Succession Planning: Its Urgent Need within Senior Care Companies
What is Succession Planning?
Proper Preparation Prevents Poor Performance. This is the motto behind Succession Planning at the executive level. Succession Planning prevents board members from scrambling to find viable leaders if their executives unexpectedly leave. A company’s succession plan should be able to identify and groom current employees who show the potential to fill those key leadership positions. The plan should also include a reputable recruiting firm that is actively aware of qualified candidates outside of the company. In short, a company should be prepared to fill executive positions seamlessly, if they suddenly become available.
How Succession Planning Differs in the Senior Care World?
A succession plan is essential in the senior care industry due to the nature of the business. The senior care industry is unique in that it’s a care-oriented industry. Strong, solid leadership is essential to maintaining trust with patients and residents, and avoiding costly lawsuits. Dependability is a priority when caring for the elderly.
Why Partner With a Senior Care Recruiting Firm on Succession Planning?
Two-thirds of Board of Directors in the long-term care industry lack a succession plan. According to a 2016 article by Argentum, half of Continued Care Retirement Center CEO’s will retire by 2021. And the Bureau Of Labor Statistics reports “Employment of medical and health services managers is projected to grow 17% from 2014 to 2024, much faster than the average for all occupations. Along with Argentum, several other credible sources, including McKnights Senior Living have published articles on this upcoming demand. As the large baby-boomer population ages and people remain active later in life, the healthcare industry as a whole will see an increase in the demand for medical services.”
Leadership transitions are inevitable. But it’s important to note a large amount of Senior Care CEO’s are from the baby-boomer generation, and they will be retiring at alarming rates. The sudden void from retirement and other unexpected events is forecasted to create a massive shortfall in executives. This will inevitably increase competition leading to a candidate-driven market. That shortfall will drive up the competition, and consequently increase compensation to secure qualified candidates. By working with a reputable recruiter, a company is more apt to secure a qualified candidate within a reasonable time frame and manage the dreaded counteroffer. Recruiters, also known as Executive Search Firms, specialize in researching a candidate to make sure he or she is qualified for the position. Hiring a bad fit can end up costing companies a significant amount of money.
Recruiters tend to do the legwork, background, research and pre-interviews, which can save a company money and hassle. It’s important to make sure the recruiting firm is within the senior care industry, due to the nature of the business. If a firm has recruiters that were former executives within the long-term care business, they typically will have proprietary contacts and inside information on candidates, which could make or break a decision.
Why Is Succession Planning Important to Senior Care Companies?
Keep in mind, customers/residents who choose senior care companies typically conduct a significant amount of research on the facilities they are considering. There is a tremendous amount of trust and emotion that goes into the process of choosing a long-term care facility. And not to mention, competition between companies.
Having vacant management positions, even for a short period, is evidence of disorganization and lack of preparation. These two conditions can quickly damage the credibility of your company and cost you potential residents. Would you trust a senior care provider with your loved one if you knew they had staffing challenges within their executive leadership team? There is also tension that grows among employees if people feel insecure about their company and subsequently about their positions. Change can be good, but if it doesn’t occur strategically it can be quite scary.
In an article by Argentum, it’s noted that in 2015 Forbes Magazine’s listed one of the most powerful CEO’s under 40, as a senior care executive who landed the CEO position through a succession plan. And clearly, a very successful one.
How Would a Healthcare Recruiting Firm Help a Succession Plan?
Experienced Healthcare Recruiters are excellent at assisting senior care companies that want to activate their succession plan. If a company wants to identify talent outside of their organization, the search process can start 9-15 months before a change in executive leadership. Paramount to the success of a succession plan is the belief that key executive positions must be managed to ensure a prosperous company. And for this to happen, the people involved in hiring, must have a mentality that focuses on quality leadership. Here is where an executive search consultant is invaluable. The consultant should partner with your Board of Directors. If they are a reputable company, they will offer a customized approach to your succession plan.
Areas of specialty from an experienced senior care recruiting firm should include; a market analysis, communication plan, complete understanding of your company’s culture, a thorough candidate vetting process and a personality assessment program that indicates a potential manager’s behaviors and motivators.
The recruiters should have extensive experience in the senior care business and proprietary contacts throughout your industry. They should assist you in cutting through red tape, and helping you find the perfect transitioning executive, or permanent replacement. Overall this will save you time, money and possibly a well-developed reputation.
This blog was constructed by MedBest Healthcare Recruiters, a nationally recognized senior care recruiting firm. MedBest has over 105 years of combined Senior Living and Continued Care industry experience. The majority of recruiters come directly from the senior care industry. If you are considering creating a Succession Plan or finding a qualified manager in the Healthcare Industry, contact us at 727-526-1294 or visit MedBest.com for more information.