Employee Engagement | A People and A Profit Goal

Most leaders understand the cost of employee attrition and whether in vain or not, try to decrease it.

Healthcare organizations and other organizations where the quality of patient care is at stake should be especially attentive to this metric.

Erinn Beekman, Certified Medical Practice Executive (CMPE) and Certified Performance Culture Coach, assisted one such healthcare organization with this very challenge.

Read on to hear their story and how they made a solid dent in their attrition. Note the Performance Culture resource links throughout the case study which provide a tool for executing these positive changes.

A healthcare organization we worked with decreased employee attrition from 20% to 15% in under one-year.  The organization did this by making employee retention a key part of their strategic plan.

The ROI of improving employee retention was pretty obvious.  The organization calculated the direct cost of turnover at $56K per healthcare provider.  The direct cost included recruiting, training, reimbursement delays and lost productivity. The organization also lost 234 hours of other employees’ time for each provider that had to be replaced.  

In addition to direct costs, the turnover had unwanted intangible effects.  When a good team player left, patient care was affected and the team chemistry went down.  On the flipside, when a provider was not a great fit for the organization, the intangible benefit of improving team chemistry was more important than the cost to backfill the position.  

After understanding how employee attrition affected the bottom line and the company culture, the leaders sought to understand why good employees were leaving.  They found several factors that affected turnover but the most glaring factor was the misalignment of goals between departments and poor communication.

Employees expressed deep frustration of having department goals that were antagonistic to the success of other department goals.  The misalignment of goals and the lack of engaging employees to provide feedback prevented the organization from truly achieving its fullest potential.

By understanding how this affected employee turnover the leadership team decided to revamp its strategic plan to remove competing objectives. The team also created a common goal across all departments to improve employee engagement. (Goal Management) This goal was spearheaded by the Human Resources Director, who was later credited as a Strategic Partner.  

The HR Director ensured communication between departments occurred on a timely basis. Department leads then communicated back to their teams about priorities. Employees were also asked to give suggestions to the Department Leads before these meetings. (Check-ins)

After improving goal alignment and communication, workplace satisfaction began to rise, especially with the top performing team members. The leadership team credited improved workplace satisfaction as a key factor in decreasing employee attrition.

Want to reduce your employee attrition? Click the resource links throughout the case study to learn how we can help you with executing these positive changes.

Contributor: Erinn Beekman

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