About 20 percent of hospitals in the United States experienced CEO turnover last year.
When businesses begin to show a higher than usual turnover rate, it may be a sign that other companies are hiring again. However, when it comes to chief executive officers, the situation is a little different from entry and mid-level staffers.
Often times, a CEO has stayed at the same organization for at least 10 to 15 years. At this point in their life they are either reaching retirement or a point where they are unable to do their jobs as effectively, research from the American College of Healthcare Executives (ACHE) reported. The medical sector specifically is going through an immense amount of changes, but the situation is the same: human resources departments are scrambling to find a new CEO.
"[T]he emerging trend toward consolidation in our industry and the complexity and amount of change going on in healthcare today," President and CEO of ACHE Deborah Bowen said in the news release. "The increase in the rate reinforces the need for healthcare leaders to work with their boards to ensure appropriate succession plans are in place."
The health care industry is also feeling a significant amount of pressure from the government to keep costs low, as well as incorporate information technology innovation into their day-to-day routines. Professionals who may not fully understand these changes may have to make the decision to walk away, and hiring managers are going to need to use HR software solutions to find the best fit for their practice.
Based on where the industry is headed, that might mean that human resources will have to go outside of the health care industry. Ferguson Partners Limited expects that members from the hospitality, finance, investment or pharmaceutical industries may be best suited for the job. This is due to the fact that senior staff members in these fields know how to manage a large population of people and have experience improving the bottom line and customer service.