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Member Research & Reports

Member Research & Reports

Georgia Southern: Impact of Employee Relationships in Financially Distressed and Highly Financially Distressed Hospitals

A team of researchers from Georgia Southern University Jiann-Ping Hsu College of Public Health and Parker College of Business examined the relationships between interpersonal support, supervisory support, employee engagement and employee turnover intentions in Critical Access Hospitals (CAHs) under varying levels of financial distress.

They found interpersonal support and supervisory support to have a positive impact on employee engagement. Further, the impact of interpersonal and supervisory support on turnover intentions were mediated by employee engagement. Significant differences were found among these relationships in financially distressed versus highly financially distressed hospitals.

Employee engagement strategies appear to be of greater value in highly financially distressed organizations, whereas supervisory support seems more effective in financially distressed organizations. “Interestingly, among financially distressed CAHs, we found employee engagement to be the mechanism through which organizations’ concern for employee well-being can reduce turnover intentions. This is particularly true in highly financially distressed hospitals” said Dr. Apenteng. Dr. Boakye added, “Management of highly financially distressed hospitals need to prevent employee turnover, and evidently in these rural organizations, employees are less likely to leave when policies that show interest in their well-being emanate from the organization rather than from their immediate supervisors.”

This study highlights the importance of considering employee perceptions of their employer’s financial condition when developing employee retention strategies.

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