Strategic shifts in pharma hiring and why it matters

The pharmaceutical sector is operating in an increasingly complex environment. Regulatory scrutiny, rising input costs, and global pricing pressures are impacting profitability across the board. At the same time, companies are under pressure to secure highly skilled talent capable of driving scientific and commercial performance. This mounting pressure is forcing pharma players to rethink their recruitment models through measurable changes that reflect both operational constraints and strategic intent.

Cost pressures are reshaping talent decisions

Indian pharmaceutical firms, especially those focused on generics, are navigating steep margin compression. The combination of declining prices in key export markets and proposed tariffs on active pharmaceutical ingredients has placed financial strain on many companies. Industry data suggests Indian pharma profitability has declined between 20 per cent30 per cent over the past few years. This has prompted cost containment measures that include budget freezes, hiring slowdowns, and workforce rationalisation.

Recruitment is being recalibrated to focus on business critical roles with direct value contribution. Companies are placing greater emphasis on role justification, prioritising hires with specialised skills or strategic impact. Hiring timelines have become shorter in high-need areas while lateral hiring in support functions has been delayed or scaled back.

In parallel, hiring intent rose from 47 per cent in 2024 to 52 per cent in H1 2025 across metro cities like Bengaluru, Hyderabad, and Chennai. This intent is driven by demand for clinical data analysts and medical transcriptionists fueled by greenfield and brownfield GCCs in the sector.

Global hiring momentum remains uneven across regions

Across the global pharma and MedTech landscape, external hiring began slowly in 2024. While activity improved during the middle of the year, several regions including the United States, the United Kingdom, and parts of the Asia Pacific region are now reporting a decline in job postings. In contrast, markets such as India, Latin America, and the EMEA region have shown increased demand. In India specifically, job demand rose by 48 per cent in the first half of 2025 , with pharmaceutical roles accounting for more than 7,000 of the 8,600 job postings per month. This disparity reflects the influence of local market conditions, investment cycles, and regional regulatory frameworks on talent planning.

Sanofi’s Hyderabad Innovation Center is a case in point. It plans to double its headcount from 1,000 to 2,600 by 2026, focusing on data science and clinical trial documentation.

Hybrid work models are expanding gradually

Across corporate India, hybrid work is now common in several sectors. Surveys indicate that more than 44% of companies follow a hybrid structure, with a smaller share operating entirely remotely. In pharma, uptake of flexible work arrangements has been slower due to the physical infrastructure required for research and manufacturing.

Even so, there has been an increase in flexibility for functions such as regulatory affairs, corporate strategy, medical writing, pharmacovigilance, and information technology. Companies are piloting hybrid formats for eligible roles where compliance and productivity can be maintained. Location neutral recruitment is gaining ground in select functions, particularly in cities with strong scientific and technical talent availability.

By July 2024, 20 per cent of all job postings across industries in India were hybrid or remote, up from just 0.9 per cent in 2020. Among larger enterprises, 38.6 per cent of new hires are now being made in hybrid roles.

R&D talent is driving a clear hiring trend

Scientific hiring in the Indian pharma sector has grown consistently over the last two years. A number of global workforce solution providers reported annual growth of 15 per cent – 20 per cent in research and development-related recruitment. The highest demand is concentrated in oncology, diagnostics, and digital health. Hiring has increased across levels, from CXO appointments to technical leaders and mid-career specialists.

Companies are building domestic research teams while also attracting talent with international experience. However, research investment remains comparatively lower than that of global peers. Indian companies typically invest a smaller share of sales into research and file fewer patents per billion dollars of revenue. Senior executives reported a 20 per cent increase in CXOlevel hiring, a 35 per cent increase at senior levels, and a 50 per cent increase at junior and mid-levels.

In 2025, India’s pharma, healthcare, and life sciences (PHLD) sector is witnessing a sharp rise in demand for digital and technology-driven skills, with healthcare and pharma job postings growing 62 per cent year-on-year and mid-level IT roles increasing by 31 per cent, particularly for professionals skilled in digital transformation tools such as electronic health record (EHR) systems. Key areas of demand include AI/ML, data analytics, health informatics, cloud platforms, DevOps, and digital health, with many pharma firms now adopting hybrid or multi-cloud systems. IoT and blockchain technologies are enhancing supply chain transparency and responsiveness. Upskilling remains a major focus, with significant investments in digital training and widespread skill gaps in AI/ML expertise. Hyderabad has emerged as a leading life sciences hub, attracting ?54,000 crore in investments since December 2023 and creating 200,000 jobs. Global leaders including Eli Lilly, Amgen, MSD, Zoetis, Evernorth, and Olympus have chosen the city as their preferred GCC base, with Eli Lilly planning to hire 1,500 professionals in AI, cloud, and automation by 2026–27.

While the outlook for research talent appears positive in India, this momentum is uneven globally. Forecasts indicating growth in research roles have not translated into broadbased job creation in mature markets. In the United States and the United Kingdom, several companies have initiated layoffs throughout the year. The gap between projections and actual hiring reflects a more cautious approach driven by fiscal and regulatory uncertainties.

Digital tools are making recruitment more effective

A growing number of pharmaceutical companies is adopting digital hiring platforms and data-based screening tools. According to a study, by the end of 2024, approximately 52 per cent of Indian pharma and healthcare firms had implemented artificial intelligence supported tools in their recruitment processes. These include structured resume screening, behavioral assessments, and standardised video interviews.

In fact, 75 per cent of Indian recruiters are now allocating significant portions of their budgets to AI recruitment platforms.

Firms that have invested in digital recruitment infrastructure report notable benefits. Hiring costs have declined, hiring timelines have shortened, and quality of hire has improved. Platforms such as LinkedIn, HireVue, and Pymetrics are being used to enhance candidate experience and increase sourcing reach. Digital tools continue to gain traction even in a slower job market, indicating a focus on efficiency and quality over scale.

Per LinkedIn’s 2025Talent Trends, companies in India with strong employer branding (including in pharma) have achieved a 50 per cent reduction in hiring costs and a 28 per cent lower turnover rate.

Additionally, younger professionals now expect streamlined recruitment experience. Around 82 per cent of job seekers in this segment consider a company’s technological capability and innovative mindset to be a key factor in their decision-making process.

Talent strategy is becoming a growth enabler

Pharmaceutical companies are integrating talent decisions more closely with business priorities. Rather than simply filling vacancies, the focus is now on identifying professionals who can support drug development, regulatory readiness, and international expansion. 

Hiring decisions are increasingly made with input from business and technical leads, alongside the human resources team. The use of campus partnerships, talent analytics, and competency mapping is on the rise. Companies are also investing in mobility programs and skill development initiatives to retain and repurpose internal talent.

The evolving structure of drug portfolios is playing a role in shaping talent decisions. Global pharma is placing more focus on high-cost specialty drugs, including treatments for rare diseases and complex conditions. This realignment is influencing recruitment strategies. In response to stricter pricing controls in key markets, including the United States, companies are taking a more selective approach to research investments and hiring. Legislation such as the Inflation Reduction Act, which enables Medicare to negotiate drug prices, may affect funding for innovation and lead to narrower hiring requirements. 

Conclusion 

Pharma recruitment is becoming more intentional, data-informed, and closely tied to operational outcomes. Companies are learning to manage budget pressures while still building strength in priority areas. Recruitment is no longer viewed as an administrative function but as a contributor to product development, compliance, and global competitiveness. As the sector enters the next cycle, companies that focus on clarity, longterm capability, and consistent execution in their talent strategy will be positioned to deliver meaningful results.