Finding a Cure for HR Challenges in the Healthcare Industry

Recruitment and retention of employees is a perennial pain point for healthcare organizations, and the issue is only intensified by the shift toward a millennial-dominated workforce. While the generations of workers that came before them were motivated primarily by competitive compensation, today’s millennials tend to place a premium on their benefits package and opportunities for advancement.

One thing all generations have in common is a desire for financial health. Smart employers wading into the candidate pool to hook the top talent in the medical profession are considering all the ways voluntary benefits can help lure and retain today’s diverse workforce.

• Millennials are an “on-demand” generation—they want to be given lots of options in their benefits package and then have the power to pick only those they deem useful. This mentality has driven demand for a wide variety of benefit options. 
• According to a 2017 Workplace Benefits Report from Bank of America Merrill Lynch, 31% of millennials spend three to five hours at work each week on personal finances, while 29% spend more than five hours.
• A flexible workplace is a must for Generation X. More so than the other generations, they have a strong need for flexibility in terms of both work location and hours. Much of the reason is that they are balancing caring for school-age children along with caring for aging spouses or aging parents.
• 50% of Gen Xers find it difficult to meet household expenses on time each month, according to PwC’s 2019 Employee Financial Wellness Survey.
• Baby boomers’ work ethic is driven and committed, and they believe that rewards come after paying one’s dues and building a career. Their greatest fear is losing their pension, personal savings or their job, and being unable to retire. Keys to job retention for baby boomers are salary, job security and health benefits.
   

According to PwC’s 2019 Employee Financial Wellness Survey, more employees than ever are admitting to being stressed about their finances. The report states that stressed employees are 4Xs as likely to have difficulty making minimum payments on their credit cards and nearly 5Xs as likely to say their finances have been a distraction at work.

In today’s modern workplace, benefits that help healthcare employees gain control of their financial life are becoming a must-have. 78% of American workers said that they’re living paycheck-to-paycheck, and it’s not merely those earning low wages who are struggling. Nearly 10% of Americans with salaries of $100,000 or more live paycheck-to-paycheck as well, according to a 2019 CareerBuilder report.

Healthcare organizations across the private and public sector must play a more active role in relieving this financial stress, and voluntary benefits are one way to do it. 

Within the healthcare industry, nearly half (44 percent) of employees surveyed in an Aflac WorkForces Report say improving their benefits package is one thing their employer could do to keep them in their jobs.  Financial education benefits can help employees with budgeting and debt reduction needs, but employers also should adopt voluntary benefits that provide employees the opportunity to have some financial flexibility. Among these are:

• Low interest installment loans and credit 
• Student loan repayment benefit programs 
• Automated savings programs that encourage employees to save money each month from their paycheck 
• Bill payment programs that empower employees with debt paydown strategies and the ability to make recurring bill payments on-time each month through payroll deduction
• Perks for employees, such as an employee purchase program that allow workers to purchase consumer products and services through payroll deduction when they are unable or prefer not to use cash or credit

A benefits package that includes a portfolio of voluntary benefits helps healthcare employers acquire and retain a talented, productive workforce and at the same time help them fulfill the diverse benefits needs of multi-generational employees. By recognizing the value in voluntary benefits and adding to their voluntary offerings, healthcare employers not only can provide for their employees’ financial wellness, but can retain a loyal, motivated workforce as well.

Elizabeth Halkos is chief operating officer at Purchasing Power, a voluntary benefit provider of an employee purchase program that enables workers to buy brand name products and services via a transparent, affordable and financially-responsible purchasing program.