Research Reveals Gilead Best Human Capital Manager Among Leading Biotech Companies
To determine which company is the best manager of human capital among major biotech companies CorDell & Company analyzed sales per employee, cash flow per employee, and total number of employees at Amgen, Biogen, Celgene, Genzyme, and Gilead between 2005 and 2009.
The average sales per employee (SE) for the five companies included in this study was $832,719, and the average compound annual growth rate (CAGR) for SE was approximately 8 percent.
Gilead had the highest average SE at $1,412,320, almost twice the average SE of every other company in this study, and the highest CAGR for SE at 14.27 percent. The average cash flow per employee (CFE) for these five companies was $309,125, and the average CAGR for CFE was approximately 18 percent. Gilead had the highest average CFE at $578,718, however Celgene had the highest CAGR for CFE at 64.28 percent. The average TNE for these five companies was 7,324, and the average CAGR for TNE was approximately 14 percent. Celgene grew the fastest, almost tripling the size of its workforce, while Gilead doubled its workforce.
The data suggests Gilead’s workforce is the most productive, and when compared to Amgen, Biogen, Celgene, and Genzyme it is able to acquire better talent, develop better talent, or both. Investors, however, appear to favor Celgene. Its stock price was up approximately 319 percent over this period, while Gilead’s stock price was up approximately 147 percent and Amgen’s, Genzyme’s, and Biogen’s stock prices were down approximately 12, 16, and 20 percent respectively. Over this period the Dow Jones Industrial Average was down approximately 2% and the S&P 500 was down approximately 8%.
CorDell & Company recommends tracking these workforce productivity metrics as part of organizational performance management efforts to identify macro level changes in human capital productivity and to assess the impact of changes in human resource management practices within an organization. For more detailed information on how each of these organizations performs on these measures, request a copy of the research paper at http://www.cordellandcompany.com/hcpa-biotech.html.
About CorDell & Company
Founded in 2006, CorDell & Company is a human capital management consulting firm that specializes in improving organizational profits and performance by identifying, acquiring, motivating, retaining, and developing talent.
