A Take on EY’s “Americas Board Priorities 2023: How to Build Resiliency in Uncertain Times” — Peter Waziri
Part IV : Championing a Future-Focused Talent Agenda
From a Healthcare Industry Perspective
The EY Center of Board Matters published an interesting report on building resiliency in uncertain times and highlighted 5 board priorities for 2023.
Reading this report from a healthcare industry perspective was interesting and gave me a lot to think about. I am sharing my thoughts in a series of five articles.
In this fourth article of the series, I will explore the topic of championing a future-focused talent agenda.
According to EY, employees continue to reassess and reprioritize what they value most from employers and are intentionally acting to fulfill those desires at a time of the highest global talent shortage in over a decade. Therefore, previous strategies utilized to attract/retain workers will therefore need re-evaluating. This is especially true of younger workers (Gen Z and millennials) who have unique expectations around ESG, hybrid and flexible work, etc.
Healthcare company boards should consider:
Boards at healthcare entities should engage CHROs to obtain a deeper view of employee demands and sentiments. They should engage in discussions for a better line of sight into the strategies around total compensation, skill gaps, and talent retention. Talent shortages are causing losses in health systems. Look no further than current clinical labor shortages which complicate post-acute placements that have worsened non-reimbursable costs and losses. Greater attention to talent is also warranted given the aging population of most industrialized countries. This demographic trend will result in greater demand for medical talent in general.
The other aspect relates to attracting/retaining the talent of the future (Gen Z and millennials). Boards should be aware that they are likely to be more value-driven than previous generations. These values typically coalesce around identity (e.g., race, gender), diversity/inclusion, corporate social responsibility, and other worries (e.g., climate change). They also view remote work as increasingly non-negotiable and is a bigger influence when it comes to relocation compared to the general population.
Boards could also engage management in deeper thinking of the company’s brand image with regards to authenticity, targeting, and overall fit with values and future goals. This is because the younger population evaluates brands differently than previous generations which can influence which company they want to work for. Social media now plays a heavy role as a source of news and inspiration on topics and values — especially when led by an influencer. The result can be a quick dissemination of an alternatively informed view of a healthcare entity’s brand image that may not be congruent with actual practices or goals.
Therefore, talent management becomes increasingly tied together with clinical care and the evolving trend towards remote/virtual care, and in-person care especially given the tight labor market and clinician burnout. As such, boards need closer attention to compensation committee structures and tasks with respect to broader human capital management oversight including DEI, talent (recruitment, development, and retention), compensation, benefits, etc. Otherwise, the company may struggle to attract and retain future talent.
A financial and health care leader with a global perspective, Peter Waziri has deep experience across several industries. He currently provides financial leadership for Parkland Community Health Plan’s operational and clinical management functions. Previous positions include CFO at Umpqua Health and also at Cascade Comprehensive Care, along with management positions at GE Capital, Ernst & Young, PNC, KeyCorp, and the Institute of European Finance in Great Britain.
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