By Brian Krehbiel A client called me the other day with a pressing problem—three executives had announced their retirements in the span of just a...
By Brian Krehbiel
A client called me the other day with a pressing problem—three executives had announced their retirements in the span of just a few weeks.
I wasn’t surprised. In talking with executives across healthcare on a daily basis, I hear many of them bring up the subject of retirement. Either they’re seriously considering it themselves or know a close colleague who is thinking about it. We’re experiencing a wave of retirements that I think will catch many hospitals and health systems by surprise in the coming months. These organizations may find themselves without executives in key positions.
There are a number of factors at play.
As executives retire or take time off, health systems are understandably anxious about maintaining full leadership teams. Some employers are pleading with their senior executives to stay on for another few years. They’re even adding perks to retirement packages to incent leaders to stick around a little while longer.
These same employers know that the current market for hiring top executives is ultra-competitive. Candidates have the upper hand (just as sellers have the upper hand in today’s housing market). Many health systems may not be able to get the right executives for their needs right now, at the right price.
An attractive option that mitigates these issues is the utilization of interim leadership.
Interim executives lend support and stability in times of uncertainty. Installing interim leaders into key executive roles buys an organization time – time to assess their post-COVID leadership needs and time to make the right permanent hires. In many cases, the interim leader plays a critical role in onboarding the permanent hire once that executive is selected.
I don’t expect the wave of retirements to diminish any time soon. I expect to get more calls from clients wondering how to handle gaps in the leadership team. Therefore, I expect that more and more hospitals and health systems will engage interim executives to help them through this difficult period.