Retention plans counteract troubling trends

Retention plans counteract troubling trends

Hospital building cartoon modern vector illustration. Medical Clinic building and city background. Emergency room exterior

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. 

 

Design 

 

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. 

 

Communication

 

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.

 

SIGN UP FOR OUR NEWSLETTER

If you would like to receive industry updates and articles like the one you see here, complete the form below
Something went wrong. Please check your entries and try again.

Want to Learn More? Read the Latest From MaxWorth

The future of call pay

The Future of Call Pay Healthcare is always changing, and the pandemic accelerated change in many ways. Healthcare leaders and physicians might be wondering how recent changes will impact call pay. Let’s take a look at the origin of conflict over call pay, factors that are perpetuating it, and why…

MaxWorth’s longest running call pay program is better than ever

MaxWorth’s longest running call pay program is better than ever More than fifteen years ago, Winchester Medical Center became MaxWorth’s first healthcare client when we helped them solve a call pay conflict that was threatening their ability to staff their emergency department. Today, the hospital’s call pay program is just…

MaxWorth Insights: The Call Pay Solution Anniversary

MaxWorth Insights: The Call Pay Solution Anniversary A conversation with Steve Worthy, Max Hockenberry and Dr. Tom Oliver MaxWorth Consulting Group, LLC · The Call Pay Solution Anniversary Celebrating the anniversary of our longest-running call pay program   On this episode of MaxWorth Insights, we’re celebrating the anniversary of our first call…

Nurse compensation: Know what benefits matter most

Nurse compensation: Know what benefits matter most Nursing turnover rates are increasing. In 2019, they stood at 18%, and by 2021, they had risen to 22%. Today, that number has reached 37% in some areas. The full extent of the pandemic’s impact on nurse retention is yet to be seen,…