KRS Market Insights: Jan-Jun 2023

A Message from Our Leaders

Kerone Daniel

‍‍“The first half of 2023 has brought significant shifts in the life science consulting market. Consultancies have had to adapt their strategies to navigate a Biopharma environment marked by tighter budgets, reduced access to capital, and fewer opportunities to win projects.

Mergers, acquisitions, and private equity investment continue to influence growth targets, prompting consultancies to focus on strategic hires that drive revenue and business development, rather than simply filling capacity gaps.

This change is evident in recruitment trends: voluntary attrition rates from Analyst to Engagement Manager levels, previously averaging 30% or higher, have dropped below 9% in just six months. As a result, firms are now making strategic decisions around attrition and restructuring to maintain balance across their organisational hierarchy. The emphasis has shifted to targeted, high-value hiring that supports growth rather than replacing staff.”

Life Science Consulting Market Overview

The first half of 2023 reflects the ongoing ripple effects of global economic pressures, including inflation, labour market shifts, and a lack of long-term visibility. Following 2022, when life science consultancies responded to market uncertainty by reassessing internal growth strategies and refining employment offers, the market in H1 2023 has been further shaped by the collapse of Silicon Valley Bank (SVB).

SVB had been a critical partner to healthcare startups, providing funding for innovative research and technology. Its collapse has limited access to investment for Biopharma, impacting project volumes and forcing consultancies to moderate hiring and focus on senior-level expertise.

Impact on Hiring

• Large consultancies: Conservative hiring, especially at junior levels, with some offers paused or deferred. Focus on senior hires (Partners, Principals, Directors) and high-performing Engagement Managers to manage projects and grow revenue.
• Boutique/specialist consultancies: Continued organic growth across all levels. Focused on skills-based hiring rather than capacity-driven hiring. Services remain centred on delivering critical scientific, business, and product expertise.

Despite financial pressures, consultancies are reporting continued revenue growth, driven by innovation and strategic project execution. Expertise in generating and selling consulting capabilities remains in high demand.

KRS Placements H1 2023

Global Placement Overview

• 71%: Commercial Strategy & Market Access
• 14%: HEOR & Market Access
• 8%: Data Analytics consultancies
• 7%: Hybrid Commercial Strategy & Analytics

Level of Demand

• 29%: Senior Leadership (Partners, Directors, Principals)
• 46%: Project Manager / Engagement Manager
• 14%: Consultant / Senior Consultant
• 11%: Entry-level (junior hires via Early Talent Campus Programme)

Business Size

• 46%: Boutique/specialist consultancies
• 25%: Mid-sized to large consultancies
• 29%: Large/generalist consultancies

Key Research Highlights

1. Early Talent Competition

• 54% of graduates interview exclusively with life science consultancies; 46% also consider industry, equity research, venture capital, or further education.
• Career progression, training, mentorship, and exposure to multiple clients remain the top motivators for graduates.

2. HealthTech Innovation (Simon-Kucher)

• Rapid growth across Medical Devices, Diagnostics, Healthcare IT, and Digital Health.
• Simon-Kucher offers a “generalist opportunity in a specialised market,” providing broad project exposure for candidates.

3. Upcoming KRS Insights 2023

• HEOR market growth drivers
• Biopharma vendor selection considerations
• Work-life balance trends and consultant impact
• Women in leadership progress

Participants in KRS research receive exclusive access to non-public insights. Follow us on LinkedIn for updates.

Diversity, Equity & Inclusion (DE&I)

Life science consultancies must continue to embed DE&I into corporate culture, ensuring every employee feels included and supported. Flexible working remains a key discussion point, with hybrid and remote options now standard post-pandemic.

Trends:

• Employers are increasingly mandating return-to-office (RTO) policies, raising questions about talent retention, equity, and under-represented groups.
• KRS research will explore work-life balance perceptions and how RTO policies influence employee satisfaction and retention.

A Message from Our Leaders

Steve Robertson

‍‍“For H2 2023, we expect continued senior leadership movement, supported by attractive equity packages and performance-based bonuses for Partners and Principals. Engagement Managers and Senior Consultants will see a market favouring employers over candidates, with salary growth stabilising compared to previous high-inflation periods.

The key for clients remains creativity in hiring top talent to drive business growth during uncertain times. Candidates should assess opportunities for long-term career sustainability rather than short-term financial gain. H2 2023 is a period of strategic opportunism for both employers and candidates.”