Benefits strategy is now a growth decision
Life sciences organizations are pushing toward faster commercialization while managing capital pressure and regulatory complexity. Even with those factors, talent retention and recruitment remain key influences on how quickly they can scale. Marsh Agency’s Life Sciences Benefits Insights Report reinforces what many leaders are already seeing: benefits strategy has become a growth lever. It helps signal credibility to scarce scientific talent, supports retention in critical roles and is increasingly on the radar of chief financial officers as healthcare costs continue to climb.
The life sciences employers who participated in the recent survey agreed that retention will be a priority in the next 12 months, while fewer cited that recruitment will remain at the same level of importance. The signal is clear: growth depends as much on retaining critical talent as on hiring for new roles.
The economics favor retention. Gallup estimates that replacing an employee can cost anywhere from 50% to 200% of their annual salary, depending on role and seniority. Benefits don’t keep pace with your stage of growth; the impact goes beyond turnover. It can disrupt critical functions like clinical operations, quality of product, regulatory requirements and efficient manufacturing. Replacing specialized expertise often takes longer than expected, and the financial repercussions can add up quickly.
What shifts as you scale
Life sciences organizations grow in distinct phases, and benefit expectations change with them. Early on, benefits build trust, and later, they preserve stability and reduce uncertainty during rapid growth or organizational change. As life sciences organizations scale, employee benefits expectations evolve at each stage of growth:
- Startup: Employees want confidence in leaving a stable employer, strong medical coverage, disability/life insurance and credible retirement benefits.
- Pre-clinical: As teams diversify, employees look for more personalized support: voluntary benefits, flexible work arrangements and expanded leave offerings.
- Clinical growth: A larger, more geographically distributed workforce increases demand for consistent benefits across locations and stronger family-oriented support.
- Pre-commercial expansion and commercialization/IPO/acquisition: Stability and communication become retention tools. Employees want continuity of coverage and clarity about what will change.
The leadership takeaway is to treat benefits like an operating system that is governed and intentionally upgraded, rather than a once-a-year renewal event. Health and medical benefits are not always straightforward, and the details can be easy to miss until care is needed. Add practical support, such as voluntary benefits, enhanced leave and caregiver programs, and work options that give employees more control over when and where they work, to close those gaps and help employees feel supported.
Retention beyond compensation: The experience stack
Compensation attracts talent, while experience retains talent. Competitive pay and core benefits are expected in the industry, and employers are trying to improve retention without permanently increasing fixed costs. The Life Sciences Benefits Insights Report highlights employee expectations shaping today’s strategies:
- Flexibility and PTO practices that reduce burnout (the report notes 86% of life sciences employers offer some type of remote work arrangement, and 57% offer flexible work hours).
- Well-being support that’s practical: only 36% sponsor a formal wellness program, suggesting many employers embed well-being into flexibility, culture and access to mental health resources.
- Family and caregiving flexibility (e.g., dependent care FSAs and inclusive leave structures) that supports diverse life stages while managing long-term cost.
- Voluntary benefits (e.g., critical illness, legal services, identity theft protection, pet insurance) that increase perceived value and personalization with limited employer cost impact.
What this means for SCbio members: Explore the Association Health Plan
For SCbio members and prospective members, the opportunity is to strengthen the competitiveness of benefits while monitoring volatility. One practical path is to learn more about SCbio’s Association Health Plan. This plan is designed to help organizations offer credible coverage and access to expertise while reducing administrative burden on lean teams.
Marsh Agency has a long-standing partnership with SCbio, and we’re proud to support the Association Health Plan. Together, we help life sciences employers align benefits with their growth stage and with the workforce realities that determine whether innovation can scale.
Explore whether SCbio’s Association Health Plan could be a good fit for your organization’s size, growth stage and benefits priorities, especially as your workforce expands and needs become more complex. Download the Life Sciences Benefits Insights Report to benchmark your current benefits strategy against industry trends, identify gaps and opportunities, and prioritize next steps to strengthen retention and support long-term growth.
Written by: Marsh McLennan Agency