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Proceedings of the International Scientific Conference. Volume I, May 27th, 2022. 753-766
ASPECTS OF HUMAN CAPITAL MANAGEMENT OF
HEALTHCARE WORKFORCE IN THE CONTEXT OF
LIFELONG LEARNING: A RAPID REVIEW
Evita Grigorovica
Rīga Stradiņš University, Latvia
Andreta Slavinska
Rīga Stradiņš University, Latvia
Nora Jansone-Ratinika
Rīga Stradiņš University, Latvia
Guntis Bahs
Rīga Stradiņš University, Latvia
Abstract. An individual's knowledge and skills, also known as human capital, shape its
professional quality and become a valuable resource for the organization when entering an
employment relationship. Investment in human capital, promoting the formal and non-formal
lifelong learning of the workforce while implementing targeted capital monitoring, is essential
to achieve the strategic goals of the organisation. In addition, in particularly critical areas such
as healthcare, human capital management can play a crucial role in ensuring the quality of
healthcare and patient safety. The study aims to analyse the research carried out on the aspects
of human capital management of the healthcare workforce and its role in the health sector. To
achieve the goal, a rapid review was performed by including articles indexed in the databases
Scopus and Web of Science in the period 2017-2021, according to search strategy. The study
shows - human capital is mostly analysed at the national or regional level as an indicator of a
country's level of development (macro-dimension). At the same time, relatively little research
has been conducted at the micro-dimension, where management of human capital of the
healthcare workforce has been studied at the institutional or sectoral level. Research on human
capital management in the healthcare sector at the institutional level only
fragmentarily reflects its importance and does not provide a comprehensive picture of effective
management methods or systems, as well as benefits or barriers to implementation. There is a
significant lack of research on the interaction of human capital management with specific
factors in the healthcare sector, such as the quality of health care and the safety of patients and
healthcare professionals.
Keywords: healthcare workforce, human capital management, lifelong learning, skills
monitoring.
Introduction
With the 4th Industrial Revolution, including rapid changes in globalization,
technological development, production and social processes, the role and impact
of lifelong learning on the development of individuals, organizations, and
© Rēzeknes Tehnoloģiju akadēmija, 2022
https://doi.org/10.17770/sie2022vol1.6865
Grigorovica et al., 2022. Aspects of Human Capital Management of Healthcare Workforce in
the Context of Lifelong Learning: a Rapid Review
countries has significantly increased. In a knowledge-based and service-oriented
economy, lifelong learning is crucial in constructing the human capital of the
organisation. An individual's knowledge and skills are a set of competencies,
which, becoming an employee of the organisation, also becomes the human
capital of the organisation, therefore the management of the organisation should
support the lifelong learning of employees to promote the development of the
organisation. The role of the employer in the lifelong learning of the workforce is
emphasized in the “New European agenda for adult learning 2021-2030” –
encouraging, where appropriate, the integration of financial incentives, tax
incentives, and other social benefits or compensatory measures at employer level
in the implementation of policies on adult learning should result in increased
employer commitment to adult learning (European Commission (EC), 2021).
To support the lifelong learning of employees and invest in the development
of human capital, the employer needs to develop and integrate a human capital
management system to ensure continuous monitoring of the human capital
components such as education and skills. The need for skills monitoring in the
education and labour market is also supported by policy documents at the
European level. In 2016, the European Commission's “New Skills Agenda for
Europe” identified balancing skills acquisition, building skills systems, and
strengthening lifelong learning as development priorities (European Commission
(EC), 2016). As a follow-up to this initiative, the “European Skills Agenda for
Sustainable Competitiveness, Social Fairness and Resilience” was launched in
2020, setting out 12 directions for development over the next five years. And
skilling for a job is a guiding principle, starting from mapping each individual’s
skill set, delivering targeted training that meets specific up- and reskilling needs,
and helping the individual find a job in demand on the labour market (EC, 2020).
The skills development and lifelong learning course set by the European
Commission is driving change in both the education and business sectors.
Therefore, solutions need to be found to develop and manage the human capital
of the workforce by promoting and supporting lifelong learning.
Knowledge and skills as components of human capital
One of the original definitions states that human capital is the knowledge,
skills, and abilities of an organization’s employees (Shultz, 1961). Over time the
definition was supplemented with employee health (Becker, 1993), intelligence,
experience (Bontis, Dragonetti, Jacobsen, & Roos, 1999), and employee
performance and potential (Thomas, Smith, & Diez, 2013). Despite differences in
definitions, the role of human capital in managing human resources and achieving
strategic results is becoming increasingly important. Human capital is a relatively
new concept in management science and it is an important intangible asset of the
organisation. Although human capital – knowledge and skills of employees,
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belongs to the employees of the organisation, as an organisation’s intangible asset,
this capital can affect the productivity, profitability, competitiveness, quality of
goods and services, as well as the reputation of the organisation. Previous studies
have shown a positive link between the development of human capital in an
organisation and performance at both the individual and organisational levels. In
addition, this relationship can be analysed from two perspectives: how knowledge
and skills of the workforce at the individual level affect organisational
performance (Ployhart, Nyberg, Reilly, & Maltarich, 2014) or how organisational
performance affects development at the individual level (Crocker & Eckardt,
2013). The knowledge and skills of the workforce can be improved by developing
a lifelong learning approach in the organisation and thus promoting personal
development through personal growth.
According to the European Centre for the Development of Vocational
Training (CEDEFOP) lifelong learning is all learning activity undertaken
throughout life, which results in improving knowledge, know-how, skills,
competencies and/or qualifications for personal, social, and/or professional
reasons, covering related terms such as adult education and continuing education
and training (CEDEFOP, 2008). In adult education learning outcomes –
knowledge and skills, arise from the direct interaction between the individual and
the education provider. But the work environment is an additional dimension
where employers by direct or indirect investments can facilitate lifelong learning
of the workforce and benefit from this interaction.
Human capital management
Investment in human capital is relevant to achieve the strategic goals of the
organisation, but for balanced management, decisions must be data-driven. So, an
employer needs to develop an approach to how human capital can be managed
and measured and a system where human capital data can be stored, planned,
monitored and controlled. Human capital management can be viewed as an
integrated effort to manage and develop human capabilities to achieve
significantly higher levels of performance (Chatzkel, 2004). To improve the
performance, metrics should be used to measure the value of human capital
attributes (accumulated knowledge, skills, experience, creativity, and other
relevant workforce attributes), and gained knowledge should be used to
effectively manage the organisation (Nalbantian, Guzzo, Kieffer, & Doherty,
2004). Afiouni distinguishes 5 dimensions of human capital that, according to
management activities, contribute to the organisational outcomes (Figure 1)
(Afiouni, 2013).
HCM involves putting into place the metrics to measure the value of HC
attributes (accumulated knowledge, skills, experience, creativity and other
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Grigorovica et al., 2022. Aspects of Human Capital Management of Healthcare Workforce in
the Context of Lifelong Learning: a Rapid Review
relevant workforce attributes) and using that knowledge to effectively manage the
organisation
Figure 1 Human capital management framework (Afiouni, 2013)
According to the dimensions and managerial actions 5 organisational
outcomes regarding human capital should be expected – development,
understanding and acceptance, alignment with strategic goals, continuous
learning and measurement. As the fifth dimension shows, it is significant to ensure
measurement of human capital and implement control mechanisms to monitor
contribution of human capital.
In particularly critical areas such as healthcare, human capital management
can be essential no only ensure the productivity, profitability, and
competitiveness. Monitoring the human capital of healthcare workforce can also
improve the quality of healthcare and patient safety. The healthcare workforce can
be defined as people who are engaged in actions whose primary intent is to
enhance health, including clinical staff, as well as management and support staff
(World Health Organisation (WHO), 2010). The results of the Organisation for
Economic Co-operation and Development (OECD) Survey of Adult Skills
(PIAAC) indicate significantly higher rates of skills mismatch among the
healthcare workforce in comparison to other professional workers, pointing to the
risk of skills gap (OECD, 2016). Skills mismatch can be caused by inadequacies
in education and training systems and also by inadequacies in health systems and
organization of the workplace, so there is a need to take a systems-approach to
skills assessment. Besides, it is vital for the healthcare workforce not only to
possess the needed skills, but also to be enabled to use these skills effectively
(OECD, 2021). As the World Health Organisation (WHO) recommends transformative, high-quality education and lifelong learning should be
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implemented to ensure that all health workers have skills that match the health
needs of populations and can work to their full potential; education and training
must be focused on practice and tailored to health system needs (WHO, 2016). So
efficient and targeted human capital management can serve not only personal
growth and the achievement of strategic goals of healthcare organisations, but also
the provision of the state healthcare system.
Aim
The study aims to analyse the research carried out on the aspects of human
capital management of the healthcare workforce and its role in the health sector.
This goal was set based on the findings of the previous study by the authors, where
integration of the skills monitoring system in higher education was evaluated
(Slavinska et al., 2021). As the results indicated, skills management should also
be implemented in the work environment to ensure monitoring of the workforce’s
lifelong learning, thus facilitating the development of the employer's human
capital database.
Methodology
To achieve the goal of the study, a rapid review was performed. This
approach was chosen as a rapid review is a suitable approach to provide practical
evidence for informed decisions, when time and resources are limited, especially
in the field of health policy and systems (WHO, 2017). The search was conducted
in two most important multidisciplinary databases containing citation
information - Web of Science and Scopus. According to search strategy, studies
including “human capital” or “skills management” or “skills monitoring” and
“healthcare” or “health care” in title, abstract and keywords, were selected.
Databases have been searched from 01/12/2021 to 31/12/2021. Only studies that
met criteria - English language, open access, published and indexed 2017-2021 have been included. The year 2017 has been chosen as the starting point, as in
2016, the European Commission defined skills systems and lifelong learning as
development priorities by launching the program “New Skills Agenda for
Europe”.
The review has been carried out in an accordance with Cochrane rapid
review guidance (Garritty et al., 2020). The titles and abstracts of extracted studies
using the search strategy have been screened by two review authors independently
for potential inclusion (in case of insufficient information, the full text was
evaluated). A database has been created with the following information for each
article found: author, title, journal, year, and objective. The full text of the
potentially eligible studies has been assessed by two review authors
independently, any disagreement resolved by consensus discussion. A form
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the Context of Lifelong Learning: a Rapid Review
developed by the authors has been used to extract relevant data from the included
studies. A report has been made following the Preferred Reporting Items for
Systematic Reviews and Meta-Analyses (PRISMA) guidelines (Page et al., 2021).
Results
According to the search strategy, 479 records were identified through 2
databases searching. 474 articles were identified by “human capital”, 4 articles by
“skills management”, and 1 article by “skills monitoring”. After duplicate
removal, 336 studies were selected for the first screening. Only studies examining
human capital at the institutional level - respectively, as the intangible asset of a
healthcare organisation (microeconomic dimension) were included. Studies
examining human capital at a national level from a health sector perspective
(macroeconomic dimension) have not been analysed. After applying the
eligibility criteria to the abstracts, 21 full-text articles were deemed to fit for indepth analysis. After the full-text screening, 10 studies were included in the
qualitative synthesis (Figure 2).
Figure 2 PRISMA flowchart for the rapid review (by authors)
The final sample consisted of – 3 cross-sectional studies; 3 qualitative
research studies; 2 mixed research studies, 1 literature review, and 1 invited
commentary. The countries of origin of the studies were the United States (n = 2)
Italy (n=2) and one study from each country – Israel, Jordan, the Netherlands,
Malaysia, the United Kingdom and Poland. Journal types were management (n =
7), covering accounting and governance, labour economics, intellectual capital,
health organization and management, additional – and healthcare (n=3), covering
medicine, epidemiology and nursing. Articles included in the study covered
various topics (Table 1).
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Table 1 Topics covered, 2017-2021( by authors)
Title
Intellectual Capital Management Practices in Malaysian Private Hospitals
Strategic human resource management practices and human capital
development: The role of employee commitment
Organizing professionals and their impact on performance: the case of
public health doctors in the Italian SSN
Investing in human capital: exploring causes, consequences and solutions to
nurses' dissatisfaction
The Leadership Case for Investing in Continuing Professional Development
Understanding self-managing teams in Dutch healthcare: empirical
evidence to non-sequential team development processes
Diagnosing Expertise: Human Capital, Decision Making, and Performance
among Physicians
Managing intellectual capital in healthcare organizations. A conceptual
proposal to promote innovation
Inhibitory effect of the environment for the management of human capital
of public hospitals in the opinion of Polish managers
What distinguishes positive deviance (PD) health professionals from their
peers and what impact does a PD intervention have on behavior change: A
cross-sectional study of infection control and prevention in three Israeli
hospitals
Topic
intellectual
capital
management
employee commitment
Year
2017
hybrid
professional
managers, performance
job dissatisfaction
2019
continuing professional
development
team development
2017
doctor’s performance,
individual expertise
innovation process
2017
barriers
to
human
capital development
positive
deviance
approach
2018
2021
2018
2020
2021
2020
In 8 studies topics were discovered from a human capital perspective, in 2
studies topics were discovered from an intellectual capital perspective, where
human capital was one of the research dimensions.
Discussion
The purpose of this review is to gather and analyse collected evidence on the
aspects of human capital management of the healthcare workforce and its role in
the health sector by evaluating studies conducted since the program “A New Skills
Agenda for Europe” was launched in 2016.
It was discovered, most research is dedicated to studying human capital at
the national level and its impact on national wealth from a health sector
perspective. There is much less research at the institutional level and even less
research is available on human capital aspects in healthcare organisations.
The rapid review covers various aspects influenced by the development of
human capital, as well as factors and areas that can affect human capital. As
mapped evidence shows, results can be categorized as inputs – factors and areas
that can affect human capital development, and outputs – aspects influenced by
the development of human capital (Figure 3).
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the Context of Lifelong Learning: a Rapid Review
Figure 3 Mapped evidence in the healthcare sector, 2017-2021 (by authors)
Human capital is the most valuable intangible asset that covers various areas
of management of healthcare organisations. Inputs identified by the study are
related to the role of the management of the healthcare organisations and the
impact of decisions on the development of human capital. First, management of
healthcare organisations has to assess whether necessary human resources,
capabilities, and processes are in place for the successful development and
implementation of strategy and should invest more in the knowledge and skill
development of the employees (Hamzah, Hassan, Saleh, & Kamaluddin, 2017).
Authors emphasize that it is important for the health care workforce not only to
develop individual knowledge, but also the internalization of tacit knowledge
should be practiced. Human capital should be managed through the practice of
strategic human resource management, by investing more in human capital
through formal education and training (Alolayyan, Alyahya, & Omari, 2021).
Second, a combination of skills appropriate to the specifics of the job is important
not only for clinicians, but also for managers. Healthcare managers with balanced
skills, combining both sector-specific competencies and organizational
competencies and managerial skills (hybrid professional managers), are able to
ensure both service quality and financial efficiency (Sarto, Veronesi &
Kirkpatrick, 2019). Third, healthcare leaders who recognize the strategic value of
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Proceedings of the International Scientific Conference. Volume I, May 27th, 2022. 753-766
education and engage their people in education can expect a meaningful return on
their investment (McMahon, 2017).
According to the study, the evidence shows the impact of lifelong learning
on human capital and its impact on other human resource and management
processes. McCahon offers continuing medical education as the professional
development vehicle to drive change and achieve goals, in accordance with
quality improvement efforts, patient safety projects, and other systems changes
(McMahon, 2017).
Outputs can be expressed not only in terms of the quality and safety of
clinicians’ work but also in the spirit and cohesiveness of the employees
(McMahon, 2017) as well as improved workforce commitment (Alolayyan et al.,
2021). The more healthcare managers invest in meaningful formal training and
organizational programs to enhance employees’ skills and competencies related
to organizational strategic goals, the less likely employees will leave their
organizations or look for another opportunity. And as a result - satisfied and
committed employees will be more engaged in training and show more interest in
development opportunities (Alolayyan et al., 2021). Employees will develop not
only greater devotion towards the organization relating to long-term loyalty, but
also their sense of professional mission will improve. That raises the significance
of employers' and employees' awareness of the cruciality of skills mastery in
healthcare.
In addition to employee’s commitment, another factor to explore related to
human capital is job satisfaction. To measure human capital, a combination of
quantifiable indicators (employee turnover, recruitment and retention rates,
training costs per employee, average years of service, etc.) and qualitative
indicators such as job satisfaction should be used (Halder, 2018). Regarding
education, authors point out, that personal growth is one of the key factors
affecting job satisfaction alongside pay, respect, security, workload, recognition,
responsibility, environment, autonomy, and administrative bureaucracy (Halder,
2018).
Identification of skills and purposeful planning can promote both the
formation of self-managed teams and a more balanced distribution of tasks among
professionals. Geerts et al. study examine how the workforce is organized into
smaller groups as self-managed teams can contribute to organizational flexibility,
reduction of costs, and promote higher quality and more diverse and flexible care.
Authors conclude that there are eight factors categorized by the individual, team,
organizational or environmental level, that influence team management, task
management and boundary management, and improvement development process
to ensure the effectiveness of self-management teams. Research proves that
individual human capital positively influences the development of all three
processes (Geerts, Bierbooms, & Cloudt, 2021). At the same time, in human
capital management, it is important not only to monitor the knowledge and skills
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the Context of Lifelong Learning: a Rapid Review
of employees, but also to be able to apply them purposefully. Healthcare
professionals should be able to operate on both dimensions – technical skills and
diagnostic decision-making. As specialists often are very strong in one of these
dimensions, there is a possibility to improve healthcare outcomes by assigning the
right specialist to the right task (Currie & MacLeod, 2017).
Furthermore, knowledge and effective use of human capital can also serve
to implement a positive deviance approach. The positive deviance approach
assumes that there are individuals or groups in teams whose uncommon behaviour
and strategies enable them to find better solutions to problems than their peers,
while facing worse challenges and having access to the same resources (Cohen,
Gesser-Edelsburg, Singhal, Benenson, & Moses, 2020). Thus, “health systems
must act to identify, adopt and nurture their human capital by paying attention to
building stronger personal and social networks within health systems, and
identifying the most prominent people (leaders) through their multitude of
connections on the social map to accelerate behavior change and improve
organisational performance over the long run” (Cohen et al., 2020).
At the institutional level, human capital as a part of intellectual capital has a
significant role in the innovation process. Human capital may increasingly be a
determinant if a healthcare system is ready to adopt a value co-creation approach
(Huang, Leone, Caporuscio, & Kraus, 2021). The exploitation of human capital
provides a valuable strategy for managing knowledge resources. It plays a crucial
role in triggering a value creation process and boosts innovation within healthcare
organizations (Huang et al., 2021).
In the picture of evidence must be acknowledged human capital development
and its management approach can be influenced not only by management's
understanding of the importance of the concept and its ability to develop it, but
also by different environmental components. Environmental components, which
create barriers for human capital management mostly are systemic conditions,
public payers and local politicians of various levels and groups of interest (Lenik,
2018). By successfully removing barriers and providing targeted support for the
lifelong learning of the workforce, employers have the opportunity not only to
improve their human capital but also to promote employee commitment and job
satisfaction, to foster innovation, value co-creation and self-managing teams, to
encourage positive deviance approach, to find better solutions to problems and
task division and also to improve organizational flexibility, reduction of costs,
healthcare quality, patient safety and organizational performance.
Conclusions
This rapid review is a synopsis of evidence and synthesis of knowledge on
human capital management and various aspects influenced by the development of
human capital, as well as factors and areas that can affect human capital
development in the healthcare sector.
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Successful human capital management at the individual level can strengthen
an individual's personal growth, at the institutional level can contribute to the
achievement of the goals of the healthcare organisation, and at the national health
level can promote the performance of the health care system and the quality of
health care and patient safety. Therefore, it’s important to analyse how human
capital management, including skills management system can be implemented in
a practical work environment.
The study shows - since the publication of “A New Skills Agenda for
Europe” in 2016, human capital is mostly studied at the national or regional level
as an indicator of a country's level of development. At this macro-dimension,
health is one of the hallmarks of human capital alongside education. Another very
wide field of research is the impact of various specific health issues on a country's
human capital. At the same time, relatively few researches have been conducted
at the micro-dimension, where management of human capital of the healthcare
workforce has been studied at the institutional or sectoral level.
Although the EC, WHO, and OECD point to the importance of skills balance
and the need for skills monitoring and lifelong learning, there is little evidence in
practice of attempts to implement such a management approach and systems in
the healthcare sector.
There have been surprisingly few studies in the healthcare sector that
highlight human capital management approaches and practical solutions. Some
studies regarding human capital management only fragmentarily reflect its
importance and do not provide a comprehensive picture of effective management
methods as well as benefits or barriers to implementation.
There is a significant lack of research on the interaction of human capital
management with specific factors in the healthcare sector, such as the quality of
healthcare and the safety of patients and healthcare professionals. A novel model
should be developed to fully reflect aspects of human capital management in such
a specific sector as healthcare.
This study outlines human capital in the healthcare sector from two
perspectives – the impact of human capital on other human resource elements
(such as commitment, job satisfaction, etc.) and management processes (problemsolving, innovation, and others), and the impact of management of healthcare
organisation on lifelong learning and human capital development.
Still further research should be carried on various related aspects as
interactions with other forms of the capital of the organisation, integration with
education providers in the healthcare sector, correlation with the value and
efficiency of the organisation and the effect on financial performance, skills
intelligence and healthcare performance as well.
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the Context of Lifelong Learning: a Rapid Review
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