The WorkInHealth Foundation, established by EIT Health, and the European Investment Fund (EIF) have released a new report on the skills gap in the European health sector. The report explores the current skills shortages in the health sector and investor perspectives, providing practical strategies to develop a skilled and adaptable workforce.
Talent Shortage in Healthcare
The healthcare sector faces a significant talent shortage, particularly in emerging roles that require specialized skills in innovation, commercial strategies, and digital technologies. This shortage threatens the sector’s sustainability and growth potential, making it crucial to address these gaps.
The WorkInHealth Foundation aims to bridge the skills gap between industry needs and available talent to promote health innovation. Their activities focus on four key areas:
- Anticipate: Using business intelligence to forecast future skills needs.
- Attract: Enhancing the health industry’s image to attract new talent across Europe.
- Train: Offering tailored upskilling and reskilling programs for millions.
- Match: Connecting talent with employers through an AI-powered platform.
Céline Carrera, Chair of the WorkInHealth Foundation, stated, “To maintain a vibrant and sustainable healthcare sector in Europe, we must address the challenge of recruiting and educating top talent.”
About the Report
This report, a collaboration between EIF and the WorkInHealth Foundation, and authored by Ernst & Young (EY), examines critical skills and talent shortages in the European health sector. It draws from a wide range of perspectives, including those of venture capital firms, start-ups, and industry experts, highlighting the urgent need to address these gaps to maintain innovation and competitiveness.
The report’s objectives include:
- Analyzing skills gaps in biotech, medtech, and digital health subsectors.
- Providing insights into the talent shortages facing the industry.
- Offering solutions for hiring, outsourcing, training, retaining talent, and mentoring.
- Exploring the role of VC funds in shaping start-up talent strategies.
- Emphasizing the importance of diversity and its impact on the sector.
Jean-Marc Bourez, CEO of EIT Health, emphasized that the report provides valuable insights that will help build a more resilient healthcare system in Europe.
Céline Carrera added, “Our goal is to align sector needs with professional development to foster innovation and sustainability in healthcare. This report is a critical step in understanding the barriers to progress in Europe’s healthcare innovation sector.”
Key Findings
The report combines quantitative and qualitative data from hundreds of VC firms, start-ups, and experts, identifying critical skills and talent shortages in European healthtech, particularly in biotech, medtech, and digital health. It explores the relationship between VCs and start-ups, particularly in designing and evaluating talent strategies, and the role of technology in enhancing investment transparency.
Diversity is highlighted as a strategic necessity within healthtech. While gender diversity is improving, there is still room for growth, as nearly a quarter of VCs report no female representation at the partner level in their firms.
The report identifies five critical soft skills gaps:
- Leadership and people management
- Entrepreneurial skills
- Strategic planning
- Communication skills
- Business development and networking
And three major hard skills gaps:
- Technical skills and STEM expertise
- Data analysis skills
- Familiarity with regulatory environments
To address these gaps, the report suggests five key strategies:
- Hiring: The primary method for meeting immediate needs.
- Outsourcing: Useful for temporary or non-core activities.
- Training: The most common approach to upskilling.
- Retaining talent: Involves innovative management and workplace flexibility.
- Mentoring: A powerful tool for skill development.
The report underscores the importance of addressing the skills gap in Europe’s health innovation sector. Healthtech investors view leadership and management skills as both crucial and lacking. Other vital areas include STEM expertise and data analytics. Despite some progress in gender diversity, challenges remain. A comprehensive approach is needed to tackle these diverse skills gaps and ensure a robust and innovative health sector in Europe.
