Healthcare organizations have a unique relationship with talent. The industry requires specialized skills, but it must constantly find a supply of new workers. Cost control is extremely important, yet companies struggle to maintain pay rates that attract and retain talent. Innovation is a must-have in talent acquisition (TA), but change does not come easily.
For a workforce decision-maker in healthcare, it is always good to see how others are addressing similar concerns. So, I was more than happy for the opportunity to join talent leaders at the People in Healthcare Summit by HRO Today to moderate a panel with three tenured chief nursing officers.
We have been a primary RPO partner to major (Fortune 10) healthcare organizations for over a decade. We’ve played a leading role in helping companies navigate growing worker retirements and attrition in the 2010s, the mass hiring shifts of the pandemic, and today's continuing talent shortages. Our guidance and solutions have always focused on stronger TA practices, smarter data-driven decision-making, and more flexible and resilient strategies.
HRO Today CEO Elliot Clark noted that the sector has challenges, but corporate HR "... can gain a lot by studying Healthcare HR, where CEOs have learned to do a lot with a little." With that in mind, the following takeaways from the event reflect the trends we saw and underscore the value of the strategies we embrace in our work with clients today. Many of the realities of the market apply in healthcare and across all industries.
Human capital and TA leaders continue to grapple with a misalignment between clinical talent supply and demand. With the nationwide nurse shortage expected to reach 10 million by 2030, leaders are investing in innovative ways to close the gap. These include but are not limited to earlier talent engagement in the local community, in-house flex talent pools, redesigning traditional job responsibilities, and upskilling talent internally.
We guide organizations toward becoming more proactive in engaging all sources of talent, both internal and external. At the same time, data and visibility into the market are also significant factors in tapping into the talent supply that is available right now. Visibility across permanent and contingent workers, detailed data on markets, and a view of internal talent all make a difference. And the ability to achieve that view will remain a difference-maker for accessing workers in healthcare and nearly every industry.
Benefits once considered best-in-class are now "must haves" to compete for top talent. Unique offerings such as onsite childcare, upfront tuition payment (vs. reimbursement), flex shift scheduling, and employer-sponsored license attainment are becoming more common. Clinical job seekers are not only searching for competitive pay but also value-added benefits that promote career advancement and work-life convenience. This trend places even more strain on smaller companies that do not have the capital to compete with larger organizations.
Organizations would do well to review every role and offering on a regular basis. This review is more than a check-the-box look at benefits; it is an active, creative look at what competitors are doing and how the organization can improve. Flexible shifts and childcare are good examples, but new approaches come to the forefront constantly as competitors and market conditions change.
AI was referenced in nearly every session, but it was clear the majority of companies have yet to evaluate and define their utilization strategy. Key considerations mentioned include but were not limited to:
One common refrain throughout all sessions was the desire to leverage AI to enhance and supplement employees in the spirit of improving the patient experience, not to replace workers.
AI is embedded across sourcing and recruiting, and it is a key part of our Sevayo® workforce intelligence platform. There is no hiding from AI or waiting to see what works and what does not. Embracing the technology requires an intelligent, case-by-case approach, and applying AI will remain essential for meeting hiring demands in a competitive market for talent.
Hospital systems continue to grapple with rising labor costs and low availability of nursing talent in the workforce. As a result, organizations are engaging in creative long- and near-term approaches for nurse hires. For example, companies are starting earlier to engage potential talent for open job opportunities down the road. One example shared was to start at the elementary school level to discuss nursing career paths and encourage future engagement.
Meanwhile, compensation remains a significant pain point for nurse leaders, both in the context of contingent versus permanent labor and new graduates versus experienced nurses. Companies will need to get smarter about knowing where the market rates are and being prepared to adjust as those rates change.
Every aspect of the recruiting and talent management lifecycle influences the worker experience in healthcare. One way to improve the employee experience that is often overlooked is simply to reduce patient-caregiver ratios. Companies may save money in the long run by reducing the workload of clinical staff, thus decreasing the need to rely on other cost-based incentives such as expensive sign-on bonuses.
An outcomes-based approach to hiring can help companies achieve the balance of staff and workload they need. When it comes to workforce planning, start with what needs to get done and when. Focus on strategic initiatives and projects, not just headcount. This approach will allow you to center your workforce strategy around skills, not only roles. After all, a specific employee in a particular role may be fit for purpose today but may not be the right fit six months from now.
Finally, the gig workforce is here to stay. Invest in thoughtful planning to understand how your organization can best tap into this evolving workforce trend and focus on initiatives and needed skills instead of a traditional headcount model.
Organizations continue to simplify and shorten the application process. However, one downstream impact is that hired candidates must provide even more detail on employment applications, creating more inherent risk in your hiring process. The recommendation is a balanced approach between a quick application and gathering important details up front for the pre-employment check process.
Litigation is on the rise. Candidates are savvier than ever regarding their rights and the responsibility of employers during the background screening process. Notably, an increasing portion of employers are removing drug screening and employer verification as part of their background screening.
Leaders shared priorities to sharpen their employer brand influence and attract candidates in a crowded space. To begin, remember your "why." Defining your organization's purpose and value proposition is critical to a strong external brand. Also, speed is king. Potential applicants are looking for a quick, efficient, streamlined hiring process.
Get creative in your TA and related brand and outreach strategy. One example shared was a boots-on-the-ground campaign to secure hard-to-find talent in Puerto Rico for a Florida-based health system. Finally, be flexible. Healthcare workers are increasingly seeking flexibility, which may look different for everyone. It is not only about shift scheduling or work-life balance anymore. It is about every aspect of work.
These are just a few of the learnings shared at People in Healthcare. Our experience has shown us that healthcare TA leaders are committed to embracing innovation and actively solving challenges — and they value a trusting partnership with their talent solutions providers. When we actively seek ways to learn from each other, the result is a partnership that overcomes the challenges of the market, no matter how steep those challenges may be.
This content was originally published by Sevenstep. Kelly® acquired Motion Recruitment Partners, including its talent acquisition brand Sevenstep, and integrated Sevenstep within its KellyOCG® business.