Help wanted: Bold solutions required to meet healthcare labor needs 

The healthcare industry continues to grapple with the hard truths of insufficient labor supply, unsustainable cost models and record burnout among staff and providers.

The financial distress and workforce challenges are not expected to let up soon. Some 50% of providers report feeling overworked to the extent that they are looking to change jobs or planning early retirement. At the same time, Oliver Wyman estimates that health systems will need to reduce operating expenses 15% to 20% by 2030 to remain financially viable. That’s a tough challenge when half of those costs are typically labor costs.

Yet the hard truths also provide healthcare organizations with an impetus to act, act quickly and move boldly with determination toward lasting solutions. The industry’s efforts to invest in secondary and post-secondary programs and recruitment will not alone provide the swift response needed to make up ground or sustain the industry.

“The workforce is not going to be there,” warns Providence Health & Services Chief People Officer Greg Till. “We need to really be thinking differently about how we're going to design a new workforce for success. How are we going to automate so that we can make sure all our caregivers are practicing at the top of their license and open up new access to sources of talent that we haven't had before? No one system is going to be able to solve that problem alone.”

To overcome these persistent workforce challenges, bold solutions are required. They generally fall into one of four categories:

Workforce planning & strategy

Healthcare organizations can analyze the internal and external labor supply and demand to determine what workers they need, when they will need them and where to find them. There is a tremendous amount of data available that can be leveraged on the flow of talent through the organization, evaluating where gaps exist, where talent is exiting the organization and where there are opportunities to promote, train and reskill staff. Additionally, organizations can look beyond their existing workforce to quantify talent availability and understand the external labor market forecasts. This workforce strategy must be built upon a solid foundation of competitive pay and benefits with flexibility from work and flexibility at work. An organization’s talent attraction efforts are for naught if they don’t retain the talent.

Redesign of work

Healthcare organizations can focus on how to allow their staff to practice at the top of their license. “Top of License” is not a new concept but achieving it has eluded many provider organizations. Getting there requires determining where to optimize, automate and augment the work. Mercer’s work design projects with healthcare organizations are unlocking up to 40% more capacity in key roles, helping to solve talent shortages, while simultaneously increasing provider and staff satisfaction. A win-win for all.

Fit-for-purpose EVP and total rewards

Organizations that get this right will need to regularly revisit their employee value proposition and total rewards. They will utilize employee listening and work to understand the specific demographics of their workforce to understand what really matters to them. They will offer differentiated, targeted total rewards that provide their staff with flexibility, choice and value. These efforts will not only communicate the organization’s vision and demonstrate that they value their existing workforce’s contributions but will help them become the organizations where healthcare workers want to be – now and into the future.

Improve the work environment

Working in healthcare has become too dangerous. Healthcare organizations can invest further and more precisely in workplace safety and staff well-being in an integrated manner. Healthcare workers deserve to feel safe and well as they care for us. Anything short of this contributes unnecessarily to the unacceptably prominent levels of burnout we see today across all levels of the healthcare workforce.

Healthcare organizations can successfully navigate the workforce crisis and create a sustainable future by acting decisively and providing ongoing attention to key initiatives: rigorous, analytically based workforce planning and strategy; redesign of the work; fit-for-purpose EVP and total rewards approach; and improving the work environment. These activities are crucial for attracting and retaining talent, optimizing staff capacity and ensuring the safety and well-being of healthcare workers. To drive impact, wrap efforts in effective change management and communication strategies considering healthcare leaders, providers, staff and patient perspectives.