Retention Management in the Era of Healthcare Reform

Retention Management in the Era of Healthcare Reform

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  Retention Management InThe Era Of Health Reform 2011 Becker’s ASC Chicago, Il.
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  Retention Management InThe Era of Health Reform Managing Employee retention and managing turnover are inherently difficult processes for health care leaders. Managing turnover and retention requires different and distinct skill sets
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  Retention Management inthe Era of Health Reform The employment culture is changing as well. It is now relatively common to change jobs every few years, rather than grow with one company throughout the employment life as was once commonplace. How do we stem this trend for employees we want to retain? In addition, employees are increasingly demanding a balance between work and family life.
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  Retention Management inthe Era of Health Reform The extremely small, unqualified, and diminishing, labor supply pool in the healthcare sector is exposing an alarming weakness in the industry. Only those at the for front of this paradigm will thrive.
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  5 Key StepsTo Successfully Retain Talent
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  Step 1: IdentifyYour Turnover Rate Employee turnover in the healthcare sector is extremely high; In some US states it is more than double the national average of 15.6%. This alarming (and rapidly worsening) statistic costs healthcare systems billions of dollars every year and is a direct threat to the future of the healthcare sector.
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  Step 1: IdentifyYour Turnover Rate How do you retain high performers, while turning over those who are not. As equally important: How do we identify both of those individuals? Distinction between regrettable and non-regrettable turnover
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  Step 1: IdentifyYour Turnover Rate Human resource recruiters often consider applicants they would have otherwise considered unqualified due to a low applicant flow. Managers often select candidates against HR’s recommendation because they felt pressure to get the jobs filled rather than to find the most qualified or even a qualified candidate.
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  Step 1: IdentifyYour Turnover Rate Estimated costs vary from organization to organization, some as low as a few hundred dollars to as high as four times the annual salary of the employee. These turnover costs should be measured and constantly monitored over time periods so one can know what should be done and or paid to retain key positions vs. having to recruit and train someone to fill a vacant position at a cost to the institution.
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  Step 1: IdentifyYour Turnover Rate It has been estimated that, on average, it costs a company one-third of a new hire's annual salary to replace an employee. Therefore, at minimum wage, the cost to replace an employee is estimated at $3,700. This cost increases exponentially as the skill set, responsibility and tenure increase per employee
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  Step 1: IdentifyYour Turnover Rate For a company to develop a retention strategy, several steps must be taken. Assess the current situation / measure the turnover rate Industry, geographic & Job specific benchmarks are readily available for comparisons Establish a base line Monitoring this data will allow for a problem/trend, either positive or negative, to be identified and controlled or capitalized on before it is too late
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  Step 1: IdentifyYour Turnover Rate Turnover is calculated simply by dividing the number of annual terminations by the average number of employees in the work force. The average employee turnover rate is 14.4 percent annually, according to the Bureau of National Affairs.
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  Simple Solutions Modifying HRrecruiter performance/behavior Evaluations to include ratings related to: prescreening, tenure after hirer, evaluation of employees KPIs (Generally a success score given and not just a goal of hire, hire, hire) Learning more about the jobs A standardized applicant screening sheet A standardized list of “cultural fit” questions
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  Effects: Positive orNegative are Dramatic Significantly affect the financial performance of an organization. Direct costs include recruitment, selection, and training of new people. Indirect costs i.e. morale, managers not managing (spending time hiring/firing), filling schedules, productivity, overtime… Added costs can be much higher than can be measured
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  Solutions First, hire theright people and continue to develop their careers. Does your company have an ongoing career development program, tuition reimbursement, or skills training program? Do you know what your employees want? Many times pay is very low on their list. Do you do an exit interview when an employee leaves/is terminated?
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  Solutions An investment inupgrading the workforce is one of the best investments a company can make when looking at long-term growth. Hiring the people that are a good "fit" with the culture of the organization — meaning that their values, principles, and goals clearly match those of the company & current work force — Training as necessary will go a long way toward ensuring employee loyalty and retention. A good skill set doesn’t mean a good fit
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  Solutions Second, most companieswith low turnover rates are very employee oriented. They solicit input and involvement from all employees and maintain a true "open-door" policy that avoids closed-door meetings. Employees are given an opportunity for advancement and are not micro-managed. Intrinsic rewards are critical. Employees must believe they have a voice and are recognized for their contribution Remember that "trust" and "loyalty" are a two-way street. Does your company's culture encourage open communication and employee input?
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  Solutions Third, develop anoverall strategic compensation package Includes not only base and variable pay scales Long-term incentive compensation Bonus and gain-sharing plans Benefit plans to address the health and welfare issues of the employees Non-cash rewards and perks as well.
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  Solutions market, most To be competitive in today's labor companies find it necessary to offer a standard benefit package, including health, dental, and life insurance, vacation and leave policies, and investment and retirement plans. But what more could be done that would be cost effective toward creating an employee-oriented work environment?
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  Solutions Employee of themonth with rewards Take your spouse to dinner Half day of work Special trips for continuing education Buy the staff lunch… Non-monetary rewards often go farther than cash. Money is just money
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  Step 2: Evaluationand Goal Setting 1ST Set predetermined KPI’s for performance for each job description Leave no doubt as to what is expected for baseline performance, what underperformance will get you fired and what over performance will get you a bonus
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  Step 2: Evaluationand Goal Setting 2nd Have knock-out factors such as harassment, excessive lateness, reckless endangerment Some infractions will put your institution at risk and those can not and should not be tolerated for anyone
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  Evaluation and GoalSetting 3rd Have weekly/monthly/qtly meetings to review expectations and progress. If the proper job was done in the hiring process there is no reason an employee shouldn’t be able to meet expectations as long as they are realistic and they have been given the tools to accomplish their goals. Don’t wait until it is too late to correct an issue
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  Evaluation and GoalSetting 4th Document all meetings and benchmark data Create a standardization Build upon what has been learned
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  Evaluation and GoalSetting 5th If someone shows a desire to work, want to be with your institution and truly is giving their best efforts make all efforts to keep them, not at all costs but train, educate, and mentor…those employees will value your loyalty
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  Evaluation and GoalSetting 6th Don’t let terminations be a surprise a. It puts your institution at legal risk b. If it is a surprise management hasn’t done their job c. There is no reason for it
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  Step 3: Letgo of Underperformers Once an underperformer is identified there is no reason to keep them on They show others that improper performance is tolerated It disensentifies your over achievers You are giving equal pay to those that do there job vs. those that don’t and that is BAD business. Makes room for hard working employees to move up from the bottom + new candidates to fill the ranks
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  Step 3: LetGo of Underperformers Retention of underperformers is not good retention management Decreases productivity, increases wasted HR hours on micromanagement; undermines the vision of the organzation
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  Step 4: ChallengingEmployees Career trajectories For certain jobs it is good to set out a road map of what a career path looks lake at your institution. Gives something to work towards Empowers employees to take their careers into their own hands. The choice is theirs on how far they go Transparency is a good thing for everyone
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  Step 4: ChallengingEmployees Reward Allows employees to see your institutions appreciation, recognition and willingness to follow through with your commitments to them. Monetary Small gifts Added time off Extra tuition reimbursement Public recognition Faster promotions Event tickets Trips
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  Step 5: EffectiveLeadership At first glance it would appear that the root cause of this problem is an extremely small talent-supply pool . Hint: Look Deeper!
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  Step 5: EffectiveLeadership Leading to a whirlwind of aggressive headhunting amongst competing healthcare organizations.
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  Step 5: EffectiveLeadership The real cause of this crippling turnover is poor human capital management in the healthcare sector. Remember: Most of this can be prevented by patience, proper hiring techniques, setting a culture of success, rewarding proper work and removing those that don’t fit in and underperform on a regular basis
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  Step 5: EffectiveLeadership A shrinking, aging, talent pool is a crisis waiting to happen if you don’t manage your workforce effectively. In addition, the new labor pool presents an incredible opportunity, if capitalized upon, for your institution to stay way ahead of the pack
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  Step 5: EffectiveLeadership The real issue is that most healthcare organizations are the equivalent of a badly leaking bucket; pouring more water into them does not solve the root problem. To think otherwise is pure insanity. Don’t follow the pack!
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  Step 5: EffectiveLeadership Basing hiring decisions on ill-defined parameters, poor organizational intelligence, and high employee turnover rates is the perfect storm
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  Step 5: EffectiveLeadership All healthcare organizations are in a situation where the water supply is low; many of them also have very large holes in their bucket. It is easier to mend the bucket than affect supply So why aren’t more of them doing so?
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  Step 5: EffectiveLeadership It takes a significant investment of time, effort, money, and above all an awareness of the connection between poor human capital management, employee turnover, and lost profits + a willingness to change.
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  Step 5: EffectiveLeadership Senior management must be aware of, not just the holes in the bucket and the rapid decline in water supply, but the astronomical costs that the wasted water is stealing from their own bottom line.
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  Step 5: EffectiveLeadership If senior management have not acknowledged and understood this dynamic it will be impossible to execute an effective human capital management reinvention---Management must be held accountable and made aware that this is not a systemic problem but an ingrained problem that can and must be changed
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  Step 5: EffectiveLeadership Management must be held accountable and made aware that this is not a systemic problem but an ingrained problem that can and must be changed
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  Conclusion “Thedefinition of insanity: doing the same thing over and over again and expecting different results.” Benjamin Franklin, 1706-1790 Can your institution become an example of employee retention in an era of major health care reform?
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  Thank You Nicola V.Hawkinson, DNP, RN, RNFA 306 East 15th St. New York, NY WWW.SPINE-SEARCH.COM 1.516.333.5050