Best Places to Work in Healthcare build positive cultures

Popular English business magnate Richard Branson made a bold decision this year when he said all salaried employees of his venture capital conglomerate, Virgin Group, would have access to unlimited vacation.

Virgin was not the first to offer this type of perk. Streaming media company Netflix and a host of other businesses have allowed workers over the past few years to take as many days off as they see fit, as long as their work gets done.

While unlimited vacation time seems like an enticing workplace staffing and recruiting tool, it's not as feasible in an industry such as healthcare. Many healthcare organizations, especially those in the provider space, operate 24/7 and require employees to be available at a moment's notice.

But Virgin's new workplace benefit exemplifies a challenge the healthcare industry is broadly facing: How can organizations better engage their employees to face a changing business model? As healthcare workers are expected to do more with fewer resources, what are the best ways to ensure they are happy and not feel overextended?

Hospitals, doctor offices, insurers, suppliers and other healthcare companies need talented individuals to provide high-quality care and develop innovative products for a population that is increasingly gaining health insurance coverage under the Patient Protection and Affordable Care Act.

If healthcare professionals are not satisfied or motivated to improve their organization and the delivery system at large, how can the country reasonably expect things to change?

Research shows that although benefits such as adequate paid vacation and fair pay are important, they are far from the only attributes that define a modern, top-notch workplace—especially in healthcare. For most of the companies that made the Best Places to Work in Healthcare list for 2014, as determined by Modern Healthcare and the Best Companies Group, a few elements consistently rose to the top: accountable leadership, positive cultures and clear communication.

“Today's healthcare employers can't rely on the old satisfiers, like compensation and benefits, to drive engagement,” said Donna Bodin, vice president of employee and wellness services at Woman's Hospital, Baton Rouge, La. Woman's Hospital made the list for its seventh straight year, one of only two healthcare companies to do so. The other perennial winner is Texas Health Harris Methodist Hospital Southlake.

“Employees don't come to work with the expectation of punching a clock for eight hours,” Bodin said. “They want more—the opportunity to do great work, to understand strategic direction and financial performance and to have a voice in decisions that affect them.”

Indeed, of the companies that made the Best Places to Work list, compared with those that didn't, those trends bubbled to the surface. For instance, 87% of employees at providers and insurers that made the list said their organization treats them like a person, not a number, compared with 74% at companies that didn't make the list. Similar discrepancies were found for issues related to trust, cooperation, being able to express honest opinions and communication when changes are made.

Employees at Best Places to Work companies were also far more likely to say leaders give enough recognition for work that was done well.

“A high-functioning, positive workplace starts with having a good work culture where employees feel valued and recognized for their efforts,” said Eric Gilpin, president of CareerBuilder's staffing and recruiting group. “This needs to be paired with a healthy work-life balance and ongoing learning and career advancement opportunities.”

That's precisely the formula that has been used at University Medical Center, Lubbock, Texas, which claimed the top spot in this year's ranking for providers and insurers. UMC, a 402-bed public hospital within UMC Health System, has about 3,000 employees. UMC Chief Operating Officer Mark Funderburk said the system rallies around its mission: “Service is our passion.”

That includes taking care of its employees in addition to its patients. UMC offers several cash reward and recognition programs that touch every part of the staff. Monthly “all stars” are peer-nominated and honored for actions that make a difference, including something as simple as helping another co-worker through a tough personal situation. Top leaders and managers also respond quickly to employee feedback, craving to know what is working well in the system and what needs improvement. For example, UMC officials discovered last year that the nighttime staff had limited cafeteria options and wanted access to a food and snack cart available for daytime staff.

It was a small change, but nothing can go unnoticed, Funderburk said. “I hope it shows leadership is not in an ivory tower,” he said.

And there are tangible results to recognizing and listening to its workforce. Engaged employees have led to lower turnover rates at UMC, which have led to indirect cost savings and less time spent to recruit new people. UMC's patient-satisfaction scores in the Hospital Consumer Assessment of Healthcare Providers and Systems also continually rank in the top 10% of the nation, a feat that officials say emanates from their happy staff.

“We've learned early on that a more satisfied employee base leads to a more satisfied patient base,” Funderburk said. “If you make (a positive culture) part of your strategic plan … it will begin to take hold. It just takes time.”

Bodin of Woman's Hospital agrees. She said her organization, which employs about 1,700 people, emphasizes encouraging e-mails, staff-organized farmers markets and free on-site wellness events such as yoga and Zumba classes as small, persistent acts of employee appreciation.

“It's tough with so many competing demands to find the time to stop and celebrate accomplishments, but thanking, recognizing and appreciating our team for a job well done has really worked for us,” Bodin said.

“Get out there on the floors and find out what the team is thinking and doing,” Bodin added. “Letting them see leadership as real people who are dedicated to the organization and to the team helps increase employee and physician trust. Leaders also develop a deeper appreciation of the commitment of the staff.”

The dynamic in the healthcare supplier space is both similar and different from that of providers and insurers. Suppliers typically have a more corporate work environment. But for many healthcare businesses—such as CipherHealth, a New York City-based information technology company that builds communication software programs for hospitals and clinics—the traditional office atmosphere doesn't apply.

CipherHealth nabbed the No. 1 spot among healthcare suppliers and also holds the top spot of all 100 organizations on the Best Places to Work roster. The company, founded in 2009, has grown from a small startup to a burgeoning group of almost 60 employees. At the heart of CipherHealth are technologies that help clinicians improve patient care, such as a call-based system to manage the post-discharge process and remote patient monitoring tools.

Co-founder Randy Cheung said his organization's employees want to improve how care is provided, just like hospitals and clinicians. And for them, that involves connecting with providers, adopting their philosophies and then creating worthwhile products.

“We all have the same DNA of helping to coordinate care. … I think we've been lucky,” Cheung said. “We started out with a strong team of A players. We have a very similar mindset in terms of working hard, caring about helping patients and being smart.”

CipherHealth offers incentives one would expect from an IT firm in a big city, such as working remotely and catered lunches. But like UMC and Woman's Hospital, those play second fiddle to investing in employee feedback and ensuring that people feel they are valued parts of the organization.

“I think the general tone is when you have really passionate, trustworthy people, the last thing you want to do is micromanage and stifle their ability to grow,” Cheung said. “The best idea doesn't always come from the highest title.”

While the cultural components have become a top priority for many of the Best Places to Work, they still don't completely push the traditional perks out of the picture. Companies that made the Best Places to Work list scored higher on rates of fair pay and benefits (including paid vacation, healthcare, dental, vision, life, retirement, disability and tuition reimbursement). Woman's Hospital, for example, offers a bonus plan that shares 50% of savings in excess of the budget with employees, as long as financial and patient-satisfaction targets are met.

Top providers, insurers and suppliers were also more likely to offer free meals, flexible work schedules, subsidized transportation, counseling programs, adequate maternity and paternity leave, and eldercare assistance—a growing concern for employees as their aging baby boomer parents require more outside help.

John Challenger, CEO of outplacement firm Challenger, Gray & Christmas, said providing room for advancement, strong wellness programs and on-site fitness facilities add allure to today's healthcare employers as well.

Healthcare organizations are fundamentally different from businesses like Virgin and Netflix in that their ultimate goal is to provide better services or products to make people healthy.

And research shows that mission is a competitive advantage embraced by the top workplaces.

CareerBuilder's Gilpin said that according to a June 2013 survey, healthcare workers were much more likely to say one of their primary motivations for being in the industry was “the ability to make a difference.”

“That should be the main theme in employer communications and programs,” Gilpin said.