A Healthcare Practice’s Growth & Profitability Starts With Employee Satisfaction

It’s an extremely obvious statement to say that all employees want to like their jobs. But it may not be as obvious to say that when a company provides employees with what they need to be satisfied, the end result is growth and profitability for the employer. This notion stems from what’s called the “service-profit chain,” developed from the analyses of many successful service-oriented organizations by the Harvard Business Review. When an employer can successfully implement this concept, a radical shift in their business can take place. According to the Harvard Business Review’s analyses, putting these techniques into practice greatly increases patient retention and referral business:

“...In fact, the lifetime value of a loyal customer can be astronomical, especially when referrals are added to the economics of customer retention and repeat purchases of related products.”

An increase in employee satisfaction leads to increased employee productivity, which is the driver for higher rates of patient satisfaction, retention, and referrals. So the real question is, how can we help improve healthcare employee satisfaction and productivity?

The Correlation of Employee Satisfaction to Employee Productivity

service-profit chain - A Healthcare Practice’s Growth & Profitability Starts With Employee Satisfaction

According to the Harvard Business Review, the service-profit chain claims that profit and growth are mainly stimulated by patient loyalty (retention), which is a direct result of patient satisfaction. Patient satisfaction is heavily impacted by the value of the services provided, and value is created by “satisfied, loyal, and productive employees.” As a healthcare employer, you’re probably either thinking that you already provide employees with a great place to work with great benefits, or you’re immediately recognizing some things that could be improved. Sure, employees do put value in things like pay, benefits, perks, and the people they work with – but they also place high value on work structure, processes in the workplace, and tools provided to do their jobs. These structures, processes, and tools are how employees carry out their jobs each and every day. If any of these things cause frustration, higher amounts of stress, or added work, employee satisfaction will steadily fall. What happens when employees are not satisfied? They may start looking for work elsewhere, and you may run into high turn-over rates. A study conducted by a Property and Casualty insurance company found that 30% of all dissatisfied employees had intentions of leaving – a possible turnover rate three times higher than that of satisfied employees. In that same study, low employee turnover was found to be very closely linked to high customer (patient) satisfaction. Not only does high employee turnover cost an employer valuable time and money to hire and train new employees, but it’s costing valuable patients and their families.

Turnover is not the only issue with dissatisfied employees – employees not happy at their jobs are less productive and provide less value to patients. Think about it – when you like where you work, you’re more driven to be productive and provide excellent service. Not only are employees more productive when they’re satisfied, but when an employer provides employees better ways to do their jobs more easily, it increases their productivity and satisfaction in return. Providing staff with the processes and tools to make their jobs easier and more enjoyable is a crucial element to the service-profit chain reaction.

Achieving Higher Employee Satisfaction & Productivity to Ultimately Grow & Profit

Now that we know how important it is to make your employees’ jobs more enjoyable to them, let’s discuss some ways we can do so. I know what you’re thinking – they gave the windup, now here’s the pitch. Being fully transparent, you’d be absolutely correct. Clarus is in the business of helping healthcare employees have the tools necessary to be more productive, have less frustrations on the job, improve workflow, and make their jobs less stressful and more enjoyable overall. Traditional answering services or call centers come with many problems and frustrations, which you can read in our common pitfalls of traditional After-Hours blog post and our common pitfalls of traditional Daytime blog post. And, not having a way to manage your high volume of calls at all is also very painful for healthcare administrators and providers alike. Clarus’s Daytime and After-Hours call management solutions make handling calls easier for providers and patients, while reducing errors and inefficiencies. Our software systems are 100% cloud-based, so they can be managed from anywhere – and totally automated, so healthcare staff and providers have less to worry about while reducing human-made errors. Our call management solutions enable higher employee satisfaction, as well as higher patient satisfaction. When healthcare administrators and providers can improve their workflow and work processes, they can provide better care for patients. This, in-turn, increases customer retention and referrals – not to mention reputation! All of these elements come together to form a repetitive chain reaction towards growth and profit. If you’d like to learn more about any of our services, please feel free to browse our products or contact us for a free demo.