Recruiting and retaining highly skilled talent is the single most pressing challenge that organizations face today. One recent survey of 1,000 multinationals found that 72% of CEOs now believe talent gaps and skills shortages to be their biggest business problem. The OECD has warned that such shortages “will prevent firms from adopting new technologies or greening their production processes, reducing competitiveness and slowing down the green transition.”
Rob Kowalski, Chief People and Organization Officer at Swiss pharmaceuticals giant Novartis, believes that to fulfill the talent imperative, CHROs and their C-suite colleagues must look beyond recruitment and retention strategies that focus on remuneration and employee benefit packages. Instead, they should think more broadly about their value proposition as employers.
“You have to be competitive on remuneration, but especially as you get more senior in the organization, you’re not going to win someone over because you’re offering to pay, say, $10,000 or $20,000 more,” says Kowalski, “People want to do something meaningful. They come because they believe they can be part of a community that contributes to a better society.”
An organizational culture that reflects and supports such motivations is vital to recruitment and retention, Kowalski argues. Leaders should inspire their teams around a shared purpose to remind them that they are working toward something bigger and more important than their professional goals or the company’s bottom line. Employees want to feel that they are part of a collective effort to drive positive change.
Novartis has a natural advantage in that its development and distribution of pharmaceutical and healthcare products are integral to the health and well-being of people around the world. In many cases, the company’s products save lives. This gives the company and its workforce a built-in purpose.
This mission-led value proposition is not, in isolation, sufficient to drive cultural change. “We have amazing people and scientists, but we believe our greatest impact lies in fostering a culture that celebrates collaboration and community, where we can be both unique and united,” says Kowalski.
To this end, Novartis has changed the language it uses to talk about itself, beginning with its core mission statement. The company had, for some time, described its purpose as “reimagining medicine,” but it has recently amended that tagline to the more collaborative and inclusive “reimagining medicine together.”
“We have made a concerted effort to create a culture that our people can name and talk about,” Kowalski confirms. “The culture of Novartis is about being inspired, curious, and unbossed with integrity.”
Kowalski believes that this language cuts through. “We talk about holding each other accountable and making each other extraordinary,” he explains. “We want people to be able to put into words what it means to work at Novartis and be part of a community of changemakers who challenge and support each other to push the limits of what’s possible.”
Such messaging can have a powerful impact, both internally and externally. Novartis has worked hard to communicate its cultural values via channels ranging from its sales and marketing material to the content it publishes on professional networks such as LinkedIn. As well as letting broader society know what this business is about, it’s a way of conveying a “value promise” to potential candidates.
As such, Novartis’ focus on culture is a key differentiator in its battle to attract and retain new talent. Recruits often talk about how impressed they have been with Novartis’ work environment, Kowalski says. They’re attracted by the opportunity to be part of a unified team working toward a common goal.
“Employees also want to see how they will fit into the organization’s future narrative and how their role in the team will evolve.”
The key, says Kowalski, is to make sure that words lead to action. “Or, as we like to call this, ‘walking the talk’. You have to make an intentional effort to create that culture and then keep living up to it,” he says. “We’re doubling down on employee experiences, creating a work environment where people can thrive, supported by purpose-led leaders who serve and empower their teams.”
Employees also want to see how they will fit into the organization’s future narrative and how their role in the team will evolve. Novartis has encouraged its managers to initiate conversations about learning and development, rather than waiting for team members to ask.
“It’s uncomfortable to go to your manager and say that you want to do something other than the job you’re currently doing,” says Kowalski. “So, we now put more of an onus on managers to create a space for these important growth and development conversations.”
Employees want to embrace new opportunities and forge new connections, and a culture built on togetherness equips them to pursue those ambitions. Novartis has even pioneered Talent Match, a program that matches staff looking to develop new skills with project managers in need of additional support for a set period. Once the given period is over, the employee returns to their original job with new skills and enhanced professional experience.
Being ‘glocal’ means meeting people where they are, from the boardroom to the lab to the manufacturing facilities.
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Large organizations like Novartis, which employs more than 75,000 staff worldwide, must also recognize that a one-size-fits-all approach won’t cut it. The concerns of staff in Switzerland, say, are likely to differ, at least in some respects, from those of their colleagues in India. And more senior staff will also have a different perspective than those in entry-level roles.
Kowalski points to the concept of “glocalization” – the idea that it is possible to think in both global and local terms simultaneously. “The messages at the top have to be universal ideas that everyone can get behind,” he says. “Being ‘glocal’ means meeting people where they are, from the boardroom to the lab to the manufacturing facilities.”
It takes time to develop a nuanced approach that appeals to the workforce across multiple locations. It requires the organization to listen to its employees at different levels and in different geographies to develop a granular understanding of individual aspirations, ambitions, and anxieties. Then, local approaches can be adapted accordingly.
It’s an ongoing journey, stresses Kowalski. Novartis has been “glocalizing” for six or seven years, learning along the way, but always seeking to move ahead. “We’re intentionally nudging the culture forward,” he says. “A little bit every day.”
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