Running head: HR TRENDS IN HEALTHCARE

HRM Trends in Healthcare

Name
Instructor
Course
Date

Introduction

HR TRENDS IN HEALTHCARE

International conversations and studies about management have recently shifted to human
resource management, which seems to have intensified the impetus for effective management of
human capital and related aspects. Growing trends in the international labor market paradigm
that seem to influence the internal actions of the human resource managers are the increasing
rates of unemployment within the labor market, the increasing rates of innovations and
technologies, and the increasing demands to reduce the growing wage bills of most of the profit
organization (Flynn, Martin, Jackson, & Valentine, 2016). Managing a large workforce amidst
the growing economic challenges is becoming challenging. More predominantly, companies are
increasingly relying on effective human resource practices for some cost effective purposes. The
intent of this paper is to examine the common trend of employee retention and talent
management as cost effective strategies for managing workplace costs.
The Selected Trend: Employee Retention & Talent Management
A growing trend in the human resource management is the practice of employee retention
through the talent management practices (Elvira, 2013). Management experts have recently
revealed that although the young talent full of fresh and energetic campus graduates is
increasingly becoming technologically suave and demand is equally augmenting in modern
organizations, their resilience and commitment to work is outrageously low (Flynn et al., 2016).
Annually, thousands of workers leave their jobs and created severe problems to the companies.
Their continuous shift from one workplace to another is becoming costly for many organizations
due to the high turnover rates (Flynn et al., 2016).
Human resource experts have argued that the costs associated with attracting, selecting, and
recruiting a new worker is 100% times more than the cost of the annual salary of that position. In
the UK alone, replacing a single worker costs a company over 30K.

HR TRENDS IN HEALTHCARE

Common Characteristics of an Effective Healthcare HR Department

An effective HR department motivates its workforce and promotes employee wellness,
always focuses on achieving its goals, assists in improving workplace relations, bears an
effective interpersonal relationship with its workforce, has exceptional leaders, has proper
problem-solving skills, promotes transformative agendas, and must always acknowledge and
adapt to progressive organizational changes (Flynn et al., 2016). An effective human resource
sector must also have creative decision-making capabilities and willingness form employee
empowerment. The presence of the traits of promoting progressive agendas, empowering the
workforce, problem-solving skills, effective interpersonal relationships, and the element of
transformative leadership skills can be imperative in according employee empowerment and
talent retention strategies (Elvira, 2013). These strategies need leaders who will understand the
cost-effectiveness of employee empowerment and talent retention strategies, the need to retain
effective workers and the need to empower the resilient workers rather than firing and hiring.
Five Common HRM Metrics used to Ensure Positive Outcomes
Human resource departments often make appraisals to test their independent
performance. More often, these metrics are HR strategies designed to determine the
effectiveness of the incorporated strategies or permanent goals of the HR sector. The most
common HR metrics used in the contemporary organizations include the Recruitment Response
Time (RRT), the Compensation Value Added (CVA), the Candidate Acceptance Rates (CAR), the
Absenteeism/Turnover Rates (ATR) and the Retention Rates (RR).
In terms of Recruitment Response Time, the time the HR team takes to respond to employee
shortage is critical in firms. In the CVR, experts believe that any intended actions must have a
considerable value. CAR affects the succession plans and recruitment strategies of the firms,

HR TRENDS IN HEALTHCARE

while ATR determines the sustainability of the firm to withstand pressure resulting from
absenteeism and turnover.
Strategic Importance of the Selected Trend
With the growing business dynamics that come with numerous economic challenges, it is
important for the companies to maximize the abilities of their existing workforces and reduce
unnecessary redundancies or high rates of employee turnovers ((Elvira, 2013). Recruiting new
workers makes health care organizations incur separation costs and replacement costs that affect
the financial and operational smoothness of the organizations (Elvira, 2013). Employee retention
and talent management helps health care organizations to reduce separation costs such as loss of
workforce diversity, loss of organizational memory, diminished work quality, disrupted
workplace operations (Elvira, 2013). In terms of replacement costs, employee retention and
talent management helps firms to avoid habitual recruitment, selection, orientation and training
costs. It takes an ordinary company almost a year to complete a successful office or job
succession due to loss of organizational memory.
Conclusion
The cost of managing excess workforce is becoming increasingly intolerable given the
imminent economic challenges and the growing business competition among companies.
Maintaining a continuous process of hiring new talents is also becoming a challenge for the
companies because the costs of attracting, selecting, and recruiting a new worker in the united
states is approximately 100% times more than the cost of the annual salary of that same position.
Companies that have understood the need to promote talent management practices through
internal structures that empower employees are noticing the importance of this phenomenon due
to its ability to reduce all the costs associated with the replacement of new workers. The
expenses associated with the replacement of any new worker are nowadays unbearable.

HR TRENDS IN HEALTHCARE

5
References

Flynn. W., Martin, R., Jackson, J., & Valentine, S. (2016). Healthcare Human Resource
Management. Boston, MA: Cengage Learning.
Elvira, N. (2013). The importance of Human resources management to health care system.
Economics, Management & Financial Markets. 8(4), 166.