HR practices in the IT industry had occupied all the attention and sidelined distinctive practices in other fields. Now there is a resurgence of interest in the uniqueness of the pharma industry. Considering the importance of pharmaceutical industry in many fronts, it is imperative to take stock of the conditions in the industry having relevance to HR practices, with the pulls and pressures that drive change.

A successful pharmaceutical industry is what is needed for a successful knowledge economy. The pharmaceutical industry has an outstanding tradition and has contributed substantially to the economy and to the welfare of citizens. It has provided numerous high quality jobs. But now the pharmaceutical industry is whirling from change brought about by significant corporate mergers, shortened cycles for drug approvals, and expectations from shareholders for more significant and immediate value when new drugs are released. When change accelerates, the need to prepare and support people is critical.

In a pharmaceutical company, people will make or break business strategy. The industry has a long history of being able to pick from the best and the brightest. It is now being reshaped (with increasing consolidation, alliances, and potential outsourcing), while at the same time issues of work life balance and ethics are taking center-stage for knowledge workers. Such changes are also contributing to the growing divergence between what pharma companies need to achieve and what their employees want.

Recent literature reveals that a heavy investment in the implementation of HR practices may contribute to organizational success, specifically by reducing the turnover of pharma professionals. As of today, very few empirical studies have rigorously examined the influence of relevant HR practices on turnover intentions of pharma people. Increasing competition in the pharmaceutical industry has forced companies to analyze their structure and processes to ensure that new drugs will be discovered, developed and manufactured in a cost- and time-efficient manner.

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