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Leadership Mistakes That Hurt Employee Retention in Healthcare

  • Kyle McGuire
  • Apr 27
  • 3 min read

Employee retention is one of the biggest challenges in healthcare today. High turnover rates not only disrupt team dynamics but also lead to significant financial and operational costs. Did you know that replacing a single employee in a healthcare practice can cost up to $50,000? Read more about the true cost of turnover here.

Yellow warning sign with exclamation mark on a wooden table while a person uses a laptop in the background.

Strong leadership plays a critical role in keeping employees engaged and committed. In this post, we’ll explore five common leadership mistakes that drive turnover—and how to avoid them.



1. Lack of Clear Communication

Poor communication can create confusion, frustration, and disengagement among employees. When team members don’t understand their roles or feel left out of important updates, they’re more likely to look for opportunities elsewhere.


How to Avoid It:

- Hold regular team meetings to keep everyone aligned.

- Utilize communication tools to streamline updates.

- Encourage open dialogue and feedback from employees.


2. Ignoring Employee Feedback

Employees who feel unheard often become disengaged. Ignoring feedback—whether it’s about workloads, processes, or workplace culture—sends the message that their opinions don’t matter.


How to Avoid It:

- Implement feedback loops, like anonymous surveys or one-on-one check-ins.

- Take action on the feedback you receive and communicate the changes back to your team.


Remember, employees are more likely to stay when they feel valued and heard.


3. Failing to Recognize and Reward Efforts

A lack of recognition can lead to demotivation and reduced morale. Employees want to know their hard work is appreciated, especially in a demanding field like healthcare.


How to Avoid It:

- Celebrate achievements during team meetings or through small rewards.

- Create a culture of recognition by encouraging peer-to-peer shoutouts.

- Tie recognition to meaningful contributions, reinforcing the value of their work.


4. Micromanaging or Lack of Trust



Micromanagement stifles creativity and autonomy, while too little oversight can leave employees feeling unsupported. Striking the right balance is key to building trust and empowering your team.


How to Avoid It:

- Set clear expectations and provide employees with the tools they need to succeed.

- Focus on outcomes rather than processes, allowing employees to take ownership of their work.

- Regularly check in to offer guidance without hovering.


5. Neglecting Professional Development Opportunities

Healthcare professionals are often driven by a desire to grow and improve. When leadership fails to provide development opportunities, employees may feel stagnant and start looking for growth elsewhere.


How to Avoid It:

- Offer training programs, mentorship, or tuition reimbursement.

- Create clear career advancement paths within your practice.

- Invest in leadership development for your managers to ensure they can support their teams effectively.


For a simple breakdown of these topics, check out this simplified table view:


Mistake

How to Avoid it

Lack of Clear Communication

Regular team meetings, communication tools, encouraging open feedback from your team

Ignoring Employee Feedback

Implement feedback loops, make actionable steps to address the feedback and provide follow-up

Failing to Recognize and Reward Efforts

Celebrate achievements, create a recognition culture, tie recognition to meaningful contributions

Micromanagement/Lack of Trust

Set clear expectations and provide employees tools to succeed

Neglecting Professional Development

Offer trainings, mentorship, tuition reimbursement, invest in leadership development for managers, create advancement paths



Leadership mistakes can be costly—not just in terms of employee satisfaction but also financially. Addressing these issues proactively can save your practice thousands of dollars in recruitment and training costs while building a stronger, more engaged team.


For a deeper dive into the financial impact of turnover, check out our post: The True Cost of Employee Turnover in Healthcare: Why Retention is a Better Investment.


At Dogwood Enterprises, we specialize in helping healthcare practices develop strong leadership teams and improve employee retention. Contact us today to learn more about our leadership development programs and retention strategies to help your practice flourish.




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