Introduction
The purpose of this research is to investigate the effectiveness of the nurses’ retention policies currently in place in Health Canada to overcome the turnover crisis caused by the COVID-19 pandemic. The research aims to analyze the current policies supporting nursing staff retention at Health Canada by making use of the Human Capital Theory and Resource-Based Theory. The concept of staff retention will be applied as well. From the analysis, recommendations will be made to Health Canada to implement support actions to improve the nursing staff retention levels.
Theories and Frameworks
Human Capital Theory and Resource-Based Theory
Human Capital Theory, Resource-Based Theory, and the concept of staff retention will be used as the theoretical framework for the research. The Human Capital Theory was developed by Adam Smith in the 18th century and then extended by economists Gary Becker and Theodore Schultz in the 1960s. This theory mainly implies that education and training are proper investments in human productivity, leading to increased productivity. The theory criticism focuses on seeing the employees as a resource and its mechanistic focus. The requirement for mass training and education appeared with the overwhelming growth and decreasing demand in the physical working force.
Later the theory was mostly adopted by corporate finance, and in this field, the concepts of ‘human capital’ and ‘intellectual capital’ were introduced, intertwined, and sometimes began to be seen as interchangeable ideas. Since intellectual or human capital was seen as a renewable resource of productivity, the theory was widely applied by organizations. At the same time, the shortcoming of the theory is a failure to admit that employees fully dispose of their human capital and can make independent decisions about changing jobs. The HR departments were established to perform tasks aimed at improving the quality of the human capital by introducing multiple developmental strategies and practices, such as goal setting, coaching, education, training, and constructive feedback.
The Resource-Based Theory suggests that an organization’s resources are its most valuable asset if they have the specific characteristics of VRIO. The resources are seen as a strategic advantage if they are valuable, rare, difficult to imitate, and nonsubstitutable (Carter, 2019). Having resources with the listed characteristics, companies and organizations gain a competitive advantage over other market players, but only given that the enterprise is organized to capture value from these resources. There is a VRIO decision tree that allows for testing the resources’ strategic advantages.
Staff Retention across Industries
Staff retention is a phenomenon when employees prefer to continue working with their employers rather than change jobs. In most organizations, staff retention is one of the top priorities for HR departments. Therefore, HR managers develop and implement strategies and practices focused on staff retention in all industries of business, public, and private services. For instance, Mwita and Tefurukwa (2018) note that in the banking industry, leadership is seen as the core factor that influences staff retention. This sector also widely applies the Human Capital Theory by providing extensive training and supporting career development.
No less important, recruitment and selection practices and compensation strategies are seen as critical leverages for improving staff retention in the banking sector (Mwita and Tefurukwa, 2018). In general, employee strategies are mostly delegated to the HR department and feature various traditional HR practices and factors such as working hours, salaries, training and development, promotion, and working environment. Onochie (2020) studied the staff retention practices in the public and private sectors in Gambia. According to the scholar, more attention should be paid to work orientation when new employees get job descriptions and explanations of their responsibilities. Onochie (2020) also argues that management responses to staff feedback are critical for better employee retention.
Noteworthy, Iype (2019) analyzed the importance of organizational culture for staff retention in Christian organizations. The scholar notes that given the ethical foundations and purposes of Christian organizations, to support the continuity and survival of any living species, cultural congruence, and efficiency can be brought to Christian organizations through leadership practices with an emphasis on communication, mentoring, and counseling the staff members (Iype, 2019). Therefore, the scholar leans on the leadership models with an emphasis on communication. Interestingly, talent development is seen by Christian scholars through the lens of counseling and mentoring, and the staff members are perceived more like the living participants of the Church ecosystem, not some ‘resources’ deprived of moral will and soul.
Meneghella et al. (2019) focused on staff retention among younger teachers who are less than 40 years old. The scholars suggest that specific models should be developed to ensure retention and better use of the talent of millennial teachers. Marinakou and Giousmpasoglou (2019) studied the staff retention strategies in the tourism industry, exploring talent retention. Just like in Christian organizations, in tourism, matters of culture and communication are mostly required for improved levels of retention. Marinakou and Giousmpasoglou (2019) emphasize that retention strategies in luxury hotels rely on friendly and open-access culture, “teamwork, compensation, succession planning, and training and development” (p. 3855). This implies the extensive use of the Human Capital Theory with an emphasis on culture and communication.
Nursing Staff Retention in the Face of Post-Pandemic Retention Crisis
The particular trends in nursing staff and post-pandemic retention could be seen throughout the current research trends. Gunawan et al. (2022) note that e-health practices can be used to improve nursing staff retention and lower the tensions that were caused by the dangers of pandemics and severe work overloads. The scholars state that the technology has great potential in nursing staff retention, as it can relieve workloads and enhance patient service practices.
Then, von Eiff et al. (2022) report that post-pandemic nursing management should utilize the models of leadership. This approach is handy for aligning the chaotic processes in healthcare procurement of “system-critical medical products and pharmaceuticals” (von Eiff et al., 2022, p. 157). The scholars distinguish the factors of working conditions, motivation to work, and satisfaction with incentive systems as critical for staff retention. The value-based leadership model is suggested as a navigator for making the right decisions to overcome the nursing staff retention crisis.
Avgar et al. (2020) discuss technological innovation and change, which will positively impact the roles of healthcare managers. Then, Van Housen (2022) claims that post-pandemic recovery suggests the need for nursing workforce development, applying the Human Capital Theory. The scholar discusses the potential of academic cooperation in overcoming the post-pandemic crisis. Developing new talents, in their opinion, will help to solve the problem of the growing demand for nurses.
Research Methodology
The case study research was chosen as a research methodology, and the research is focused on staff retention strategies and practices in the healthcare industry. The organizations for further detailed analysis were chosen based on their efficiency in introducing nursing staff retention practices in the face of the post-pandemic crisis. The larger Canadian organizations were given preference as the data will subsequently be compared with data presented in reports by Health Canada to identify common themes and points of intersection.
Based on these intersections, the recommendations will be developed for Health Canada on developing guidelines and policies for post-pandemic nursing staff retention. The healthcare industry may have various specializations in terms of areas of work. Despite this, the services of all clinics are based on the successful performance of duties by nurses, the quality of which is significantly reduced if organizations fail to ensure nursing staff retention.
The data for further analysis were collected from the cases studied, most of which were subsequently used to come up with conclusions and recommendations. Selected secondary sources have been included to form the basis for further discussion of overcoming the post-pandemic nursing staff retention crisis by Health Canada. The cases were presented in journal articles by Lopez et al. (2021), Boamah et al. (2021), and Lavoie-Tremblay et al. (2021). No less important, the latest reports by Health Canada were used to broaden the perspective. In particular, the reports from the Canadian Institute for Health Information (2018) and the Canadian Institute for Health Information (2019), financed by Health Canada, were utilized. This cross-organizational analysis allowed for a better understanding of practices of nursing staff retention throughout the country and its healthcare industry.
Data Analysis Tool
To analyze the selected data, Porter’s Generic Strategies tool was applied. This tool suggests that businesses may use three types of strategies to gain a competitive advantage. These are cost leadership, differentiation, and focus strategies, among which the first is focused on incentives and bonuses to maintain the value of the service or good but decrease its price to retain customers. The second strategy of differentiation implies developing individualized products or services for customers to get their attention and preferences (Kabeyi, 2018). The third strategy uses both cost leadership and differentiation, but in the niche markets to reach the most loyal customers.
Porter’s Generic Strategies were initially developed to achieve competitive advantage by companies and organizations. Nonetheless, this tool can be applied to analyze the best practices in nursing staff retention, demonstrated by the organizations from the cases. In particular, healthcare institutions use strategies in nursing staff retention, which could be classified according to Porter’s three types of customer retention strategies. Some organizations focus on diversified individualized practices appealing to the emotional well-being of the nurses, while others use incentives and reimbursement to enhance motivation or develop niche-specific practices.
Conclusion
Thus, the review of theories and frameworks and the research methodology were presented. Human Capital Theory and Resource-Based Theory are highly applicable for developing new practices and strategies in nursing staff retention. Since the current research focuses on intra-industry case studies, a wider observation of inter-industry practices was provided as the framework for the research. The staff retention concept is seen differently in industries and is determined mainly by the perceptions of the needs of workers in the area under consideration. Often scholars are overly focused on some traditional approaches, such as leadership strategies in the banking sector or developing an open organizational culture in the tourism industry, and show biases.
Most employees have diverse needs formed under the influence of society, modern culture, and current political and economic trends. Employee needs are also influenced by traditional professional development themes and job responsibilities. All of these factors should be considered when developing employee retention strategies. Noteworthy, using the case study as the research methodology will help establish specific practices for nursing staff retention that have proven effective for healthcare organizations.
Reference List
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Boamah, S.A., Callen, M. and Cruz, E. (2021) ‘Nursing faculty shortage in Canada: A scoping review of contributing factors,’ Nursing Outlook, 69(4), pp. 574-588.
Canadian Institute for Health Information (2018) Nursing in Canada, 2018: A lens on supply and workforce, Web.
Canadian Institute for Health Information (2019) Nursing in Canada 2019: A lens on supply and workforce, Web.
Carter, T.J. (2019) What is VRIO? The 4-Step framework for continuous business success, Web.
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Iype, K.M. (2019). The role of organizational culture in Christian organizations for job satisfaction and staff retention with special reference to Bharat Susamachar Samiti. Asbury Theological Seminary.
Kabeyi, M.J.B. (2018) ‘Michael Porter’s five competitive forces and generic strategies, market segmentation strategy and case study of competition in the global smartphone manufacturing industry,’ IJAR, 4(10), pp. 39-45.
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