Yale New Haven Health outsources recruiting, 70 jobs affected
CONNECTICUT, UNITED STATES — Yale New Haven Health (YNHH) has announced its decision to close its in-house recruiting department and outsource the function to Korn Ferry, a global organizational consulting firm. This move will impact 70 recruitment employees, all of whom have been offered positions with Korn Ferry.
“This partnership will enhance our ability to recruit and retain top talent by leveraging cutting-edge technology and best-in-class recruitment processes,” YNHH stated.
Korn Ferry, headquartered in Los Angeles, will manage recruitment for both clinical and administrative roles across YNHH’s network, which employs approximately 29,000 people statewide. Employees who will not accept roles with Korn Ferry will face layoffs effective January 2025.
Yale’s $162M loss drives outsourcing
The outsourcing is part of YNHH’s broader cost-cutting strategy as it works to address ongoing financial challenges.
Earlier this year, the health system eliminated 25 unionized medical coding jobs at Lawrence + Memorial Hospital as part of a standardization effort. It also outsourced its employee child care services to Bright Horizons, resulting in the closure of one daycare center.
These measures come as YNHH reported an operating loss of $162 million for the fiscal year ending September 30, 2023 — an improvement from the $240 million loss recorded the previous year. The financial strain has prompted the health system to streamline operations while seeking innovative solutions to maintain service quality.
Impact on Connecticut healthcare workforce
While YNHH emphasizes that affected employees are being offered opportunities with partnering organizations, some workers face difficult transitions. The outsourcing of recruitment reflects a growing trend among healthcare providers to leverage external expertise for specialized functions like talent acquisition.
Korn Ferry’s advanced technology and extensive experience in healthcare recruitment are expected to bring efficiency and scalability to YNHH’s hiring processes. However, the move highlights the challenges healthcare systems face in balancing cost management with workforce stability and employee morale.
As YNHH continues its recovery efforts, the partnership with Korn Ferry represents another step in optimizing operations while addressing financial pressures and workforce needs.
