A New Generation of Healthcare Workers

The U.S. Bureau of Labor Statistics defines “contingent worker” as workers that do not have an implicit or explicit contract for long term employment. Whether they are hired through employment agencies or by private contract the BLS reported that in 2005 there were over 5 million “contingent workers” in the United States. More than 27% of those workers were employed in health services with the next closest sector (professional) making up 18%. In fact, healthcare contingent workers, by percentage, make up more than manufacturing, retail, transportation, and hospitality combined!

So why are so many healthcare workers seeking employment as a “contingent worker”? Many healthcare leaders are quick to point to the demographical shortage of nurses, or other healthcare workers as the reason why hospitals use staffing agencies in the first place. But is anyone asking why, by percentage, there are so many contingent workers in healthcare as opposed to other industries? Are their simply more workers in healthcare that don’t want to be tied down to a full time job? Are their simply more workers in healthcare that want flexibility in their schedule or premium pay? Or could it be that a new generation of worker exists today that, regardless of industry, has a desire for choice, seeks flexibility, demands premium pay and commands career control. Could it be that the healthcare industry has poorly adapted to the wants and desires of this new generation of worker? Have other industries done better, and as a result, gained employment commitments beyond the next shift or 13 week assignment? Have other industries welcomed job sharing, part time employment; make your own schedule arrangements, and flexibility while healthcare has failed to offer anything other than the status quo?

The truth of the matter is that many hospitals have failed in embracing this new generation of healthcare worker. Too often, hospitals are either too afraid of change, or just lack the wherewithal to make wholesale adaptations to employment policy. The unfortunate irony is that most hospitals end up utilizing, the very same employee that they failed to attract in the first place, but at a much higher rate, thru an external agency. What’s more, the hospital ends up paying the employee premium wages anyhow and to add insult to injury, pays the agency a markup that can be anywhere from 45 to 100%. In fact, many “agency” staff have been working at the same hospital for years and would very much like to work directly for the hospital, but would have to sacrifice pay and flexibility to go “full time”. Therefore, under the current system they are forced to work, not for the hospital but for a staffing agency. As a result, the hospital pays a premium rate for an employee that would prefer to work directly for the hospital simply because the hospital does not offer this type of arrangement. This phenomenon, which is widely accepted as the current model, is one of the many reasons that staffing agency spending is out of control, and why healthcare is in a crisis.