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Pain Au Chocolat

11/12/2008

 Chairman's Message

This month's topic, which discusses staff turnover, once again serves to remind me just how much "people focused" the present healthcare milieu is and will remain.

The value of the individual in the healthcare setting, and the opportunity for the individual to excel, is unsurpassed in few other enterprises. So, in these uncertain times, let's all remember the importance of the human factor.

Pain Au Chocolat

When you think of the word "turnover," does a deliciously decadent pastry come to mind, or do you immediately consider the comings and goings of those in leadership positions at your organization? If it's the latter, is the turnover you're experiencing a good thing, or a bad thing?

Certainly, some turnover is positive. When people who've grown out of a job and become bored and complacent leave, it can be like a breath of fresh air to coworkers and management. It's also good when people rise through the ranks, leaving empty seats behind, signaling to others in the organization that real possibilities to move up actually exist.

The bad kind of turnover is when valuable, long-term, contributing professionals leave. When this happens as a result of personal circumstances, such as a spouse relocating, or the need to stay home with young children, we may not like it, but we understand.

However, when good people depart because they no longer feel valued, that's a problem.

Often this is the case when new leadership is put into place. According to a University of Oklahoma, College of Public Health study (2006), a ripple effect occurs with the changing of the guard to the extent that 77% of chief medical officers leave within one year of a departing CEO, as do 52% of chief operating officers, and approximately 33% of executives in human resources, finance and information technology. Quite a game of musical chairs!

But what about turnover that occurs among key contributors when the top brass remain in place? Larry Reynolds, a director of human resources at a large hospital in upstate New York, recalled a period at his organization when he lost his chief operating officer and head of finance in the same week. "A competing hospital lured both away," Reynolds said, "with the promise of better technology, more support staff and of course, a bump in salary. There was no way for us to compete with what they had to offer."

But compete, you must. Keeping employees happy with good pay, benefits and up-to-date technology certainly will help retain your best and brightest, but there are intangibles to consider as well, such as making employees feel appreciated and letting them know that what they do makes a difference.

Yes, it may be costly to retain employees, but it is much more expensive to replace them. Think about the time and effort involved in recruiting and interviewing, not to mention the burden placed on those who take on the responsibilities of the vacancy. Any way you look at it, putting effort into retention will pay big dividends.

Here are some other ideas for keeping turnover to a minimum:

Conduct a "stay interview." This is the opposite of an exit interview, where you ask your employee what it is he or she likes about the job and why he or she has chosen to stay. It's also a great opportunity to check in and make sure a departure isn't on the horizon. Employing a stay interview is a straight forward way to say "we like you, you're important to us, and we want you to stay." For more on this innovative and proactive approach, see the Harvard Business Essentials.

Know your competition. Don't get blind-sided when your CNO resigns, telling you that it was the $5,000 sign-on bonus from the hospital across town that tipped the scales. Knowing in advance that a competitor might approach your CNO with such an incentive would be extremely valuable information, allowing you to review her compensation package and determine if even a small increase would be warranted. You might be surprised by the loyalty and long-term good will such a gesture would create.

Appreciate what you have. It cannot be stressed enough that good workers want recognition and appreciation. No one likes to be taken for granted. Encourage members of your leadership team to send birthday cards and anniversary cards to employees, and notes of appreciation when someone goes the extra mile. It's said that people don't leave organizations, but rather, they leave their bosses.

Keeping an eye on internal and external forces that affect employee retention will ensure that the next time you're asked about turnover, you'll ask for pain au chocolat instead of two aspirin and the name of a good headhunter.

Management Quote

 

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