HRM 5

1. Lecture 5
Organizational Relations and
Employee Retention in Healthcare
Human Resources Management in Health Care
Institute for Nile States Strategic Studies and
Researches

2. Lecture Objectives
After this lecture, you should be
able to understand:
◦ Factors affecting the relationship between employees and healthcare
organizations
◦ Employee retention for healthcare organizations
◦ How to compute the cost of organizational turnover

3. FACTORS AFFECTING THE
RELATIONSHIP BETWEEN EMPLOYEES
AND HEALTHCARE ORGANIZATIONS
Objective 1/3

4. The Psychological Contract
The Psychological Contract
•The unwritten expectations that employees
and employers have about the nature of their
work relationships
4

5. The New Psychological Contract
5

6. 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

7. 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

8. Individual /
Organizational
Performance
8

9. EMPLOYEE RETENTION FOR
HEALTHCARE ORGANIZATIONS
Objective 2/3

10. 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
10
Retention of Human Resources

11. 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
11
Organizational Behavior
Loyalty
Downsizing, layoffs,
mergers, acquisitions,
organizational restructuring

12. 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
12
Organizational Career Opportunities

13. Another 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
13
Rewards & Retention

14. 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
14
Rewards & Retention (cont’d)

15. High turnover rates in early employment have been
linked to inadequate selection screening
15
Job Design and Retention

16. 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.
16
Work Flexibility

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
17
Balancing Patient Care Needs & Schedule Flexibility

18. 18
Supervisory Retention Efforts

19. HOW TO COMPUTE THE COST OF
ORGANIZATIONAL TURNOVER
Objective 3/3

20. Number of employee separations during the month
X 100
(Total number of employees at midpoint)
20
Retention Measurement and Assessment
Retention measured objectively vs. subjectively
Turnover

21. 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
21
The Cost of Turnover