The medtech industry is brimming with innovation, but its most vital resource remains its people. During a panel discussion at LSI USA ’24, experts tackled one of the most pressing issues facing organizations today: addressing human capital challenges while fostering growth and sustainability. Featuring insights from David Kereiakes of Windham Venture Partners, Charles Rohaut, Alex Bennett, and Jeff Mollica of ZRG Partners, alongside Evan Luxon of Centese, the session explored how companies can attract, retain, and develop top talent in an increasingly competitive landscape.

The Shifting Landscape of Talent Acquisition

Jeff Mollica opened the discussion by highlighting the current trends in talent acquisition—particularly the movement of top professionals from larger strategic firms to smaller, private equity-backed companies. “Smaller companies offer a faster-paced environment and opportunities to make an immediate impact,” Mollica observed. However, this shift has left larger organizations grappling with human capital challenges as they work to retain talent in the face of competition from nimble startups.

Alex Bennett emphasized the importance of cultural alignment, sharing a cautionary tale from his own experience: hiring a senior executive based on the board’s recommendation without fully vetting their ability to adapt to the demands of a high-growth startup. “That mistake cost us a funding round,” he noted, underscoring the critical need to align talent with the company’s mission, vision, and culture.

Retention in the Era of Flexibility

For startups like Centese, flexibility is a cornerstone of talent retention. CEO Evan Luxon explained how his company leverages technology and non-traditional hiring models to remain competitive. “We’re a small team of 16, and we’ve built systems to maximize efficiency, from using EQMS for quality management to outsourcing specialized tasks. This approach allows us to stay lean while focusing our resources on high-impact roles,” he said.

Luxon also stressed the value of creating a challenging and motivating work environment. “For us, it’s not just about compensation or equity, though those matter. People stay because they believe in our mission and feel like they’re making a real difference.”

Key Milestones for Scaling Teams

From an investor’s perspective, David Kereiakes outlined the critical checkpoints for scaling teams while managing costs effectively. “Capital is expensive, and you have to be mindful of every dollar that you put into a company. Sometimes, it’s better to raise smaller amounts—$2 to $3 million instead of $10 to $30 million—to test go-to-market strategies before scaling,” he advised.

Kereiakes also highlighted a common pitfall: failing to incorporate sales and marketing expertise early in product development. “Your engineers might design for the user, but the purchaser could have entirely different priorities. Bridging that gap early can save time and resources down the line,” he added.

Overcoming Governance Challenges

The conversation also touched on building effective boards. Luxon shared his experience bringing on an independent director to fill knowledge gaps. “Our board evolved over time. Recently, we added a member with expertise in scaling early-stage commercial medtech companies. It’s been transformational,” he said.

Diversity and fresh perspectives were also emphasized as critical to board composition. “Diversity isn’t just nice to have—it’s a business imperative,” said Alex Bennett. “A diverse board reflects your customer base and brings unique insights to the table.”

Training, Development, and Long-Term Growth

Training and development emerged as another solution to human capital challenges. Luxon noted the importance of fostering a culture of continuous learning. “People want to continue learning and growing. At Centese, we encourage employees to step out of their comfort zones while ensuring they feel supported. This balance keeps our team engaged and motivated.”

Bennett echoed this sentiment, emphasizing that small organizations provide unparalleled opportunities for hands-on learning. “Working in such a small organization was like my real-life MBA. The breadth of experience you gain is invaluable, from R&D to quality management and regulatory approvals,” he said.

Conclusion: Addressing Human Capital Challenges to Drive Medtech Growth

The full recording of the panel can be found in LSI’s resource hub at the link below:

• Human Capital: Challenges and Solutions in Retention and Scalability

The medtech industry’s success depends on its ability to navigate human capital challenges. From building flexible, mission-driven teams to fostering a culture of learning and assembling diverse boards, companies have many tools at their disposal to attract and retain top talent. As highlighted during the LSI USA ’24 panel, addressing these challenges with creativity and strategic intent is not just beneficial—it’s essential for long-term scalability and success.

By placing people at the center of the strategy, medtech organizations can unlock their full potential and lead the way in delivering life-changing innovations.