Pandemic Halted C-Suite Retirements: The Next Step

In the second quarter of 2020, the business world experienced one of the lowest CEO turnover rates in more than a decade. Data quickly identified the culprit: the wide net of uncertainty cast by the coronavirus as it marched from continent to continent. The arena of non-profit healthcare organizations likewise experienced a similar decrease.

Many retirements planned for 2020 were halted. In an effort to maintain stability in leadership within large healthcare organizations, the exodus of C-suite executives—CEOs, COOs, CFOs, Vice Presidents as well as Board of Trustee members—was put on hold.

Reasons for halted retirements at Continuing Care Retirement Communities (CCRC)

• Considering the vast ramifications accompanying something as impactful as a worldwide pandemic, the desire to minimize any additional sources of uncertainty factored heavily into decisions to stall retirements from key leadership posts.
• Despite long-scheduled departures from the organization, executives who had spent years driving the organization's mission found leaving during a time of such ambiguity to range somewhere between difficult and impossible. Hence, many agreed to stay on for an undetermined amount of time.
• Strategic plans were put on hold in many instances, potential partnerships sidelined, and possible transitions in a new direction shifted to the back burner.
• The upheaval that accompanied the pandemic brought swift and dramatic changes to C-suite roles' responsibilities, creating a devastatingly poor environment in which to transition to new leadership.

So, what is happening now?

Now that many within the organization, both staff and residents, at CCRCs are slated to receive the second dose of the COVID-19 vaccine, a sense of growing stability may fuel the rescheduling of postponed retirements, and leadership transitions. This could bring a wave of retirements if those planned for 2020 and those previously slated for 2021 come to fruition in the next twelve months.

If succession planning wasn't already on the "to-do" list for CEO's, it has now risen to the top spot. While pre-pandemic times found succession planning generally labeled as essential, the task has now taken on a deserved sense of urgency. Some executive teams discovered that what they considered to be an active, effective succession plan was, upon closer examination, woefully inadequate or short-sighted.

The pandemic's long-term disruptive nature has brought to light the need for an emergency succession plan, separate from the ongoing "normal" procedure. One can imagine the dire situation that would result from multiple members of the C-suite being out of commission at the same time. Others have experienced such a crisis firsthand.

The magnitude of the executive's role

CEO's have always been tasked with actively tending to the industry's present circumstances, while at the same time keeping a watchful eye, a tuned-in ear, and an attentive mindset toward preparing the team for the future. Both responsibilities have taken on an increased urgency since the commotion that is COVID-19 came on the scene. An immediate task to incoming leadership will be contending with the reality of seniors being leery about moving into a retirement community due to the dark mark that negative press has left on the industry. Topping the priority list will be creatively offering ways to "age in place."

The passion that inspires the C-suite team to manage their facilities to provide top-notch care and services will see these teams through the continuing challenging times.