Harvard Case - Ascend Behavior Partners: Hiring in a Tight Labor Market
"Ascend Behavior Partners: Hiring in a Tight Labor Market" Harvard business case study is written by Glenn Carroll, Lucy Montgomery. It deals with the challenges in the field of Strategy. The case study is 9 page(s) long and it was first published on : Apr 6, 2022
At Fern Fort University, we recommend Ascend Behavior Partners (ABP) adopt a multifaceted strategy to address their hiring challenges in the tight labor market. This strategy will focus on attracting, retaining, and developing talent through a combination of innovative recruitment methods, competitive compensation and benefits, and a robust employee development program.
2. Background
Ascend Behavior Partners is a behavioral health company experiencing rapid growth, leading to a critical need for qualified therapists. The company faces a challenging labor market with a shortage of qualified professionals, intense competition for talent, and rising costs. This case study explores ABP's options to address these challenges and ensure continued growth.
The main protagonists are:
- Sarah Miller: CEO of ABP, responsible for overall strategic direction and growth.
- John Smith: Head of Human Resources, tasked with developing and implementing hiring strategies.
- The ABP team: Therapists, administrative staff, and other employees who are impacted by the hiring challenges.
3. Analysis of the Case Study
We can analyze ABP's situation using a combination of frameworks:
a) Porter's Five Forces:
- Threat of New Entrants: High, due to the growing demand for behavioral health services and the ease of setting up a practice.
- Bargaining Power of Buyers: Moderate, as patients have limited options but can choose based on factors like insurance coverage and therapist availability.
- Bargaining Power of Suppliers: High, as therapists have high demand and can negotiate favorable terms.
- Threat of Substitutes: Moderate, with alternative therapies like online therapy platforms emerging as competition.
- Competitive Rivalry: High, with numerous existing and new players vying for therapists.
b) SWOT Analysis:
Strengths:
- Strong reputation and positive patient outcomes.
- Experienced leadership team with a clear vision.
- Growing demand for behavioral health services.
Weaknesses:
- Difficulty attracting and retaining qualified therapists.
- Limited resources for marketing and recruitment.
- Lack of a formalized employee development program.
Opportunities:
- Leverage technology to streamline operations and expand reach.
- Develop innovative recruitment strategies to attract top talent.
- Invest in employee development to improve retention and build a strong internal talent pool.
Threats:
- Competition from other behavioral health providers.
- Rising costs of healthcare and employee benefits.
- Potential changes in government regulations.
c) Value Chain Analysis:
ABP's value chain is heavily reliant on attracting and retaining qualified therapists. The hiring process is crucial for delivering quality services and maintaining patient satisfaction.
d) Business Model Innovation:
ABP could explore new business models to attract and retain therapists, such as:
- Remote work opportunities: Offering flexible work arrangements to attract therapists seeking work-life balance.
- Partnerships with universities: Collaborating with universities to offer internships and mentorship programs for aspiring therapists.
- Employee ownership programs: Providing therapists with equity in the company to incentivize long-term commitment.
4. Recommendations
1. Implement a Multi-Channel Recruitment Strategy:
- Leverage online platforms: Utilize job boards, social media, and professional networking sites to reach a wider pool of candidates.
- Develop a strong employer brand: Highlight ABP's values, culture, and commitment to employee development through online and offline marketing.
- Attend industry events: Participate in conferences and career fairs to connect with potential candidates.
- Partner with referral programs: Offer incentives to current employees for referring qualified candidates.
2. Enhance Compensation and Benefits:
- Competitive salaries: Offer salaries that are in line with industry standards and reflect the experience and qualifications of therapists.
- Comprehensive benefits package: Provide health insurance, retirement plans, paid time off, and other benefits that are attractive to potential employees.
- Flexible work arrangements: Offer options for remote work, flexible hours, and part-time positions to accommodate the diverse needs of therapists.
3. Invest in Employee Development:
- Mentorship programs: Pair new therapists with experienced colleagues for guidance and support.
- Continuing education opportunities: Provide financial assistance and time off for professional development.
- Leadership development programs: Identify and cultivate high-potential therapists for future leadership roles.
- Create a culture of learning and growth: Encourage continuous learning and knowledge sharing among all employees.
4. Leverage Technology and Analytics:
- Applicant Tracking System (ATS): Implement a robust ATS to streamline the hiring process and track candidate progress.
- Data-driven decision making: Analyze hiring data to identify trends, optimize recruitment efforts, and improve employee retention.
- Virtual interviewing tools: Utilize video conferencing platforms for remote interviews to expand the talent pool.
5. Strengthen Corporate Governance:
- Develop a clear hiring policy: Define the company's hiring criteria, compensation structure, and employee benefits.
- Implement a robust onboarding process: Provide new hires with a comprehensive orientation and support system.
- Regularly review and update HR practices: Conduct periodic reviews of hiring policies and procedures to ensure they are effective and competitive.
5. Basis of Recommendations
These recommendations align with ABP's core competencies, mission, and external environment. They address the needs of both external customers (patients seeking quality care) and internal clients (therapists seeking fulfilling careers).
1. Core Competencies and Mission:
- Attracting and retaining top talent: This aligns with ABP's mission to provide high-quality behavioral health services.
- Investing in employee development: This supports ABP's commitment to creating a positive and rewarding work environment.
2. External Customers and Internal Clients:
- Meeting patient needs: By attracting and retaining qualified therapists, ABP can ensure patients receive the best possible care.
- Attracting and retaining therapists: By offering competitive compensation, benefits, and development opportunities, ABP can attract and retain talented therapists.
3. Competitors:
- Differentiation: ABP can differentiate itself from competitors by offering a unique and attractive employee value proposition.
- Market share: By attracting and retaining top talent, ABP can gain a competitive advantage in the market.
4. Attractiveness:
- Increased revenue: By attracting and retaining qualified therapists, ABP can increase patient volume and revenue.
- Improved employee retention: By investing in employee development, ABP can reduce turnover costs and improve overall productivity.
5. Assumptions:
- Continued demand for behavioral health services: This assumption is based on the growing prevalence of mental health issues and increasing awareness of the importance of seeking professional help.
- Availability of qualified therapists: While the labor market is tight, there are still qualified therapists seeking employment opportunities.
- Technological advancements: ABP can leverage technology to improve its recruitment and employee development processes.
6. Conclusion
ABP's success hinges on its ability to attract and retain qualified therapists in a competitive labor market. By implementing the recommended strategies, ABP can address its hiring challenges, ensure continued growth, and maintain its commitment to providing high-quality behavioral health services.
7. Discussion
Alternatives:
- Outsourcing: ABP could outsource some of its hiring functions to specialized recruitment agencies. However, this could be expensive and may not guarantee the quality of candidates.
- Mergers and Acquisitions: ABP could consider acquiring smaller practices to gain access to their therapists. However, this could be a risky strategy and may require significant capital investment.
Risks:
- Cost: Implementing these recommendations may require significant financial investment.
- Competition: Other behavioral health providers may adopt similar strategies, making it difficult to maintain a competitive edge.
- Changing market conditions: The labor market and healthcare industry are constantly evolving, requiring ABP to adapt its strategies accordingly.
Key Assumptions:
- Continued demand for behavioral health services: This assumption is crucial for the success of ABP's growth strategy.
- Availability of qualified therapists: ABP's ability to attract and retain talent depends on the availability of qualified professionals.
- Technological advancements: The effectiveness of ABP's technology-driven strategies depends on the availability and affordability of relevant technologies.
8. Next Steps
Timeline:
- Month 1: Conduct a thorough assessment of ABP's current hiring practices and identify areas for improvement.
- Month 2: Develop a detailed recruitment strategy and implement new online recruitment channels.
- Month 3: Review and update compensation and benefits packages to ensure competitiveness.
- Month 4: Launch an employee development program and offer mentorship opportunities.
- Month 5: Implement an applicant tracking system and begin using data-driven decision making.
- Month 6: Regularly monitor progress and make adjustments to the strategy as needed.
Key Milestones:
- Increase in qualified applicants: ABP should see a significant increase in the number of qualified applicants applying for open positions.
- Improved employee retention: ABP should experience a reduction in employee turnover and an increase in employee satisfaction.
- Enhanced employer brand: ABP should build a strong reputation as an attractive employer in the behavioral health industry.
By taking these steps, ABP can successfully navigate the challenges of hiring in a tight labor market and achieve its ambitious growth goals.
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Case Description
Ascend Behavior Partners provided applied behavioral analysis (ABA) services to families with children with autism. The growing autism services market presented a massive opportunity for Ascend to provide quality care to families in need. Ascend's delivery model relied on board certified behavior analysts (BCBAs), who were the backbone of providing care to families with children with autism. But the severe imbalance between supply and demand for these critical skills posed a challenge for companies like Ascend looking to hire qualified BCBAs. After struggling with its BCBA offer acceptance rate, Ascend made a counter-intuitive decision in December 2018 and altered its BCBA hiring process to make it substantially more challenging and time-consuming. The new process was designed to give applicants a chance to experience Ascend's culture in a more meaningful way throughout the hiring process. The epicenter of the revamped hiring process was an in-person, full-day interview, where applicants spoke with a range of employees across the company. Almost immediately after implementing the change, Ascend saw its offer acceptance rate spike from 50 percent to 90 percent. This case discusses how to create a hiring process that accurately conveys the culture of a company.
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