The Cost of the Healthcare Workforce
Healthcare costs in America are on the rise, with no signs of slowing down in the near future. One of the factors in the high cost of healthcare is the labor force that is required to deliver quality care in a hospital setting. While there are many factors that drive the cost of labor, three key factors include turnover, productivity, and scheduling.
Key Drivers of Labor Cost in a Hospital
Turnover, productivity, and scheduling are all inter-related I that poor scheduling can lead to poor staffing ratios, which in turn, lower employee engagement, resulting in turnover. Understanding appropriate staffing levels based on patient acuity will even out productivity and provide optimum working conditions for healthcare employees. Allen (2013), stated “strategic development and deployment of the workforce is the key to achieving long-term sustainability in a continually evolving marketplace, and implementation of technology provides an immediate positive return on the investment”, (para. 4). Scheduling the appropriate number of employs to meet the needs of patients and avoid overworking the staff is a root of avoiding turnover. According to Nowak, Holmes, and Murrow (2010),” Happy employees who are getting their economic, personal, and professional needs met by their existing employer”, (p. 15).
Solutions
The recruitment process is at the heart of containing labor costs. Choosing the right people for the right jobs and using in-depth screen will assist aid in the reduction of turnover. Utilizing pre-interview assessments will screen out those that are not up the hospital’s standard. Offering potential employees the option of a job preview in the way of shadowing, will take that one step further. The candidate will be able to see what their day will be like should they accept the position. Being able to go through a typical day will allow the candidate to see how scheduling and patient assignments work, see what is expected on the productivity side, and reduce turnover because they will understand what they are getting into. Going forward, changes in the future should will likely include lowered patient ratios, increased communication with the hospital system, and tighter controls on staff utilization.
Conclusion
Productivity and scheduling feed directly into turnover. According to Allen, (2008) “To manage retention most effectively, you need to engage in an ongoing diagnosis of the nature and causes of turnover, as well as develop (and constantly hone) the right mix of retention initiatives”, (p. 11). If a hospital can get the first two right, then employee engagement will be easier to obtain because the staff is happy with the basics of their job.
References
Allen, D. (2008). Retaining talent. Retrieved from http://www.shrm.org.
Brimmer, K. (2013). Cut labor costs with smarter scheduling. Retrieved from
http://www.healthcarefinancenews.com
Nowak, P., Holmes, G., & Murrow, J. (2010). A model for reducing health care employee
turnover. Journal of Hospital Marketing & Public Relations, 20:14-25.
Healthcare costs in America are on the rise, with no signs of slowing down in the near future. One of the factors in the high cost of healthcare is the labor force that is required to deliver quality care in a hospital setting. While there are many factors that drive the cost of labor, three key factors include turnover, productivity, and scheduling.
Key Drivers of Labor Cost in a Hospital
Turnover, productivity, and scheduling are all inter-related I that poor scheduling can lead to poor staffing ratios, which in turn, lower employee engagement, resulting in turnover. Understanding appropriate staffing levels based on patient acuity will even out productivity and provide optimum working conditions for healthcare employees. Allen (2013), stated “strategic development and deployment of the workforce is the key to achieving long-term sustainability in a continually evolving marketplace, and implementation of technology provides an immediate positive return on the investment”, (para. 4). Scheduling the appropriate number of employs to meet the needs of patients and avoid overworking the staff is a root of avoiding turnover. According to Nowak, Holmes, and Murrow (2010),” Happy employees who are getting their economic, personal, and professional needs met by their existing employer”, (p. 15).
Solutions
The recruitment process is at the heart of containing labor costs. Choosing the right people for the right jobs and using in-depth screen will assist aid in the reduction of turnover. Utilizing pre-interview assessments will screen out those that are not up the hospital’s standard. Offering potential employees the option of a job preview in the way of shadowing, will take that one step further. The candidate will be able to see what their day will be like should they accept the position. Being able to go through a typical day will allow the candidate to see how scheduling and patient assignments work, see what is expected on the productivity side, and reduce turnover because they will understand what they are getting into. Going forward, changes in the future should will likely include lowered patient ratios, increased communication with the hospital system, and tighter controls on staff utilization.
Conclusion
Productivity and scheduling feed directly into turnover. According to Allen, (2008) “To manage retention most effectively, you need to engage in an ongoing diagnosis of the nature and causes of turnover, as well as develop (and constantly hone) the right mix of retention initiatives”, (p. 11). If a hospital can get the first two right, then employee engagement will be easier to obtain because the staff is happy with the basics of their job.
References
Allen, D. (2008). Retaining talent. Retrieved from http://www.shrm.org.
Brimmer, K. (2013). Cut labor costs with smarter scheduling. Retrieved from
http://www.healthcarefinancenews.com
Nowak, P., Holmes, G., & Murrow, J. (2010). A model for reducing health care employee
turnover. Journal of Hospital Marketing & Public Relations, 20:14-25.