Healthcare Staff Shortages Surge

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HELP WANTED: HEALTHCARE SPECIALISTS NEEDED

When each departing nurse costs $56,300 to replace and hospitals average 100% staff turnover every five years, something needs to change. This week, we dive deep into healthcare's mounting workforce crisis and uncover solutions that actually work.

According to Mercer's latest analysis, the US healthcare system is heading toward a deficit of over 100,000 workers by 2028.

This isn't a far-off scenario—it's just three years away…

Inside This Edition

• What is causing the cost of care to surge (the answer may shock you!)

• How turnover costs hospitals $56,300+ per departing nurse

• Success stories from Cleveland Clinic and NHS England

• Evidence-based strategies to break the short-staffing crisis

• Expert insights from Sanford Health's CHRO on building workforce resilience 

🗞️ In case you missed it: Rural hospital closures threaten healthcare access, Colorado's groundbreaking AI legislation reshapes hiring, and breakthrough research into how cancer impacts employees.

Read on to discover proven strategies for building a more sustainable healthcare workforce.

SPREAD FOR YOU
📢 HEALTHCARE STAFF SHORTAGES: A CRISIS WITHOUT RESPITE

Healthcare systems are bending under unprecedented stress—a crisis fueled by growing demand for healthcare services and an aging population. 

We hear of new crises weekly (if not daily), but this one paints a particularly somber picture of the future: the US faces a deficit of over 100,000 healthcare workers by 2028—enough to fill Dallas’ Cotton Bowl Stadium!

Europe, the UK, and Australia are all facing equally alarming short-staffing scenarios.

Are Staff Shortages to Blame for the Rising Cost of Care?

If you thought Cotton Bowl Stadium was big—get this!

The US has the highest health expenditure per capita (17% of the country’s GDP in 2022), and it’s estimated to rise another 36% (+$17,000 per capita) by 2027.

On top of that, America has seen health insurance premiums rise 28% in 2022 (vs. 2021), tripling the almost record inflation rate.

But when hospital costs per patient are broken down, 25% of the rise is due to labor costs pushed by staffing shortages.

How to solve this problem? Continue reading for actionable tips & strategies you can start implementing today.

ANALYSIS
TURNOVER RATES IN HEALTHCARE

The 2024 NSI National Health Care Retention & RN Staffing Report highlights that high turnover disproportionately impacts the backbone of our healthcare workforce—roles such as:

• Registered nurses

• Nursing assistants

• Technicians

In the US, the average turnover rate for registered nurses in hospitals is 22.5%. 

But that’s just the tip of the iceberg, as research by Beckers Hospital Review reveals...

What is a Good Benchmark Turnover Rate in Healthcare?

A recent report establishes sustainable staffing levels associated with turnover rates below:

• 15% for nursing assistants

• 10% for registered nurses (RNs) 

Exceeding these thresholds leads to increased workloads, burnout, and higher recruitment costs.

COST BREAKDOWN
THE COSTS OF HIGH TURNOVER

High turnover has far-reaching consequences for healthcare organizations. Below, you will find a breakdown of related costs, revealing its shocking impact:

• Recruiting Costs: Need to replace a registered nurse? Including advertising, agency fees, and interview expenses–that will cost you $56,300.

• Onboarding and Training Costs: Onboarding and training new staff typically cost between $30,381.00 and $45,571.50.

• Setbacks: Time is money, and the average recruitment and training period of 86–109 days will surely hurt your back pocket.

• Temporary Staffing Costs: Hospitals spend an average of $3.9–$5.8 million annually on agency and travel nurses to address vacancies.

Not to mention overtime costs that inflate payroll expenses, productivity losses, and declining morale—additional costs healthcare organizations must bear.

The good news? Small improvements in retention can have a dramatic financial impact.

How can you reduce turnover in your organization? Read on to learn how top healthcare organizations are leading the way in employee experience!

SUCCESS STORIES
HOW LEADING ORGS ARE COMBATING TURNOVER (AND HOW YOU CAN TOO)

Cleveland Clinic (USA)

The Cleveland Clinic has consistently implemented strategies targeted to reduce turnover since 2008. The plan includes mentorship programs, wellness initiatives, and career development opportunities. These efforts resulted in improved engagement scores and significantly reduced nursing turnover rates.

NHS People Promise (UK)

The NHS People Promise exemplary program focuses on flexible working arrangements, cost-of-living support, and mentorship initiatives. Participating organizations retained an estimated 2,000 additional staff over a year and reduced agency spending by £9 million.

Interested to learn more about how leading organizations are combating staff shortages? Continue reading to uncover best practices from one of America’s largest rural health systems—serving more than 1.4 million patients.

HEALTHCARE TALKS
📣 EXCLUSIVE INTERVIEW: SANFORD HEALTH’S BLUEPRINT FOR SUPPORTING WORKERS

When it comes to tackling healthcare's burnout crisis, few have been as innovative as Sanford Health. We spoke with DJ Campbell, VP/Chief HR Officer, to learn how one of the nation's largest rural health systems is transforming its approach to employee well-being.

🍓Daily Jam: What tools are you using to measure the state of mental health in your organization?

DJ Campbell: At Sanford Health, we prioritize the mental well-being of our employees by implementing robust listening strategies that provide valuable insights and drive meaningful action. One key initiative is our employee experience survey, designed to gauge overall engagement and identify areas where additional support may be needed.

To complement this, we maintain a strong focus on retention rates, recognizing the critical connection between workplace satisfaction and employee stability.

Additionally, we track the utilization of our Employee Assistance Program (EAP), which offers confidential mental health resources, ensuring that employees have access to support when they need it most.

These combined efforts allow us to measure and address the mental health needs of our workforce proactively, fostering a supportive, responsive, and inclusive work environment where employees feel valued and empowered to thrive.

🍓Daily Jam: How do you support healthcare workers in preventing burnout

DJ Campbell: Sanford Health is committed to preventing burnout among healthcare workers by fostering a strong sense of community and providing meaningful support systems.

Research shows that creating connections where individuals feel supported has the greatest impact on reducing burnout, particularly in the demanding healthcare field where caring for caregivers can be uniquely challenging. To address this, Sanford has developed resources such as targeted videos that help team members recognize when they need assistance and guide them on how to respond effectively.

Additionally, we introduced the Behavioral Health Education, Awareness, and Response Development (BeHEARD) training program. This initiative equips leaders with the tools to identify, address, and support mental health needs within their teams. Required for all leaders, BeHEARD reflects Sanford’s dedication to creating a culture of awareness, support, and resilience, ensuring our caregivers have the resources to care for themselves and each other.

🍓Daily Jam: What’s one small habit you’ve adopted to manage stress or burnout during your workday?

DJ Campbell: Taking time for lunch each day might seem small, but it’s a powerful way to manage stress. Being intentional about stepping away, even for 20 minutes, gives your mind a break and helps you reset. It’s a chance to recharge so you can tackle the rest of your day with focus.

Enjoyed DJ’s interview? Read on to discover the latest news and top stories you might have missed!

USEFUL RESOURCE
NAVIGATING OPEN ENROLLMENT IN HEALTHCARE

Open enrollment – the time of year when HR teams are overwhelmed with employee inquiries. In the US, this annual process typically lasts two to four weeks. It requires employees to select or adjust their benefits, often before the federal health insurance marketplace's open enrollment period (from November 1, 2024, through January 15, 2025.) 

During this period, employees can: 

• Enroll in new benefits

• Change existing coverage

• Drop benefits (if they gain access to other coverage)

It should be straightforward. However, employees are often confused and unsure where to start or how to get the answers they need to make informed decisions.

But it doesn’t have to be a daunting task for employees or HR professionals.

Transcarent—the next-generation healthcare and benefits navigation platform—offers some best practices and guidelines for successful Open Enrollment.

Transcarent is a place for all employees' healthcare and benefits needs where people can "Just Ask" and get instant, trusted answers to all their benefits and healthcare questions. With WayFinding, employees can Just Ask Transcarent and know the next best step to take on their unique health and care journey. WayFinding is putting clinicians and generative AI to instantly connect people to personalized healthcare and benefits information, expert clinical guidance, and on-demand care delivery—all from the palm of their hand.

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