HR Staffing Decisions in Healthcare Mergers: A Guide

Introduction

The staffing requirements that result from mergers typically involve multiple organizational changes that present a number of challenges fundamentally different from standard staffing decisions (Scott, 2012). Although these challenges apply to virtually all types of organizations, they are especially daunting in healthcare organizations that are characterized by a multidisciplinary group of employees with different priorities for the post-merger organization. The purpose of this paper is to review the relevant literature and identify areas of critical importance for collaboration between the human resources (HR) service and departmental managers when making staffing decisions for a post-merger outcome. In addition, the paper recommends a process and elements for creating effective job descriptions, and explains two prominent considerations for developing fair and competitive compensation and benefit plans. Finally, the rationale in support of a recommendation for an appropriate employee performance appraisal methodology is presented, followed by a summary of the key findings.

It is absolutely essential to establish appropriate guiding principles that will be used when making staffing decisions for the post-merger organization. These principles provide transparency in the process and help avoid even the appearance of favoritism or, conversely, covert retaliation targeting employees by certain managers. In other words, these principles serve as a roadmap that can guide the post-merger staffing process. The initial set of guiding principles should also identify the principals tasked with making staffing decisions for the post-merger organization, further reinforcing transparency. According to Scott (2012), "The staffing process should be made fully transparent. Employees need to know how they are being evaluated and by whom" (p. 3). To facilitate the development and application of appropriate guiding principles, HR and managers can draw on the best practices identified in mergers between other, similarly situated healthcare organizations (Harrow, Marks, Schneider et al., 2019).

Critical Areas for HR and Manager Collaboration in Staffing

One of the biggest mistakes many organizations make when preparing for the post-merger environment is keeping the process secret. This approach can backfire by generating unfounded rumors that complicate both development and implementation. Therefore, it is also vitally important for HR and managers to collaborate on communication strategies, including how the steps needed to effect the merger will be communicated to stakeholders, how the transition will be implemented, and what management strategies will be used during the post-merger phase (Scott, 2012).

Many job descriptions fail to provide a comprehensive account of employees' actual day-to-day activities, since jobs may expand in scope and responsibility over time without corresponding updates to the original descriptions. Consequently, it is important to develop up-to-date job descriptions for the post-merger organization as soon as possible. According to Pato (2014), "Job descriptions have to concentrate on the right scope of activities, namely everything in the given job descriptions have to be about the scope of activities of that given job" (p. 68).

Creating accurate job descriptions can be accomplished in various ways, including desk audits and empirical observations of employees' knowledge, skills, and abilities. However, subject-matter experts should be tasked with validating the process through a consensus-based format that includes both HR representatives and departmental managers or their designees. Scott (2012) advises that "this consensus-based format can be supplemented with self-assessments, structured interviews, business cases, and minimum/preferred qualifications" (p. 3).

Prevailing average compensation levels — whether regionally or nationally based — provide a useful framework for evaluating the adequacy of compensation and benefit plans (Douglas & Kerfoot, 2012). Benchmarking against these standards helps ensure that the post-merger organization remains competitive in attracting and retaining qualified staff across its diverse range of occupations.

Creating Effective Job Descriptions

Another important consideration for developing fair and competitive compensation and benefit plans is achieving consensus among managers and HR. This collaborative approach helps produce optimal outcomes for the post-merger organization and ensures that compensation decisions are perceived as equitable across departments (Scott, 2012).

Because of the diversity of occupations in a post-merger healthcare organization, a 360-degree performance appraisal methodology — incorporating reviews by managers, peers, and direct reports — represents the optimal approach. This is especially appropriate given that many of the employees involved are not in management positions (McClellan, Bateman & Bailey, 2009). The 360-degree methodology carries the added benefit of promoting the professional development of reviewed employees regardless of their specific discipline (McClellan et al., 2009).

Healthcare organizations share many of the same merger-related considerations as all other enterprises, but they tend to differ with respect to the greater diversity of occupations that comprise their workforce as well as the multidisciplinary nature of their work. Developing effective staffing decisions and accurate job descriptions represents some of the more important factors, and the research is consistent in emphasizing the need for transparency in the process as well as the importance of fair and competitive compensation and benefit plans. Although mergers are challenging for these and other reasons, they also represent an opportunity to address deficits in the foregoing areas in ways that will help contribute to the success of the post-merger organization.

Conclusion

McLellan, H., Bateman, H., & Bailey, P. (2009). The place of 360-degree appraisal within a team approach to professional development. Journal of Interprofessional Care, 19(2), 137–148.

Pato, B. S. (2013). The 7 most important criterions of job descriptions. International Journal of Business Insights & Transformation, 7(1), 68–73.

Scott, J. C. (2012). Staffing for mergers, acquisitions and downsizing: White paper. APT Metrics. Retrieved from