Despite the high cost of property management and machinery, labor is undoubtedly the most significant operating expense for most healthcare providers. For hospitals, salary costs often consume more than half of total operating revenue, and for smaller practices, this percentage can be even higher. Clearly, the need for strategic operations is paramount for today’s healthcare HR leaders as they navigate unique talent management challenges in a highly stressful and fast-paced field.
Recruiting in the Healthcare Industry
More than any other industry, healthcare HR leaders are faced with the importance of hiring highly skilled employees—with life-or-death consequences. High salaries and a shortage of specialized talent compound recruiting pressure. Despite fierce competition, managers must take their time during the hiring process to ensure candidates are a good match based on experience as well as behaviors, motivations, and aspirations—qualities that are more effective at determining long-term fit and success.
Retention and HR Technology
While replacing a lower-level hourly employee can cost just 16% of their salary, replacing a highly trained employee—like a doctor—can cost up to two times their annual salary. The implications of high turnover in healthcare can be disastrous, both financially and in terms of declining patient-care quality.
Fortunately, advancements in predictive and prescriptive analytics can harness the power of Big Data to identify everything from high performers to flight risks. These data-driven insights allow healthcare HR leaders to strategically target at-risk employees and take action to engage and retain them.
Compliance Made Easier with an HCM Partner
U.S. healthcare legislation continues to change with little notice, and healthcare HR leaders must be increasingly responsive to ensure compliance and avoid hefty penalties. Choosing an HCM partner with proven healthcare expertise and adaptability can be a lifeline for providers, who can then rely on receiving updates and the necessary knowledge, tools, and services to face any challenges presented by new regulations.
Flexibility Through Human Resources Technology
For healthcare providers, time-consuming HR processes are a significant drain on resources when what’s really needed is seamless flexibility to adjust to industry upheavals. Unified, cloud-based solutions allow leaders to easily scale talent management, addressing a variety of HR needs without increasing workload. The result is significant cost savings, improved accuracy, and personalized assistance and specialized advice through every step of the employee lifecycle.
To learn more about how healthcare organizations have overcome their human resources challenges, take a look at these real-life case studies: