Deloitte facilitates talent cultivation and management for social medical organizations
Deloitte satellite forum at China Social Medical Summit 2020 concluded successfully
On 23 August, as part of the China Social Medical Summit 2020, a satellite forum co-organized by Deloitte on Talent Cultivation and Management under Medical Reform was successfully concluded in Nanjing. As China moves toward the 14th Five-Year Plan, which starts in 2021, social medical institutions will face a new industry landscape and development goals. To promote high-quality development of private hospitals and keep ahead of current trends, Deloitte partnered with Chinese Hospital Association Private Hospitals Branch to gather corporate executives and industry pioneers from social medical organizations together to share insights on talent incentives, management practices, changes in demand, talent planning, cost control and other issues.
Cao Yamin, Chairman of Beijing Hospital Association Private Hospitals Branch hosted the opening ceremony. He stressed the importance of the forum's theme, noting that as talent gradually becomes the most important resource of private hospitals, any lack of skilled staff will hinder their development.
Kurt Tan, Deloitte Nanjing Managing Partner, delivered welcome remarks. He noted that Deloitte came to Nanjing as early as 1998, and is now the largest accounting firm in the city, having helped many well-known pharmaceutical and medical companies solve bottlenecks in operational management and development. Nanjing CBD Partner Eric Li then presided over a session of speeches.
Deloitte China Life Sciences & Health Care Consulting Partner Melissa Wang gave the first keynote speech, Research on Comprehensive Incentives for Top Talents in Private Medical Institutions. As a senior consulting professional focused on human capital, she took a deep dive into HR trends in the healthcare industry. As public hospitals return to expansion in the post-COVID 19 era, talent shortages and competition for talent from private hospitals will become more intense.
Addressing talent management, she shared ideas about equity incentives at listed companies and market trends. These incentives usually include stock options, restricted stocks and others mechanisms, including stock appreciation rights. Decision-makers should choose the appropriate mechanism based on the objective of incentives, their judgment on the future of a company and its development.
In addition, when hiring talent, companies should think about the overall situation from the perspective of shareholders and medical institutions, and clarify their image of what a high-potential workforce looks like. "An effective talent incentive is to create combined rewards based on understanding each individual's needs," Melissa said. On this basis, companies should assess different types of employee demands and create personalized incentives, to provide comprehensive incentives for top talent. Melissa's speech received a warm response from the audience.
Li Lei, deputy secretary of the Party Committee and director of Human Resources at Hainan Cancer Hospital, then delivered a speech on Sharing Hospitals' Talent Management Practices, including an analysis of the talent management mechanism and multi-culturalism of their institution. Ding Xiang Yuan's Senior Talent Development Director Han Xian then shared her thoughts on Changes in Medical Human Resources Demand under the New Normal, exploring the contradiction between hospitals not being able to hire the right people and jobseekers not being able to find suitable roles. Medical institutions need to respond quickly in four areas: adjusting business and HR strategies, expanding teams and innovative methods of recruitment.
In response to the hot topic of personal income tax reform in China, which has received widespread attention in the past two years, Deloitte China Life Sciences & Health Care Tax Advisory Partner Paky Ding spoke on Personal Income Tax Management for Private Hospitals' Executives. In light of people's concerns about vaccines amid COVID-19, Paky said, "The advance management of taxes is actually a vaccine for our business," emphasizing the importance of advance tax planning.
Furthermore, companies should pay attention to the mechanism and principles of China's new personal income tax law, including the arm's length principle, controlled foreign corporation rules, to increase revenue. Additionally, Paky analyzed the potential problems of employee equity incentive plans, tax planning for individual shareholders (founders) and major tax considerations at the private hospital company level, providing a comprehensive interpretation of policy updates and coping mechanisms.
In a concluding panel, Human Resource Planning and Cost Control in Private Hospitals, the moderator, Deloitte China Life Sciences & Health Care Risk Advisory Director Shan Li first presented a warm-up speech. Referencing Maslow's Hierarchy of Needs, Shan Li gave suggestions on how hospitals can better optimize employee incentive systems. He summarized four long-term incentive plans, including employee partnership incentives, stock options and restricted stock incentives, employee shareholding platform incentives and virtual stock equity incentives.
Panel members Zhang Ming, chairman of Youyi Medical Group; Zhao Yang, president of Huainan Chaoyang Hospital; Chen Jiang, president of Qu Zhou Wu Chan Phoenix Hospital; and Sun Yukai, director and vice president of Zhejiang Tianrui Medicare, then discussed how social medical institutions can formulate more flexible HR plans and competitive talent incentive plans in light of COVID-19, and how to build a talent cultivation system covering employees' entire careers.
In addition to the satellite forum, Deloitte China Consulting Director Enya Fan was invited to speak at the China Social Medical Summit 2020's 14th Five-Year Plan' Social Medical Outlook and Trends main forum. She delivered a speech on The Road to Cultivation and Development of Talents at Private Hospitals. Enya explored the current problems of private hospitals in talent management, including a lack of talent, unreasonable personnel structures, difficulty in introducing new employees, and the lack of training mechanisms and long-term incentives for professional experts in medical institutions.
Discussing research on talent development mechanisms, Enya suggested talent management should be aligned with business strategy and give policies a guiding role. On the basis of having a clear idea of their top talent requirements, medical institutions and companies should establish modern career development paths, training systems and long-term incentive programs, and improve equity incentive plans for doctors. In future, with more flexible organizational structures and diversified workforce combinations, hospital leaders will need to open up and change their way of thinking to succeed in the digital world. Enya's in-depth analysis and interactive session drew a large crowd of industry professionals.
Enya also joined a panel session to discuss the development and future of social medical institutions with government officials, business executives and academicians.
Besides, Deloitte is cooperating with the Chinese Hospital Association Private Hospitals Branch to conduct research on talent management for social medical organizations, which will be published later in November.
This summit and satellite forum demonstrated Deloitte's advanced practice and thought leadership in the healthcare industry, and our dedication to providing high-value, forward-looking professional services to social medical companies and institutions.