Attrition in Pharma Industry
Ishan Sharma Date: 21st September 2012
Insights of attrition rate of Medical representatives in Pharma companies and innovative ways to improve them.
Overview:
Attrition refers to the reduction in staff and employees of company by normal means. The primary focus is to present the high attrition rate seen in the pharmaceutical market industry, its causes and controlling strategy for retention of Pharma sales representatives.
Though attrition is a natural phenomena in all industries, Indian Pharma marketing industries is worst plagued by it. After IT and BPO, Pharma marketing industries experience the greatest rate of employee leaving the company for various reasons. While global Pharma marketing attrition rate is 10-12% per annum, the rate of employees who leave the organization in India is 25 -30 %. The attrition is more prevalent in the middle and junior management level, due to which majority of the companies have understood the criticality of talent management.
Retention is always a big challenge for any organization in today’s time frame. Indian Pharma companies have started paying attention towards the retainment and management of the Medical Representatives to gain key and valuable employees back into the company.
High attrition rate of MR happens due to following reasons:
1) External factors - The demand of fresh talent is more. The companies are looking for fresh talent to incorporate new ideas but the supply is very less, career view point of many young people to join as MR is just to prevent the ‘Stop Gap’ in their career path. The demand-supply imbalance leads to significant efforts to retain and attract a skilled Medical Representative. This has led to higher salary hikes in the Pharma sector than most other sectors .This is clearly a challenge in an industry which is very knowledge and relationship driven.
2) Internal factors - It has been
Insights of attrition rate of Medical representatives in Pharma companies and innovative ways to improve them.
Overview:
Attrition refers to the reduction in staff and employees of company by normal means. The primary focus is to present the high attrition rate seen in the pharmaceutical market industry, its causes and controlling strategy for retention of Pharma sales representatives.
Though attrition is a natural phenomena in all industries, Indian Pharma marketing industries is worst plagued by it. After IT and BPO, Pharma marketing industries experience the greatest rate of employee leaving the company for various reasons. While global Pharma marketing attrition rate is 10-12% per annum, the rate of employees who leave the organization in India is 25 -30 %. The attrition is more prevalent in the middle and junior management level, due to which majority of the companies have understood the criticality of talent management.
Retention is always a big challenge for any organization in today’s time frame. Indian Pharma companies have started paying attention towards the retainment and management of the Medical Representatives to gain key and valuable employees back into the company.
High attrition rate of MR happens due to following reasons:
1) External factors - The demand of fresh talent is more. The companies are looking for fresh talent to incorporate new ideas but the supply is very less, career view point of many young people to join as MR is just to prevent the ‘Stop Gap’ in their career path. The demand-supply imbalance leads to significant efforts to retain and attract a skilled Medical Representative. This has led to higher salary hikes in the Pharma sector than most other sectors .This is clearly a challenge in an industry which is very knowledge and relationship driven.
2) Internal factors - It has been