Prioritizing DEI and employee engagement has become business necessity as well as a moral imperative. The question now is, how can pharma companies build a more inclusive, engaged workforce?
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The DEI and engagement challenge in Pharma
The pharmaceutical industry is a cornerstone of global health, driving innovation and delivering life-saving treatments to millions. Yet, beneath its groundbreaking achievements lies a pressing challenge: the sector continues to struggle with diversity, equity, inclusion (DEI), and employee engagement.
According to a 2023 report by McKinsey, women and underrepresented minorities remain significantly underrepresented in leadership roles. This lack of diversity not only drowns innovation but also undermines the industry’s ability to address the diverse needs of its global patient population.
On the other hand, employee engagement issues remain critical to the industry. The high-pressure nature of the pharmaceutical sector itself, together with the accumulated high demands of the COVID-19 pandemic, has led to widespread burnout and mental health challenges.
In fact, a recent study found that over 45% of professionals in this sector reported feeling overworked and experiencing high levels of stress. These challenges are further exacerbated by traditional corporate cultures that often resist change, making it difficult to implement meaningful DEI and engagement initiatives.
Empower employees to contribute to the ESG strategy
All in all, the stakes are high for the pharmaceutical industry, as well as many others. Companies that fail to address these issues risk falling behind in an increasingly competitive landscape.
Diverse teams have been proven to drive innovation and engaged employees are more productive and loyal. Prioritizing DEI and employee engagement has become business necessity as well as a moral imperative. The question now is, how can pharma companies overcome these challenges and build a more inclusive, engaged workforce?
Understanding the root(s) of the problem
While the pharmaceutical industry’s contributions to global health are undeniable, its internal challenges with DEI and employee engagement are equally significant. These issues not only hinder innovation and productivity but also damage the industry’s reputation and ability to attract top talent.
Let’s break down some of the key challenges pharma companies face today and why addressing them is critical for long-term success.
Lack of diversity in leadership
Despite progress in recent years, the pharmaceutical industry still struggles with a lack of diversity in leadership roles. Women and underrepresented minorities remain largely underrepresented in executive positions.
Only 20% of pharma executives are women, and the numbers are even lower for people of color. This lack of representation at the top perpetuates systemic barriers and limits the industry’s ability to innovate and connect with diverse patient populations.
Diverse leadership teams are proven to drive better decision-making and financial performance; in fact, companies that do better in terms of gender diversity are 25% more likely to outperform their peers, according to McKinsey.
Employee burnout and mental health struggles
The high-pressure environment of the pharmaceutical industry, exacerbated by the 2020 pandemic, has led to widespread burnout and mental health issues. Up to 45% of employees have reported struggling with overworking and a lack of work-life balance.
Burnout does not only affect employee well-being, but also leads to decreased productivity, higher turnover rates, and increased costs for companies. Mental health is a critical component of employee engagement, and prioritizing well-being leads to higher retention rates and improved performance.
Resistance to change in corporate culture
Like many organizations, pharmaceutical companies operate within traditional corporate cultures that often resist change and make it difficult to implement effective DEI or engagement initiatives.
This resistance often stems from a lack of awareness, unconscious bias, or a fear of disrupting established norms. Pharmaceutical companies, among many others, often struggle to move beyond token diversity efforts to create truly inclusive workplaces.
A culture that embraces change is essential for fostering innovation and retaining top talent. Companies that fail to adapt risk falling behind in a rapidly evolving industry.
Difficulty measuring DEI and engagement success
One of the biggest challenges pharma companies face is measuring the effectiveness of their DEI and engagement initiatives. Without clear metrics and data-driven approaches, it’s difficult to track progress or demonstrate ROI.
You can’t manage what you don’t understand, and measuring is key for understanding. Companies that invest in data-driven DEI and engagement strategies are better equipped to identify gaps, set goals, and achieve meaningful progress.
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Practical steps to boost DEI and engagement in pharma
The challenges pharma companies face with DEI and employee engagement are very real and often complex, but that doesn’t mean they’re impossible to tackle.
With the right strategies, companies can create more inclusive workplaces, boost employee morale, and drive better business outcomes. Here are some practical steps to get started.
- Building inclusive leadership: Train leaders to champion DEI by addressing unconscious bias, fostering open communication, and creating opportunities for underrepresented groups. Inclusive leaders set the tone for the entire organization, making employees feel valued and heard.
- Prioritizing employee wellbeing: Implement mental health programs, offer flexible work arrangements, and create a culture that supports work-life balance. Employees who feel supported are more engaged, productive, and loyal.
- Use data to drive DEI efforts: Set clear DEI goals, track progress with analytics, and regularly share updates with employees. Data-driven approaches ensure accountability and help companies identify areas for improvement.
- Leverage engagement tools: Use platforms that promote collaboration, recognition, and feedback to keep employees connected and motivated. Engaged employees are more likely to stay with the company and contribute to its success.
A call to action for Pharma
With everything we have uncovered above, we can say that the pharmaceutical industry stands at a crossroads. With its widely significant contributions to global health, internal challenges with diversity and employee engagement threaten to undermine its potential.
The good news is there are plenty of solutions; by building inclusive leadership, prioritizing employee well-being, leveraging data-driven strategies, and investing in upskilling and engagement tools, pharma companies can create workplaces where everyone thrives.
But progress won’t happen overnight, it requires commitment, collaboration, and the right partners. For organizations ready to take the next step, working with experts in sustainability and employee engagement can provide the guidance and tools needed to drive meaningful change.
The time to act is now. Let’s build a future where every employee feels valued, supported, and empowered to make a difference.
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