Optimizing Resources at Afton Regional Hospital (ARH) - Essay Sample

Introduction

Afton Regional Hospital (ARH) should use the existing resources optimally to achieve its long term strategic goals. Employment types for different groups of employees at ARH, namely, full-time, contract, part-time, and per diem, shapes how the facility will allocate its resources. These employment types differ in terms of schedule, benefits, and pay. While individuals under full-time employment work for a standard 40-hours per week, those in part-time employment offer their labor services for less than 40-hours per week. However, the schedule for part-time workers is flexible since these employees may not work the same number of hours daily. Full-time employees receive a full range of benefits, unlike those on part-time that may get little or even no benefits. Full-time employees receive more pay than part-time workers, but the difference can be tiny if both groups have the same skill set and perform the same job.

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Regarding per diem employment, weekly working hours vary depending on how much employees wish to work besides the employer's labor needs. Since these workers are not eligible for employer benefits, their hourly wage is higher than that of their counterparts under other employment types. Also, they have the most flexible schedules as they can decide the number of weekly working hours. For contract employment type, there are no employer benefits, but the workers are entitled to better pay for the work done. Also, the schedule is a bit flexible as long as the employee can complete specific tasks within a specific timeline.

The five employment types will affect ARH’s resource allocation plan because the organization needs to provide a full range of employer benefits to various employees working overtime. Employer benefits for per diem and contract employees working overtime, in particular, will increase ARH’s wage and salary expenses significantly. The reason is that these groups of workers earn more hourly pay considering that they do not get employee benefits entitled to full-time workers. Moreover, the compensation package for non-exempt employees working overtime will drive salary expenses significantly, suggesting that ARH needs to allocate more resources to this group of workers. For part-time workers that qualify for overtime, ARH will pay them a premium of fifty-percent the regular hourly rate. Together, these aspects show how employment types will affect the allocation of resources.

Managing the schedules for different employment types is vital for the organization. I would prepare a schedule in such a way that ARH will have a mix of full-time, per diem, contract, and part-time employees at a particular time. This strategy ensures that ARH has a reasonable work schedule that can potentially promote a positive work environment (Cheryl et al., 2014). In doing so, ARH will prevent stress and nurse burn out as a result of a high workload. Cheryl et al. (2016) corroborated that nurse staffing plans should enable the organization to accommodate contingencies and operational uncertainties.

Fair Labor Standards Act

Employment compensation laws under the Fair Labor Standards Act (FLSA) impact resource allocation at ARH. The primary regulations that ARH should consider during resource distribution are exemption provisions and wage standard regulation from the Department of Labor (DOL). According to FLSA regulation on wage standards, the minimum hourly pay for non-exempt employees is $7.25 (DOL, 2018). For any overtime work, employers should pay eligible employees nothing less than one and a half times the standard hourly pay. Accordingly, ARH should consider this guideline when allocating resources to compensate employees. This aspect implies that ARH will use more resources to pay non-except employees for any overtime work.

Employee Safety Regulations

FLSA's child labor provision on employee safety affects ARH's resource allocation strategy. The regulation restricts young employees from performing hazardous work that can endanger their lives. Some of the dangerous aspects are stressful conditions, inadequate safety training, and pressure to work faster with insufficient supervision. Thus, young employees at ARH below 18 years will not perform such tasks. In this view, the organization has to allocate resources towards employing skilled workers above 18 years for any work that may endanger the lives of young human resources. Child labor law, as well, will apply to ARH when recruiting and assigning tasks to its employees. The provision states that minors between 17 and 18 years may do non-hazardous work for a limited time (DLO, 2018). Since the organization is planning to recruit high school students below 18 years, it has to consider that FLSA limits their working hours. Hence, the facility has to direct resources to other efforts that will supplement their labor.

Youth Employment Regulations

FLSA’s regulation on youth minimum wage affects resource distribution at ARH. The law requires employers to pay an hourly rate of at least $4.25 for all the workers below 20 years (DLO, 2018). According to this law, employers ought to provide this pay for the first 90 calendar days from the day of employment (DLO, 2018). This regulation enables ARH to save on salary expenses during resource distribution since it can pay $4.25 per hour instead of $7.25 that is paid to non-exempt employees. However, this law bars employers from displacing the existing employees to provide an opportunity to hire workers within the youth age bracket. Another FLSA regulation is on subminimum wage provision. This law allows employers to pay specific groups of employees hourly wages below the statutory minimum. Some of these workers are full-time students in the service industry. This provision can help ARH to minimize employee expenses during resource allocation if it considers employing student learners.

Union Contract Guidelines

Union contracts will have significant impacts on how ARH will implement its work schedules. Federal labor laws allow employees to organize and join trade unions that would help them advocate for fair pay, and better working conditions, among other aspects. Union contracts may affect schedules in that the association may require the employer to allow its employees to report to their workplaces at a reasonable time and work in shifts for a specific number of hours per day. Again, it may agitate for longer timelines for contract employees to allow them to complete their tasks without pressure to work faster. While the union and the employer may bargain in good faith concerning salaries, work hours, and wages, among other mandatory subjects, ARH could end up paying maximum employee benefits as labor unions agitate for pay depending on the nature of work. This aspect requires the allocation of more resources.

Family Medical Leave Act (FMLA)

FMLA will affect resource distribution plans at ARH in the next quarter. This law requires employers to provide unpaid leave for employees that cannot work because of the following situation: placement of a foster care child, birth, and severe medical conditions (DOL, 2018). Employers out to provide up to 12 weeks of unpaid leave to workers in this situation without terminating their employment contracts (DOL, 2018). During this time, the employer needs to maintain health benefits as long as the worker is eligible under FMLA guidelines. In the next quarter, ARH will allocate resources towards hiring employees that will perform the tasks of the employee going for maternity leave. Also, it has to budget for this employee’s health benefits besides the wages for the workers that will replace her during the maternity leave period.

References

Cheryl, B. J., Pink, G. H., & Munn, L. T. (2016). Human resources in healthcare: managing for success (4th Ed.). EBSCO Publishing.

DOL. (2018). Summary of the major laws of the Department of Labor. https://www.dol.gov/general/aboutdol/majorlaws