Job placement firm stays ahead of the curve
CEO looks to medical field as manufacturing slows

(York Dispatch, June 10, 2004)

By Charlie Young, The York Dispatch

Even as the economy boomed in 1999, Ann Gdovin-Hake knew her personnel business was in trouble if she didn't adapt quickly to new economic realities.

By turning her business away from York County's traditional manufacturing base and embracing a future based on staffing the medical services industry, Gdovin-Hake kept her company thriving and on the cusp of larger changes affecting Pennsylvania's economic future.

As documented in the 21003 Brookings Institution report "Back to Prosperity: A competitive agenda for renewing Pennsylvania," the downturn in the U.S. and local manufacturing employment beginning in 2000 was more a fundamental change than a cyclical downturn.

Technological advancements mean companies can produce more with fewer workers, and overseas competition and globalization are fueling the exodus of jobs to countries with cheap labor, according to the report.

Part of Brookings' suggested changes for Pennsylvania were to take advantage of its institutions of higher learning and medical facilities, which it described as "fixed assets that help fuel economic growth in myriad ways."

Gdovin-Hake had started her Springettsbury Township-based Gdovin Personnel Inc. staffing agency in 1996, returning to her home county after 10 years in Milwaukee. In that manufacturing city - which she describes as like York but magnified 100 times - she managed the local office of a national staffing agency, so starting her own agency back in York seemed like a natural.

There was a lot of competition, though and the economy was actually booming too much in 1999.

"The shortage of workers was just unbelievable," she said. "Very quickly I saw I couldn't grow the business without employees, so I started looking at economic trends and how things would be changing."

Saw prominence of healthcare: The No. 1 trend that emerged from her research was the increasing prominence of health care as the Baby Boom generation aged.

Gdovin shifted gears and went after the medical staffing market, which now accounts for almost 70 percent of her business, up from 3 percent in 1999. The change also helped steady her business through the recession of 2001 and the so-called "jobless" recovery that has followed.

Labor statistics suggest that she made the right move at the right time. Six of the 10 fastest growing jobs in the U.S. over the next eight years will be in the medical field, according to the U.S. Bureau of Labor Statistics. The highest growth job will be medical assistant, where the number of jobs is expected to grow by 59 percent from 2002 to 2012. Medical assistants are a key position for Gdovin's agency.

In York County, the demand for medical assistants is expected to grow by 40 percent, and medical records technicians are expected to see a 55 percent growth between 2000 and 2010, according to the Pennsylvania Department of Labor and Industry.

Gdovin said an alliance with the county's largest employer, WellSpan Health, not only brought her business but an insight into changes within the medical field. Licensed nurses were moving out of private practices that needed to cut costs, and moving to hospitals. The nurses were being replaced by certified medical assistants and a host of medical clerical positions needed to fulfill insurance company requirements.

"With the cost cutting, there is a huge demand for medical assistants," Gdovin said.

She also sought out educational facilities that were gearing programs toward meeting the medical industry's needs. The Consolidated School of Business in York became a key ally, training both medical assistants and medical administrative assistants.

Doesn't suit everybody: One problem Gdovin has encountered as the medical field has boomed is that not everyone who wants a job in the field is suited for it.

"People in the medical profession are there because they care, not for the money," she said. "They want to care for people, and they want to help. It is definitely a personality profile."

It's not the profession for aggressive personalities and "go-go-go" types, she said. There is more premium on quality of outcomes than on quantity.

"The pace of medical would drive a marketing person crazy," she said.

At the same time, medical assistants won't be driving Rolls Royces. They start at $9.50 an hour, and after 15 years can expect to be earning about $12.30 an hour.

If that isn't enough money, job seekers should understand that before enrolling in the 18-month certification courses, Gdovin said. There are, however, opportunities to step up to more advanced specialties after more training, such as nursing. Working as a temporary staff through agencies such as Gdovin Personnel also helps new graduates build experience and determine their long-term interests in the field, she said.

Where the economy will lead next is hard to fathom in the post 9-11 world, Gdovin said. The health-care boom should last about as long as the Baby Boomers do. Once they are gone, though, the medical community will have to cut back as the following generation is not nearly as large.

The economy is currently showing signs of improvement, only to pull back again and again.

"There is no consistency," she said. "The American public is not convinced we are moving forward. I really believe 9-11 is just clouding everything."