Episode #313 – 5 Big Animal Health and Veterinary Recruiting and Hiring Trends
Caleb: Welcome to “The Animal Health and Veterinary Employment Insider,” brought to you by The VET Recruiter. In this podcast, Animal Health executive recruiter and Veterinary recruiter Stacy Pursell of The VET Recruiter provides insight and practical advice for both employers and job seekers in the Animal Health and Veterinary industries. The VET Recruiter’s focus is to solve talent-centric problems for the Animal Health industry and Veterinary profession. In fact, The VET Recruiter’s mission is to help Animal Health and Veterinary companies hire top talent, while helping Animal Health and Veterinary professionals attain career-enhancing opportunities that increase their quality of life.
Today, we’ll be talking about five big Animal Health and Veterinary recruiting and hiring trends. Stacy, thank you for joining us today.
Stacy: Hello, Caleb. As always, I’m glad to be here with you.
Caleb: Stacy, we haven’t talked a whole lot about trends on the podcast, have we?
Stacy: Not really. Within the past year, we’ve discussed pet ownership trends and how those trends have been affecting the job market. But this might be the first time that we’ve addressed Animal Health and Veterinary recruiting and hiring trends head-on.
Caleb: What was the catalyst for talking about them now?
Stacy: There is a lot going on in the Animal Health industry and Veterinary profession, especially the latter. There are a lot of opportunities for job seekers and candidates in the market, but there is also a lack of qualified candidates for many positions, especially for veterinarians.
Caleb: Where would you like to start?
Stacy: Well, as you mentioned, we have five big Animal Health and Veterinary recruiting and hiring trends to discuss, so let’s start at the beginning.
The first trend on our list is a shortage of qualified veterinarians, which I touched upon just a moment ago.
Caleb: We have discussed that multiple times before, correct?
Stacy: Yes, we have, but I wanted to talk about it again for a couple of reasons. First, the shortage not only continues to exist, but it’s actually become worse during the past couple of years. And second, there seems to be a debate about whether or not there is actually a shortage of veterinarians.
Caleb: There is?
Stacy: Yes, and all of the data and numbers point to the fact that there is a shortage, and that the shortage is reaching crisis levels, if they haven’t reached that point already. So, bear with me as I run through these numbers, which we have discussed before.
According to the Bureau of Labor Statistics in September of 2022, veterinarian jobs are projected to grow by 19% between 2021 and 2031. I monitor the BLS website for updates to this data, but there has not been an update so far in 2023.
The BLS is projecting 4,400 job openings for veterinarians each year, on average, over the decade, with approximately 1,450 of those job openings representing brand-new positions. The rest of those openings will be to replace workers who transferred to different occupations or exited the workforce, some through retirement.
When all is said and done, we could be looking at a shortage of 15,000 to 18,000 veterinarians by the year 2031. And believe it not, there’s an outside chance that the number could be as high as 20,000.
Caleb: And you’re not the only one who is saying this, correct?
Stacy: I am not. According to a report released by Mars Veterinary Health in March of 2022, a shortage of nearly 15,000 veterinarians could exist by the year 2030. Based upon those numbers alone, there could be as many as 75 million pets that could be without Veterinary care and services by the end of the decade.
Caleb: This is a trend that just continues to go in the same direction, isn’t it?
Stacy: Yes, it is, and at the moment, it does not appear that it’s going to reverse itself anytime soon. Also, this trend leads us directly to our second trend.
Caleb: Which trend is that?
Stacy: Increasing levels of starting salary and compensation. Although this has been happening in the Animal Health industry, it’s been more noticeable in the Veterinary profession.
Caleb: This is due to the lack of qualified candidates, especially veterinarians.
Stacy: Yes, that’s right. It’s the Law of Supply and Demand. Where there is high demand and low supply of something, that something goes up in terms of value. Veterinarians are in high demand, but there is a low supply of them, compared to what is needed in the market.
Caleb: What have you been seeing in the job market in terms of starting salary and compensation?
Stacy: Believe it or not, offers with starting salaries of less than $100K are being turned down. This applies to new graduates, too. Graduates are asking for and receiving starting salaries in the range of $100K to $150K right out of school. In fact, some students are receiving offers this large before they even graduate, and many are receiving multiple offers prior to commencement.
Veterinarians with three or more years of experience are asking for and receiving salaries of $140K+ with production. And some ER veterinarians are asking for starting salaries of at least $200K before they will consider making a move. They say they can make more doing relief work, so to take a full-time position, it has to be worth their while. We have seen salary ranges as high as $300K in general practice for an experienced doctor.
Caleb: What about bonuses? I would imagine that those have been increasing, too.
Stacy: They have been, both in their frequency and in the amount of money that employers are willing to give to veterinarians they want to hire.
Almost every offer includes a sign-on bonus of some kind. These bonuses are typically in the range of $10K to $20K, but they can exceed that amount if the candidate agrees to a multi-year commitment with the practice. I have seen sign-on bonuses of $50K. We have seen multi-year sign-on and retention bonuses as high as $250K.
Caleb: A quarter of a million dollars? Stacy, it used to be that a person could earn more money working in the Animal Health industry than in the Veterinary profession as a veterinarian. Is that still the case?
Stacy: That’s a great question, because yes, that used to be the case. However, because of the growing demand for veterinarians on the practice side, the gap between the Animal Health industry and Veterinary profession in terms of salary and other compensation has been steadily closing.
Caleb: What’s the next trend on our list?
Stacy: The next Animal Health and Veterinary recruiting and hiring trend is increased levels of what used to be called “job hopping” among professionals.
Caleb: So, it’s not called “job hopping” anymore?
Stacy: No, not really, mainly because no one really knows what genuine “job hopping” actually is in this current job market.
As an example, Lattice, a technology company specializing in business applications, conducted a survey a year ago. According to the results of that survey, 52% of respondents who had been at their job for three months or less said they were actively trying to leave.
And according to LinkedIn data published last year, Gen Z is changing jobs at a rate 134% higher than they were in 2019. Millennials are switching jobs 24% more frequently, and Boomers 4% less. These trends have not reversed themselves during the past 12 months. While there have been layoffs in the Information Technology industry, especially among the larger companies, we are not seeing veterinarians involved in layoffs in the US but I did recently see some veterinary layoffs in Canada.
Caleb: Stacy, does this mirror what you see in the job market on a daily basis as a Veterinary recruiter?
Stacy: Yes, I’ve seen this happen during my work as a Veterinary recruiter. Veterinarians are staying for shorter lengths of time that what I have seen in the past, and I’ve heard from at least two different sources that some veterinarians are changing jobs frequently so they can secure large signing bonuses, pay off their student debt, and leave the profession altogether. A professor at a Veterinary school I spoke at this Spring told me that as well.
Caleb: What’s next on our list of Animal Health and Veterinary recruiting and hiring trends?
Stacy: Our fourth trend is the continued increase in the number of mergers and acquisitions in the Animal Health industry. Like the veterinarian shortage, this is a trend that has not slowed down in the least during the past few years. In fact, like the shortage, it might be accelerating.
Caleb: What’s been driving these mergers and acquisitions?
Stacy: Multiple things, starting with the growing demand for Veterinary products and services. To capitalize on this demand, companies seek mergers and acquisitions to expand their product portfolios and acquire cutting-edge technologies and research capabilities.
In addition, because of the global reach of the industry, companies want to expand their geographic footprint and access new markets. Through mergers and acquisitions, they can gain entry into regions with a significant pet and livestock population, paving the way for increased revenue and market share.
Caleb: So, money is the driving factor? I guess that is not too surprising.
Stacy: Yes, as is the case for mergers or acquisitions, money is the driving force and the bottom line for the companies involved.
Mergers and acquisitions provide a competitive edge to companies that seek to strengthen their positions in the market. By acquiring or merging with other businesses, they can harness synergies, consolidate resources, and optimize supply chains. This results in increased efficiency and effectiveness, which can help them offer better solutions to their customers and outperform their competitors.
Caleb: What does this mean for Animal Health professionals?
Stacy: When a merger or acquisition occurs, companies don’t need two of each department. As a result, they reduce redundancies. This can lead to employees being overworked, and when that happens, those employees may start to look for another job.
Consequently, there are two things happening at the same time. First, there are veterinarians working in clinical practice who are looking for Animal Health jobs in industry. Second, because of ongoing mergers and acquisitions, there are experienced professionals already working in industry who are looking for new Animal Health jobs. This creates more competition for the jobs that do exist. Because there is more competition, those people who are looking for jobs in the Animal Health industry do not have as much leverage as those who are looking for jobs in Veterinary practice.
Caleb: Stacy, what is the last item on our list of Animal Health and Veterinary recruiting and hiring trends?
Stacy: The final item on our list is an increased emphasis on employee retention.
Caleb: Is this because of the veterinarian shortage?
Stacy: That’s one of the reasons. Also, it’s expensive to hire a new employee and it’s even more costly to leave a critical position open for an extended period of time and/or hire the wrong person for the position. But there are substantial challenges, especially in the Veterinary profession.
Caleb: How so?
Stacy: The Veterinary profession is a stressful one, and it has been for quite a while. According to research published by the Cornell Center for Veterinary Business and Entrepreneurship late last year, workplace burnout costs the Veterinary industry $2 billion per year.
Not only that, but according to the Merck Animal Health’s third “Veterinarian Wellbeing Study, conducted in collaboration with the AVMA in the fall of 2021, 92% of respondents rated increased stress as one of their top mental health challenges. That’s more than nine out of every 10, which is staggering to consider.
Caleb: Wow, that is a staggering number! We’ve talked about stress and burnout in the Veterinary profession before, but I didn’t realize it was that prevalent. What can organizations do to increase retention, so they don’t lose valuable employees?
Stacy: The most important thing to remember about employee retention is that the onboarding of new employees starts the moment they accept the offer of employment. It does not start on their first official day of work, because there is no guarantee they will actually show up for their first day of work. “Ghosting” is prevalent in both the job market overall and also within the Veterinary profession.
Caleb: And ghosting is when someone doesn’t show up for something, like an interview, is that right?
Stacy: Yes. In fact, some job candidates have been ghosting on the offer and even, as I just mentioned, on their first day of work.
Caleb: Have incidents like these become more common during the past few years?
Stacy: Yes, I would say that’s been the case.
Caleb: What can employers do about ghosting?
Stacy: The best way to combat ghosting and also ensure that candidates have the best experience possible is through proactive engagement. This means multiple things, including consistent communication, the clear setting of expectations, and answering any questions that the candidates might have. Remember that after a candidate accepts an offer of employment, they’re looking for reasons to believe they’ve made the correct decision. It’s up to the organization that hired them to give them those reasons.
Caleb: Stacy, we’re just about out of time, so is there anything else that you’d like to add before we wrap up today’s podcast episode?
Stacy: Yes. There are many Animal Health and Veterinary recruiting and hiring challenges that exist in the job market, with retention not being the least of them. Combating these challenges and overcoming the obstacles they present require a commitment and an investment of time, energy, and effort on the part of those company officials seeking to acquire top talent.
With that commitment and investment in place, you’re positioning yourself for more Animal Health and Veterinary recruiting and hiring success, both in the short term and for the rest of the decade and beyond.
Caleb: How can the members of our listening audience contact you, Stacy?
Stacy: You can visit The VET Recruiter website at www.thevetrecruiter.com, and if you’re listening to this podcast episode, then you might already be on the site. I would recommend navigating to the “Contact Us” section in the main navigation, where you’ll see multiple ways in which you can reach out to us.
Caleb: Stacy, thank you so much for joining us today and for all of this great information about Animal Health and Veterinary recruiting and hiring trends.
Stacy: It’s been my pleasure, and I look forward to our next episode of The Animal Health and Veterinary Employment Insider!
Caleb: Before we go, if you are an employer needing to hire top talent in the Animal Health industry or you are an employer needing to hire veterinarians, reach out to Stacy at The VET Recruiter. If you are an Animal Health or Veterinary professional interested in being kept in mind for Animal Health jobs and Veterinarian jobs, be sure to upload your resume to The VET Recruiter website. That way we can consider you for jobs we have now or in the future.
Okay everyone, thanks again for joining us and we look forward to seeing you again next week!