KRS Market Insights: Jul-Dec 2024

A Message from Our Leaders

Kerone Daniel

In the second half of the year, there has been an increased emphasis on AI-driven technologies and a shift toward skills-based workforce strategies—pushing firms to reassess traditional ways of working and enhance their competitiveness. Although uncertainty remains around integrating these tools into daily operations, firms are actively exploring how to align budgets to support growth initiatives.

Insights from our Talent Consulting practice highlight that placing skills and capabilities at the centre of hiring strategies has improved the integration of senior talent, diversified client offerings, and supported sustainable revenue growth.

Independent firms, not part of larger consultancy portfolios, face unique challenges in adapting to these shifts. Moving away from traditional structures and hierarchies is essential to leverage their strengths, serve clients more effectively, and remain competitive in a landscape dominated by solution-based firms offering end-to-end services.

“By prioritising talent strategy, firms are transforming how they hire, integrate talent, and remain competitive, fostering a collaborative and efficient workforce to deliver purpose-driven solutions.”

Market Overview

Rethinking Hiring Practices: Embracing Skills-Based Approaches for Sustainable Growth

Many firms are moving away from the traditional, capacity-driven hiring model, which often cycles between layoffs and recruitment aimed at short-term needs. This approach—filling roles rather than addressing skill gaps—is increasingly seen as inefficient.

Reactive strategies, such as trimming the “bottom 10%” while recruiting senior hires, highlight a disconnect in long-term workforce planning. Firms thriving in the current market are adopting sustainable, strategic approaches that evaluate current workforce capabilities and anticipate future needs.

Our Talent Consulting team has helped businesses conduct skills-based job analyses and competency mapping aligned with corporate values and growth objectives. This shift is especially evident at the Partner level, where clients now prioritise specific skills over experience or tenure.

Examples:

• Traditional Hiring: “We need a Commercial Strategy Partner with 10+ years global experience and a track record of $3+ million in sales.”
• Skills-Based Hiring: “We’re looking for a Commercial Strategy Partner who can influence medical stakeholders, collaborate internally, act as a subject matter expert, and deliver strategic problem-solving and client growth.”

By prioritising skills over pre-existing books of business, firms create scalable, capable teams that drive innovation and long-term success.

AI and the Future of Consulting: Opportunity, Not Replacement

AI adoption has sparked debate about whether it will replace consultants. Rather than a threat, AI is increasingly used to automate routine tasks, streamline research, and enhance reporting—freeing consultants to focus on high-level strategic work.

Impact on Market Access Roles:

• 14% of H2 placements were data-focused, with 67% in Market Access analytics—a significant increase from 4% in H1.
• At recent ISPOR and EPA conferences, firms demonstrated three perspectives on AI:
  • Progressive (50%): Leveraging predictive analytics, real-time insights, and data-driven decision-making.
  • Cautious (30%): Applying AI to routine tasks while monitoring broader implications.
  • Wait-and-See (10%): Observing industry adoption before committing.

Key AI Applications:

• Problem Solving: Predictive analytics for health economic models, enabling scenario analysis.
• Content Generation: AI-driven value dossiers and HTA submissions for faster, iterative reporting.
• Process Automation: Instant review and extraction of large datasets, improving efficiency.
• Data Analysis: Pattern recognition in pricing, reimbursement, and payer behaviour.
• Real-World Data: Accurate evaluation of patient outcomes and healthcare costs for economic models.

Some pharma players have restricted AI adoption due to regulatory and privacy concerns. Nonetheless, firms embracing AI through M&A, partnerships, or technology platforms gain competitive advantage.

Key Hiring Trends

Launch Roles See Unwavering Growth (+350%)‍

Placements in launch strategy and program roles surged 350%, reflecting increased investment in late-stage products. Firms are strengthening capabilities across commercial strategy, product strategy, launch planning, and strategic PMO.

Growth in Data-Focused Roles (+250%)‍

Data-driven roles increased 250%, with 67% focused on Market Access analytics. Skills in descriptive analytics, patient data, RWE, and value-based frameworks are in high demand.

Steady Growth for Access Roles (+28%)‍

Rising healthcare costs and complex submission processes drove a 28% increase in access-related placements, highlighting the need for expertise in health economics, pricing, and value demonstration.

Small Decline in Early Commercial Strategy (-10%)‍

A shift toward integrated approaches blending commercial, medical, and access functions, combined with tighter budgets for early-stage products, led to a modest 10% decline in early commercial strategy placements.

A Message from Our Leaders

Steve Robertson

“2024 has been a year of evolution for life science consultancies, with growth driven by practical initiatives and a strong focus on mid-level talent, positioning firms for sustained success in 2025 and beyond.”

Overall, 2024 marks a stabilisation following the turbulence of 2022–23. Growth has been grounded in tangible, short-term initiatives rather than speculative transformations, as evidenced by double-digit growth in HEOR/Market Access and surges in Launch Strategy and Data/Analytics vacancies.

Hiring Insights:

• Engagement Manager/Senior Consultant hires rose from 14% to 36% of placements, reflecting increased confidence in revenue pipelines.
• Partner/Principal-level demand remains steady at 50%, underscoring the continued importance of senior leadership.
• The overall increase in mid-level hiring supports more agile project teams capable of adapting to evolving market demands.