Can a Human Capital Management (HCM) solution solve the acute issue of workforce shortages in Healthcare? While it may not provide a complete solution, it can be an essential part of a broader strategy that addresses the systemic challenges contributing to workforce shortages in the sector.
The shortage is driven by multiple factors, including low pay, a wave of healthcare workers retiring, poor working conditions, and insufficient long-term workforce planning. In some regions, issues like Brexit have led to a significant drop in healthcare workers migrating from other countries. Meanwhile, the aging baby boomer generation is increasing the demand for healthcare services, especially for chronic conditions and long-term care, but there aren’t enough younger professionals to meet this growing demand. For instance, in the UK, the number of people aged over 85 is expected to grow by 55% by 2037, and without action, healthcare systems could face a shortfall of 260,000 to 360,000 workers by 2036/37. (See Reference 1).
Healthcare workers have faced immense stress since the pandemic, including long hours, high patient volumes, and the emotional strain of caring for severely ill patients. This has led to burnout, job dissatisfaction, and high turnover rates, with many leaving the profession early or reducing their hours. In many areas, there are insufficient numbers of new nurses entering the workforce to replace those retiring or leaving due to burnout. Nursing programs often have limited capacity, and faculty shortages make it harder to train new nurses. Although the physician shortage is less severe than nursing, it is still a pressing concern. The World Health Organization estimates a projected shortfall of 10 million health workers by 2030, mostly in low- and middle-income countries. (See Reference 2).
Consequences of Workforce Shortages
Workforce shortages have serious consequences, impacting the quality of care and the overall functioning of healthcare systems. In critical areas like nursing and primary care, shortages result in longer wait times, fewer available appointments, and delays in diagnoses or treatments. A recent study in the US found that the average wait time for the third-next available appointment is now 38 days, far exceeding the unofficial industry benchmark of 14 days. These delays can worsen patient outcomes, allowing conditions to progress unchecked. (See Reference 3).
With fewer staff, healthcare workers are often required to work longer hours or handle more patients, contributing to burnout. This creates a vicious cycle where burnout leads to more staff leaving, worsening the shortage. Research indicates that healthcare workers are 50% more likely to experience chronic stress, which is a key contributor to burnout. Burnout also affects the retention of highly valued staff, with more professionals considering leaving their positions.
A strained workforce can also compromise the quality of care. With fewer professionals to provide individualized attention, patients may not receive optimal care, or their treatment could be delayed. There is also an increased risk of errors, as overworked healthcare professionals juggle multiple tasks. For example, studies show that nurse understaffing can increase the risk of healthcare-associated infections (HAIs), and that overburdened clinicians may rely on safety workarounds, which raises the likelihood of near misses or accidents. One study even suggests that increasing a nurse’s workload by just one patient is associated with a 16% increase in patient mortality risk. (See Reference 4). Additionally, workforce shortages can lead to increased healthcare costs. Hospitals may be forced to hire temporary workers at higher rates to fill vacancies. Without adequate permanent staff, continuity of care suffers, and money that could be spent on patient services is instead used on agency staff. High turnover rates also result in a workforce that is increasingly junior, with less experienced professionals. Over time, this affects care quality and puts more pressure on senior staff to train their junior colleagues.
Oracle Fusion Cloud HCM: A Key Part of the Solution
While a comprehensive Human Capital Management (HCM) solution cannot completely resolve workforce shortages in healthcare, it can help mitigate some of the challenges. A robust HCM system helps streamline HR processes, improve the employee experience, attract top talent, promote staff engagement, and reduce turnover.
Oracle Fusion Cloud HCM has helped organizations in the healthcare and healthcare services industry by addressing workforce shortages and improving HR processes. Oracle’s suite of tools supports healthcare organizations in attracting, retaining, and developing talent:
- Recruitment: Oracle Fusion Cloud Recruiting and Oracle Fusion Cloud Recruiting Booster streamline the recruitment and onboarding process, helping healthcare organizations fill vacancies more quickly, particularly in specialized roles.
- Employee Experience: Oracle ME, an employee experience platform, enhances employee engagement and satisfaction, helping mitigate burnout and turnover. Additionally, Oracle’s Work Life solution, including My Wellness, supports employee well-being by allowing healthcare workers to set and track wellness goals, which helps reduce stress.
- Learning and Development: Oracle Learning provides tools that ensure healthcare workers meet compliance requirements while also helping them advance their skills and careers. This not only supports career growth but also reduces reliance on external hiring.
- Performance Management: Oracle Performance Management helps healthcare organizations assess and improve employee performance, ensuring that healthcare workers stay engaged and motivated.
Oracle Consulting’s expertise in Oracle Cloud HCM implementation ensures that healthcare organizations can successfully leverage these tools to tackle workforce shortages and improve the employee experience. Learn more about how Oracle Consulting can help you implement Oracle Cloud HCM here.
While technology alone cannot completely resolve the challenges of workforce shortages, Oracle Cloud HCM’s suite of tools can play a significant role in mitigating some of these issues and improving the overall healthcare workforce.
References:
1. NHS Long-Term Workforce Plan
2. WHO Health Workforce
3. State of Healthcare Workforce Shortages
4. Staff Shortages in Healthcare