Once riddled with vacant positions and high turnover rates, Alegent Health is now recognized for their successful HR practices. Their retention practices mirror much of the material noted in chapter 5, Human Resource Planning and Retention.
Figure 5-7 of our textbook notes six “Drivers of Retention”(Mathis & Jackson, 2011, p.164)or key areas in which companies can strategize ways to retain staff. They are as follows: Organizational and Management Factors, Work Relationships, Job and Work Life, Rewards: Compensation, Benefits, and Performance, Career Training and Development, and Employer Policies and Practices. Alegent Health follows thismodel successfully in several different ways.
Organizational and Management Factors often determine whether or not an employee stays at a company long-term(Mathis & Jackson,2011). When employees see employers investing in staff, employees ...view middle of the document...
These mentorships and shadowing programs not only built strong work relationships, but increased Career Training and Development. Although providing staff opportunity for personal and professional growth is not as tangible as a salary increase, it is part of the Rewards: Compensation, Benefits, and Performance category, and helps to reduce attrition(Mathis & Jackson, 2011). Alegent Health also worked to strengthen Rewards: Compensation, Benefits, and Performance by offering up to $20,000 towards career advancement programs in the nursing field(Zimmerman, 2004).
In a broad-based approach, companies focus less on the tangible rewards system (such as salary increases and incentives), and more on the intangibles (such as a positive work atmosphere and a stable environment). Alegent Health took a broad-based approach to nursing retention, which was crucial due to the size and structure of their company, as well as the type of clientele they serve. This was a non-profit company within the healthcare sector. Simply put, the company was losing money and was not in a position to fork out pay raises and incentives. Alegent Health had a high turnover rate and over 500 vacant positions at one time (Zimmerman, 2004). This was costing the company over $15 million annually (Zimmerman, 2004). They needed to do something immediately to keep staff motivated, and to try to prevent additional turnover.
While pay is critical in attracting and retaining staff, the nation’s economic downfall has impacted how organizations approach recruitment and retainment. Alegent Health identified a critical HR issue, did some strategic planning, invested in their employees, and as a result has become an organization known for successfully recruiting and retaining employees.
Mathis, R. L., & Jackson, J. H. (2011). Human Resource Management. Mason: South-Western Cengage Learning.
Zimmerman, E. (2004, March). Strong Medicine. Workforce Management , 40-41.