In an era of uncertainty, life sciences organizations are doubling down on what matters most: their people.
WTW’s Biopharma and Life Sciences Pulse Survey, conducted in October and November 2025, shows that while tariffs pose limited direct risk to most participants, broader economic and regulatory headwinds are driving significant changes in pay strategies and workforce programs.
From revisiting incentive designs to investing in skill-building and career development, companies are crafting reward systems that not only weather volatility but also position them for long-term success.
Despite the introduction of tariffs — such as the EU-U.S. trade deal imposing tariffs on most pharmaceutical imports — most companies report limited or no negative impact on profitability. Nearly half of respondents attribute this resilience to minimal exposure to international manufacturing and imports, while others cite mitigation strategies and leveraging actions already in place.
Only 10% expect a significant negative impact, while 43% foresee a limited effect and 47% anticipate no meaningful impact. However, the absence of immediate financial pain does not mean inaction. Companies are reviewing future incentive plan designs, with 20% planning to adjust their goal-setting process to reflect heightened volatility and uncertainty.
Tariffs have sparked dialogue at the board level. Half of surveyed companies have discussed the issue with their compensation committees, and 40% expect to revisit it as conditions evolve. However, only 10% have implemented concrete changes to executive pay programs to date, typically limited to incremental steps such as refining performance metrics.
53% of companies have discussed the potential impact of tariffs and trade deals on executive pay
Looking ahead, WTW expects companies to consider potential adjustments to their incentive plans, including flatter payout curves, shorter performance periods and a greater emphasis on time-based equity. These measures aim to maintain alignment with shareholder interests while ensuring retention during periods of market turbulence.
Beyond tariffs, economic volatility and regulatory changes are exerting significant influence on workforce rewards. When asked about drivers of program changes, 79% of respondents cited internal financial performance, while 54% pointed to cost-saving initiatives. Market volatility (43%) and competitive talent pressures (46%) also rank high, underscoring the need for adaptive reward strategies.
Regulatory shifts introduced by the current administration were noted by 18% of respondents, reflecting the sector’s sensitivity to policy changes that can impact pricing, reimbursement and compliance costs.
Companies are walking a fine line between cost containment and talent development. Two in five organizations have already right-sized their workforces, and a similar proportion are investing in skill-building and career development. Retention strategies for critical roles, expanded wellbeing programs and clearer career paths are also gaining traction.
Interestingly, few companies are aggressively cutting compensation and benefits spend or rebalancing total rewards programs. Instead, the focus is on strategic reallocation — channeling resources toward initiatives that strengthen workforce resilience and future readiness.
Tariffs may not be the existential threat some feared, but their ripple effects — combined with economic and regulatory uncertainty — are reshaping how life sciences companies approach pay and performance. The emerging trend is clear: Flexibility, resilience and talent investment will define successful reward strategies in 2026 and beyond.
