On January 30, 2013, BioSpace.com, an online life sciences recruitment company, released BioSpace Annual Report: Life Sciences Employment Outlook. The report is based on a site demographic study, review of industry job openings from 2010-2012 and salary data collected by BioSpace. The report is cautiously optimistic about employment security/opportunity in the life sciences industry. BioSpace reports that unemployment is down 3.4% since 2010, and average salaries are inching back up from the low point in 2010 towards the high level mark recorded in 2008. Employees with a doctorate or MD degree have the highest spike in average salary growth since 2010.

California, NJ/NY and Massachusetts remain as the top 3 hiring locations in 2012. The study notes that large companies are continuing to explore outsourcing jobs in process, manufacturing and production to overseas locations in India, China and South Korea. As a result, manufacturing positions are identified as on the decline in 2012. However, jobs in clinical research and Regulatory Affairs were identified as "top growth" jobs. Biotechnology was identified as the industry segment with the largest growth from 2010 to 2012, and the study cited to Bureau of Labor Statistics that list biotechnology growth at 31%. On the flip side of growth, the diagnostic and pharmaceutical sectors were identified as down industry sectors. The study proposed that the downward trend was attributable to: (1) job cuts in late 2012 in response to the anticipated impact of the 2013 medical device tax; and (2) the "patent cliff" which is forcing the industry to turn to alternative R&D models. The study does cite to the record high for drug approvals in 2012, which signals that the companies will continue to be nimble in managing both reductions and ramp ups in their workforces to adapt to pre- and post-approval business needs. With regards to hiring – the study also highlights that candidates and employers heavily rely on online resources for recruiting. Companies should audit their online recruiting protocols and messaging to insure that they are compliant with employment laws, especially anti-discrimination laws. For example, the EEOC has been very aggressive in the enforcement of restrictions on general policies relating to questions about an applicant's criminal background during the application and selection process.

What the study does not address is the role of independent contractors in the life sciences workforce. The study reports that the number of users actively looking for new jobs dropped from 54.9% in 2010 to 46.9% in 2012 – and these numbers may signal a trend in workers having a less traditional affiliation with life sciences companies. Those relationships need to be carefully reviewed and managed, as the DOL, IRS and the state labor and taxing agencies continue to signal that they intend to closely scrutinize independent contractor relationships given the loss in tax revenue from workers improperly classified as independent contractors.

Finally, given the highly regulated nature of the life sciences industry – coupled with the reported growth of employees in regulatory affairs and clinical operations – managing the risk of whistleblower claims remains a significant priority. Companies are well-served by ongoing compliance training and reinforcement of protocols that insure a prompt and effective response to internal complaints so issues can be proactively addressed and resolved.

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