Success Factors in Healthcare Talent Management: What ... · PDF fileincreasing pressure to...
Transcript of Success Factors in Healthcare Talent Management: What ... · PDF fileincreasing pressure to...
Inthefaceofmonumentalchangewithinhealthcare,humanresourcesprofessionalsareunderincreasingpressuretoensureasteadyflowofleadershiptalentwithintheirorganizations.Althoughmanysuchorganizationshavewell-developedtalentmanagementpractices,fewhaveafirmunderstandingofthereturnoninvestmentthesepracticesprovide.
Tobettergaugetherelativesuccessorfailureofstandardtalentmanagementpracticeswithinhealthcare—andtoprovidepracticalrecommendationsforthefuture—Dr.KevinS.Groves,Ph.D.,presidentofGrovesConsultingGroupandassociateprofessorofmanagementatPepperdineUniversity,recentlyconductedacomprehensivesurveyof142seniorHRofficersandotherindustryexecutivesinchargeoftalentmanagementwithintheirorganizations.Witt/KiefferprovidedsupportforGroves’work.
Theorganizationsrepresentedinthesurveyconsistedmostlyofprivate,multi-hospitalhealthsystems,reportedanaverage
netrevenueofmorethan$3.5B,andemployednearly19,000full-timeemployeesonaverage.ThefullresultsofGroves’
surveycanbefoundinacomprehensivereportatwww.grovesconsultinggroup.com1.
SurveyrespondentsratedthedegreetowhichtheirrespectiveorganizationsutilizeTalentManagementSuccessFactors2.
TheSuccessFactors,whichmeasureaseriesoftalentmanagementbestpracticesderivedfrompriorresearch,arelisted
herealongwithfindingsforeachfromGroves’recentstudy:
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Success Factors in Healthcare Talent Management:What Differentiates High- and Low-Performing OrganizationsAn Executive Summary
Success Factors Findings
Top Management Team Support Four-fifthsofsurveyrespondentsnotedthattheirorganizationsviewtalentmanagementasastrategicpriority.
Performance Management Processes
Mostrespondentsnotedthattheseprocesseswithintheirorganizationsweredeemedobjective,thoughslightlyfewerheldthatemployeesandmanagerssawtheprocessesascredible.
Talent Assessment Practices Mostbelievedthatassessmentpracticesarenon-politicizedandcollaborative;responsesweremixedintermsofwhetherformalassessmentswereusedtopositionemployeesaccordingtoperformanceandleadershippotential.
Leadership Development Culture Amajorityfelttheirdevelopmentculturewasfairandequitableingeneral,thoughfewrespondentsindicatedthiswas“always”thecase.
Pay Practices Theexecutivesreportedarelativelylowdegreeoforganizations’utilizingpaypracticesasaTalentManagementSuccessFactor.
Onboarding Practices TheuseofonboardingpracticeswasthehighestamongallSuccessFactors.
Talent Management: A Connection to Productivity?
Next,thereportstudiedwhetherapositiverelationshipcould
bemeasuredbetweentalentmanagementpracticesand
employeeproductivity.Theresultsindicatedthat,indeed,
therewasacorrelation.
HospitalsystemswithhighSuccessFactorsscoresreportedan
averageemployeeproductivitymetric(netrevenue/FTEs)of
$164,154comparedto$132,685fororganizationswithlow
SuccessFactorsscores.
The$31,469differenceinnetrevenueperFTErepresentsa
nearly24percentincreaseinemployeeproductivity.
HospitalsystemswithhighSuccessFactorsscoresreportedan
averageHCAHPSscore(HospitalConsumerAssessmentof
HealthcareProvidersandSystems)of74percentcomparedto
65percentfororganizationswithlowSuccessFactorsscores.
HospitalsystemswithhighSuccessFactorsscoresobtained
significantlyhigherpatientsatisfactionscoresacrossall
HCAHPSdimensions.
Turnover, Bench Strength through the Lens of Workforce Metrics
Groves’dataalsoestablishedaconnectionbetweengood
talentmanagementandstrongtraditionalworkforce
metrics.HospitalsystemswithhighSuccessFactorsscores
demonstratedsignificantlylowerannualturnoverfornurses
andmanagementcomparedtoorganizationswithlowSuccess
Factorsscores.Thetwo-percentreductioninannualturnover
fornursesrepresentsatotalannualcostsavingsof$2.45M,
Grovesestimates,whilethenearlytwo-percentreductionin
annualmanagementturnoverrepresentsatotalannualcost
savingsof$800,617.
HospitalsystemswithhighSuccessFactorscoreswerealso
significantlylesslikelytosourceexecutivetalentexternally
andwerefarmorelikelytoreportleaderbenchstrengthofat
leasttwo“readynow”candidatesforkeyleadershiproles.
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Turnover Rates
6.83%
5.05%
9.98%
7.91%
0%
2%
4%
6%
8%
10%
12%
Management TurnoverNurse Turnover
Orgs with Low Success Factors ScoresOrgs with High Success Factors Scores
Sourcing External Talent and Benchstrength
0%
10%
20%
30%
40%
50%
60%
70%
80%
14%
53%
69%
43%
Orgs with LowSuccess Factors Scores
Orgs with HighSuccess Factors Scores
Benchstrength of 2 “ready-now”
candidates
Source externalexecutive talent
$0$20,000
$60,000
$100,000
$140,000
$180,000
Orgs withLow Success
Factors Scores
Orgs withHigh Success Factors Scores
Net r
even
ue/F
TEs
$164,154
$132,685
Employee Productivity
The Importance of Diversity
Regardingexecutiveteamdiversity,high-performing
hospitalsystemsreportedsignificantlygreaterwomen
andethnicminoritiesacrossallexecutivepositions
(vice-presidentsandabove)comparedtohospital
organizationswithlowSuccessFactorsscores.
Finally,theaveragenumberofexecutivesearches(4.14)
andassociatedfees($235,000)weresignificantlylower
forhospitalsystemswithhighSuccessFactorsscores
comparedtolow-performingorganizations(13.73and
$1.10M,respectively).
Defining High-Potential Employees
Hospitalsystemsadoptarangeofpoliciesandpractices
toexecutetalentmanagementstrategies.Exactlyhalf
(50percent)oftheorganizationsexplicitlyinformindividualemployeesoftheirstatusas“highpotential.”Mosthospital
systems(52percent)define“highpotential”accordingtoleadershipcapabilitywhileutilizingthefollowingfactorsto
designatehighpotentialemployees:
•Jobperformance(64percent)
•Leadershipcompetencies(63percent)
•Specificworkexperiences(54percent)
Themostcommonleadershipdevelopmentpracticesincludedspecialprojects(59percent)andinternaldevelopment
programs(52percent).Themostcommonmetricsforevaluatingtheefficacyofrespectivetalentmanagementsystems
includedtheinternal/externalhiringratioforleadershiproles(43percent)andthesuccessratesofhigh-potentialsplaced
intonewroles(36percent).
Healthcare Talent Management: Recommendations for Raising the Bar
Thesurveyresultssupportavarietyofprogressiveapproachesfordevelopingatalentmanagementstrategy,amongthem
prioritizingtalentmanagementinvestmentsformaximalgainsinclinical,financialandworkforceoutcomes.Implementing
specifictalentmanagementpoliciesandpracticeswillgreatlybenefithealthcareorganizations,thestudysuggests.Healthcare
organizationsseekingtoleveragetalentmanagementforimprovedorganizationaloutcomesshould:
•AudittheirrespectivetalentmanagementsystemacrosstheSuccessFactorstoidentifycriticalgaps
•Elevatethebusinesscasefortalentmanagementamongtopmanagementteamandboardmemberswithemphasisonclinical,financialandworkforcemetrics
•Accelerateworkforcediversityinitiativesbyincreasingthenumberofwomenandethnicminorityexecutivesthroughtalentassessmentandonboardingpractices
•Developonboardingprogramsforbothexternalhiresandkeyinternalpromotions
•Createcustomizedassessmenttoolsforidentifyinghighpotentialleaders(e.g.,nine-boxmodels,multi-sourceassessments)
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Diversity in High Success Orgs Vs. Low Success Orgs
Orgs with LowSuccess Factors Scores
Orgs with HighSuccess Factors Scores
0%
10%
20%
30%
40%
50%
Ethnic minority executivesWomen executives
45%
27%
34%
6%
•Assessthecomposition,formatandfrequencyoftalentreviewsessions
•Establishtransparencywiththehighpotentialdesignationprocessthroughkeypoliciesandpractices
•Develophighpotentialleadersthroughproject-basedassignmentsdirectlytiedtostrategic,system-wideinitiatives
•Adoptabalancedscorecardapproachtoevaluationmetricsformeasuringtheefficacyofthetalentmanagementsystem
References1Groves,K.(2012).ImpactofTalentManagementPracticesonHospitalClinical,Financial,&WorkforceMetrics:
HealthcareTalentManagementSurvey.IssuedOctober2012.
2Groves,K.(2011).Talentmanagementbestpractices:Howexemplaryhealthcareorganizationscreatevalueina
downeconomy.Health Care Management Review,36(3):227-240.
For more information on this study, contact:
KevinS.Groves,Ph.D.
President,GrovesConsultingGroup
AssociateProfessorofManagement,
GraziadioSchoolofBusinessandManagement
PepperdineUniversity
310/568.5729
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