A hospital board member recently shared one of his organization’s top goals with us, stating, “We only want to hire executives who retire from here.” This is a striking goal for an organization in the healthcare industry given that the average tenure of a healthcare CEO is only 5.6 years. Competition for executive talent within the healthcare community is driving this trend. 67% of CEOs who leave their position are recruited away by a competing organization. This could be a reflection of today’s national work culture. It’s been reported that most people will have 7-10 jobs. The plausibility of remaining at a single organization throughout your working lifetime could be a thing of the past. While the odds may be stacked against them, we believe our client’s goal is worth striving for.
A goal worth striving for
Consistency in healthcare leadership can transform an organization. It clarifies goals and priorities, improves culture, and allows executives to invest in their community in a more meaningful way. All of this ultimately improves the quality of care patients receive.
Having a goal of consistency in leadership changes the way a hospital approaches its executive compensation. If you want to encourage loyalty, it’s important to utilize both short-term and long-term rewards. Short-term rewards entice executives to remain at a facility after recruiting calls start coming in. They can be used to reward specific achievements, keeping executives focused on goals and encouraging them to remain engaged and invested in organizational growth. It’s also important to use long-term incentives to reward longevity and encourage professionals to stay until they retire. By combining short-term and long-term rewards, a hospital can use its executive compensation to achieve its goal of consistency in leadership.
The cultural impact
Of course, these strategies can’t guarantee that your executives will not leave. But even in the event of a turnover, the organization has still communicated its values and established a culture that will attract like-minded candidates in the future.