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Mayo Clinic is the world's first and largest non-profit health care organization. More than 3,300 physicians, scientist and researcher and 46,000 allied health care staff work for Mayo Clinic in their Rochester, Minnesota, Jacksonville, Florida, Arizona and Scottsdale/Phoenix.
Mayo's mission is to "provide the best care to every patient every day through integrated clinical practice, education and research". To achieve Mayo's mission Doctors from every medical speciality work together to care for patients, joined by common system and a philosophy of "the needs of the patients come first." The Mayo model of care provides the framework in which all employees perform their responsibility by team work rather than individual contribution.
The Mayo model of care provides the framework in which all employees perform their responsibility by team work rather than individual contribution. Workforce management is one of the major components of its strategies and has been leader in helping the Mayo to deliver the Mayo Model of Care. HR function which responsible for the hiring, rewarding, and retaining the employees becomes a core role of the strategic plan of Mayo Clinic.
HR department has created highly committed workforce with low turnover rate. Mayo has a workforce where teamwork is the absolute norm. The main factors help to make this happen is a salaried system without incentives which eliminates competition among employees, while fostering a deeper cooperation for the greater good of all stakeholders. Mayo uses value-based hiring, looking for team player who have the ability to advance within organization, can handle ambiguity and must be flexible, but farm when necessary. Promoting team work through strategic rewards is the main compensation philosophy in Mayo Clinic.
May has been ranked as one of the top medical institution in the world for many decades but the entire health care industry has been experiencing enormous challenges over the past few years. Mayo is not immune not this challenges and faces the risk of losing critical components of its culture and overall tradition of excellence that have been at the core of its success.
HR strategies that have helped Mayo become so successful:
Workforce management is one of the important components of its strategies. HR function of Mayo has been leader to deliver the Mayo Model of Care. Mayo's HR department continues to work diligently towards helping the organization to meet its mission. The main HR strategies which helped Mayo to become successful are given below:
Developing Teams and a Culture of Teamwork: In the mayo system, employees are expected to get along or employees are someone who has been identified as a person who can get along with the rest of the team. Team work is the part of Mayo's Culture. Mayo fostered an atmosphere of cooperation and working together with minimal squabbling. One of the factors that help to make this happen is salaried system without incentives. It eliminates competition among employees, while fostering a deeper cooperation for the greater good of all stakeholders. Mayo enjoys and benefits from a workforce where teamwork is the absolute norm. Mayo's biggest innovation is the way of working - especially way of working in teams.
Employee Recruitment and selection: One of the most important tasks of HR department is to select the right person for every opening. Mayo uses value-based hiring, looking for team player who have the ability to advance within the organization, demonstrate empathy for others, and can handle ambiguity. Employees must e flexible but farm when necessary. Employees must not be rule driven and must adhere to the utilitarian principle of the greatest good. A strong work ethic and the ability to be an outstanding team player are among criteria Mayo seeks in hiring new employees.
Its quality initiative within the department resulted in a reduction in time to fill a job from a median of 35 days 29 days, it also decrease the cost of hiring.
Diversity is another important recruitment strategy of Mayo. In 2007, 12% of he employees hired were minorities.
Promoting Teamwork thorough Strategic Rewards: Mayo emphasizes compensation strategies to foster the attitude and behaviour that fit with the Mayo Model of Patient Care. In mayo employees are paid 60th percentile of the market range. In addition, employees are given a comprehensive benefit program that includes medical, dental, tuition reimbursement, defined benefit pension plan, and other retirement option. The reward program is based on the principle that no one is big enough to be independent of others.
With its current HR strategies Mayo Clinic has created Highly Committed workforce with only % turnover rate annually. The HR department of Mayo works diligently to support recruitment efforts through various retention strategies. The focus continues on ensuring employees satisfaction. Frequent employee surveys, meeting with employees, and observations help to gauge employee's satisfaction.
Key HR Deliverables:
In Mayo Clinic employee productivity is identified as a performance driver so re-skilling and training can be considered an enabler. Here company need to motivate, train for new skills and make a good work environment. The key HR deliverables for Mayo Clinic:
Training for the new skills
Motivate through reward
How HR can more effectively contribute to the mission of Mayo
HR department is the key to deliver the Mayo Model of Patient Care. It's the important part of the organization to achieve its mission "provide the best care to every patient every day through integrated clinical practice, education and research". In the following way HR can more effectively contribute to the mayo mission:
Training and Development is the important part of the organization. Mayo is in industry where new technology and knowledge is the part of their daily operation. HR should organize frequent Training and development program for the employees.
Employee Health and safety is another important task of HR. HR should always monitor employee health and safety facility.
Award and Recognition Programme can motivate employees to do better.
Equal employment opportunity
The core competencies HR professionals:
Leadership and Professionalism skill is the most important HR competencies for professional. HR professional in Mayo have manage over 50,000 employees. HR professional must have leadership character that attracts the employees.
Communication or relationship skill is another core competency of HR professional. Team work is the base of Mayo working culture. So good communication and relationship skill needed in order to communicate all diversified people
Business Knowledge and skill is the another important and must have skill for HR professional.
Change Management Skill is another important core competency for HR professional. HR has managed change inside organization day after day. In Mayo it's the important skill HR must have to manage their organization culture change.
SWOT Analysis of Mao:
SWOT analysis is the Strength, Weaknesses influenced by the internal factor and opportunity and Threat is influenced by the external factor for a company. Generally it means what a organization can do or cannot do and potential opportunity and threat.
Strength of Mayo:
Market Leader of Health Care Industry with Extraordinary reputation
Teamwork based workforce
Well developed health care system accepted by customer
Weakness of Mayo:
Currently operating at or near capacity
Lack of performance based compensation system
Opportunity of Mayo:
High demand of service (Baby Boomer effect)
Government new policy
Threat of Mayo:
Decreased of highly qualified candidate in future
New or increased competition
Diversity of Employees
30% worker is going to be retire in5-10 years
Competitive Advantage of Mayo Clinic:
Workforce Strategy: HR strategy of Mayo helped the organization to deliver the Mayo Model of Care. Workforce is the key to strategic plan of Mayo Clinic.
Quality Service: Quality is not just a simple measure in Mayo it's a total patient experience from excellent care, best medical knowledge and experience, the best technology and the kindness and hope offered by the staff.
Cost: Its quality initiative within the department resulted in a reduction in time to fill a job from a median of 35 days 29 days, it also decrease the cost of hiring. The employee's turnover rate only 5% which reduce the cost of Recruiting.
Team and Culture of Team work: Team work is the core of Mayo's organization culture. Mayo use salaried system without incentives. It eliminates the competition within organization. The way of working is the biggest innovation of Mayo.
The measures that should be used to evaluate proposed change:
Following way we can measure the impact of change in Mayo:
Define Measure: Clear definition of change is the first criteria of measure change
Collect Data: Collecting data is the important part to start change. Before start change Mayo HR should collect data at least past 3 months.
Establish A clear Aim: The aim should challenge the Mayo organization. There should be clear aim to achieve like reduce turnover rate to 3%.
Consistently Collect Data is the important part of collecting data where change is occurring.
Monitor the progress of Change always. HR can monitor its progress by making chart of its collecting data which is powerful visual aids to communicate.
Ask Question Feedback: For organizational improvement measuring the impact of change is very important. Here HR have to ask question and give feedback for more successful implementation of change.
Challenges and Implementing the Recommended changes:
Though Mayo has been successful with its historic practice but to meet the future challenge in the industry Mayo needs to implement some new practice.
Mayo currently operation at or near capacity which risk to provide highest quality service to patients and future demand of service.
Shortage of high qualified candidates as well as lower number of candidate that meet the hiring profile of Mayo will increase the time to fill the position vacant.
In next 5-10 years more than 30% employees will be retirement-eligible so thr turn over rate of employees will increase which incur additional cost.
Due to increase of pay for medical professional at the 60th percentile might risk keeping high level physician. Because of only salaried based payment in Mayo they will have greater payment opportunity in other company.
Diversity of the workforce in Mayo does not represent that of the patient and general population. It risks the gaining of poor reputation.
Quality measurement is the challenge for the health care industy because of continues change of measurement system.
Recommendation and Implement:
To maintain highest quality of service for present situation Mayo can provide overtime work opportunity to employee and for meet the future demand of service Mayo HR department should make a well organized Strategic HR plan. To attract more candidates for its vacant post Mayo can advertise its job in national newspaper, participate job fair in educational institute for fresh graduate.
Mayo can start to employ performance based compensation system beside salaried incentive system to attract and retain high qualified candidate.
Mayo have to increase its Diversity of the workforce by attracting different colour, race, religion, gender and for manage this diversity different program can be taken such as training session, performance appraisal and reward system.
Continues training for new tools for performance measurement such as Lean operation and Six Sigma.
Healthcare industry is a very challenging industry, always with new and expensive technology and with insufficient qualified professional. Like other company in this industry Mayo is facing challenges to deliver its service to customer with excellent quality. HR department in Mayo play a vital role to achieve its goal by recruiting and maintain it's over 50,000 employees all together.
There are certain challenges May Clinic facing such as decrease of higher qualified candidate for its opening post, possibility of losing high professional due to lack of higher compensation at Mayo because in May there's no performance based incentive. Diversity is another area where Mayo need to improve for its reputation in the community. In addition, operational efficiency is another factor which is important to Mayo's success.
To maintain highest quality of service for present situation Mayo can provide overtime work opportunity to employee and for meet the future demand of service Mayo HR department should make a well organized Strategic HR plan. To attract more candidates for its vacant post Mayo can advertise its job in national newspaper, participate job fair in educational institute for fresh graduate. Mayo can start to employ performance based compensation system beside salaried incentive system to attract and retain high qualified candidate. Mayo have to increase its Diversity of the workforce by attracting different colour, race, religion, gender and for manage this diversity different program can be taken such as training session, performance appraisal and reward system. Continues training for new tools for performance measurement such as Lean operation and Six Sigma.