Success Factors in Healthcare Talent Management: What ... · PDF fileincreasing pressure to...
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In the face of monumental change within healthcare, human resources professionals are under increasing pressure to ensure a steady flow of leadership talent within their organizations. Although many such organizations have well-developed talent management practices, few have a firm understanding of the return on investment these practices provide. To better gauge the relative success or failure of standard talent management practices within healthcare—and to provide practical recommendations for the future—Dr. Kevin S. Groves, Ph.D., president of Groves Consulting Group and associate professor of management at Pepperdine University, recently conducted a comprehensive survey of 142 senior HR officers and other industry executives in charge of talent management within their organizations. Witt/Kieffer provided support for Groves’ work. The organizations represented in the survey consisted mostly of private, multi-hospital health systems, reported an average net revenue of more than $3.5B, and employed nearly 19,000 full-time employees on average. The full results of Groves’ survey can be found in a comprehensive report at www.grovesconsultinggroup.com 1 . Survey respondents rated the degree to which their respective organizations utilize Talent Management Success Factors 2 . The Success Factors, which measure a series of talent management best practices derived from prior research, are listed here along with findings for each from Groves’ recent study: www.wittkieffer.com Success Factors in Healthcare Talent Management: What Differentiates High- and Low-Performing Organizations An Executive Summary Success Factors Findings Top Management Team Support Four-fifths of survey respondents noted that their organizations view talent management as a strategic priority. Performance Management Processes Most respondents noted that these processes within their organizations were deemed objective, though slightly fewer held that employees and managers saw the processes as credible. Talent Assessment Practices Most believed that assessment practices are non-politicized and collaborative; responses were mixed in terms of whether formal assessments were used to position employees according to performance and leadership potential. Leadership Development Culture A majority felt their development culture was fair and equitable in general, though few respondents indicated this was “always” the case. Pay Practices The executives reported a relatively low degree of organizations’ utilizing pay practices as a Talent Management Success Factor. Onboarding Practices The use of onboarding practices was the highest among all Success Factors.
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:
www.wittkieffer.com
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.
www.wittkieffer.com 2
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)
www.wittkieffer.com 3
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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