Key insights from industry experts on the healthcare workforce crisis
In this week’s blog, we take a look at the critical workforce challenges in healthcare and explore strategies for attracting and retaining employees.
Protests over pay have erupted recently in France, Germany, the UK, and South Korea. In June 2024, thousands of private hospital and clinic workers in France went on strike, while in February, healthcare professionals in Germany called for better wages. In February, in South Korea, junior doctors protested against plans to increase medical school admissions, citing overwork and inadequate pay.
As demand for private health services rises, attracting and retaining skilled employees is essential for healthcare providers. Employers face challenges such as staff shortages, prolonged vacancies, low retention rates, and a workforce that feels undervalued and overworked. These issues lead to significant costs related to recruitment, and employing lower-skilled individuals, as well as risks of litigation from dissatisfied patients and increased burnout.
Florence Rolland, an international negotiation consultant based in Scotland, speaking to HBI said organisations must balance budget constraints with the need to offer competitive pay and benefits. She stated, “Investing in fair compensation and benefits is not just a cost; it leads to a more satisfied workforce, correlating with improved productivity and higher retention rates. Happy employees are more likely to provide quality care and contribute positively to the workplace.”
“To facilitate effective pay negotiations, employers should ensure that healthcare professionals are well-informed about their value within the organisation. Given that pay scales in healthcare often feature wide ranges, it is crucial for employers to communicate the value of experience and skills clearly. Relying solely on historical pay grades can lead to a cycle of undervaluation, where talented staff accept lower starting salaries and remain undercompensated throughout their careers.”
Healthcare organisations should foster a culture of open dialogue about compensation, helping professionals understand their worth and prepare for negotiations. Providing transparent salary benchmarks and market data can facilitate this process.
Rolland echoed this sentiment, stating, “While balancing budget constraints is essential, healthcare employers must recognise the long-term benefits of investing in fair pay and supportive work environments. Such investments are crucial for enhancing staff satisfaction, improving retention rates, and ultimately elevating the quality of patient care.”
Been there, done that: key insights from industry leaders
At the HBI 2024 conference, a panel titled ‘The war for talent: Recruitment, retention and culture’, Dimitris Moulavasilis, CEO of Diaverum, a Sweden-based global renal care provider, highlighted the company’s proactive strategies, which include effective communication, authentic narratives, equal opportunities, and staff development.
“Our culture is defined by inspiration, passion, and competence, integral to our recruitment and appraisal processes,” he stated. Diaverum celebrates achievements through the Diaverum Awards, where peers nominate each other globally, underscoring transparency and inclusivity in job opportunities.
Daniel Klein, CEO of Deutsche Fachpflege (DF), an outpatient intensive care platform in Germany, shared how strategic talent attraction and retention efforts have reduced employee turnover below industry averages.
“First pillar is centralising the recruitment team to enhance efficiency and market understanding, focusing on speed and effectiveness in attracting candidates. We have seen significant progress with nearly 20,000 job applications received in 2023 after streamlining processes. The second pillar emphasises development and coaching, while the third focuses on retention strategies.”
Ronald Scheffer, Co-Founder of Luscii Healthtech, a Netherlands-based digital health scale-up, stressed the importance of company culture for productivity and employee well-being. He said, “A culture built on purpose and trust is vital,” referencing Luscii’s successful implementation of a four-day workweek without salary cuts, leading to lower sick leave and increased productivity.
Scheffer cautioned against hasty cultural changes, advocating for a thoughtful approach:
“Making significant changes all at once doesn’t deliver immediate results. It’s about understanding and continuous learning.”
In their closing remarks at the HBI 2024 panel, Moulavasilis and Klein stressed the need for leadership engagement and effective communication. Moulavasilis said, “It’s crucial to communicate openly with your employees, showing appreciation and care.” Klein echoed this, stating, “Listening to your staff, especially those on the front line, is paramount for making necessary adjustments.”
For more insights on the HBI conference, click here.
We would welcome your thoughts on this story. Email your views to Rakshitha Narasimhan or call 0207 183 3779.
