Introduction
A healthcare agency director must make tough choices to keep things running smoothly for the agency and their staff in the face of an $80,000 budget shortfall. This situation calls for a strategic approach to financial planning that balances moral obligations and pragmatic demands.
Making cost-effective changes while maintaining patient and staff safety is the problematic part. It necessitates creative solutions that maintain the agency’s long-term sustainability objectives without sacrificing the caliber of the medical treatment given. The purpose of this paper is to present a budget proposal that includes ethical considerations for employees.
Proposal
Considering the labor-intensive nature of the budget, the most practical course of action is to reorganize personnel compensations while minimizing the negative impact on care quality and employee welfare. The first appropriate strategy is to propose a retirement incentive to Mrs. Potter, approaching the eligible age. This action would honor her years of service and experience while saving money on personnel (Ahinsah-Wobil, 2021). The described strategy could allow the company to save up to $65,000 on personnel costs.
Finally, an additional budget cut of $15,000 is necessary to address the $80,000 shortfall. The least disruptive strategy to achieve this goal is obligatory hour reduction for two or three months, focusing on roles with the most minor responsibilities during this period (Prager & Schmitt, 2021). Consequently, it is critical to assess the changes in organizational productivity and examine alternative solutions, such as voluntary layoffs and wage cuts. Following these recommendations, it is possible to mitigate the revenue cut while minimizing the disruption and continuously looking for more effective solutions.
Rationale
This proposal’s justification is based on the moral precepts of employee welfare and responsible financial management. Ahinsah-Wobil (2021) highlights the significance of strategic financial changes that consider stakeholder welfare and align with organizational aims. Moreover, Prager & Schmitt (2021) note that reduced wages and involuntary layoffs can significantly adversely impact organizational performance and employees’ mental health/retention. Therefore, in this case, implementing a temporary hour reduction and an early retirement package for Mrs. Potter appears to be the most ethical solution. It might be appropriate to customize the strategy slightly based on employees’ responsibility and financial needs; however, the chosen approach reflects a group effort to overcome financial difficulties without laying off workers.
Role of Employees
Employee participation in the creation of this idea is essential. Participatory decision-making in financial management can result in more enduring and widely accepted outcomes (Ahinsah-Wobil, 2021). Workers should be allowed to comment on, debate, and offer alternatives to the suggested changes. In addition to encouraging a sense of ownership among the employees, this inclusive approach aids in finding innovative ideas that management might lack.
Healthcare organizations must navigate budgetary problems with a balanced strategy that considers the agency’s financial stability and the welfare of its staff. The suggested personnel changes are workable, especially with an inclusive decision-making process. By using this approach instead of making changes without including the staff, the director will also be able to retain staff instead of garnering a hostile reaction from them. By implementing ethical and pragmatic methods, the organization may uphold its dedication to providing high-quality treatment while guaranteeing its financial stability.
Consideration of Values
Thorough consideration of each employee and their roles in the unit has been considered. It is vital to maintain fairness, inclusion of staff, and equality when handling this situation. By including the staff in the decision-making process, the director will be able to decide based on the concerns and needs of all staff members. This proposal seems to be the best option to effectively provide safe and quality patient care while trying to be fair to each employee. A lot of thought was put into allowing Mrs. Potter to retire early.
Though she brings 30 years of nursing experience to the unit, she is the highest-paid employee on the floor. To be fair to Mrs. Potter and the rest of the employees, allowing her to retire early enabled the rest of the staff to keep their positions. Unfortunately, in addition to Mrs. Potter retiring, we will have to cut back full-time employees’ hours temporarily and any overtime or incentive shifts. Upholding fairness as a core value throughout this budget proposal is the best way to keep the most staff and still provide safe care for our patients.
References
Ahinsah-Wobil, I. (2021). The reform Mechanisms policy in Ghana’s public financial management. Social Science Research Network. Web.
Prager, E., & Schmitt, M. (2021). Employer consolidation and wages: Evidence from hospitals. American Economic Review, 111(2), 397-427. Web.