What are the costs and benefits of high turnover and reducing it?

Your group is the newly formed “Service Excellence Committee” at Hillcrest Memorial Hospital.  Over the past year, employee turnover has dramatically increased throughout the organization with no obvious reason.  The hospital CEO has asked the committee to survey and research reasons for the turnover.  Upon careful review of the surveys, you notice that normal reasons for turnover, such as low pay and poor benefits, are not the problem.  However, one trend stands out—dissatisfaction with job autonomy.  You surmise the reason this is a problem is because Hillcrest operates with a traditional hierarchy, including traditional manager roles that appear more dictatorial than participative.  Employees have limited freedom when it comes to their work and are neither motivated nor empowered by managers.  The committee discusses then and decides to explore this theory further.  Empowerment is a controversial topic to members of the committee, as their initial fear is that once an employee is empowered they will run amok and the organization will suffer.  Upper management ignores the concept of employee motivation due to the misconception that motivating employees means it will cost the organization money.  The committee is assigned with the task of writing a draft response to present to the CEO.
DISCUSSION QUESTIONS:
1.    In light of the committee’s agreement on the causes of the high employee turnover, why should upper management give attention to the concepts of employee motivation and empowerment?
2.    What are the costs and benefits of high turnover and reducing it?
3.    How might Hillcrest develop and implement an employee program that encompasses employee motivation and empowerment?
4.    How could the committee ensure success of such a program?
5.    Should the committee consider other strategies and opportunities to help Hillcrest overcome the issue of high employee turnover?
This case study is a modified version of the following case study:
Dore, A. (2012). Case Study: High Employee Turnover at Hillcrest Memorial Hospital. In S. B. Buchbinder & N. H. Shanks (Eds.), Introduction to health care management (pp. 399-400). Burlington, MA: Jones & Bartlett Learning.
You will prepare a report to present to the CEO.  Your report should include the following sections:
I.    Background-Importance of employee motivation and empowerment
a.    Discuss the importance and benefits of motivation to employee morale and employee longevity and retention.  You should also discuss employee empowerment and its role in employee motivation.  You should use and cite at least three sources in this section (this can include the textbook).
II.    Summary from a healthcare operations manager
a.    Discuss employee motivation and empowerment as it relates to his/her profession (either current healthcare profession, or, one in which you plan to work in the future).  For example, if you are a medical technologist, you would research and discuss information pertinent to lab professionals, such as: What motivates lab professionals?  Are there strategies that could impact the motivation of the workforce in this profession?  How can employee empowerment be improved upon in this profession?  Or, if your plan is to become a CEO or manager and you are currently not working in healthcare, you could instead research and write about healthcare administration, in general.  There should be at least one source cited in each of these summary sections.  Are there strategies that could impact the motivation of the workforce in this profession?  How can employee empowerment be improved upon in this profession?  Or, if your plan is to become a CEO or manager and you are currently not working in healthcare, you could instead research and write about healthcare administration, in general.

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