Staffing Turnover: 110 Points In The Corporate Strategic Pla
Staffing Turnover 110 Points the Corporate Strategic Plan For Dr Sol
The Corporate Strategic Plan for Dr. Soliman Fakeeh Hospital emphasizes employee retention under Strategic Directive 1: Invest in People & Development. High staffing turnover incurs significant financial costs, including recruitment, training, and replacement expenses. This paper analyzes the direct and indirect costs associated with staffing turnover, focusing on retaining two current employees—a doctor and a nurse—and comparing these costs to replacing them if they leave. Additionally, the paper discusses the broader context of healthcare workforce needs in Saudi Arabia aligned with Vision 2030 (SV2030) and explores strategies for addressing the rising demand for healthcare professionals.
Introduction
The healthcare sector faces ongoing challenges revolving around staffing stability due to burnout, competitive job markets, and workforce migration. In Saudi Arabia, the increasing demand for healthcare workers necessitated by demographic growth and health policies aligns with Vision 2030's objectives to enhance healthcare services. Retaining skilled professionals reduces operational disruptions and financial burdens, highlighting the need for hospitals like Dr. Soliman Fakeeh to optimize workforce management strategies. This paper evaluates the costs associated with good retention practices and compares them with the expenses incurred in new staff recruitment, emphasizing the importance of strategic human resource planning.
Financial Costs of Staffing, Recruitment, and Turnover
Direct Costs of Staffing and Turnover
Direct costs encompass recruitment expenses, salaries, relocation, and training. For example, recruiting a new nurse involves marketing costs of SAR 19,000, recruitment, and onboarding expenses. Similarly, replacing a doctor includes comparable costs but also considers the higher salary levels. When a nurse or a physician leaves, the hospital must cover sourcing, hiring, and onboarding to fill the vacancy, often at a significant expense.
Training costs are substantial, involving nonproductive hours during the onboarding phase. Additional costs include relocation expenses, which can be significant for expatriate staff or those relocating domestically. For example, relocation costs of SAR 19,000 per employee are considered in replacement calculations. These fees cover physical moves, administrative processes, and initial accommodations.
Indirect Costs of Staffing Turnover
Indirect costs are less tangible but equally impactful, including decreased productivity, loss of institutional knowledge, disruptions in patient care, and lowered staff morale. Turnover can lead to increased workload for remaining staff, causing burnout and further resignations, creating a cycle of instability that deteriorates service quality and patient outcomes. These intangible costs translate into reduced revenue, patient satisfaction, and potential legal or accreditation risks.
Calculations for Retaining and Replacing Employees
Retaining a Nurse
The salary for a nurse is SAR 112 per hour. Assuming an 8-hour workday, the annual salary approximates SAR 350,528 (SAR 112 × 8 hours × 260 working days). Over two years, the total salary cost for one nurse would be SAR 701,056, not including benefits or additional incentives. Retention costs primarily involve maintaining engagement, offering competitive benefits, and avoiding the costs associated with turnover.
Retaining a Doctor
The average annual salary for a physician is SAR 350,000. For two years, this sums to SAR 700,000. Similar retention strategies involve salary competitiveness, professional development opportunities, and work-life balance initiatives to reduce attrition.
Replacing a Nurse
The cost to replace a nurse includes marketing, recruitment, training, and relocation expenses. Calculations are as follows:
- Marketing costs: SAR 19,000
- Relocation: SAR 19,000
- Training: SAR 35,000
- Nonproductive training hours: 210 hours at SAR 112 per hour (SAR 23,520)
Total replacement cost for a nurse: SAR 19,000 + 19,000 + 35,000 + 23,520 = SAR 96,520
Replacing a Doctor
The costs mirror those of the nurse but with variations due to higher salary and possibly additional onboarding needs. The costs include:
- Marketing costs: SAR 19,000
- Relocation: SAR 19,000
- Training: SAR 35,000
- Nonproductive hours: For a doctor earning SAR 350,000 annually, hourly wage is SAR 169.23 (SAR 350,000 / 2,080 hours). Nonproductive hours cost: 210 × SAR 169.23 ≈ SAR 35,538
Total replacement cost for a doctor: SAR 19,000 + 19,000 + 35,000 + 35,538 = SAR 108,538
Addressing Workforce Needs under Saudi Vision 2030
Saudi Vision 2030 emphasizes expanding and developing the healthcare workforce through policies encouraging local training, education, and retention of Saudi nationals. The government plans to increase the number of healthcare professionals to reduce reliance on expatriates, who currently make up a significant portion of the workforce. Hospitals and healthcare providers can contribute by investing in continuous education, offering competitive salaries, and fostering a work environment conducive to professional growth.
Furthermore, partnerships with academic institutions and increased scholarship programs can cultivate a pipeline of local healthcare professionals. Innovative retention strategies such as career advancement opportunities, performance-based incentives, and supportive work environments can help sustain workforce stability. Health technology and telemedicine also present avenues to maximize workforce efficiency and reduce workload pressures.
Strategies for Hospitals to Meet Workforce Demand
To address the rising demand for healthcare workers, hospitals should implement multifaceted strategies focused on recruitment, retention, and workforce development. These include increasing salaries to be competitive within the region, offering comprehensive benefit packages, and creating a positive organizational culture. Additionally, investment in continuous professional development and advanced training can improve job satisfaction and loyalty.
Leverage of artificial intelligence and health IT solutions can mitigate staffing shortages by automating routine tasks, thereby allowing nurses and doctors to focus on complex patient care. Partnerships with local universities and technical institutes are essential to produce a steady supply of trained professionals aligned with Saudi Arabia’s SV2030 health sector goals. Policies encouraging expatriate workforce localization should be complemented with domestic workforce capacity building.
Conclusion
Staff turnover imposes significant financial burdens on healthcare facilities, encompassing both tangible recruitment and training expenses and intangible costs linked to service quality and staff morale. The calculations demonstrate that investing in retention strategies for current staff—both doctors and nurses—can be more cost-effective than costly replacements. Saudi Arabia’s vision for healthcare necessitates strategic actions towards workforce development, emphasizing local talent cultivation and retention. Hospitals adopting comprehensive human resource strategies, combined with national initiatives, can optimize staffing stability, improve service delivery, and contribute to the broader health system goals outlined in Vision 2030.
References
- Al-Hanawi, M. K., et al. (2020). Healthcare human resource management in Saudi Arabia: Challenges and opportunities. International Journal of Health Planning and Management, 35(1), 1-14.
- Ghazal, M. A., & Al Jouti, A. (2016). Influence of organizational culture, leadership, and HR practices on employee retention in healthcare organizations. Journal of Healthcare Management, 61(4), 229-242.
- Saudi Vision 2030. (2016). National Transformation Program 2020. Ministry of Economy and Planning, Kingdom of Saudi Arabia.
- World Health Organization. (2021). Global Strategy on Human Resources for Health: Workforce 2030. WHO Publications.
- Al-Borie, H. M. (2020). Challenges and opportunities in Saudi healthcare human resources. International Journal of Nursing Practice, 26(2), e12788.