Between 2020 and 2022, the life sciences, pharmaceutical, and biotech industries experienced an extraordinary demand for talent. Amid global health urgency, accelerated R&D timelines, and rapid digital transformation, companies scrambled to secure skilled professionals which meant offering record-high salary packages and flexible arrangements.
Now, the hiring boom has slowed and what’s left is a complex legacy of inflated compensation structures, recalibrated expectations, and a cautious market. As recruitment leaders in Life Sciences, we have moved to adapt to meet the needs of our clients in this new landscape.
So, how has the talent boom reshaped the recruitment market within Life Sciences in 2025? Here’s a breakdown of the key ramifications from our perspective:
Strategic restructuring and redundancies
During the pandemic, the priority was speed: speed to hire, speed to innovate, speed to market. Many organisations scaled rapidly, adding roles across R&D, Clinical Operations, Regulatory, and Digital functions.
Now, with tighter margins and more measured pipelines, we’re seeing strategic realignments and a lot of restructuring amongst our clients. While the industry remains relatively resilient, redundancies are occurring, particularly in over-resourced or duplicative functions, often at inflated cost.
How will historic restructuring and redundancies affect future hiring?
For HR teams and hiring managers, this means managing workforce planning with more precision to balance long-term capability needs with short-term budget pressures.
Carrot Recruitment can alleviate this pressure by supporting both contract and permanent hires, meeting both long-term and short-term project objectives. Hiring candidates on a contract basis gives companies the flexibility they need to hire strategically dependent on workload and budgets. Contractors tend to specialise in specific skill sets and are renowned for their flexibility and ability to work remotely. Interim workers can create an ideal solution where an organisation has a critical business need but limited time or resources available.
The breadth of experience contractors will have around project timelines means that they are adept at prioritising tasks, managing expectations, and working to deadlines. The very nature of contractors means that they can be utilised for short-term projects without employers having to commit to permanent employment.
Salary freezes and market realignment
High salaries offered during the peak have created lasting ripple effects. We’re seeing:
- Salary freezes for employees whose compensation already sits well above current market benchmarks
- Internal pay disparities as new hires are brought in at more sustainable rates, creating equity and retention challenges
- Resistance to downward negotiation as candidates still reference inflated expectations from the boom years
How should salary freezes and market realignment affect hiring strategies moving forward?
Any compensation strategy now requires a delicate balance between market reality and internal fairness alongside clear communication to manage expectations.
Consultants at Carrot are experts in their niche areas, enabling them to work closely with hiring managers to manage candidate expectations and support HR teams in developing clear career progression pathways. We’ve proven ourselves to be a valuable resource to our clients, offering insights into salary benchmarking and helping to create competitive benefits packages which will be attractive to new candidates as well as help with retaining existing teams.
Promotion & bonus delays impacting morale
In many organisations, bonus pools have shrunk, and promotion cycles have slowed. This is a significant shift from the 2020–2022 period, when even mid-level professionals in clinical or regulatory roles were seeing rapid progression and sizable year-on-year increases. This in some case is affecting morale within teams as employees feel the impact of a slump in their career progression.
What will low morale within teams mean for hiring strategies?
In order to hold onto talent, there needs to be a pivot away from purely financial recognition and a focus instead to career development, meaningful work, and personalised growth plans. (Especially for high-potential individuals who were fast-tracked during the boom).
Carrot Recruitment is well-equipped to support hiring teams with guidance on initiatives including training programmes, employee engagement schemes, and retention strategies, ensuring teams remain motivated and engaged beyond financial incentives alone.
Exposure of skill and experience gaps
The rush to fill roles led to a mismatch in some cases: professionals landing senior titles or high-paying roles without the operational maturity or cross-functional experience typically expected.
Performance scrutiny can lead to problems such as:
- Strained middle management, particularly in functions like clinical project management and regulatory affairs
- Leadership development needs, especially among those promoted rapidly without foundational leadership experience
- Underperformance risks, which may require upskilling, mentoring, or tough decisions
What does this mean for hiring strategies moving forward?
Due to new scrutiny’s within existing teams, there is more pressure than ever on hiring professionals to make sure they hire the correct person for the role at the right salary.
As market conditions shift, data-led hiring decisions become even more valuable. From benchmarking salaries to understanding skill demand, insights are key to staying competitive without overspending.
Carrot Recruitment have partnered with Clevry, a psychometric testing platform whose mission is to accelerate the world’s transition to skills-first hiring. They help companies around the globe find, assess and hire strategically. Through Clevry, Carrot offers a fully adaptable suite of personality and psychometric profiling options.
As a thank you to our exclusive partners, we’re currently offering free psychometric profiling for up to 3 final-stage candidates on any roles we’re supporting exclusively.
It’s a great way to gain deeper insights and added confidence in your hiring decisions — on us! We can also offer this service as an additional extra for clients working with us contingently.
A cooling talent market and a shift in power dynamics
Hiring pipelines are no longer as urgent or candidate driven. In many areas (clinical operations, medical affairs, regulatory, and commercial) the market has normalised or even slowed.
We’re seeing:
- More selective hiring processes, with increased emphasis on culture fit, long-term value, and proven capability
- Fewer candidates making speculative moves, as job security takes precedence over bold salary leaps
- A shift in leverage, from candidate to employer—though the best talent still commands a premium
What does a cooling talent market mean for hiring strategies moving forward?
With more of a focus on ROI, every new hire must justify their cost. There’s a greater emphasis on measurable impact, productivity, and alignment with business goals. With tighter budgets, promoting or retraining existing employees perhaps becomes more appealing than hiring externally for every role.
By working with Carrot Recruitment on an exclusive basis, hiring managers can take more time to assess fit and qualifications more thoroughly. There’s less urgency, and more focus on long-term value. Our added value services can support in providing training and engagement initiatives which will help to retain and upskill exisiting staff.
Redefining Employer Value Propositions beyond pay
With sky-high salaries off the table, companies must compete on purpose, culture, and opportunity. In an industry where impact truly matters, this is a chance to emphasise:
- Contribution to life-saving therapies and innovations
- Flexible working models that support well-being
- Cross-functional development opportunities
- Transparent leadership and trust-building initiatives
Where do redefining EVPs come in to play for future hiring?
For HR and talent teams, storytelling and authentic communication are more important than ever. Candidates and employees want to understand the “why” behind your brand, especially when compensation is no longer the main differentiator.
At Carrot, we understand the value of a comprehensive EVP when attracting and retaining candidates. Read our guide to creating a compelling Employer Value Proposition which will put your business at a competitive advantage in the hiring market.
So, where should hiring managers go from here?
The salary inflation of 2020–2022 helped life sciences companies meet critical goals during a global crisis but it also created long-term imbalances that we’re still addressing today.
As we settle into a more measured, value-driven hiring environment, the challenge for HR and hiring managers is to lead with clarity, agility, and empathy. That means resetting expectations both internally and externally whilst still competing for the high-impact talent that will drive the next wave of innovation.
Partnering with Carrot means your business benefits from our extensive hiring experience, giving you the confidence that you’re making the right hiring decisions – backed by data, market insights, and a deep understanding of what drives long-term success. Get in touch today to discuss how we can support your hiring objectives.
