4
Managing R&D Professionals: HRM Practices and Current Challenges

Since the 2000s, managing R&D professionals has been the subject of increased theoretical and empirical interest as companies have engaged numerous HR management initiatives destined for R&D communities. Despite many HRM practices being developed and numerous debates in academic research on these issues, there remain a great number of challenges for the Human Resources function in R&D [CHA 12]. In section 4.1, we highlight the relatively recent and structurally complex nature of the relationship between HRM and R&D. We then review the different HRM practices (strategic HR planning, recruitment, assignment and mobility, evaluation, remuneration, careers, competence management) as observed in contemporary R&D organizations. Finally, considering the profound changes witnessed by R&D most recently, the limits of certain HRM practices are reported, calling for an in-depth reinvention of at least some of the management methods destined for R&D professionals.

4.1. HRM and R&D: complex relationships

Although for a long time the R&D world remained impervious to the interventions of Human Resources Departments (HRD), this is no longer the case. Over the past two decades, HRM practices have become increasingly significant in this scientific and technical world. This generates a number of tensions. These tensions are partly due to the mutual lack of understanding between these two worlds, and also to the underlying fundamental differences in their ways of thinking (section 4.1.1). Thus, one of the areas of structural tension relates to the dilemma between standardization and differentiation of HRM practices deployed in R&D compared to the “usual” practices applied to other employee groups of the company (section 4.1.2). The rise and the increased popularity of project organization in R&D is one of the key elements that challenges the relevance of traditional HRMs practices and calls for the invention of new methods of regulating work in R&D (section 4.1.3).

4.1.1. R&D: a world that has long remained foreign to HRM regulations

R&D has long been managed according to the endogenous rules of a professional world marked by the very strong influence of peers and epistemic communities that extend beyond and across organizational boundaries. Until the early 1990s (in France, for instance), it was normal that R&D, and especially the “R” part within it, should be self-managed according to its own logic and without the intrusion of “external” actors having a managerial vision. To this day, recruitment, individual evaluation and career management practices are marked by the influence of reputation phenomena within the community and by judgment criteria that are very similar to those of the academic world (such as the expertise, originality and robustness of the knowledge generated).

This industrial R&D world has always been very porous with regard to academic research. Industrial R&D researchers and engineers who are trained and socialized within the higher education and research system, once hired in a company, continue to maintain close links with the academic world within the framework of their professional activities. A certain mimetism in job titles or promotion criteria gives industrial R&D professionals legitimacy with regard to academic partners and public authorities (see Box 4.1). This legitimacy enables them to establish a relationship with academic research and to reap a good number of benefits from these links, such as opening up access to knowledge and ideas, equipment, recruitment pools, funding, etc.

This near autonomous regulation of R&D, which was fairly widespread until the 1990s, was not specific to R&D. Thus, organizations had quite similar operation methods and hired highly qualified staff (teachers, doctors, magistrates, etc.), which the sociological literature referred to as “professionals”. In these organizations, HRM, as stated by Pichault and Nizet [PIC 13], was of conventionalist (or deliberative) type: admission and professional assessments were collegial; recruitment and promotion decision-making processes were subject to co-optation by a peer panel; training was fully controlled by professionals.

However, though R&D is not the sole professional field governed by this type of HRM logic and these types of practices, it stands out within large industrial companies. The most widely disseminated HRM practices were indeed designed in large corporations, but for functions other than R&D and estranged from these professional communities. Therefore, it is no exaggeration to say that HRM and R&D share a mutual lack of understanding.

For HRM specialists, R&D activities and technical expertise are still largely a terra incognita. This stems from cognitive complexity and cultural distance. It is indeed very difficult for the managers to understand such a complex activity (with specific vocabulary and concepts) which is moreover intangible. The R&D activities are in fact largely inaccessible for anyone outside the field. This could even be the case between the scientists themselves: a polymer chemist, for example, who is unable to understand and evaluate the quality of the work of a mathematician specializing in specific types of algorithms. This is what justifies the relevance of the peer review. Therefore, we can imagine how it is even more difficult for actors in the HR function, mainly from “non-scientific” training (their background being generally human and social sciences: law, psychology and particularly management). In addition, the vast majority of them have neither prepared nor defended a PhD thesis nor been trained in research. Beyond cognitive distance, these communities are also alienated by cultural distance. Thus, HR managers perceive researchers as people with strange and unusual ways of working, rebellious to any management regulation. This cultural distance is less significant for engineers working in the “Development” part of R&D and engaged in more “concrete” activities (in the sense of greater materiality and closer proximity with applications), but it still remains important.

Symmetrically, from the point of view of R&D personnel, HRM, just like management in general, is perceived as a set of administrative activities, without much interest. R&D engineers and researchers often have a very inconsistent understanding of what HRM is all about. This is often limited in their minds to the payroll or other administrative tasks. In addition, if it is explained to them or if they observe that the HR function has a potentially broader scope of intervention, the discussion turns to the competence, or incompetence, of HRM specialists. Since they do not have a scientific and technical training background, what could be their contribution? How can they be relevant and bring added value to decision-making with regard to recruitment or promotion, for example? What is their legitimacy to intervene in the operational modes of a professional world of which they understand nothing? Therefore, any attempt to penetrate one’s territory is viewed with some suspicion.

In a bid to bring these actors closer together, the company initiates training and communication actions. Thus, training introduces R&D professionals to the mysteries of management. Cooperation is sometimes organized around one-off events, particularly during meetings with higher education institutions aimed at recruitment. We might think that through constant collaboration, the distance between the two worlds should scale down. However, this is not enough. On the contrary even, the more we know each other, the more we realize that we are not driven by the same logic and that these logics are neither spontaneous nor necessarily reconcilable [BOB 15]. The distance is particularly wide between the scientific and technical logic advocated by researchers and the managerial logic that HR departments intend to promote. While the former, discouraged by the routine and normative constraints that limit their creativity, aspire to freely produce an original work, the latter intend to make the same managerial order prevail in the entire company.

Moreover, would it not be uncommon for relationships between R&D and HRM to take on the proportions of a standoff, when they do not escalate into confrontation. What may have changed over time is the powerful upswing of HRM, as well as economic and managerial logics in general that take precedence over the magnitude of scientific and technical logic, hitherto very strong in large French industrial groups long managed by former engineering school graduates.

Thus, HRM now receives greater attention in R&D, but relationships with scientific and technical professionals are still complicated. Although the latter partially, and in spite of themselves, integrate management logic that has become very significant, including in R&D, they consider the HR function as the linchpin behind a broader managerial rationalization project (see Chapter 3) combining control, economic logic and bureaucratization, which is indeed what it is. The issue then is the ability of the HR function to be something more than just that. Could it be also a source of added value through the actions it undertakes within the R&D field? This is an essential discussion that will be continued throughout this chapter.

4.1.2. Recurrent tension between standardization and differentiation

Once HRM penetrates the R&D world, the issue of the application of “standard” practices (similar to those deployed in other functions), or, in contrast, “differentiated” practices (adapted to R&D specificities), will arise. The standardization-differentiation dilemma exists for other communities, but is particularly intense in R&D. Indeed, it combines a good number of specificities, which distinguishes it from the other functions of the company: the R&D activities are creative, uncertain, complex, singular, intellectual and partly immaterial, open to the outside, etc. (see also Chapter 2). They are driven by highly trained and autonomous professionals, invested in epistemic communities. This standardization-differentiation dilemma of HRM practices in R&D has been the subject of several studies [CHA 05, DHI 08].

Each alternative has certain advantages and disadvantages. Standardization simplifies the application of HRM processes by providing a common base, and it enables the specialization of the work of HR actors and thus a rise in professionalism of the latter (and incidentally a rationalization of the costs of the HR function!). The deployment of homogeneous practices throughout the company is also a source of internal consistency that is put forth to encourage collaboration and crossfunction mobility. It addresses the concern for equal treatment between all employees of the company. It helps the HRD to increase its influence and assert its central role, managing all processes covering the entire company from the head office. However, standardization widens the distance between the HR function and R&D, because of the negation of the specific nature of R&D and its actual conditions for operation. The R&D professionals could feel disqualified when obliged to follow the standards imposed by organizational actors whose legitimacy they question.

Conversely, differentiation makes it possible to adapt to the specificities of R&D activities and professionals, and to their cultural particularities. The implementation of HR practices specifically designed for R&D communities makes them more legitimate, thus facilitating their appropriation by R&D stakeholders (managers and professionals). Another positive effect of the differentiation of HRM is the possibility to assert its expertise in relation to that of the technical world. However, differentiation raises several questions. It indeed introduces a violation of equal treatment. It can introduce additional impediments relative to the possibilities of crossfunction mobility for R&D communities, in the context where R&D employees are already perceived as atypical and not specifically bound to move from one department to another.

Thus, the appropriate question, rather, is to know where to position the cursor on the continuum of situations moving from total differentiation to absolute standardization: differentiating or homogenizing to what extent? Which HR variables (recruitment, remuneration, training, mobility, career management, promotion of professional equality, etc.) should rather be differentiated or standardized? If we want to differentiate HRM practices, on what grounds will they be actually differentiated and how? In any case, before following a certain option, it is necessary to question the reasons behind such action, while avoiding to conform to dominant practices by a mimetic behavior of copying the practices of other companies without questioning what relevance they would be of to us. It is equally important to ponder on the actions that can help us to avoid or limit the adverse effects of the selected option, since, as previously indicated, standardization and differentiation each have certain disadvantages.

Many companies are trying to adopt a middle-of-the-road approach, associating some degree of standardization (following a managerial rationalization process) and partial adaptation to R&D specificities. Several factors promote a greater homogenization of HRM practices between R&D and other functions, and this coupled with a convergence towards HR models that are globally disseminated, especially the individualizing model (as referred to by Pichault and Nizet [PIC 13]). Here, the internationalization of large industrial undertakings and their R&D (see Chapter 1) operate in this direction. However, studies suggest that there is not necessarily a strong alignment as we might have thought.

As for the convergence towards a global and single model, Béret et al. [BÉR 03] showed the persistence of national differences. Thus, recruitment and remuneration systems continued to be designed at the national level, reflecting the legal and institutional differences of countries that are taken into account in human resource management practices applied in the R&D sphere. Further studies have to be conducted and considered in this perspective, given the recent intensification of phenomena around the internationalization of R&D and globalization of management models.

Regarding the convergence towards the individualizing model, Dhifallah et al. [DHI 08] demonstrate on two cases, Saint-Gobain and STMicroelectronics, that the latter has indeed gained considerable ground in R&D. However, they point out how the conventionalist (or deliberative) model practices persist or at least how hybridization occurs through an adaptation of individualizing practices to R&D specificities (for example, an individualized remuneration indexed to patent filings).

Before describing the HRM practices most frequently observed in R&D today in detail (in section 4.2), it would be important to highlight how changes in the organization of R&D have enhanced the development of specific HRM practices. Thus, the intensification of project organization since the late 1980s called for a reflection on HRM methods adapted to these particular forms (temporary, matrix, multidisciplinary) of work organization.

4.1.3. Project organization: a necessary source of adaptation of HRM in R&D

Project organization, which is now common in R&D activities (see Chapter 2), suggests the recognition of the need for specific HRM practices. The latter are a combination of recognition, on the one hand, of project mode specificities, which are of course not reserved for R&D and can now concern a wide range of business activities, and R&D specificities, on the other hand.

In so far as the quality of human resources is a prerequisite for project performance, especially R&D, and where the project is itself a vector of skills development1, HRM has to give attention to the management of people involved in projects. Its traditional practices were destabilized because of projects’ characteristics disrupting the classical (hierarchical, vertical and functional) organization within which and according to which HRM was built. Indeed:

  • – projects involve, to varying extents, dual project/profession authority;
  • – they question the authority of the professions, embodied in classical functional structures.

Studies then focused on the issues raised by this new organizational form and its potential impact on HRM, as well as on the relevant responses that the latter could provide to these specific situations of temporary assignment of individuals to cross-functional projects. These include Baron [BAR 99], Paraponaris [PAR 00], Garel et al. [GAR 03b], Zannad [ZAN 08], and Loufrani-Fedida [LOU 11].

As Garel et al. [GAR 03b] have shown, the project structure raises multiple issues for HRM, including the recruitment of project managers, training, evaluation, remuneration and career management. These issues are discussed in the next section, as the different HRM practices currently observed in R&D are reviewed.

4.2. HRM development in R&D today

In the following sections, we propose an assessment of the most common HRM practices in R&D today. We rely on our own observations [GAS 06, GAS 16, CHA 12, LEL 14] and academic literature. We seek to uncover the emergence, objectives and concrete realization of the major HRM practices as applied to the management of R&D professionals: strategic HR planning, recruitment, assignment and mobility, evaluation, remuneration, careers, competence management, etc.

4.2.1. Strategic HR planning

HRM should not only react to the needs and difficulties encountered as and when they arise. It is important, although difficult, that it tries to anticipate their occurrence, in order to have the necessary time to implement appropriate actions that help, to the greatest possible extent, to avoid situations of mismatch between the organization’s needs (specifically in terms of staffing needs and aspired competences) and the actually available resources. Efforts are being made towards applying a strategic planning approach for R&D activities. Such an approach mostly concerns, large companies, however, as the smaller ones have more difficulties in anticipating their future. Large companies have embarked on major projects in order to anticipate future critical competencies. Orange, for example, tries to predict what impact would environmental, strategic, organizational, as well as technological choices of the company have on the R&D professions (in terms of staffing needs and required competences). This work is carried out by both HR departments and R&D management.

Strategic HR planning aims to identify the jobs and competencies to be strengthened, developed or upgraded, as well as those whose downsizing has to be prepared. The result of this is differing decisions that mobilize the whole range of HRM tools. When there is a need to increase the number of employees or to develop new competencies, in anticipation of the expansion of a market, successful innovation and the rise of certain technologies (for example, digital technology, Big Data or artificial intelligence), various HR practices will be implemented: recruitment, incoming mobilities, training, etc. Other decisions can be taken that do not fall within the scope of HRM. Such is the case with external growth transactions, when company takeovers make it possible to appropriate new product portfolios, markets, patents and R&D teams. The same is true regarding the use of outsourcing and service providers who offer particular expertise. Indeed, business service providers are growing, and some companies such as Altran Technologies are offering engineering and innovation solutions.

Companies may also face more difficult configurations, where staffing and skills needs are declining, which requires downward adjustments of existing resources. This is the case when products are abandoned, markets divested and expertise outsourced or when technologies become obsolete. HRM then has to initiate actions (outgoing mobilities, new skills training, VAE, voluntary departures, etc.) as soon as possible to prepare re-qualification and re-training for the concerned employees and to accompany the possible departures.

However, deploying a truly strategic planning is a difficult objective, regardless of the company’s functions and professions, but perhaps even more so in the area of R&D. Thus, in an uncertain environment that is subject to rapid changes, instrumental approaches are often unable to predict possible market upheavals as well as future technological advancements (internally and externally), including the opportunities they can create in terms of innovation.

4.2.2. Recruitment and integration

4.2.2.1. Recruitment adapted to the specificity and diversity of the R&D profiles

Recruitment needs are derived from a variety of factors. They can emanate, as pointed out by Akhilesh [AKH 14], from the diversification of activities, creation of a new product line, development or integration of a new technology, establishment of a new partnership or any other form of collaboration. Recruitment needs also depend on staff turnover in R&D, since R&D professionals can quit their positions for many reasons: promotion within R&D, resignations, dismissals and moving to other functions of the company. Indeed, crossfunction mobilities are strongly observed today in large industrial companies; they occur earlier in the professional career and concern almost exclusively outgoing mobilities from R&D towards other functions. Reverse mobility turns out to be very rare. The latter is not particularly beneficial for individuals and is also seldom desired by companies that generally choose to recruit externally when it comes to R&D.

Beyond the fact that it is mainly oriented towards the external labor market, the R&D recruitment process has other characteristics resulting from the specific nature of R&D activities and the particularity of candidate profiles.

A strategic dimension of recruitment management lies in the identification of the right profiles sufficiently in advance. Within a context of “war for talent”, this involves targeting and attracting potential candidates before they are identified by competitors. Thus, establishing relationships with engineering schools, universities and research organizations is very important. The position of “campus manager” has thus been created within HR departments in order to identify, attract and pre-screen young people with interesting profiles while they are still pursuing their studies. HR and R&D managers are in charge of identifying national and international higher education and research institutions, which constitute relevant recruitment pools for the company as they provide specialized training or conduct relevant research activities. They must then communicate with the institutions about the company’s businesses, career opportunities, the recruitment process, etc. Beyond the communication efforts, various actions could reinforce the link between the corporate world and the academic institutions: internships offered to students, scholarships, joint supervision of research papers and PhD theses, various grants, post-doctoral internships and, more recently, teaching and research partnerships, participation in the development of academic curriculum, etc. Such actions help to adjust the content of academic learning with companies’ future needs, which will be mutually beneficial for students and companies.

The recruitment needs and the profiles of potential candidates could vary depending on the business sector, the scientific and technological field and the innovation strategy of the company. A company oriented towards breakthrough innovation will prefer PhD holders, and more particularly those with postdoctoral experience, while a company that prioritizes incremental innovation may prefer profiles with a lower level of academic training. For the companies that are targeting the candidates with doctoral degrees, it could be very beneficial to invite PhD students to complete their thesis within the R&D laboratories. Beyond the possibility to deepen a potentially innovative topic, such a practice could also serve as a pre-recruitment process. In France, a specific agreement – CIFRE convention – could help the companies to reduce the cost of hiring of a PhD student.

Though most R&D recruitments concern young researchers and engineers who have recently completed their training, the company may sometimes want to integrate more experienced profiles. These researchers often come from partner companies, clients or competitors. They are generally well acquainted with the business sector, have valuable networks and may have had project management or hierarchical management experience, which could be beneficial for a company that is willing to recruit senior R&D staff members.

Another characteristic of the recent period is the ever-increasing requirements concerning the level of competencies expected of new recruits. Beyond technical and scientific skills that remain essential, the so-called “behavioral” skills are becoming increasingly significant in recruiters’ evaluation grids. Indeed, it is expected that candidates should demonstrate some level of curiosity, leadership, ability to communicate and convince, entrepreneurial spirit, etc. [CHA 12]. Companies are becoming more and more demanding and could even paint an (overly) ideal picture of an R&D employee who must excel in a large number of fields and be capable of taking on various roles. The risk would be the inability to fill the positions because of highly selective criteria that greatly reduce the potential recruitment pool.

These difficulties are exacerbated as the evolution of R&D management methods (see Chapters 2 and 3) comes with contradictory expectations. This is the case when the company asks R&D professionals to let go of routines, be creative, invent the future, and also comply with work processes and more formalized management rules. Holmqvist and Spicer [HOL 12] point out that the companies try to create “ambidextrous employees” and Chapters 2 and 3 have pointed out the tensions that these paradoxical injunctions generate in the daily work of R&D professionals.

In view of the accumulation of skills and roles expected of R&D professionals, it would be more relevant to reason in terms of not only individual but also collective competencies. This would make it possible to more reasonably consider how all the expected skills and roles can be assumed by the team as a whole, and not by each of its members (see Chapter 5). Beyond the complementarity of skills and roles, the compatibility between the new recruit and the team he/she will integrate should also be taken into consideration. However, we must also look beyond the position that will be occupied in the short term, because the recruitment of R&D professionals is always done in a longer term horizon. It then becomes necessary to question the candidate’s career aspirations as well as their professional development abilities, particularly towards expertise, project coordination, hierarchical management or other functions.

Alongside the rise of these new expectations (behavioral skills, ambidexterity, potential for development, etc.), we observe a much stronger presence (and power) of HR actors in recruitment processes, where previously they could be completely excluded. HR actors are better positioned to appreciate candidates’ soft skills, their motivation, career aspirations and ability to integrate and grow within the company, including outside R&D, in connection with the possible paths and those desired by the company. On the other hand, because of the highly specialized nature of scientific and technical skills, peers remain involved in the sourcing (detection) and selection of candidates, alongside HR managers and the direct hierarchy. Such a heterogeneity of evaluators brings more detailed assessment of the different facets of candidates’ skills. It also enables them to better picture what their future work environment could look like in the short and medium terms. It is indeed important to pass a carefully conceived message to candidates, in order to promote a realistic vision concerning the content of their future work, missions and projects they will be working on, career opportunities, the company’s operating rules, etc. This helps us to prevent the new recruits from having any disappointments when they actually enter the company.

4.2.2.2. The crucial phase of integration

Recruitment does not end with contract signing and the integration phase represents a crucial step that will ultimately determine recruitment success or failure. Integration is a socialization process through which values and standards are transmitted and professional identity is created. Despite the importance of integration, this crucial process could be missing or not efficiently managed in organizations.

The first year within an R&D department is often a challenging experience and a source of stress [KAT 04] for a new recruit. This involves trying to be accepted by the team and peers, becoming acquainted with the company’s operating rules and feeling useful by deploying his/her skills to the service of the company’s strategic activities. If this phase is not successful, the risk of constrained or voluntary departure of the employee increases considerably.

It is therefore important to reflect on both the content and the process of socialization [KAT 04] in order to deploy practices that enhance it. Regarding the content, explaining acceptable and required social attitudes in an R&D environment will facilitate the integration of new employees. This includes supporting them in developing their roles and organizational identity, while allowing them to gradually feel at ease in carrying out their work, from the understanding of procedures and communication channels to the mastery of the technical dimensions of the profession. As for the socialization process, it depends on the quality of interactions of the new employees with the other actors of the company. This process could be more or less long depending on organizational factors and personal characteristics. The success or failure of the integration phase has a considerable impact on the employees and could potentially impact the rest of their professional life. It is therefore necessary to create an environment that is conducive to the new recruits’ initial stages within the company. Raising awareness among local managers, as well as the implementation of specific training programs, could be among the possible actions facilitating the integration process within an organization.

4.2.3. Assignments and mobility

4.2.3.1. Assignments to projects and selection of project-actors

With the growing importance of project organization in R&D, the assignment of diverse project contributors becomes a crucial issue. The success of the project depends largely on their competencies and their investment. However, these assignments are also critical for R&D professionals themselves because, beyond the immediate consequences, it is their subsequent career trajectory that can be greatly influenced by the visibility of projects to which they are assigned, by the degree of learning generated (or not) by the work on the project, and, of course, by the project’s success or failure.

While the assignment choices are usually made by managers, it is important that HR considerations are also taken into account. It is crucial to assure the fit between the employee profile and the project, in terms of both hard skills (scientific and technical) and soft skills (ability to communicate, to adapt to other professional logics, to understand clients’ needs, etc.). The company should pursue the assignment policy that creates learning opportunities and avoids the risks of skills obsolescence. Thus, a succession of projects in “exploitation” (or operations) poses risks of exhaustion of expertise and skills obsolescence in areas where the state of the art constantly changes. While an alternation between “exploitation” and “exploration” projects seems more relevant, the pauses between the projects are also crucial as they help us to enhance the capitalization of skills and the professionalization of individuals in their technical profession. A balance must also be found between continuity and renewal of the expertise areas [CHA 12]. Continuity not only makes it possible to give a greater depth to a field and develop valuable expertise for the individual and the company, but also promotes “closing up” in a specific field, which could bring problems of employability if the concerned field loses its scientific or strategic relevance. The frequent changes in subjects, on the contrary, allow for a greater versatility which is a guarantee of flexibility for the organization and for the individual, but it could endanger the acquisition of strong expertise within one particular field.

Another key issue raised by project organization is the selection of project managers. The complexity of this role has attracted much attention both within academic research and with the practitioners. Professional associations have proposed standard profiles, such as the Association francophone de management de projet (AFITEP) or the Project Management Institute (PMI), which develops standards and offers certifications. While there is not much debate on the competencies needed for a project manager, their relative importance can vary according to several factors: the nature of the project to be managed (exploratory or development), the project phase (the first phases of the project require creative strategist qualities, and subsequently, managerial needs appear) and the type of management (control focused on cost or profitability, see Chapter 6). Table 4.1 thus highlights the differences in the skills expected in a cost-control project (identified client, detailed specifications formulated by the latter) or in a profitability-control project (potential customers, technical specifications and deadlines are dependent on the internal decisions and are not prescribed by a clearly identified external sponsor).

Table 4.1. Project manager’s skills by project type (according to Garel et al. [GAR 03b])

Project manager’s skills Cost- control projects Profitability- control projects
Mastery of the instrumental dimension of project management +++ ++
Mastery of the technical fields involved in the project ++ +++
Understanding of the project’s specificities and commitment to its objectives ++ +++
Social competence +++ +++

The set of skills required for leading a project also depends on the power granted to the project manager, which could truly be a leadership role. As Midler [MID 93a, MID 93b] observed, the Heavyweight Project Manager designs the project, builds the teams, manages them and benefits from considerable delegation of power. The manager must therefore have strong skills and legitimacy with regard to the various project stakeholders since these roles are very demanding.

4.2.3.2. Mobility of R&D professionals

While project assignments could be considered as temporary mobility, R&D professionals could consider following their career trajectory both within and outside of R&D.

In this area, the trends are the same as those observed in the other functions. The HR function promotes a stronger mobility in all directions: organizational, geographic, functional, etc. This mobility is supported not only by the communication efforts, but also by the established procedures and mobility incentives. For example, at Rhodia, it was shown that, from the early 2000s, there would be no more internal promotion and, in order to apply for the managerial positions in R&D, the person should have passed through various mobilities. Sometimes, international experience was also required. Similarly, in the oil sector, passing through the operational position in the subsidiaries is a critical condition for career progression [LEL 14]. To facilitate these transitions, the HR function develops many tools. Some would support the individual proactivity, such as internal job databases, job mapping and possible career paths. Others are rather management tools, such as “people reviews” carried out by “career and mobility committees”, made up of HR and line managers, who examine the situation of each R&D professional and point out possible evolutions for those who are considered to have stayed long enough in their current position.

In some companies, driven by the idea that people should not stay too long in R&D, there is strong pressure for R&D engineers to leave R&D and bring their ideas to other functions of the company. This is the pool model [GAS 07] in which R&D serves as a recruitment firm and training room for technical managers of the entire company. Within the framework of projects, the heads of other functions also more easily identify talented R&D engineers than before, and they seek to attract them with interesting proposals. Many R&D professionals are sensitive to these prospects of evolution. Indeed, career progress in “less uncertain” environments is often faster, remunerations are higher and extra-monetary compensation factors (responsibility, proximity to power and clients, pleasant workplaces, etc.) are more stimulating than in R&D.

Though these are strong trends, they raise a number of questions. Is the temporal pattern of mobility every three years (which is almost established as a norm) relevant to R&D, whereas its activities take place over longer periods? Since R&D’s mission is to develop and establish a base of distinctive scientific and technical expertise that takes around 10 years to create, is it not risky to insist on classical rules of mobility for R&D professionals? Would it be better to keep a pool of highly skilled researchers and engineers in R&D who are able to invent radically new products from scientific breakthroughs? Here, we see the limits of the application of a standard human resource management model, which does not take R&D specificities into account. Some companies, on the contrary, try to make R&D an attractive career space in which professionals can move and evolve, without being required to leave the science and technology sphere.

4.2.4. Individual assessment

4.2.4.1. Limitations of the standard model

The assessment of R&D professionals is another HR practice, where the limitations of the standard model become evident.

The first limitation concerns the individualization of assessment. Indeed, HRM is moving towards the individualizing model as described by Pichault and Nizet [PIC 13], which is characterized in particular by the personalized assessment. R&D professionals are no exception. This orientation raises an initial series of questions in the R&D environment: “Does this include identifying the specific contributions of employees involved in essentially collective activities? Or is there a particularly subtle incentive mechanism that involves regularly recalling the spirit of collective work to people?” [MAR 03a, p. 6]. Such a reminder of the collective dimension of work seems essential, in view of the forms of work organization and performance drivers that characterize R&D today.

The second limitation in applying the standard R&D assessment model concerns the temporality of assessment: when should assessment be done? How often? R&D activities follow their own cycles, which are not always in line with the annual assessment logic. Some activities and projects may fall within a short-term horizon, while others may have much longer timeframes (for example, in the space and aeronautics fields where research programs may take many years to complete). Moreover, R&D activities, and in particular its research part, could hardly follow the annual budget cycle, as can be the case, for example, for sales representatives or accountants. The calendar year is not necessarily a relevant temporal pattern for these activities.

The third limitation in applying the standard R&D assessment model concerns the choice of the assessor: Who should assess R&D professionals? The standard response, which consists of saying “it’s the direct hierarchy”, is not always appropriate. As the process involves assessing highly developed and complex skills and the results of the advanced-level work, the hierarchy could not necessarily have sufficient expertise for the assessment. It is becoming even more difficult for managers, as the tendency is to enlarge departments and technical units by bringing together different technical areas. In addition, if the manager does not have a technical or scientific background but comes from technical marketing or industrialization, this could bring additional difficulties for the legitimacy of assessment.

The involvement of R&D professionals in projects also makes it complicated to rely solely on the judgment of the line manager. Indeed, they are not in a position to give their own assessment of the contribution of individuals in projects that they do not manage, particularly when these projects absorb a large part of the working time of researchers and engineers. Even if project managers forward their assessments, will it be possible for a line manager to give a fair judgment of contributions of an individual working on an external project, compared to the assessment of the individuals who remained directly under his/her supervision? Conversely, relying exclusively on project managers, who are engaged on a short-term horizon, is also not the ideal solution. They are inclined to strictly assess the specific qualities needed for project realization, which is normal, but these qualities may not include the specific indicators related to the professional criteria (which will be used in the specialized department), since the project manager does not necessarily have an appropriate reference framework of comparison. There is also a risk that the project manager could lose sight of employability and competence development issues of the assessed person that the business hierarchy could have in mind. Thus, line management still has a say in the matter, but it is henceforth no longer the only actor responsible for assessing the work of R&D professionals. Project managers, teammates, and peers within and outside of the company are also stakeholders in the assessment process.

A “good” assessor is therefore the one who is legitimate to judge the work of individuals, because of his/her skills and proximity to the activity carried out, which in the case of project organizations in R&D leads to a plurality of assessors to be put forward. Their understanding of the work performed and the skills mobilized also make them well positioned to propose competence development paths. Further to this, Galambaud [GAL 83] points out that the “good” assessor must also have sufficient influence in decision-making processes in order to be able to assure actions following the assessment (regarding the funding of training, premium distribution, assignments, work organization) and to put in place the resources required to achieve the objectives. Thus, the choice of the assessor must be subject to a more decisive question: assessing for what purpose? Leaving aside the bureaucratic idea that we assess “because we have to”, the managerial response is that we assess to contribute to performance management in R&D, which raises the sensitive issue of assessing individual performance in this area.

4.2.4.2. The sensitive issue of assessing individual performance

The current trend is to focus such assessment on individual performance [GIL 17], whereas it could emphasize the way the work is done, the efforts engaged, behaviors, skills or development potential. R&D is not an exception to this trend, even though the limits of the assessment based solely on the estimation of results have been reported for this type of activity [MAR 03a].

There are many difficulties in assessing individual performance. How can a distinction be made between what relates to the individual and what relates to the situation or to other actors involved in the activity, knowing that the collective aspect of work in R&D is quite significant? Beyond that, since a plurality of actors can be involved in the judgment of the performance of R&D professionals, we are confronted with the diversity of the logics expressed by each of them (see section 4.1.1), as illustrated in Box 4.3. Chapter 6 shows the complexity of the very definition of R&D performance and its measurement. This complexity is found at all levels, whether it involves assessing the performance of a department, laboratory, program or an R&D engineer.

4.2.5. Remuneration

Research work is known to bring intrinsic satisfaction (accomplishment, esteem, autonomy, skills development). However, on the one hand, not all R&D professionals devote most of their activity to research, and, on the other hand, the image of the disinterested researcher is largely mythical. Even if such a stereotype is internalized by young scientists when they enter this professional path, they do not withstand the material constraints that increase with age. The comparison that R&D professionals make with managers in other functions, who are often less qualified but better paid than them, generates frustrations and claims. As with other worker communities, remuneration is an important mobilizing factor (although not the only one) and it should not be neglected.

To meet these expectations, in addition to the fixed job remuneration, companies develop methods aimed at recognizing individual contributions. The introduction of variable performance incentives, within a set salary range for each job, is the most common action.

Another form of differentiated individual compensation is the remuneration for employee inventions. It is mandatory in France following a 1990 law and could take various forms according to the company strategy (see the example of Air Liquide in the box below).

Emphasis on individual reward remains dominant, although there are corporate managers who today could adopt Joly’s [JOL 97, p. 82] formula: “The concept of the individual researcher who independently produces ingenious ideas is probably only a popular imagery”.

Some companies have established collective bonuses, with a broad range of practices depending on whether the considered collective is the entire enterprise (with bonuses reproducing the logic of profit-sharing systems), R&D department or the project team. Thus, the rise of project organization has led to questioning of the relevance of an extreme individualization of remuneration. Indeed, the latter proves to be clearly inadequate, and even a source of perverse effects, given the significance of the collaborative nature of work, as well as the importance of the solidarity between project actors and their joint pursuit of project goals. Project organization also raises the issue of the temporality of remuneration: while it is logical to show recognition at the end of projects’ key phases, the latter are not specifically connected to the periods set by the HR department for the award of bonuses. The establishment of team bonuses paid at the end of a successful phase of a project shows a certain adaptation of remuneration methods to R&D specificities. They remain, however, a rather rare practice.

Thus, regarding remuneration, as for other HRM practices, companies attempt to combine the consideration of R&D professionals’ specificities, on the one hand, and general harmonization, on the other. This concern is at the origin of the “dual ladder” tool, which aims to propose an equal level of remuneration for technical experts and hierarchical managers. Since the dual ladder is considered primarily as a career management tool, we will present it in the next section.

4.2.6. Careers

4.2.6.1. When career is not limited to hierarchical progression

The concept of a career is a complex construct that has been the subject of numerous studies. Here, we adopt the definition proposed by Arthur et al. [ART 89, p. 8], according to which a career is an “evolving sequence of a person’s work experience over time”. This definition which is widely shared today by management scholars goes beyond the traditional view of a career, associated with hierarchical progression, to include any type of work experience that has meaning for a person.

This approach is particularly relevant for studying the careers of R&D staff for whom hierarchical progression is not always the dominant aspiration. Indeed, some give priority to specialization, preferring scientific and technical excellence to managerial responsibilities. Career aspirations vary according to the profiles, which can be quite diverse in R&D, even if there is no determinism. Thus, researchers, engineers and technicians, although they collaborate in their daily work, may have different values and expectations. The distinction introduced by Gouldner [GOU 57] between “locals” and “cosmopolitans” could also be found in R&D. Thus, alongside engineers who generally have “local” orientation, as they identify themselves more strongly with their company (by seeking to stay and progress within the latter, often within a classical and hierarchical sense of career), researchers, on the contrary, could be considered as “cosmopolitans” as they are generally more loyal and attached to their professional community, which they consider as a primary source of legitimacy and as a space where their careers are enacted2 [LEL 14].

4.2.6.2. From the accreditation to supervise research to the dual ladder

The careers of industrial researchers have for a long time been modeled on those of academic researchers and, although this is less the case nowadays, there is still some porosity between these professional worlds. In France, some of the most “sought-after” profiles still prepare and present the HDR (accreditation to supervise research), which is defended in front of a panel composed mostly of academics. Thus, judgment on the value of work and individual competencies is externalized. It is fully carried out within the science and technology sphere, without the interference of managerial, economic, industrial or administrative logics.

Some companies have heard these expectations regarding expertise recognition from people who aspire to develop their skills and continue their R&D activities. The issues of compensating and reinforcing the loyalty of these experts are convergent with the challenges of strengthening and developing the expertise on which the company builds and which supports its innovation strategy.

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Figure 4.1. A representation of the dual ladder scale

Managerial tools such as the dual ladder career model (see Figure 4.1) attempt to value expertise and experts. Alongside the managerial path, a scientific and technical path is created that formalizes recognition and career progression for R&D professionals who distinguish themselves through their expertise. Such expertise is judged by an ad hoc committee, fully or partially composed of peers generally from within but sometimes also from outside of the company. In terms of remuneration, the salary levels are generally similar for an expert and a manager positioned at the same level on their respective career paths.

The dual ladder has gradually become the reference tool in experts’ career management in industrial enterprises. It is however not devoid of difficulties and limitations. Thus, the expertise path that brings together the technical elite, highly selective, is ultimately undervalued, while the management path, though valued, is not very open to researchers [DUH 05]. The box below develops some of these limitations, and it should be noted that, despite the development of expert recognition practices (whereof the dual ladder is emblematic but not the only example), this remains a serious issue for HRM and an ever-existing challenge in R&D.

4.2.6.3. What are the career paths for project contributors and managers?

Regarding career paths, the life of project members, and especially project managers, is similar to that of expatriates. What happens after the project? Reassignment, indeed, raises a number of questions [ZAN 08]. Will the next project be as interesting? Is returning to the profession possible in good conditions? Will future missions (on a project or in the business) allow for the valuation of skills acquired during the previous experience?

Assignments to projects also raise questions about career progression prospects. Projects are not an avenue for the improvement of specialized skills, but rather for their expansion: they enhance generalist profiles and the acquisition of multidisciplinary skills. Projects value intrapreneurial approaches and group functionings. They thus produce profiles that are different from those valued in specialized professional communities. In general, we break from obvious and recognized progression paths in specialized departments. The return of a project member to a traditional path could thus be disturbing. On the one hand, this can be difficult for units that admit a person who is sometimes perceived as an unruly adventurer, and whose contributions and skills acquired in projects are poorly appreciated. On the other hand, this can also be difficult for the person concerned who is afraid of being caught up in a straitjacket.

Some companies have organized a specific career path for project managers, in addition to the hierarchical management career and, where it exists, the expertise career path. This is referred to as triple ladder. However, project work is intensive; it requires personal overinvestment and generates stress, in view of the emergency pressure and risks. Creating a specific career path for project managers thus raises the issue of the long-term sustainability of careers achieved solely in projects, with a chain of responsibilities for the project manager. In the case of companies having implemented a triple ladder, it therefore seems important to support the transitions (and not only put them forth in the rhetoric accompanying the deployment of this tool) from one path to another throughout the career trajectory.

4.2.7. Competence management and training

Competence management has been the subject of much attention in recent years. Though we can question its relevance in activities where knowledge is largely held by systems, conveyors of formalized processes, it is of paramount importance in R&D. In this function, learning takes a long time and is carried out in close connection with peers, within and outside the company. This situation raises the question of what the company can offer to highly qualified professionals, knowing that post-school learning is carried out according to an alchemy that goes well beyond management systems.

The HR function has thus tended to invest mostly in areas that are outside the scope of the scientific and technical field, to establish new training offerings in R&D around the development of behavioral skills, raising awareness on the company’s strategic issues and reinforcing the capacity to cooperate with the other functions of the company. Thus, many large high-tech companies have set up training programs for their technical experts from different functions of the company and particularly R&D (see the example of Safran in the box below).

Although the HR function brings added value by developing new extra-scientific training, it also tries to act upon the development of core competencies. Internal and external training is offered to enhance and maintain scientific and technical skills. The external training from private or public organizations is mobilized to this end. Equipment suppliers can also be crucial training actors as they provide essential knowledge on how to use highly specific equipment.

The development of digital technology is a major evolution and training services must adapt to it. This represents a promising solution for designing an offer adapted to R&D needs and, in particular, for personalizing training according to individual needs and aspirations.

HR managers should also strive to create the environment and conditions that encourage R&D professionals to provide internal training for their colleagues (their R&D peers or other professionals), in order to facilitate knowledge-sharing and mutual understanding between professions.

To summarize, the training of project members raises a number of specific issues. Strictly speaking, “being a project manager” is not a profession, even if some companies have created project career streams in order to recognize project managers and also to maintain the attractiveness of these crucial but complex roles which are not always “profitable” in terms of traditional careers. A professionalization of project managers is also observed. The Project Management Institute has established a reference system for training and certification of project managers that is required for major international projects. However, such training programs are still very rare and are often specialized around specific projects (computer science, construction, etc.) or project management methods. The action trainings could be very interesting as they offer project managers the opportunity to reflect on their own actions and management practices, supported by a coach, in order to improve their performance. This is done simultaneously with their regular work as a project manager. The difficulty of implementing such action training lies in the intense pace of projects, which does not promote reflexivity and provides limited time to participate in training courses which are, however, valuable learning and knowledge-sharing opportunities.

In order to adapt the training actions to this evolution, the HR managers should reflect on the specificities of R&D professionals and consequently adapt the methods of their training. This requires the training of managers to be quite open and proactive in the analysis of the learning process. It is important to consider and enact the “natural” resources of knowledge offered by the R&D ecosystem to facilitate and develop these learning processes. Thus, digital technology should not only be considered in terms of the development of e-learning tools ensured by companies or external providers, but also (and above all) as a means of intensifying and diversifying the modes of connecting R&D professionals with the external environment and epistemic communities including practices that enable valuable learning. The R&D professionals should therefore be given time for these learning opportunities and these practices should not be considered as “leisure” time. It should be the same for participation in external seminars and symposiums, as well as for reading academic and professional journals or monitoring patent databases (which are now easily accessible online but are not free of charge).

Focus must be redirected to the importance of the missions and projects to which R&D professionals are assigned (see also section 4.2.2.1), as these assignments would have crucial impact on development, maintenance, renewal, expansion or even exhaustion of the core competencies. Though these decisions do not generally fall under the responsibility of HRM professionals, it is nevertheless essential that they consider these issues in order to integrate the latter in staffing decisions. The partnerships with line and project managers on these issues are essential, and would help HR function to better respond to the challenges of R&D and to interact with technical and scientific staff in a more comprehensive way.

4.3. The new challenges of HRM in R&D

After characterizing current trends of HR management towards R&D activities, we will now try to question their relevance in view of the profound transformations that R&D is experiencing. It is thus possible to identify certain limits of HRM practices in R&D, which call for rethinking or even reinventing the management of R&D professionals. Section 4.2 has highlighted the challenges of HR practices, concerning in particular the recognition of R&D professionals and especially the experts. We focus here on three major challenges. The first is the contextualization of R&D staff management practices according to the diversity of contexts (section 4.3.1). The second concerns the adaptation of HRM to changes introduced by open innovation (section 4.3.2). Finally, we focus on the need to consider the collective aspect in HRM practices destined for R&D activities (section 4.3.3).

4.3.1. Moving beyond an instrumental approach and adapting to the diversity of contexts

There is enough literature to affirm that HRM must consider the real and precise contexts in which it operates to provide pragmatic responses that would be adapted to them [PIC 13]. Nonetheless, and despite all the criticisms that it has been subjected to, the instrumental model of HRM [BRA 93], which is based on the application of standardized programs of universal scope, still remains largely dominant today. Under this model, it would be up to HRM specialists to decide what is good for R&D professionals.

However, first of all, this requires critical reflection on how to adapt HRM management to the company’s innovation strategy. This strategy as well as the modalities of the innovation process would vary significantly from one company to another according to the type of innovation (radical or incremental) and its pace. What are the individual and collective competencies needed to address these strategic issues? What are the means to develop these competencies (internal development or external acquisition)? For example, companies pursuing intensive innovation strategies, which require the ability to rely on scientific intrapreneurs in R&D [GAS 07], can hardly derive satisfaction from a dual ladder type of career management, as it will not respond to the aspirations of these individuals.

It is therefore necessary to adjust the HRM practices to the characteristics of the context that each company encounters. This requires HRM professionals to adopt design thinking, which will help them to go beyond the pre-existing tools. It also requires strengthening cooperation between HR and R&D managers, so that HRM professionals are able to design practices adapted to the particularities of innovation strategies, R&D organizations and the aspirations of R&D personnel.

4.3.2. Renewing (or reinventing) HRM in open innovation models

Open innovation practices displace some of the R&D activities outside of the firm, which requires the redefinition of roles within internal R&D (see Chapters 1 and 2). These changes raise a series of questions.

As the roles of internal actors will continue to evolve in a direction that is not fully obvious today, what will be the new challenges in terms of HRM of such roles? And what responses will HRM be able to provide? How will the recruitment, assessment and promotion criteria be adjusted to work transformations? How could the organization accompany the acquisition of new skills required by redefined roles? What could boost the motivation of professionals whose work content and environment are in permanent change?

In addition, HRM can no longer limit itself to the intra-organizational level. It should also build on the talent that can be found in the business ecosystem and that can participate greatly in the innovation process. What could the HRM actions be within the innovation spaces that go beyond the firm’s boundaries (enabled by cooperations, partnerships, mobilities, etc.)? Some studies (namely Calamel et al. [CAL 11]) have focused on the consequences of the creation of competitive clusters on HR management in France. They point out the challenges of the development of new inter-organizational HRM practices that need to be addressed at the level of the territory: collective bonuses on collaborative projects, staff exchanges, common training programs, etc. Calamel et al. [CAL 11] also highlight the challenges that represent such innovative practices and their difficult adoption by traditional HRM. Much work still has to be done towards inventing an entirely new HRM, which is adapted to these atypical configurations that are becoming more frequent and can take a variety of forms.

Table 4.2. Consequences of the adoption of open innovation on the HRM practices of four multinational companies (adapted from Petroni et al. [PET 12, p. 170])

Companies Centralization/decentralization of R&D Structural changes HRM practices
Company A (Food) Greater importance of the central R&D structure, setting up of technological and scientific monitoring departments From a functional structure to a matrix structure Mobility of researchers within and between companies. Interaction between R&D and other functions
Open dual ladder
Company B (Pharmacy) Same From matrix to network Mobility of researchers within and between companies. Interaction between R&D and other functions
Company C (Specialty chemicals) Same From matrix to network Attraction of talented university graduates
Mobility of researchers within and between companies. Interaction between R&D and other functions
Company D (Aerospace) Same From matrix to network Attraction of talented university graduates
Mobility of researchers within and between companies

Considering a range of open innovation practices, Petroni et al. [PET 12] observed how these practices transform the organizational structures of R&D and its staff’s management methods (see Table 4.2). The open innovation strategy leads to the adoption of matrix or network structures, instead of conventional functional structures. It emphasizes the integration of external or multidisciplinary knowledge, rather than the enhancement of scientific sector-specific expertise. Thus, the companies will need the individuals with “T-profiles” (T men) who, beyond possessing specific skills in their scientific or technical area, would also have a good knowledge of related fields. In this regard, mobility management, organized both internally (differentiated career paths) and externally (temporary assignments with academic laboratories or jobs within subsidiaries), is a key practice.

In the context of open innovation, managing expertise cannot be limited to managing a body of experts and internal expertise. The challenge also involves coordinating internal and external resources, by going beyond the usual HRM and expert management organizational framework (see Chapter 3 for avenues on the subject). The objective of the company is to ensure, through the consideration of the environment and the major developments in scientific and strategic spheres, the flexibility of the expertise on which to rely on.

Looking at the multifaceted nature of open innovation practices and the change they bring for management structures and methods, we can see the enormity of work to be done!

4.3.3. Going beyond individualized HRM by integrating the collective dimension

Finally, we will focus on the importance of group dynamics in the creation and dissemination of knowledge. Whether it is a project-based structure [GAR 03b], or the maintenance and development of expertise within specialized professions [LEL 14], the collective dimension seems to be paramount in terms of both competence development and expertise recognition. The challenge is thus to find the right balance between the collective and individual dimensions. However, there is a tendency to neglect collective competence in current HRM systems. We thus propose to overpass the individualization trend, by implementing practices and management tools aimed at promoting and supporting collective expertise and collective competencies rather than enhancing individualizing practices. The following chapter proposes the detailed analysis of such practices and tools.

Let us add in consonance with the previous section that this call for a more collective and shared HRM should be considered within the current context of open innovation. For HRM, this would also involve projecting itself beyond the strict boundaries of the organization. What a challenging and also passionate agenda for HRM for the years to come!

4.4. Conclusion

Although HRM practices are now clearly more present in R&D, which could be seen as a consequence of an increased willingness to rationalize and manage these activities, some of the practices present certain challenges, and sometimes even problems. While R&D is constantly changing and striving to adapt to current transformations (chrono-competition, ambidexterity, globalization, digital revolution, open innovation, etc.), HRM must constantly question the relevance of its methods destined to the specific communities of R&D professionals. The HR function has to overcome major challenges in order to valuably support the ongoing R&D changes, some of which are still in their infancy and need thorough interpretation and analysis. The avenues for rebuilding a new HRM mindset could first emerge from the consideration of the real conditions of the R&D activity, the diversity of contexts and the current challenges of intensive innovation, second, from the incorporation of R&D activities in open and complex ecosystems and, finally, from the collective dimension of work and performance in R&D. This reinvention of HRM requires a strengthening of relationships and cooperation between HRM actors and R&D stakeholders.

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