Seven Workforce Trends to Watch: Healthcare and Life Sciences

As I speak to our clients around the world in the healthcare and life sciences sector about workforce challenges, I am always impressed by the complex business environment their teams navigate every day. Although I might be somewhat biased working for a global workforce solutions company, I believe even those outside of HR would agree that managing human resources rises to the top of business challenges for leaders in this sector during a time of such rapid change.

With this in mind, we recently took a closer look at the top seven global business trends for this sector in the Healthcare and Life Sciences 2024 World of Work Outlook report. We leveraged our latest research surveying thousands of employers and workers across 42 countries, as well as independent studies, to understand the implications of these seven trends for the future of work. We also identified many opportunities for employer differentiation amid persistent talent scarcity.

1) Impact of AI
You might be asking what else can be said about AI after years of hype. However, for this industry, it turns out there is quite a bit that is unique versus others. For instance, our recent ManpowerGroup Employment Outlook Survey found current adoption of AI within healthcare and life sciences is the lowest of any industry vertical.

Employers in this sector were also less likely than other industries to believe AI would have a positive impact on business performance or lead to net job creation in the next two years. However, like other industries, they identified high investment costs, regulation, and workforce skills gaps as the top adoption challenges. In the report, we explore how the relative pessimism today offers an opportunity for early adopters who can overcome these challenges more quickly than their competitors to build long-term competitive advantage.

2) Global Aging
The aging population around the world is squeezing the healthcare and life sciences industry on two fronts. As life expectancy increases and birth rates decline, the proportion of older populations is rising rapidly, with those aged 60 and over expected to double from 12% to 22% between 2015 and 2050.

At the same time, the global healthcare sector is facing a critical shortage of workers. By 2030, the World Health Organization (WHO) estimates the shortfall will grow to 10 million and disproportionately impact low and lower-middle income countries.

Unfortunately, there is no silver lining here for employers. The coming years will be challenging, and it will take a combination of hard work and creativity from employers to attract, retain, and develop the right talent.

3) Deglobalization
The healthcare and life science industry is revamping its supply chains to be more resilient in the wake of recent global disruptions. This includes a shift toward localization – bringing production of critical materials closer to manufacturing sites.

In the short run, this is another layer of business complexity involving large capital expenditures to localize production and scale up highly skilled workforces in countries where local production may have been offshored decades ago. But in the long run, once the industry grows these localized supply chains combined with the right skilled talent to operate them, it will be much more prepared to navigate potential future disruptions to global supply chains.

4) Talent Scarcity + Business Complexity
The current outlook for healthcare and life sciences offers a future of both unprecedented opportunity and uncertainty. Advancements in AI, genomics, and digital health technologies point toward a future of personalized medicine, preventive care, and more effective treatments. At the same time, a challenging global business environment increases the urgency for business transformation, human capital engagement, strategic acquisitions, and divestment.

The healthcare and life sciences industry struggles with talent scarcity more than any other sector. Today, 77% of employers in this industry say they are struggling to find the skilled talent they need. In this dynamic and challenging global business environment, more effective strategic workforce planning is a true differentiator.

5) Enhancing Patient Experience
The evolution of patient experience is poised to significantly reshape the global workforce needs in healthcare and life sciences. As patients increasingly seek personalized, empathetic care, and seamless access to services, the demand for healthcare professionals who can deliver such experiences is surging. Most healthcare business leaders (60%) say improving patient experience is a top priority in 2024.

However, they must first overcome two simultaneous challenges. In the most recent Edelman Trust Barometer, patient mistrust is growing and 55% say medical technology will have a negative impact on healthcare and increase out-of-pocket costs. This growing mistrust must be managed by a workforce which is increasingly burnt out. In a recent ManpowerGroup survey of workers in 16 countries, more than half (52%) of those working in healthcare and life sciences said workplace stress is a daily struggle.

The logical takeaway for employers in this sector is to prioritize the well-being of the frontline workforce so they can deliver world-class patient care. This will also pay dividends by reducing churn and improving retention.

6) GLP-1 Drugs
The market for GLP-1 drugs, a class of medications primarily used for the treatment of Type 2 diabetes and obesity, is experiencing a remarkable surge. This growth is driven by the drugs’ efficacy in lowering blood sugar levels, reducing appetite, and aiding in weight management.

This could become a gamechanger not only for the management of diabetes and obesity but also the world of work. Worldwide adult obesity has more than doubled since 1990 and adolescent obesity has quadrupled since 1990. In 2022, 2.5 billion adults worldwide were overweight and 890 million were living with obesity.

GLP-1 drugs add to a growing number of resources workers can leverage to improve their health and well-being. In the U.S., employee health insurance programs which offer access to these drugs have the potential to enhance employer value propositions. Globally, they will drive pharmaceutical industry business growth and help mitigate the impact of an aging workforce through increased longevity.

7) Growing Regulations
The increasing use of AI throughout the healthcare and life sciences sector offers the potential to accelerate innovation, create new solutions to improve patient care and unlock new operational efficiencies. Major players are merging, divesting, and commercializing revolutionary new solutions such as GLP-1 drugs. However, this also opens the door to future regulatory scrutiny which we are already seeing in key markets.

In Europe, industry leaders must navigate the combined complexity of the EU Medical Device Regulation (MDR), a new EU AI Act, and EU General Data Protection Regulation (GDPR) laws. The U.S. Inflation Reduction Act (IRA) could significantly impact the bottom line of the pharmaceutical industry by allowing the Medicare program to negotiate drug prices.

When employers were asked about top AI challenges in the most recent ManpowerGroup Employment Outlook Survey, healthcare, and life sciences respondents were the most likely to list regulation as a key business challenge.

Looking to the Future
When I speak to C-suite leaders at some of our largest clients in this sector, I learn there is no shortage of awareness of these challenges. They know they are facing a perfect storm of geopolitical risks, economic uncertainty, regulatory complexity, aggressive competition, skills gaps, and talent scarcity.

They also know there are no easy fixes. Shifting from more tactical approaches to an integrated strategic workforce plan for both your contingent and full-time employees across multiple countries is much easier said than done.

However, as we discuss all the noise we see in the market today, we get back to something simple and fundamental. It increases the value of finding the right people and business partners with the integrity, trust, curiosity, experience, and perseverance needed to go beyond simply identifying these challenges. The future of this industry is bright for the organizations which can do this the most effectively.

Don't let your competition get ahead. Equip yourself with the knowledge and insights you need to thrive in the evolving world of healthcare and life sciences.

Download the Healthcare and Life Sciences 2024 World of Work Outlook and start shaping your organization's future today.