3 Major Healthcare HR Challenges in 2023

Healthcare HR leaders are on the front lines of managing three major challenges in 2023: budget constraints, talent shortages, and the need to make healthcare an ideal industry for employment. Now, more than ever, it’s essential to bridge the gap between rising demands and limited resources as a healthcare HR leader.

Despite these pressures, there are still ways for HR leaders to assess and optimize processes for improved efficiency and employee satisfaction. This blog post will explore how identifying opportunities for growth within the healthcare organization can be a key component of responding successfully to budget restraints, talent shortages, and employment attractiveness in 2023.

Tightening Purse Strings to Counter Pandemic Costs

With the costly withdrawal of government pandemic support, healthcare leaders are looking to cut HR costs to reduce overall operating expenses. This is particularly important as many hospitals are non-profit and don't have as many direct means of obtaining revenue.

To address this issue, HR leaders are looking to optimize processes and reduce staffing costs, which skyrocketed during pandemic peaks. To do so, they must identify opportunities to reduce redundant tasks and streamline processes internally without sacrificing quality. This may require the adoption of new technologies.

For example, in the near future, organizations are likely to go digital with employee-related data management. This would allow HR departments to be more effective in their operations without additional personnel costs. Additionally, increasing automation for recruiting could help organizations find the right candidates faster and more efficiently.

Navigating the Talent Shortage

HR executives in healthcare are also facing a talent shortage in various areas of the organization. They are navigating this by implementing innovative recruitment strategies such as partnering with educational institutions, leveraging technology, and building internal recruiting capabilities.

HR departments can expand their recruitment channels by taking advantage of digital job platforms, but also by taking innovative approaches to candidate hunting. For example, engaging with potential candidates on social media platforms could improve rates of engagement and encourage more applications. Partnerships and mentorship programs with colleges, universities, and even high schools are also viable ways to encourage applicants to join the industry.

Employee retention and engagement have also become key priorities in reducing turnover. Leaders can improve these metrics through targeted training and development programs, competitive compensation, and enhanced benefits packages, as well as by fostering an inspiring and inclusive company culture.

Making Healthcare an Ideal Industry for Employment

The healthcare field offers gainful employment and meaningful work, but many potential recruits are hesitant due to long-standing issues like stress, burnout, and challenges with work-life balance.

With the pandemic disillusioning many healthcare workers, HR leaders are attempting to make working in healthcare more attractive by offering creative compensation and benefits packages, providing opportunities for career advancement and professional development, and fostering a positive workplace culture that values employee well-being and work-life balance.

Hospitals are focusing on employee health and well-being as well, especially after learning some difficult lessons during the pandemic. The industry already has a leg-up in this area compared to other employers.

According to reporting by the CDC, 83% of hospitals in the U.S. provide workplace wellness programs, compared to just 46% of all employers. Similarly, 56% of hospitals have stress-management programs, compared to just 20% of all employers. Likely, these numbers will expand as more healthcare organizations seek to align themselves with employee health and wellness.

Don’t Miss the Next HR Healthcare Event

The healthcare industry is no stranger to challenges. Although it is entering a new period of transformation, HR leaders have opportunities to go above and beyond their standard obligations to improve the workplace.

If you’d like to learn more about how to address the latest HR challenges in the healthcare industry, don’t miss HR Healthcare 2023 happening from October 2^nd to October 3^rd at the Austin Marriot Downtown in Austin, Texas.

Download the agenda and register for the event today.