for the client, and ultimately for the benefit of patients. For PRC, for example, that means focusing on hiring highly team-driven individuals and giving people the autonomy that best fits their work style.

Indeed, Canavan stresses personality during the hiring process. People will stay or leave a job because of colleagues so knowing if the fit is right from the start, as soon as possible, is important. She advises CROs to introduce promising candidates to as many relevant team members as possible to gauge the fit on an interpersonal as well as skills-based level.

Each CRO will want to curate an environment that works for its purposes. But the premise is the same. That is, if employees enjoy the people they work with and fit in with the company, they are less likely to take a recruiter’s call. But what makes a good team? There are many ingredients, said Terri Hinkley, workforce innovation officer for the Association of Clinical Research Professionals (ACRP). Although if she had to narrow it down to the top three, Hinkley said she would choose open communication, a collaborative philosophy, and true respect for the members of the team. “One of the things I hear over and over seems to relate to respect,” which, she said, in the context of CROs means delivering on promises to employees. By way of illustration, she said that many CRAs say they have no work-life balance, despite the company claiming to support work-life balance in their employees. They also say a supportive line manager is critical, as is open communication.

These strategies promise long-term loyalty rather than short-term incentives. By extension, they help CROs develop relationships with sponsors. CROs do well to work closely with sponsors so that both sides can set expectations early and curate teams accordingly. To do that requires operational expertise and knowledge, which, to develop, demands a steady workforce with low turnover. That puts the CRO in a position of trusted advisor who can give sponsors the support needed to make difficult decisions with seamless execution.

Angela Woodall, Healthcare and Environmental Reporter

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