A Strategy for Talent - Lessons to Learn from the Healthcare Industry

The U.S. Department of Health and Human Services reports that nearly all states will experience a shortage of qualified health care workers within the next 20 years.  Job openings in nursing, long-term care, and direct care fields alone are expected to increase and will reach a level of 29 to 45 percent vacancy by 2020.  Healthcare, like most industries, has experienced the ups and downs of the labor cycle in the past, but this time the shortage is not expected to be short term. 

The health care industry has found that it will bear a double cost of the aging baby boomer generation – those planning to retire will exit the workforce leaving major knowledge and skill gaps and an insufficient number of younger workers to replace them.  The retiring health care workers and their generational cohort will further compound the loss as they join a significantly older U.S. population in the increased consumption and requirement for care.  Further complicating the shortage and the industries ability to attract and grow its workforce are systemic issues including job dissatisfaction factors ranging from working conditions, to staffing issues, and lack of support staff.  In addition to the concerns arising from the workforce needs, health care executives are also grappling with the pressures of increasing medical cost, reimbursement struggles, and rapidly advancing technology and modern medicine.

Taking it to the streets – Attracting and developing a healthcare workforce

In 2000, growing vacancy rates and U.S. Census reports further confirmed the diagnosis of wide-spread labor shortages and caused many health care organizations to begin to think differently about their strategies to attract and retain talent.  Many of the first responses included campaigns to increase the public awareness of the workforce need.  Job fairs, career weeks, and extensive print and classified advertisements were among the strategies launched to promote the benefits and stability of health care careers.  National nursing career promotion programs were given a further push fueled by pharmaceutical giant Johnson & Johnson and the public media, which carried the message of a demand for health care workers across the nation.  By 2001, the word was out; the health care industry had a growing need for workers. 

In response to this wave of promotion, job applications spiked and enrollment for programs in nursing and other health care careers increased dramatically.  State and regional governments began to take note of the health care industry demands and served as conveners of health care organizations and educational leaders to develop plans to address the health care workforce shortage.  In fact, the National Governor’s Association reports that 46 states have convened taskforces to bring together stakeholders to evaluate options and generate recommendations to systemically improve the health care workforce development system.

These taskforces soon began to focus their attention on the education of the workforce after the rapid increases in enrollments brought many nursing schools and other health care professional programs to maximum capacity in only a few short years.  In some instances, they partnered with private foundations and tuition assistance programs to provide students interested in health care careers with loan repayment programs and other financial incentives to attain a degree in the health professions.

Many taskforces are now refining and expanding these attraction and education plans with the hope of drawing non-traditional students (men, minorities, and second-career adults) to health care careers.  Several initiatives have been launched to target experienced health care professionals as candidates to pursue advanced degrees in education.  The ultimate goal of these programs is to increase the capacity of the education system and admit more students to receive the education needed.   Coupled with sizable local and statewide investments across the nation for health care workforce development, the U.S. Department of Labor has invested more than $24 million to implement industry-identified strategies to confront crucial workforce challenges in acute care, long-term care, and allied health care professions.  Such investments focus on specific as well as the broader range of challenges in the health care arena, including:

• identifying alternative labor pools such as immigrants, veterans, and older workers that can be tapped and trained;
• developing alternative training strategies for educating and training health care professionals, such as apprenticeship, distance learning, and accelerated training;
• developing tools and curriculum for enhancing the skills of health care professionals for nationwide distribution;
• enhancing the capacity of educational institutions through increased numbers of qualified faculty and new models for clinical training;
• helping workers in declining industries build on existing skills and train for health care professions.

Developing an industry strategy for talent

As consumers of health care, the quality of the workforce and the care that they provide to our families is an issue that impacts us all.  It appears that while the health care industry has many challenges still to address in attracting, developing, and retaining the talent needed, they have established a sound strategy and have communicated this plan to the public, educational systems, and government about what is needed to provide for tomorrow’s talent and the health of our economy.

What lessons can other industries learn from the talent attraction and development strategies employed by the health care industry? 

The next 20 years will present many industries with the same issues.  According to the U.S. Census Bureau, the 45 to 65-year-old work group will grow by 54 percent, but the 18 to 44 population will rise by only 4 percent.  Changes in workforce demographics are anticipated to impact almost every industry and will be further heightened in industries, which, like health care, require highly skilled workers with new and different skill mixes.  Flexibility and a well-defined plan for attracting, developing, and retaining a workforce is an essential strategy for every industry.  In recent years, industry-driven initiatives in technology and manufacturing fields have targeted and promoted the needs of these sectors to students and the incumbent workforce.  However, these efforts have been limited in part by mixed messages of job security, fueled by the recent recession and an ever present threat of foreign competition in job outsourcing and manufacturing. 

All organizations, especially those whose experienced workforce is comprised by a high percentage of individuals who are reaching retirement age, need to develop a strategy for talent development and promote their needs as an industry to the American public, education and training providers, and to elected officials and policy planners.  The quality of the workforce is one of the single most important factors for an organization and a region’s success and prosperity.  In reflecting on the progress in public awareness, educational reform, and resource development, achieved by the health care industry, the benefits of developing an industry plan for talent are irrefutable. 

Consider the following questions as you evaluate or develop an industry strategy for long-term talent attraction, development, and retention:

• How does the industry acquire its workforce?
• Can the industry acquire and develop the workforce whose skills meet the needs required?
• How many employees are anticipated to retire in the next 5, 10, or 20 years?
• Are K-12 systems and higher education programs preparing students with the skills needed by the industry?
• Will customers or other outside forces place new skill demands on the workforce?
• How is the industry equipped to meet new skill demands?
• How does the public perceive jobs and careers in the industry? 
• Is there a need to change public perception?
• Where will the industry find the workforce needed tomorrow?
• Is the industry work environment attractive to a diverse workforce?
• Does the industry prepare managers and supervisors adequately?
• Are students aware of the career opportunities available in the industry?
• Are students provided with information to make informed decisions to choose further education and training that could lead to a career in the industry?
• Have the workforce demands of your industry attracted the attention of state and federal policy makers?
• What organizations in the industry are concerned about the future of the workforce?
• What other regional, state, or national organizations have identified the same industry needs?

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