High Employee Turnover in Healthcare

Section I: Background 

High employee turnover presents a challenge experienced in numerous industries, including the healthcare sector. This challenge is one of the main barriers experienced in the healthcare industry because it harms the employees as well as the patients. Employee turnover is considered one of the areas that increase the overhead cost units in an organization in addition to replacement fees and other hidden costs that are accrued to employee turnover. Due to frustrations associated with employee turnover, it has become harder for hospitals to recruit and retain top talent. High turnover is also seen to be detrimental to overall patient care because it is presented as one of the drivers that result in a quality reduction. High employee turnover in healthcare is also presented as a cause of the rising mortality rates. The project will focus on the analysis of employee turnover in the healthcare industry about these topics.

Employee turnover rate is a metric used to evaluate progress and success in the healthcare department. High turnover is viewed as a disruption to the core activity, which is taking care of patients. Patient care and recovery are thus influenced by the level of employee turnover because high turnover disrupts the system used to ensure continuity in all hospital services (Antwi & Bowblis, 2016). As the author further expounds, patient satisfaction and treatment outcomes are dependent on employee turnover, and measures incorporate to prevent high turnover. Empathy is presented as a key strategy that hospitals can use to improve patient care as it can facilitate a speedy recovery (Brandt et al., 2016). Also, the incorporation of empathy during patient care has been said to help reduce the time patients stay in the hospital (Brandt et al., 2016). Irrespective of other strategies put in place to mitigate against high employee turnover rates, patient care is highly dependent on the conduct of healthcare practitioners. Empathy is, therefore, presented as a crucial part of the healthcare practices relating to patient care. To evaluate the role of empathy is facilitating high-quality care and reduction of employee turnover, the open arms Health Clinic has been selected as the area of study.

Section II: Goals and Objectives 

The primary aim of this study is to analyze the effects of high employee turnover on the healthcare industry and its impact on patient satisfaction and treatment outcomes. The project also aims to bring out the relationship between empathy and the welfare of patients by focusing on its effect on turnover rates. The study will also look at the causes of high employee turnover rate, its effects, and recommendations on strategies that can be put in place to militate against the adverse effects.

Section III: Measurements and Literature Review 

High employee turnover harms all industries, but the healthcare industry is hit harder due to the increased mortality rate associated with high turnover. The link between employee turnover and the mortality rate is because it affects the quality of care and services offered to patients. High employee turnover emanates from various factors such as hiring, training, and regulation of procedures and operation. The high turnover emanating from such causes is seen to have a detrimental effect on the quality of care provided and facilitate an increase in operational costs (Antwi & Bowblis, 2016). The journey towards the reduction of healthcare employee turnover is presented through the three-year goal announced by the American health organization in 2012. According to this policy, the organization was focused on achieving a 15% decline in employee turnover rates (Antwi & Bowblis, 2016). This move was facilitated by the need for improving the healthcare sector and reducing the mortality rates. Furthermore, Antwi &Bowblis present an increment in turnover as a cause of the decline in the quality of healthcare services. This view is also supported by Morgeson (2020) on the discussion corning employee turnover and ifs effect in the healthcare industry. In th9is article, the author accrues a decline in the healthcare sector to the rising levels of employee turnover as they take funds away from the critical day to day processes. The author further points to management as a point of focus in the move to help improve healthcare by reducing the turnover rate among employees (Morgeson, 2020). The importance of management is therefore highlighted, showing its role in improving healthcare services and reducing the turnover rate of staff members.

According to the research conducted by Brandt et al. (2016), high levels of employee turnover have adverse effects on healthcare and patient recovery. The turnover costs associated with staff members and contingency costs are seen to be at least twice the pay of a regular employee (Brandt et al., 2016). Increment in contingency costs negatively affects staff members as well as the patients because it creates instability in the healthcare industry. A correctional analysis conducted in the journal shows that staff density can, in some instances, facilitate improvement in the healthcare sector through quality improvement. Staff retention is shown by Brandt et al. (2016) as quite important because it affects the continuity of processes and ensures treatment and care offered to patients is consistent. As a result, strategies have been put in place, facilitating quality improvement and optimal maintenance of employees. The link between employee turnover and the quality of healthcare presented has been a point of contention because of the conflicting views presented. The study conducted by Antwi & Bowblis (2016), however, shows that the level of staff turnover does not necessarily reflect in the quality of care provided. A variation is also presented in the quality of treatment, depending on the different levels of employee turnover experienced. The two effects brought out involve staff consistency brought out through consecutive times with no turnover and staff density (Brandt, Bielitz, & Georgi, 2016).

Evidence-based retention strategies are presented as an effective way of dealing with high employee turnover rates. Human resources are, therefore, presented by Ferede as the most significant part of the healthcare sector, creating the need to facilitate employee retention to reduce the rate of staff turnover (Ferede et al., 2018). The source of staff turnover significantly influences the level of turnover and job satisfaction because it facilitates the identification of causes leading to an increase in the turnover rate. In the healthcare industry, the rate of health workers actively considering leaving their job is more than fifty percent (Ferede et al., 2018). The magnitude of turnover intention brought out in this area shows the variance in turnover as a depiction of the quality of care offered. Job satisfaction is presented as a primary determinant of care and the intention to quit. Dissatisfaction among employees makes them more prone to quit than other factors in the workplace setting, such as low remuneration (Vermeir et al., 2017). Dissatisfaction also makes workers lax in the performance of set responsibilities. Communication is also linked to the level of turnover registered because it influences the social network, especially in the interprofessional section. As the author illustrates, the communication network should be comprised of employees regularly holding work-based discussions (Vermeir et al., 2017). Communication is therefore presented as a determinant of job satisfaction level, thus influencing the turnover rate.

Communication presents one of the factors that facilitate an increased employee turnover rate. Supervisory communication is considered crucial for quality improvement because it ensures all crucial information is passed to all concerned parties promptly (Kim & Lee, 2009). Supervisory communication is presented as a factor that has significant effects on the burnout turnover because it determines the flow of information both in a horizontal and vertical model. Job relevance communication, upward communication, and positive relationship communication are analyzed in the paper to help depict the role of supervisory communication in the regulation of employee turnover rate. The solution presented to this challenge is the incorporation of empathy in healthcare education and the provision of care to patients. This is because the model creates a connection between staff members, their patients, and supervisors in most cases, thus eliminating the problem of poor communication (Morgeson, 2020). This practice can also help improve employee motivation, a factor that is important for the improvement of employee performance and overall quality of care, especially among nurses.

Job resource communication is depicted as a form of empowerment compared to the positive relationship model, which shows lower levels of stress among employees (Kim & Lee, 2009). This sector requires personal knowledge as well as skills in coordination to ensure goals set are achievable and facilitate continuity. Communication is, therefore, depicted as a critical part of healthcare and is required to prevent resignation or termination due to poor performance (Ferede et al., 2018). The article further addresses the failure of pure replacement cost estimates to cover the turnover costs when they are too high, showing their role in the decline of employee morale. The high rate of staff turnover adversely affects performance in healthcare because it demoralized the employees, thus preventing them from going the extra mile when providing care and treatment to the patients (O’Connell & Kung, 2007).

Human connection presents a unique motivator for healthcare workers because it creates a link between them and their patients, forcing them to focus on the sole well-being of their patients. The connection created between patients and healthcare providers is presented as a source of support that facilitates increased quality in the care provided (Hojat, 2016). Empathy is presented as a crucial strategy that can be used to reduce mortality rates in healthcare and help bring out the best form of treatment and reduce the effects of increased employee turnover on the patients. This model generates a connection that pushes performance based on the prevention of absenteeism and the promotion of social well-being (Hojat, 2016). Moreover, this model is dependent on understanding where nurses and other professionals in the field are expected to understand and empathize with their patients. This is because the closer the practitioners get to their patients, the better they can gauge the actual position they are in and thus improved services (Hojat, 2016). This model also helps in the integration of effective communication models, further helping reduce the impact of a high turnover rate.

Empathy is presented as the driver facilitating interpersonal relations that facilitate dignity and fulfillment between the parties involved. This is important because it regulates the accuracy of turnover prediction and helps improve healthcare services (Collini et al., 2013). The registered nurses show a turnover rate of about 14%, a factor that is associated with the inclusion of empathy in both education and patient care practices. The staff members can, therefore, be used to effectively help to mitigate against increment in staff turnover (Collini et al., 2013). The empathy model can, therefore, be transferred into other sectors of the healthcare industry to help improve the quality of care, reduce mortality rate, and reduce turnover rate through increased satisfaction.

Section IV: Requirements 

           For any project to be successful, it needs financing. The finance for this project will come from both equity and debt capital. However, the bigger proportion of this will come from equity capital. The financial plan will further examine the below items to showcase how the project will be managed. 

Fixed Costs 

Fixed costs represent the costs of operations that will not change over time. They remain constant irrespective of the level of activities that will be witnessed in the health facility (Vakhrushina et al., 2018). For instance, the amount of rent paid on the facility is a fixed cost that ought to be met thought the period when the hospital facility will remain in operation and house in the rented facility. 

Cost-benefit Assessment 

It is crucial to conduct a cost-benefit assessment for any project that is to be undertaken to determine whether the project is viable. Through the assessment, one can establish whether the project represents an opportunity through which one can recoup their investments (Stewart & Mueller, 2019). This will guide in making an informed decision accordingly. 

Financial Principles 

As an investor, the project is guided mainly by two main financial principles. One of them is on the time value of money. In this regard, the project expects to create value for money that has been invested. Soon, the amount that has been expected is expected to have grown and will be reflected in the equity value of the hospital facility (Armour et al., 2016). The facility expects that by offering high-quality services to its clients and by retaining its employees, then it will be possible to build on its reputation and thus increase its net worth in the market. The second financial principle that will be put into consideration regarding this project is the risk and reward. According to this principle, making a high-risk investment when the returns are small should be avoided since it represents a waste of resources. Though the investment in this project represents a huge amount, the potential for returns is also high. Therefore, the project is a worthy one to undertake. 

Spreadsheet Products 

These represent data management software and applications that will be needed to help in the operations of the firm. The organization will install spreadsheet software in its operations to help in the management of patients’ data. 

Personnel Costs 

These involve the costs of hiring employees to perform different tasks at the clinic. 

Sunk Costs 

Sunk costs represent costs that have been incurred on the project and have no implication in future decisions. For instance, an investor can spend $2 million to open a new medical facility in the neighborhood. However, after one year of operation, it proves that the project is unprofitable; a decision to close it ought to be reached. In this case, the investor should not be reluctant to decide since he had invested $2 million in the project (Nowicki, 2004). Since the reason for the establishment of the business is to make profits, then if it proves unprofitable, it ought to be dropped. In this case, the $2 million lost in this new project will be sunk costs.

Opportunity Costs 

In the operations of the medical facility, there would be some circumstances when the management will forgo some potential revenues as a result of rejecting an alternative. The cost of the forgone alternative is what represents opportunity costs (Nowicki, 2004). For instance, if the CEO of the medical facility has $1million to invest, and chooses to invest it in opening a new clinic in the neighborhood instead of investing in another opportunity like the purchase of government bonds, then the forgone alternative represents opportunity costs. 

Breakeven Costs 

Refers to the amount of money at which the services of the medical facility will be offered to cater for the costs of providing the same (Vakhrushina et al., 2018). 

Materials and Labor 

Direct costs: labor and supplies

Variable costs: heating and cooling

Savings and Profit 

The hospital facility intends to increase its net worth through the profits that it makes in its operation. The profits will be invested further as a way of risk diversification. 

Financial/resource Assumptions 

The project will be built on the following assumptions, including the availability of resources to finance the project, availability of labor and supplies, and availability of participants who will provide the required information for primary source analysis.

References 

Antwi, Y. A, & Bowblis, J. R. (2016). The impact of nurse turnover on quality of care and mortality in nursing homes: Evidence from the Great Recession.  American Journal of Health Economics 4 (2), 131–163. https://doi.org/10.17848/wp15-249 

Armour, J., Awrey, D., Davies, P. L., Enriques, L., Gordon, J. N., Mayer, C. P., & Payne, J. (2016).  Principles of financial regulation . Oxford University Press. 

Brandt, W. A., Bielitz, C. J., & Georgi, A. (2016). The impact of staff turnover and staff density on treatment quality in a psychiatric clinic.  Frontiers in Psychology ,  7 . doi:10.3389/fpsyg.2016.00457 

Collini, S. A., Guidroz, A. M., & Perez, L. M. (2013). Turnover in health care: the mediating effects of employee engagement.  Journal of Nursing Management ,  23 (2), 169-178. https://doi.org/ 10.1111/jonm.12109 

Ferede, A., Kibret, G. D., Million, Y., Simeneh, M. M., Belay, Y. A., & Hailemariam, D. (2018). Magnitude of turnover intention and associated factors among health professionals working in public health institutions of North Shoa Zone, Amhara Region, Ethiopia.  BioMed Research International ,  2018 , 1-9. https://doi.org/ 10.1155/2018/3165379 

Hojat, M. (2016). Empathy and Patient Outcomes.  Empathy in Health Professions Education and Patient Care , 189-201. https://doi.org/ 10.1007/978-3-319-27625-0_11 

Kim, H., & Lee, S. Y. (2009). Supervisory Communication, Burnout, and Turnover Intention Among Social Workers in Health Care Settings.  Social Work in Health Care ,  48 (4), 364-385. https://doi.org/ 10.1080/00981380802598499 

O’Connell, M., & Kung, M. (2007). The cost of employee turnover. Industrial Management, 49 (1), https://www.questia.com/magazine/1P3-1219118031/the-cost-of-employee-turnover 

Morgeson, F. P. (2020). How to reduce employee turnover in healthcare. Healthcare Source . http://education.healthcaresource.com/how-to-reduce-employee-turnover-in-healthcare/ 

Nowicki, M. (2004).  The financial management of hospitals and healthcare organizations . Chicago, IL: Health Administration Press. 

Stewart, M. G., & Mueller, J. (2019). Security risk and cost-benefit assessment of secondary flight deck barriers . Centre for Infrastructure Performance Reliability (CIPR). 

Vakhrushina, M. A., Kostyukova, E. I., Tatarinova, M. N., Elchaninova, O. V., & Grishanova, S. V. (2018). Integrated management accounting in the financial management system.  Research Journal of Pharmaceutical, Biological, and Chemical Sciences ,  9 (3), 808-813. 

Vermeir, P., Degroote, S., Vandijck, D., Mariman, A., Deveugele, M., Peleman, R., … Vogelaers, D. (2017). Job satisfaction in relation to communication in health care among nurses: A narrative review and practical recommendations.  SAGE Open ,  7 (2), 215824401771148. https://doi.org/ 10.1177/2158244017711486