The Importance of Retaining Employees in the Healthcare Industry, Research Paper Example

The Importance of Retaining Employees in the Healthcare Industry

“While those in charge of organizations will usually look in some way to the long-term growth and sustainability of their enterprise, they may not focus on developing the human resources that the organization houses” (Klein 2001). Corporate executive and business leaders may provide a variety of reasons as to why retaining employees is beneficial to a company or organization. The fundamental reason, however, for most all businesses is cost. Employees become corporate expenditure at the onset of employment. New hire orientation, training and development, IT security costs, compensation, incentives, payroll processing and absenteeism are all factors which encompass the cost of hiring and maintaining employees. The benefit of maintaining quality employees often outweighs the organization’s bottom line. As employees begin to master their skills and contribution to the organization through tenure, the areas of quality performance, increased productivity and customer satisfaction will assist the organization in achieving its primary objective – profitability (Wilton, 2010).

Developing a solid healthcare organization can make the difference between life and death for patients. Employee retention in the healthcare industry does not exclude profit; however, it does take on a different significance. Qualified and experienced healthcare practioners often have a direct impact on the quality of life for its patients” (Dlugacz, 2006). When turnover rates are high within the healthcare industry, practioners are often unable to master the knowledge and skills needed to make sound judgment concerning treatment and surgical procedures. High turnover rates often mean understaffed healthcare centers and overworked practioners. Each of these factors can not only lead to voluntary separation between the healthcare center and the healthcare worker, it can also lead to healthcare errors. In the interim, healthcare consumer demands and the need for healthcare practioners are on the rise.

Increased Employee Demand in the Healthcare Field

“In November 1999, the Institute of Medicine (IOM) released a report estimating that as many as 98,000 patients die as the result of medical errors in hospitals each year” (U.S Department of  Health and Human Services, 2010). Ensuring the safety of patients must be a priority in all healthcare organizations. Errors related to medication, surgery and treatment are areas which require practioners who are able to analyze research and recommend processes to help reduce medical mistakes. In order to accomplish this objective, healthcare center must establish effective recruitment strategies, develop a solid leadership team and develop stay interviews to assess employee morale in order to prevent employee separation. Each of these areas can be addressed through the development of a solid human resources department. “To state it plainly: achieving organizational excellence must be the work of HR” (Ulrich, 1998).

Financial analysts and employment researchers label the healthcare field as one of the most stable jobs areas in the workforce. Information from Abby Lombardi with Wanted Analytics (2011) supports this claim with a new surge in the demand for Occupational Therapists:

Hiring Demand for Occupational Therapists over the Past 4 Years

Figure 1. Wanted Analytics. From “Job Growth for Occupational Therapists and Healthcare Talent Shortage Continues, Despite Disappointing BLS Stats” by U.S. Bureau of Labor Statistics. (2011).

“Over the past 120 days, recruiting agencies and employers placed more than 75,000 new job ads for Occupational Therapists. Representing the highest growth of any field within the Healthcare sector at 103%, this rapid increase in hiring demand is calling more attention to the already existing talent shortage at US healthcare organizations” (Lombardi, 2011).

Healthcare Employee Dissatisfaction

While the healthcare industry may be experiencing an increase in job growth numbers, the retention rate of healthcare practioners are declining: “According to the Human Resource Management Association, 20.4 percent of health care employees (one in five) quit their jobs every year. The number easily exceeds the 12 to 15 percent turnover rate experienced in most other industries” (Ashhra, 2011).  In 2007, Press Garney Associates surveyed over 193,000 healthcare workers in over 370 hospitals across the nation. The purpose of their survey was to gather job satisfaction feedback and opinions about the workplace. The results, outlined in an article titles “Nurses Rank as Least Satisfied”, indicated that healthcare workers expressed issues regarding healthcare leaders not listening or addressing their concerns. Healthcare employees interviewed in this survey stated that the lack of management concern served as the single most opportunity for improving their work environment (Business Network, 2007).

The Healthcare industry is can be physical and emotionally challenging for its practioners. In addition to increased work hours, overexertion and high demands, physicians and nurses are also faced with the human element of sicknesses, disease and tragedy. It is important for healthcare organizations to minimize those controllable elements while providing the necessary counseling and support systems to assist practioners in their daily routines. With the recent economic crisis in the nation, employees are opting to return to school, transition into other professional fields or find telecommuting jobs. When employee workplace experiences are not optimized by strategic organizational development and effective leadership styles, employees will likely lose commitment to their current employers and will seek new and accommodating opportunities. In the healthcare industry, losing an employee can be costly: “It costs over $50,000 to recruit and train a new nurse. To replace an experienced Critical Care nurse can cost as much $120,000” (Ashhra, 2011).  As a result, healthcare organizations must make every effort to ensure that the development of their organization includes a talent management structure and a human resources department that can minimize this impact.

Meeting Federal and State Regulations

Employee performance faces even added scrutiny under the 1996 Health Insurance and Portability and Accountability Act (HIPAA). This federal mandate was established to manage how healthcare providers utilize and divulge patient health information (Protected Health Information or PHI). With the recent surge in technological integration, under the HIPAA umbrella is also the Privacy Rule which focuses on how, why and by whom electronic patient information is disseminated (Center for Disease Control, 2003).

Electronic transferring of patient information is one of the highest forms of security vulnerability [See Figure 2]. Healthcare practioners are faced with increased vulnerability when patient information is electronically transferred to a third party source. Breech in this federal policy not only impacts the integrity of the healthcare center but can also lead to civil and criminal charges and in some cases, even jail time. Some of these penalties include:

• Deliberately releasing patient information can result in a one year jail sentence and a fine of $50,000
• Obtaining patient information under false claims can result in a jail sentence of five year, including a $100,000 fine
• Disseminating patient information for malicious or profitable intent could result in a ten year jail sentence and a $250,000 fine (Weiner, 2002)

HIPAA Vulnerability Classification

Figure 2. Anton, et al. From “An Analysis of Web Site Privacy Policy Evolution in the Presence of HIPAA” by U.S. Department of Health and Human Services. (2000).

Solutions for Healthcare Organizations

Leadership and Communication

There are certain steps that healthcare organizations can take to ensure that quality employees remain with the organization. Press Garney Associates’ recent national survey points the primary concern of healthcare workers to leadership and communication. Although the healthcare industry can face a number of differential critical factors during the workday (i.e. emergency care) in addition to maintaining a fast past environment, it is critical that organizational leaders develop open door policies and communication venues that will address the needs and desires of their peers and subordinates. There are a variety of ways in which leadership can establish these venues and according to Liebler and McConnell (2008), four of these communication strategies are primary ones: (1) upward, (2) downward, (3) diagonal and (4) lateral. Communication transfers in an unproblematic and more rapid form when traveling in a downward direction (Liebler & McConnell, 2008). Downward channels of communication are primarily controlled by leadership. This form of communication is more prevalent because leadership can utilize a number of different methods to flow communication downward. Some of these include:

• memorandums
• e-mails
• staff meetings
• informational boards
• internet

“The person higher in authority is seen as exerting the greater measure of control” (Liebler & McConnell, 2008).  Another aspect that impacts the rapid and easy flow of downward communication is the role of authority and power that is represented through management. Employees are less likely to challenge downward information. Subordinates are expected to be respectful and submissive to operational decisions. When employers create a seamless and convenient resource for employees to provide upward feedback, the organization and the employer can be successful.

While employers often encourage upward information, there are barriers that exist to impede this process. In order to balance the flow of communication, however, organizations must establish a variety of venues for upward communication. Some of these options include:

• Establish employee feedback options
• Utilize employee feedback as a source for change
• Avoid mandating feedback
• Management visibility
• Establishing trust among subordinates

Develop a New Culture

“Past experience and ideas impinge on the communication process. Feelings such as mistrust, fear, anger, hostility, or indifference may shape group perceptions” (Liebler & McConnell 2008). Moving an organization forward from its past can be a difficult task. According to Press Garney Associates (2007), healthcare employees are expressing feelings of disregard and distrust. Once trust has been violated, employee morale, performance and productivity are often impacted. Each of these elements can play a critical role in how the culture of the organization develops or declines. In addition, feelings of mistrust and dissatisfaction lead to barriers.

Every industry requires specific strategies in order to address the inner workings of the organization. According to the American Society for Healthcare Human Resources Administration (Ashhra) (2011), changing the culture in a healthcare organization requires five key components:

Sourcing

It is important for leaders to ensure that the human resources department develops a clear expectation of job responsibilities. As a result, during the recruitment process, managers can ensure that they are selecting the best qualified candidates. This may require managers and interviewers to be creating in developing recruiting and interview strategies. Most importantly, until the turnover rate in healthcare subsides, managers ensure that the recruitment process never ends. There must be a continuous flow of potential internal and external candidates.

Hiring

Although the American Society for Healthcare Human Resources Administration recommends a continuous flow of potential candidates, it is also important to develop a “structured approach when interviewing” to ensure that current gaps and challenges are being addressed. This requires asking the right questions, requesting data and information from candidates which supports their stance and/or the information presented on their resume and provide scenarios and situations which allow the candidate to provide specifics on how he or she would manage the situation. Additionally, employers are often encouraged to hire candidates who represent diverse backgrounds. Selecting diverse candidates does not mean that employers are incorporating diversity. “Socializing an ethnically diverse workforce is a two-way proposition. Not only must the manager learn about the employees’ cultural background, but also the employee must learn about the rituals, customs, and values of the firm of the work unit” (Ivancevich et al, 2010). In America, organizations are facing a new type of office space. From the small manufacturing plant to large healthcare organizations, the workplace population and their philosophies is drastically changing. As a result, it is important for managers and supervisors to have a clear understanding of their employees’ backgrounds and belief systems as it is important for employees to adjust and work collaboratively with those around them.

Onboarding

Healthcare organizations must integrate new practioners into the organization by ensuring that employees receive the necessary orientation, new hire training and introduction and training on the organization’s Performance Management Systems. When employees have a clear understanding of what is expected from them and are provided the tools and strategies to succeed, both organization and employee have positioned for profitability.

Engagement

Healthcare practioners are expressing their need to be heard. By incorporating rules of engagement and communication venues, healthcare leaders are able to remove distractions and has performance challenges which impedes the necessary passion and productivity needed to ensure the safety and wellness of their patients.

Stay interviews

Traditionally, employers conduct interviews at the beginning of the job and at the end. By conducting stay interviews, employers are able to gauge the concerns of their employees and proactively address any concerns that can lead to employee separation. This is an excellent opportunity for managers to address any concerns that can prohibit job and patient satisfaction.

Conclusion

The healthcare industry provides resources, recommendations and services which directly impacts the wellness of our community. Ensuring the retention of healthcare practioners must be a priority for all healthcare organizations. When the average corporation loses employees, it is profit which suffers the most. When the healthcare organization declines in practioners and staff members, the nation’s community is subjected to limited healthcare, medical errors and even death.

References

Anton, A., Earp, J., Vail, M., Jain, N., Gheen, C. & Frink, J. (2000). An Analysis of Web

Site Privacy Policy Evolution in the Presence of HIPAA. Retrieved July 12, 2011 from web: http://www.csc.ncsu.edu/academics/undergrad/honors/jain/honorsThesis_nehaJain.htm

American Society for Healthcare Human Resources Administration. (2011). Attracting, Onboarding and Retaining Employees Within the Health Care Industry. Retrieved July 12, 2011 from web: http://www.naylornetwork.com/ahh-nwl/articles/index-v2.asp?aid=134767&issueID=22500

Business Network. (2007). Nurses Rank as Least Satisfied. Retrieved July 12, 2011 from web:http://findarticles.com/p/articles/mi_m4467/is_200712/ai_n21302682/

Center for Disease Control and Prevention. (2003). HIPAA Privacy Rule and Public Health: Guidance from CDC and the U.S. Department of Health and Human Services. Retrieved March 28, 2010 from website: http://cdc.gov/mmwr/preview/mmwrhtml/m2e411a1.htm

Dlugacz, Y. D. (2006). Measuring health care: Using quality data for operational, financial, and clinical improvement. Jossey-Bass: San Francisco, CA

Ivancevich, J.M., Konopaske, R. & Matteson, M. T. (2010). Organizational Behavior and Management (9th ed.). McGraw-Hill Irwin Company

Klein, N. (2001) No Logo, London: Flamingo.

Liebler, J.G. & McConnell C.R (2008). Management Principles for Health Professionals. (5th ed.). Sudbury, MA: Jones and Bartlett.

Lombardi, A. (2011). Job Growth for Occupational Therapists and Healthcare Talent Shortage Continues, Despite Disappointing BLS Stats. Retrieved July 12, 2011 from web: http://www.wantedanalytics.com/insight/tag/health-care-industry/S. Department of Health and Human Services. (2010). Medical Errors & Patient Safety. Retrieved June 22, 2010 from web: http://www.ahrq.gov/qual/errorsix.htm

Ulrich, D. (1998). A New Mandate for Human Resources. Retrieved July 12, 2011 from web: http://www.vta.vic.edu.au/docs/strategic/New%20Mandate%20Ulrich%201998.pdf

Weiner, Mark. (2002). Implications of the Health Insurance Portability and Accountability Act of 1996. Retrieved July 12, 2011 from web: http://www.cs.princeton.edu/courses/archive/spr02/cs495/HIPAA-princeton.ppt

Wilton, N. (2010). An Introduction to Human Resource Management. Thousand Oaks, CA: Sage Publications