Embed Size (px)
Citation preview
Facility Management Attrition ProblemA Guide to Improving Succession Planning
Steve Call, PhD
The Simplar InstituteWashington State University
Introduction
• PhD Construction Management –Arizona State University
• MS Real Estate –Florida International University
• BS Facilities Management –Brigham Young University
• Assistant Professor –Washington State University
• 13+ years industry experience leading national and multi-national FM programs in healthcare, defense, technology, and manufacturing
• Group of researchers and educators
• Integrated within the parties (clients/buyers and vendors)
• Developed tools, methods, & training to enhance:
– Organizational Transformation
– Procurement & Sourcing
– Project & Risk Management
– Operational Efficiency
– Human Dimensions
– Performance Measurements
– Benchmarking & Workforce
– Facility Management Professional Training
Simplar Institute
A Focus on Healthcare
One of the LARGEST industries in US
• 3.5 trillion total spending in 2017
• $41 billion construction spending 2018
One of the FASTEST growing job industries in US
• 18% job growth projected 2016-2026: Adding 2.4 million new jobs
Centers for Medicare & Medicaid Services. National Health Expenditure Accounts 2017 Highlights
US Census Bureau. Monthly Construction Spending. November 2018
US Bureau of Labor Statistics. Occupational Outlook Handbook: Healthcare. April 13, 2018
Headlines
“…looming shortage of facility professionals.”
• Health Facilities Management Magazine (Sept 2019)
“The number of individuals qualified to manage and maintain the health care built environment is diminishing…”
• ASHE Monograph Succession Planning (2017)
“We know that the shortage of healthcare professionals…is a problem that has the potential to keep getting worse.”
• Sen. Lamar Alexander (R-Tenn.) in HFMA News (May 2018)
Overarching Question
• How bad is the healthcare facility management workforce shortage and what can be done to improve it?
• 2 national surveys of US healthcare managers/directors– 634 surveys completed for combined response rate of 21%
• Phone interviews
Research Methodology
State of Retirement
57% of healthcare facility managers/directors plan to retire by 2028
22%
35%
28%
16%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Retirement
Retirement Plan
< 5 yrs 5-10 yrs 11-20 yrs > 20 yrs
9%
31%
59%
0%
10%
20%
30%
40%
50%
60%
70%
Birthyear
Age
<40 40-54 55+
Only 8% of healthcare facility managers/director are <40 years old
Question… • How does the healthcare FM industry currently recruit new talent?
Recruitment Sources
• 71% of candidates entering healthcare FM via:
– BUILDING TRADES
– EVS
– CONSTRUCTION
• Preference for internal candidates with healthcare experience:
– 60% were working in healthcare
– Of those candidates, 86% promoted within same healthcare organization
38%
19%
14%
10%
6% 6%3% 3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Birthyear
Job Prior to Entering Healthcare FM
Trades EVS Construction
Other A/E Military
Students Biomed
Question…• Why are healthcare FM’s
traditional recruitment sources unable to sustain the demand for new facility managers?
Traditional Succession Model
Tradesperson Entry-level FM Manager/Director+
13 yrs. 5 yrs.
Problems:
1. Shrinking labor pool for tradespersons
2. 18 years to prepare tradespersons for facility
manager role; in 10 years more than half of
healthcare facility managers/directors will be retiring
Recruitment
Source
• Secondary /
Vocational
Schools
• Other
Industries
What healthcare organizations can do to address FM workforce shortage:
Strengthen relationship with schools (high school, tech colleges, and universities) to sustain and grow external trade and management labor pools
Academic Linkage
Intentionally train high-potential employees to accelerate management succession - focused on learning outcomes instead of time
Staff Development
Broaden recruiting to include more non-traditional sources:
• A/E
• Military
• Biomed
• New college graduates (Students)
Diversify Recruitment
Sources
Key to Improving Healthcare FM workforce shortage…
• Hire new college graduates for entry-level healthcare FM jobs
The Case for Hiring New College Graduates
Healthcare FM leader hiring new college graduates are very satisfied their quality and skill
FM academic programs are a growing source of specially trained talent
New college graduates experience quicker succession timeframe
Younger candidates more likely to enter industry from higher education
Growth of FM Academic Programs
FMAC Accredited US FM Academic Programs (Bachelor’s and Master’s)
2010 2019
Arizona State University Arizona State University
Brigham Young University Brigham Young University
Cornell University Cornell University
Ferris State University Ferris State University
Georgia Institute of Technology Florida A&M
North Dakota State Georgia Institute of Technology
Pratt Institute Indiana University Purdue University at Indianapolis
Texas A&M University Kennesaw State University
Wentworth Institute of Technology New York City College of Technology
Pratt Institute
Rochester Institute of Technology
South Seattle College
Temple University
University of Minnesota
University of North Carolina Charlotte
Weber State University
Wentworth Institute of Technology
• Myth: Years of trade/management is necessary to be a successful entry-level healthcare facility manager
• Fact: New college graduates, even with considerably less work experience, are promoted/advance faster than other candidates
Roadblock – Industry Perception
5 5 5
4
6
5
3
-
1
2
3
4
5
6
7
Years in First FM Job Before AdvancementGrouped by Job Before Entering Healthcare FM
Trades EVS CM Other
A/E Military Students
105
10
41 3
0.5
3
7
9
9
5
8
0.50
5
10
15
20
Years Full-time Experience Before Entering Healthcare FM
Grouped by Job Before Entering Healthcare FM
Trade Management
Other Roadblocks…
JOB DESCRIPTIONS -MINIMUM WORK
EXPERIENCE REQUIREMENTS
LIMITED ENTRY-LEVEL FM JOBS IN SMALL HEALTHCARE
ORGANIZATIONS
LOW PAY
The $40,000 Pay Gap
• 12 years of full-time experience
$55,000: Salary for entry-level healthcare FM job
• No full-time experience
$55,000: Starting salary for new FM college graduate
• 12 years of full-time experience
$95,000: Salary for FM college graduate
Summary
The FM attrition problem is real but can be improved with the right research-based interventions:
1.Improve university-industry-linkage
2.Adopt training programs, focused on learning outcomes, to accelerate FM development and succession
3.Expand recruitment sources for entry-level FM jobs with emphasis on higher education
❖Adjust salary ranges to attract new college graduates
• Exactly how many new facility managers does the healthcare industry need to meet future demand created by retirees?
• What is the state of healthcare plant operations & maintenance and what can be done to sustain this key recruitment source?
Additional Questions / Future Research
