1. Healthcare Human Resource Management Healthcare Human Resource Management Flynn Mathis Jackson Langan Organizational Relations and Employee Retention in Healthcare Chapter 7 PowerPoint Presentation by Tonya L. Elliott, PHR

2. 2 Learning Objectives After you have read this chapter, you should be able to:  Explain the factors affecting the relationship between employees and healthcare organizations  Discuss the importance of employee retention for healthcare organizations  Identify the common reasons employees voluntarily leave organizations  Define the various organizational retention determinants  Describe how to compute the cost of organizational turnover

3. 3 Relationships: The Psychological Contract The Psychological Contract The unwritten expectations that employees and employers have about the nature of their work relationships Psychological Ownership Individual’s feeling of control and perceived rights Loyalty has declined in recent years

4. 4 The New Psychological Contract

5. 5 Individual/Organizational Relationship Factors Economic changes -- Shift to dot-com and technology sectors Generational differences -- Differing expectations between the generational groups Loyalty -- Psychological contract changes Career expectations for women -- Expansion into other industries other than teaching and healthcare

6. 6 Job Satisfaction and Organizational Commitment Job Satisfaction A positive emotional state resulting from evaluating one’s job experiences Organizational Commitment The degree to which employees believe in and accept organizational goals and desire to remain within the organization

7. 7 Individual / Organizationa l Performance Figure 7-2

8. 8 Retention Keeping employees who have been recruited, selected, and trained Retention is a growing concern due to: More patients due to increase in elderly consumers Healthcare employee shortages More demanding consumers More stressful working environments for healthcare workers Retention Officer – often an individual in an HR department who is responsible for retention efforts in the organization Retention of Human Resources

9. 9 Retention Determinants Figure 7-4

10. 10 Organizational culture A pattern of shared values and beliefs giving members of an organization meaning and providing them rules for behavior Job continuity and security Organizational Components Loyalty Downsizing, layoffs, mergers, acquisitions, organizational restructuring

11. 11 Key component in retention: “opportunities for personal growth” Career Development  Tuition aid may increase retention rates  Companies must identify ways to use new knowledge gained --- increases employee’s feeling of “value” Career Planning  Managers should discuss and plan career development with their employees  Job posting programs have been proven effective Organizational Career Opportunities

12. 12 Key to retention: Competitive compensation practices Pay  Bigger retention issue in lower income groups Benefits  Benefits flexibility aids retention Special benefits and perks  Day care centers, salons, post offices, dry cleaners, paid parking, etc.  Reduces employee time spent after work on personal chores Rewards & Retention

13. 13 Performance differentiation of compensation Greater rewards for higher performers Variable pay programs Incentive programs -- Cash bonuses -- Lump sum payments Employee recognition Tangible – employee of the month, perfect attendance awards Intangible – feedback, recognition in newsletters, banquets Rewards & Retention (cont’d)

14. 14 Job Design and Retention High turnover rates in early employment have been linked to inadequate selection screening

15. 15 Work scheduling alternatives Telecommuting Working from home or other locations Flextime Flexible work schedules Compressed work weeks 4 days/10 hours; 3 days/12 hours, etc. Work Flexibility

16. 16 Work Schedule Flexibility Trends Figure 7-6

17. 17 Increased schedule flexibility accomplished with: Part-time and casual workers Some full-time employees replaced with greater number of part-time and casual employees Patient census prediction & staffing methods Establish the core staff + Supplementing with variable staff Balancing Patient Care Needs & Schedule Flexibility

18. 18 Supervisory Retention Efforts Figure 7-7

19. 19 Number of employee separations during the month X 100 (Total number of employees at midpoint) Retention Measurement and Assessment Retention measured objectively vs. subjectively Turnover

20. 20 Hiring costs Recruiting, advertising, search fees, staff salaries & time, referral fees, relocation/moving costs, employment testing costs Training Costs Paid orientation time, training staff time & salaries, training materials costs Productivity costs Lost productivity due to “break-in” time of new employees, lost employee knowledge of customers, organizational products & services, resources & systems Separation costs Staff and supervisory time & salaries, exit interview time, unemployment expenses, legal fees for challenged separations The Cost of Turnover

21. 21 Simplified Turnover Costing Model

22. 22 Attitude survey Measures employees’ feelings and beliefs about their jobs Exit interview Those leaving the organization identify reasons for their departure Employee Surveys Diagnose specific problem areas Identify employee needs or preferences Reveal areas where HR activities are viewed positively or negatively Employee surveys can be used to:

23. 23 Recruiting Process *realistic job previews Selection Process *reduce risk of hires that may create “problems” Compensation *competitive, fair, equitable pay systems Career Development & Planning *opportunity for career advancement Employee Relations *fair/nondiscriminatory treatment HR Retention Interventions

24. 24 1.Track intervention results 2.Review turnover data Retention Interventions: Evaluation & Follow- Up Measure increases and decreases in turnover trends Analysis sorted byJobs and job level Departments/units/location Reason for leaving Length of service Demographic characteristics Education & training Skills & abilities Performance ratings/levels