3 Proven Methods to Overcome Healthcare Staffing Challenges and Build an Internal Agency

Relying solely on traditional staffing agencies for a healthcare system's complex talent needs is no longer sufficient. Healthcare systems require staffing solutions that enable them to fill specialized skill sets, gain workforce visibility, and effectively address staffing shortages. They are seeking innovative ways to address these challenges without relying on expensive contingent labor.

In this blog post, we will discuss three strategies organizations can implement to overcome hiring and retention challenges and build an internal agency: centralized hiring, unbiased talent access, and direct sourcing. But first, let's explore what an internal agency is and how it can bolster talent efforts in healthcare.

Revolutionizing Healthcare Talent Acquisition: The Power of Internal Agencies

In today's rapidly evolving healthcare landscape, organizations face unprecedented challenges in hiring and retaining top talent. The competition for skilled professionals is fierce, and traditional recruitment methods often fall short. To combat these challenges and build a sustainable talent pipeline, many healthcare organizations are turning to a groundbreaking solution: the internal agency.

What is an Internal Agency?

An internal agency is a centralized talent acquisition function within an organization that operates much like an external recruitment agency. It's a dedicated team responsible for sourcing, attracting, and hiring candidates for various roles across the organization. However, unlike external agencies, the internal agency has a deep understanding of the organization's culture, values, and specific talent needs. This insider perspective enables them to identify and engage candidates who are not only qualified but also a good fit for the organization, leading to improved hiring outcomes and reduced turnover.

An internal agency consists of a recruitment team of third-party or in-house experts, which helps ensure organizations are utilizing the strength of their corporate brand and name recognition. This approach maximizes internal talent pools before going to external staffing agencies for talent and empowers healthcare organizations to make informed decisions.

The benefits of an internal agency in staffing include:

• Lessened reliance on contracted labor, minimizing dependence on external agency workers
• Reduced contract labor costs, cutting down expenses and bill rates associated with contract labor
• Optimized inbound talent streams, streamlining and making the most of diverse talent sources

In the following sections, we'll explore three specific strategies that organizations can implement to overcome hiring and retention challenges and build a successful internal agency, which include centralized hiring, unbiased talent access, and direct sourcing. By embracing these approaches, healthcare organizations can transform their talent acquisition efforts and build a thriving workforce that drives success.

1. Centralizing Hiring

While contingent workers played a critical role in addressing staffing challenges during the pandemic, they remain a necessary resource for healthcare organizations today. The industry relies on a variety of contingent roles, each with unique skill requirements, onboarding processes, and contract terms. Centralizing hiring processes allows healthcare organizations to strategically leverage this complex workforce.

Although a decentralized approach enables individual departments to be flexible as they fill roles, it also creates complexities for organizations in managing the workforce and isn’t sustainable long-term.

The downsides to decentralization include:

• Inconsistent experiences for contingent workers, which negatively impact worker experience, employer brand, and talent attraction
• Lack of visibility into the contingent workforce across the organization
• Challenges for leadership in determining whether departments are effectively controlling talent costs
• Difficulties surrounding proper role classification and gathering compliance documentation

A centralized approach minimizes risk by embedding robust compliance processes into systems, which helps meet evolving regulatory and compliance requirements. Centralizing streamlines communication and facilitates collaboration for all stakeholders, helping to align on overall program goals. Additionally, it helps provide a comprehensive worker experience, contributing to a supportive professional environment. See why streamlining contingent workforce management is critical to program success in our blog.

Utilizing an internal agency helps to centralize contingent workforce management by standardizing processes and providing a unified coordination platform. This enhances leadership's visibility into workforce activities, enabling better monitoring and resource management. Additionally, it reduces inefficiencies and staffing agency costs, leading to overall cost savings for the organization.

2. Gaining Unbiased Talent Access

Partnering with a vendor-neutral MSP gives healthcare organizations the flexibility to manage their contingent workforce needs comprehensively while building their own agency, free from vendor bias. A vendor-neutral MSP is not affiliated with any staffing agency, ensuring that the organization benefits from unbiased sourcing strategies tailored to their specific needs.

A key benefit of partnering with a vendor-neutral MSP is the access to a vast reservoir of global rate data and talent intelligence. These resources allow healthcare organizations to compare their use of contingent talent with industry peers and identify areas for improvement. Paired with the internal agency model, organizations can promote diversity and inclusion in their workforce by implementing unbiased recruitment practices, leveraging technology and data-driven approaches to assess candidates based on merit and potential rather than subjective criteria. Since suppliers working with a vendor-neutral MSP are more willing to share performance metrics, healthcare organizations can also ensure they receive enhanced service quality while reducing overall costs.

For example, a Chief Human Resources Officer (CHRO) might discover that their organization's hourly rate for IT workers is above the industry average or that their onboarding process takes longer than the benchmark. With this visibility, healthcare organizations can optimize their talent flow, reduce reliance on external talent, and make more strategic talent decisions. By avoiding talent markups typically associated with staffing-affiliated MSPs, organizations can minimize labor costs and allocate resources more effectively. To choose the best MSP partner for your organization, check out our “Ultimate Guide to Selecting an MSP for Your Healthcare System.”

3. Direct Sourcing Top Talent

The dependence on contingent talent has persisted since the pandemic, with many healthcare organizations still tied to high-priced agencies that manage these workers. Although years have passed since, breaking free from these costly arrangements has proven difficult.

To address this issue, healthcare organizations can implement direct sourcing strategies to fill positions using their own networks, in addition to working with staffing agencies. This approach is particularly beneficial for flexible contingent roles that range from 4 to 26 weeks. By going directly to the talent in the market, organizations can regain control and reduce the expensive markups associated with staffing agencies. Get best practices on making direct sourcing work in your organization in our white paper.

Direct sourcing offers significant benefits without requiring complex or time-consuming investments. Healthcare providers can build on their existing infrastructure to manage and expand float pools through integrated platforms, which help curate and track a private talent network. This network can include referred workers, retirees, and alumni, allowing organizations to offer job opportunities to them first before turning to external staffing suppliers. Additionally, direct sourcing technology can integrate with job boards, helping healthcare leaders fill roles more quickly, overcome staffing shortages, and gain greater control over their contingent labor.

Internal agencies actively engage in direct sourcing, reaching out to passive candidates who may not be actively looking for a job but possess the skills and experience the organization needs. This expands the talent pool and increases the chances of finding exceptional candidates.

Related reading: How to Launch and Perfect Your Direct Sourcing Strategy

Future-focused Strategies are Essential

As the demand for specialized skills and talent costs continue to escalate, healthcare organizations are being forced to re-evaluate their sourcing strategies to maintain quality patient care and financial stability. The traditional staffing models that healthcare has relied on for decades are proving unsustainable in today's competitive landscape. To remain competitive and deliver exceptional care, healthcare systems must proactively embrace innovative solutions and diversified staffing models to attract and retain top talent.

Gain more insights on overcoming complex staffing challenges and building an agency in healthcare when you read our ebook.

Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of Magnit and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.