TeamLease, the temp staffing major, has observed that Indian pharmaceutical industry which is witnessing an upswing in hiring across cadres would also need to put up with higher attrition compared with previous years.

There is a widespread cheer in the employment outlook for the sector as hiring rises to 88 per cent from 82 per cent. There is a healthier opportunity pipeline besides a hope for economic revival. For front line sales, the attrition could be 25 per cent to 30 per cent and for middle level sales, it could range from 18 per cent  to 20 per cent, Hussain Tinwala, general manager, TeamLease Services, told Pharmabiz .

The buoyant business and hiring sentiments seems to have had a negative impact on the retention levels. It has led to a growth in the attrition. These levels could go higher at senior/upper mid segment as post spending many employees would move towards entrepreneurship. This is because employees develop a stagnation point in professional skills. With new emerging opportunities hitting the market, an ideal candidate would step out to analyze and seize the situation, he added.

In India, pharma sector is most stable when  compared with other industries . It would continue to grow year-on-year. The industry’s  dexterity in generic drugs makes it  a popular choice for investments. Increasing demand of generic  drugs and patent expiries  boosts the demand for pharma talent. As per the latest study by TeamLease, global macroeconomic trends and domestic demand have put business and employment sentiments on a fast paced upward trajectory.

To cope up with attrition, pharma human resource (HR)  honchos are busy analyzing motivational trends to reward top performers this year. While the salary increments could range anywhere between 10 per cent – 12 per cent across spectrum, key talent  and  highest contributors might get a higher share, Tinwala pointed out.

Apart from salary increments, companies would design specific rewards programme for top performers.

It could range from employee stock options (ESOPs) to family vacations, performance bonuses, higher education, leadership development programs and fast track programs on strategy or operations management, he said,

The high rate of attrition will definitely have an impact on the smooth functioning of the business. Companies will put in conscious efforts to implement better employee engagement program, support higher education aspirations etc. They will also re-look at the employee compensation structure as well. HR departments  would have to reinvent themselves to manage this phase and adapt to effective investments in promoting further education, talent engagement, career road map, succession planning and encourage employees to spend time on innovative projects, said Tinwala.