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The Importance of Employee Incentives in Life Sciences: How Do You Compare?
July 17, 2025

In the fast-evolving world of Medical Devices, IVD, and Biotech, the competition for top-tier talent is fiercer than ever. With innovation cycles accelerating and regulatory landscapes shifting, companies need more than just cutting-edge products, they need the right people behind them. And to attract and retain those people, incentives matter.

Why Incentives Are No Longer Optional

The life sciences sector is experiencing a talent crunch. According to WTW’s 2025 report, roles such as regulatory affairs specialists, clinical trial managers, and medical science liaisons are among the most in-demand globally. 

1. In this environment, incentives are not just perks, they’re strategic tools.

Key Benefits of a Strong Incentive Strategy:

  • Retention: Companies with robust incentive programs report up to 30% higher employee retention rates 2.
  • Performance: Incentivized employees are 21% more productive on average2.
  • Attraction: 67% of candidates say they would choose a job with better benefits over one with a higher salary 2.

What the Data Says: 2025 Incentive Trends in Life Sciences

Here’s how the industry is responding to the demand for better incentives:

📊 We’ve compiled the data for you.
📥 Complete this form to instantly receive your free copy of the MedTech Employee Incentives Report.

1. Long-Term Incentives (LTIs) Are on the Rise

Life sciences companies are increasingly offering LTIs such as stock options, equity grants, and performance-based shares. These are especially prevalent in the UK and U.S., where competition for talent is highest 

1.

  • 72% of companies now offer LTIs to mid-level professionals, not just executives 1.
  • LTIs are particularly common in R&D, regulatory, and commercial leadership roles.

2. Short-Term Incentives (STIs) Are Falling Short

While STIs like annual bonuses remain standard, many companies are missing their targets.

  • Only 58% of companies met their STI payout goals in 2024 1.
  • This shortfall is prompting a shift toward more personalized, performance-linked rewards.

3. Flexibility and Culture Are Now Incentives

According to GQR’s 2025 Employee Sentiment Report, workplace flexibility and company culture are now considered as important as financial compensation 

2.

  • 83% of employees say hybrid or remote options influence their job satisfaction.
  • 61% of professionals who left a role in the past year cited poor culture or lack of purpose as a key reason.

4. Upskilling and Career Development

Incentives aren’t just about money. Career progression and learning opportunities are now top motivators.

  • 68% of life sciences professionals say they would stay longer at a company that invests in their development 1.
  • Companies offering structured career paths see 25% higher engagement scores 2.

How Do You Compare?

If you're hiring in the MedTech, Biotech, or IVD space, it’s essential to benchmark your incentive offerings. Are you offering what today’s professionals expect?

📊 We’ve compiled the data for you.
📥 Complete this form to instantly receive your free copy of the MedTech Employee Incentives Report.

Final Thoughts

The life sciences industry is at a crossroads. With innovation booming and demand for talent surging, incentives are no longer a “nice-to-have”, they’re a business imperative.

At Adaptive Life Science, we help companies not only find the right candidates but also understand what it takes to keep them. From salary benchmarking to incentive strategy, we’re your partner in building high-performing teams.

📈 Need help attracting and retaining top-tier talent?
Let’s talk. We’re here to help you build teams that thrive.

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