Take a look at what’s happened in healthcare over the past 40 years:
In the healthcare industry over the past forty years, there has been a 2000% growth rate in the number of “Administrators” in healthcare, which the number of Physicians has remained relatively flat. Now, some of this growth in administration could be that for decades prior there might have been a lack of proper administration and some of this growth is just catching up, but 2000%!?
And we wonder why the cost of healthcare in our country is out of control!
Healthcare isn’t the only place where this happens! The more successful an organization is, the more mid-level management hires increase. So, in times of prosperity, we tend to want to surround the worker bees with tons of management “help”. Our organizations get bloated with none productive hires all hired believing we’ll make those who actually produce more efficient and effective.
We do this in talent acquisition, a ton!
I get asked by HR and TA executives frequently about hiring recruiting leadership. Recently, I spoke with a CHRO who was struggling to attract talent and fill positions and I asked her to give me their TA structure. “Oh, we have a Director of TA, a Manager of TA, and a Recruiter.” So, you can’t hire, but you’ve got two TA leaders and one person actually doing the hiring!?
I told her to fire the director and the manager and hire 4 more recruiters and let the team of 5 recruiters work the openings. I was exaggerating a little, but she got my point. Positions don’t get filled by managing them to death. Positions get filled by recruiters generating activity that leads to filling positions.
Of course, great leadership can help any function be more effective, but having leaders for the simple fact that we believe someone or something needs to be “managed” is short-sighted at best, and destructive at it’s worst. I’ll always choose a flatter structure over empire-building any day of the week. Give me some soldiers and let me fight!
The problem with hiring non-productive employees is what we’ve seen in healthcare. Once you get one administrator/manager every other employee wants to do the same thing. “Wait, I can get paid more and not have to actually produce!? Yes, please!” And soon you have a 2000% increase in hiring folks who don’t actually see patients, who don’t fill positions, who don’t make the donuts.