Employee retention and morale are some of the most significant metrics that affect the overall efficiency and productivity of organizations. An employee turnover rate of more than 15% indicates evident problems in either compensation policies or company culture (Stowers, 2020). In the current case, Middlefield Hospital has more than a hundred nursing vacancies and demonstrates a 20% turnover rate. Therefore, it is essential to develop a succession plan to improve the employee retention rate and provide better working conditions for the staff members. The current report analyzes the challenges that Middlefield Hospital goes through and presents corresponding recommendations.
There are several reasons why Middlefield Hospital has seen an increase in the employee turnover rate over the past twelve months. One of the challenges is the opening of a new hospital in the same market area. According to previous employees, the new facility has innovative technologies, better company culture, and quality of patient care. One of the staff members who relocated to the new facility, Dr. Rusty Gates, has been working at the Middlefield Hospital for five years. Nevertheless, the work experience was not sufficient to build loyalty to Middlefield Hospital and retain the occupation. These findings suggest that the working conditions do not meet the modern requirements, and the employees are ready to leave for the new hospital despite the significant work experience at the Middlefield Hospital.
Furthermore, another employee, Eileen Wright, has noted the visible decrease in employee morale over the last twelve months. This change is most likely connected to the poor policies of retention chosen by the director of nursing. Eileen Wrights mentions the great leadership potential of the director; however, there is a drastic need for new employee retention policies. However, the high turnover rate transparently indicates the dissatisfaction of a large number of employees, and countermeasures should be implemented.
Having analyzed the major challenges of employee retention in Middlefield Hospital, it is possible to develop a corresponding succession plan. Therefore, the first step for improving employee retention is establishing communication between the staff members and executives. Recent research has demonstrated that approximately 37% of employees do not have the opportunity to provide feedback in regard to their occupation (Schmidt, 2021). As a result, the first recommendation for Middlefield Hospital is to install an anonymous feedback system with access to all employees. This method would allow not only to learn of the reasons why people are leaving their jobs but also initiate the communication between the staff members and the executives.
Secondly, Middlefield Hospital needs to provide certain advantages for its employees that the new facility cannot. Potentially, it could be new training plans, career development, schedule flexibility, or performance bonuses. All of these factors are associated with the increased employee morale and decreased turnover rates (Singh, 2019). One of the most proved methods is the introduction of new training plans.
Development programs positively affect the confidence and motivation of the employees, which, in turn, would decrease the turnover rate (Singh, 2019). Lastly, depending on the financial resources, it is essential to replace the existing equipment with innovative technologies and state-of-the-art tools to minimize the gap between Middlefield Hospital and the new facility. Following these basic recommendations, it is possible to reduce the employee turnover rate and increase the morale among the staff members.
Free Nursing Education in Underserved Areas
At present, Middlefield Hospital has more than a hundred nursing vacancies, and the potential elimination of the nursing degree program in the local college might significantly obstruct the hiring process. However, in the case of free nursing education in underserved areas, Middlefield Hospital might experience an influx of new employees. Nevertheless, even if the federal law of free education is passed, the mentioned recommendations still need to be implemented to improve employee morale. At present, the working conditions at Middlefield Hospital are inferior to those in the new facility, and it would not take long before the new employees leave for better job locations.
Middlefield Hospital has undergone a significant outflow of employees over the last twelve months. The major reasons for a high turnover rate are the opening of a new hospital in the same market area and inadequate retention policies. From these considerations, the current report suggests two primary recommendations to overcome the workforce shortages: an introduction of an anonymous feedback system and additional training plans. These changes might not change the situation immediately, but it is a necessary first step to better working conditions and employee retention rates.
Schmidt, C. (2021). Using anonymous employee feedback to boost your culture. Web.
Singh, D. (2019). A literature review on employee retention with focus on recent trends. IJSRST, 6(1), 425-431. Web.
Stowers, J. (2020). Employee retention: What does your turnover rate tell you? Web.