The Risks & Costs of Under-Performing Employees

A patient’s experience – positive or negative – largely depends on the facility’s staff.

Human capital is the largest investment that ambulatory surgery centers (ASCs) and physician practices make. When employees perform their jobs with diligence, professionalism, and integrity, an organization can deliver excellent care and build patient trust.

But when negative employee issues go unaddressed, the entire organization is exposed to high-stakes risks. Consequences include diminished patient satisfaction, damaged employee morale, and millions of dollars in financial liabilities.

HR problems do serious harm to an organization’s bottom line. For the average center:

  • Reducing unwanted employee turnover by 25% saves around $55,000
  • Improving productivity by just 3% generates $110,000 in savings
  • Reducing employment practices risks and improving cost efficiency saves an additional $85,000

In a recent survey of 32 surgery center managers, MedHQ found that managers’ biggest concern is employee disciplinary issues. At 58.1%, this problem was cited more than twice as often as the next highest category (employee benefits issues, at 25.8%). Administrators said that among employee disciplinary issues, they are most troubled by employees’ at-work attitude and employee interactions and disputes.

Here are three important steps organizations can take to minimize HR risks and ensure they employ the best workforce for their needs.

  1. Hire the best employees.

Administrators must have a clear idea of what the organization’s culture and values are, and how employees are expected to uphold them. These fundamental beliefs should be central to the hiring process. When vetting new candidates, managers also need to identify the required skills necessary to do the job so they are prioritizing the right qualities. Peer evaluators should be involved in applicant interviews to help find a good cultural match.

  1. Coach and mentor managers.

Promoting from within an organization is common and has many benefits. Current employees are already aligned with the mission and operations of the center. However, not all those who are promoted are prepared for the HR part of their new managerial role. It’s important for administrators to set them up for success with mentorship and coaching. They need to develop the ability to manage employee conflicts, handle challenging performance issues, and get the most from their team.

  1. Manage risks pro-actively.

The consequences of employee problems affect every part of an organization. Leaders ought to establish HR processes and procedures to address them early on and mitigate risks. They can develop best practice solutions for specific issues – ranging from employee attendance and works compensation, to inappropriate work behavior and harassment claims – and share them with managers throughout the organization.

Download MedHQ’s whitepaper, How to Mitigate Your ASC’s Top 5 Employment Risks