Financial Implications of Staff Morale problems Essay

Financial Implications of Staff Morale problems - Essay Example In a report made by the Center for State and Local Government Excellence, most health care organizations have decided to reduce its employee number since the economic downturn. According to the survey that they have recently conducted, the top workforce issues faced by the local and state governments are â€Å"retaining staff needed for core services, reducing employee health care costs, and addressing employee morale and workload problems.† It was also reported that there were 62% pay freezes, 54% hiring freezes, and 41% layoffs. The CEO of Center for State and Local Government Excellence, Elizabeth Kellar, mentioned that "As they face hiring freezes, moral issues, layoffs, and accelerating retirements, more than 70 per cent of state and local governments say staff development is a priority issue." The American College of Health Executives reported that the effects of staff shortages due to layoffs are felt acutely by hospitals and other health care institutions. Now, the hea lth care industry is facing a new dilemma, they must fulfill their responsibility to provide high quality yet affordable patient care and of course addressing low morale problems among its employees. The American College of Health Executives took a stand that â€Å"healthcare executives have an ethical responsibility to address any shortages that exist within their organizations in such a way that patient care is not compromised, existing staff are not unduly burdened and financial costs do not become excessive.†