Every industry experiences turnover and some experience higher turnover rates than others. However, healthcare faces a particularly big turnover challenge, with more than four times the rate of non-healthcare organizations. Additionally, turnover within healthcare has a relatively larger impact, as it may affect the care provided to patients. Healthcare employees such as doctors, surgeons, nurses and aides are responsible for providing care for patients and, when they decide to leave, it can be disruptive and detract from the overall quality of care.
The amount of patients is not expected to decrease within the next few years, and an increasing amount of healthcare employees are making jumps between different hospitals, healthcare systems, clinics and private practices. Employers are reporting rising voluntary turnover rates, which indicates that the healthcare workforce has increasing confidence in the the job market. Top performers have more options now when it comes to where they want to work. Healthcare organizations must understand turnover trends and create programs to retain quality employees. At the same time, they must also develop a solid plan for recruiting new talent.
The Burden of High Turnover ››› 1 Bad Hire = 1.5x their salary
Turnover places a significant burden on healthcare organizations for a variety of reasons. From a financial perspective, the impact is significant. The turnover of a single physician represents at least a $200,000 loss for an organization, according to Becker Hospital Review. For nurses, the cost of replacement is at least $58,400, equating to 1 to 1.5 times the salary of the employee. All of this adds up about $373,200 lost for every percentage point change to the turnover rate.
In addition to a financial burden, high turnover and poor retention can also negatively affect the continuity of care, staff workload, medical staff satisfaction and training costs, according to Becker Hospital Review. When you think about the impact of turnover, you have to combine replacement and recruiting costs with the actual productivity, performance and impact on patients. The true impact of losing an employee goes much deeper than replacement and recruiting costs.
What Drives Turnover In Healthcare?
There are a variety of factors that drive turnover in healthcare organizations. In some cases, unsatisfactory benefits may make staff feel like they don’t have enough control over their employment situations. Your budget might not allow you to simply increase benefits across the board, so a good solution is to consider implementing a flexible benefits plan that enables employees to pick and choose which perks they want.
Sometimes employees don’t feel like they are being heard, which can also lead to turnover. Even the most successful healthcare organizations can be accused of not being responsive when it comes to employee concerns. When workers don’t feel like they’re being heard, they’re much more likely to look into working for someone who will listen more closely to their feedback, concerns and observations.
On a related note, failing to recognize a job well done can also cause dissatisfaction in employees but, luckily, solving this doesn’t have to cost you a lot. You have to find ways to provide proper reinforcement, whether it be through implementing an employee bonus program or simply by recognizing a staff member for performance. Either way, it’s critical that you award credit to your staff where it’s due.
Are You Experiencing High Turnover Within Your Organization?
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Filling Gaps Within Your Organization
To combat high turnover, healthcare executives have to uncover the reasons why their organizations are experiencing high turnover rates. This must be done before a remedy can be created and executed. Without the right network, the pool of healthcare talent can be limited in scope which makes it challenging to to find skilled workers. In fact, according to a Brandon Hall Group Skills Gap Survey, 90 percent of healthcare organizations reported having trouble hiring skilled workers.
Why is this the case? It’s not so much a reflection of the healthcare workforce as it is a reflection of the network and geographical restrictions that organizations face. They oftentimes draw from the same limited talent pool within the same area. Improving your recruitment outreach strategy is a key way to address turnover and, ideally, hire employees that are invested in their careers for the long-term. As I mentioned above, healthcare candidates will appreciate more the job opportunities with flexible scheduling, career development programs and superior compensation and benefits packages. You can compete with other organizations by offering a better lifestyle to candidates.
Working With A Recruiting Firm
If you’re goal is to fill middle, upper and executive-level roles within healthcare and medical operations, IT, clinical, or any other functional area, partnering with a recruiting firm can be a big help when it comes to accessing top candidates. You may be able to attract candidates that are currently searching for jobs, but without the expertise, it’s not easy to access or attract top passive candidates that are already employed. Those top passive candidates are often the talent that will drive the most success in your organization. This is particularly true when you’re hiring for an executive, C-level or board role. Executives define the voice, appearance and direction or your organization, so securing excellent new hires is of the utmost importance. If you want to learn more about how Healthcare Recruiters International can assist you in your talent search, contact our recruiting experts today.