Retention plans counteract troubling trends
A recent Becker’s Hospital Review article outlined 5 compensation trends in healthcare, including the fact that the annual turnover rate in emergency, ICU, and nursing departments has increased during the pandemic, rising from 18% to 30%.
Turnover is expensive, particularly when it comes to physicians. According to our clients, the total replacement cost for a single physician can reach $500,000. Therefore, a 12% increase in turnover, combined with the rising cost of labor and the ongoing physician and nursing shortage, could lead to unparalleled workforce challenges in the coming year. To thrive in this environment, hospitals need a financially sustainable compensation strategy that will help them attract and retain physicians.
Retention plans make a difference
When making employment decisions, most people consider the benefit plans offered by their current and potential employers. A study conducted by Principal Financial Group found that the ability to participate in a retention plan is a top deciding factor for 78% of plan participants when they’re considering a new job, and 68% say it’s a top factor when deciding whether or not to stay with an employer.
Using the tools at your disposal
Many hospitals already have plans in place that could be used for the purpose of retaining physicians, but these plans haven’t been configured in a way that maximizes their potential.
The design of a retention plan should not only reflect a hospital’s goals, it should also account for physicians’ needs. This can be accomplished by including the features allowed under current plan regulations that appeal to physicians.
It’s also important to make sure physicians are aware of their organization’s retention plans and the benefits of participation. A Jackson Physician Search survey found that while 70% of healthcare administrators say there is a retention plan in place at their organization, only 17% of physicians say the same. If physicians don’t know about a retention plan and what it can do for them, they won’t be able to appreciate their administration’s retention efforts.
MaxWorth can help
By conducting a plan review, we can help you align your existing retention program with your organizational goals and your physicians’ needs. We’ll also help you develop a communication strategy that utilizes multiple channels to reach physicians during and beyond traditional enrollment periods. As a result, your organization will be able to enjoy the competitive advantage of having an effectively designed and communicated retention plan.
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