Vol XIV: Ch 9 Understanding Employee Turnover in the Healthcare Industry


Employee turnover has an adverse effect on the survival of healthcare organizations because increased turnover leads to decreased productivity, lower profitability, and reduced sustainability. Employees are the most valuable resource an organization has and are responsible for managing the knowledge used during the daily operations of the business. Losing key employees leads to loss of knowledge and has an immediate impact on healthcare leaders’ ability to accomplish their organizations’ missions and visions. By implementing effective employee turnover reduction strategies, healthcare leaders can increase the organization’s competitive edge, improve knowledge retention, increase productivity and sustainability, and retain key employees. Leaders who care about the survival and profitability of their organization must not ignore that without the right people in the right positions gaining a competitive edge to increase performance and productivity is very difficult. In this chapter of the Refractive Thinker, I present an overview of the current status of employee turnover in the healthcare industry. I also shared the finding from 10 qualitative interviews I conducted with 10 healthcare leaders from a hospital in El Paso, Texas. The findings from the data analysis revealed that healthcare leaders could reduce employee turnover by practicing supportive leadership, using fair distributive justice, and being effective managers of employee schedules.
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