Medical sales insight report for Q3 2011: Challenging device market keeps recruitment flat

It’s ‘back to work’ for UK PLC

Despite a summer of unprecedented social and economic unrest across continental Europe, Britain is still hiring. Such a statement appears to fly in the face of assumed wisdom and doom-laden media commentary, however the stats tell us businesses are still in the market for talented sales professionals. And, according to the Q3 BMS Sales Insight Report, year on year growth of sales vacancies is on the up.

The Report, which gathers sales recruitment data from across the UK to give an accurate picture of sales recruitment trends, shows confidence from employers in many industry sectors – with the rate of growth standing at 6.58%, up 0.9% compared to this time last year. With UK companies relying heavily on sales-figures to boost performance, the pressure is again on to recruit motivated, talented sales individuals that deliver results.

Candidate confidence remains low

Of course, the employer is only half the story. The other – around the candidate pool – is less positive. While businesses are hiring based on revenue and growth projections, often as not candidates are getting their information from the media who, of course, are not always wrong. But the aforementioned doom-mongering of many a tabloid and broadsheet has instilled something of a ‘batten-down-the-hatches’ mentality.

Despite the fact that Britain’s economy exceeded analyst predictions to grow at 0.5% in the third quarter, and we’re seeing stable levels of vacancy growth (the standout sectors in Q3 being Business Services and Construction, up nearly 6% and 4% respectively on 2010 figures), talent appears to be staying put. 

On the flip side, growth levels fell against the previous quarter’s figures in the hard hit FMCG sector, and manufacturing witnessed a normalisation after its stellar growth over the first two quarters of 2011; figures that, when taken out of context, do little to alter negative perceptions.
We discussed this issue last quarter and the trend – and its resultant challenges - continues.

New ‘coping’ strategies

This apparent disconnect is having a major impact on companies, with a massive 74% reporting they’re finding it tough to attract top sales people. In these challenging times, adapting to the new market realities means it pays to review what you do – and how you do it.

Which explains why, in a bid to increase their sphere of influence, 21% of companies now actively look outside their sector to attract talented sales people. And why, in the battle for top sales talent, 68% have changed their recruitment processes to find the best candidates.

So, despite the hype, for employers and candidates the Q3 BMS Quarterly Sales Insight Report highlights business as usual; or perhaps the continuance of the status quo. Vacancies are up, but for how long remains to be seen.

Challenging device market keeps recruitment flat

At the time of writing Britain’s two biggest drug companies have released positive earnings figures exceeding, to a large degree, analyst estimates. GlaxoSmithKline, the UK’s no.1, published higher than expected Q3 sales figures, while the country’s second biggest player, AstraZenica, raised its profit forecast after third- quarter net income more than doubled. 

There are of course a host of reasons for these buoyant figures, but taken together they suggest an optimistic outlook for the medical sector as we move into the final quarter of the year.

From a medical device perspective, the coalition’s 9% cut in capital health spending for 2011 has done little to encourage the sort of optimism we are seeing in the pharmaceutical sector. And that’s despite the fact that UK has one of the largest medical device markets in the world, valued at US$9.0 billion in 2011 (source: Espicom). Growth, when it comes, will be single digit with Espicom predicting 3.6% per annum.

So it’s little wonder then that sales recruitment within the sector remains stagnant. According to the BMS Sales Insight Report, senior sales vacancies grew just 0.3% over the three months from July to September.

 

These figures, while down on the previous quarter’s represent more of a continuing trend than a downward spiral when viewed on the long term. And indeed a slight increase from BMS figures for the same period in 2010 can be seen as a cause for optimism within the sector.

Signs of strength in a weakening economy

The pharmaceutical and medical device industries are highly global and so subject to the vagaries of prevailing economic and social conditions – from the EU sovereign debt crisis to the healthcare reforms in the UK and United States.

Taking into account these rather gloomy conditions, the fact that senior sales vacancies have remained flat for over a year, rather than dipping significantly, suggests the intrinsic good health of the sector. Of course, the key challenge in the hunt for top talent is to effectively communicate this message out into the candidate pool. And to do so in the most pragmatic manner to encourage greater career mobility in this most sophisticated of sales audiences.