Fight The Great Resignation by investing in financial wellness

Great Resignation

Attract and Retain Talent by Investing in Your Employees’ Health and Financial Wellness

Dana Borrero

## The Nursing Industry Shift: What HR Needs to Know

Healthcare facilities across the United States are facing never-before-seen hiring and retention challenges. Medical professionals of all levels are in high demand to fill existing vacancies and help facilities expand — and hiring and retaining nurses, specifically, is posing an especially difficult challenge for HR teams.

The causes of these challenges run deep. To understand the situation HR professionals are facing, we need to look at the entire industry and how it is transforming.

## Nursing in Numbers

Registered nurses have always been in high demand in the United States. According to the [American Nurses Association (ANA)](https://www.nursingworld.org/practice-policy/workforce/), nurses make up the largest group of healthcare professionals in the country. The ANA counts more than 4.3 million nurses currently working in healthcare facilities across the country.

At the start of the coronavirus pandemic in 2020, the median age of nurses was 52 years old. More than 20% stated at the time that they were planning to retire within the next five years.

Nursing schools are working to fill the gap, but they are struggling to meet demand as the current nursing shortage accelerates.

## Dealing with a Generational Shift

The nursing sector is no stranger to labor shortages. The University of St. Augustine for Health Sciences (USAHS) reports that nursing shortages date back as far as the early 1900s— with wars and recessions being the driver for a lack of nurses. However, the USAHS believes that the current shortage is more severe than ever before. 

One of the underlying causes of the current nursing shortage is a generational shift. Our population is growing older and the generation of baby boomer nurses is retiring, or getting close to it. This wave of retirement has two effects: the nursing sector is losing a large number of highly qualified and experienced registered nurses. At the same time, the demand for nursing services is growing as the percentage of the population over the age of 65 is rising. The [U.S. Census Bureau](https://www2.census.gov/programs-surveys/popproj/tables/2017/2017-summary-tables/np2017-t2.xlsx) predicts that by 2030, 73 million Americans will be older than 65, a huge increase from 41 million people in 2011.

With baby boomers retiring, the nursing workforce will mainly be made up of Millennials and Gen Z-ers. One of the biggest generational differences between the older and younger generations is that many younger workers are not as “settled” in geographical location as older workers may be. Baby boomers may have lived in the same area, working at the same hospital for many years. Younger workers, who may have no ties holding them to a town (for example, those who don’t yet own homes or have children), may feel less attached to their hospital or health system. This leads to the next factor driving the nursing shortage…

## The Rise of Travel Nursing

The travel nursing industry has been absolutely booming over the past two years. Pandemic related burnout, higher wages, and better benefits are all fueling nurses to look towards travel nursing — where nurses have more control over their hours and schedule, and often are better compensated for their time.

Hospital administrators started looking for these specialized team members, whilst first-time travel nurses enjoyed the opportunity to learn and expand their skill set. Travel nursing became more popular because of a combination of all these factors. At this stage, even though the pandemic is waning, openings for permanent and temporary nursing staff continue to grow.

## How HR Can Combat These Obstacles

With the nursing industry seeing a generational shift, and nurses transitioning to travel roles for better compensation, HR teams can think of benefits as a strategic lever to combat these two obstacles and drive attraction and retention.

When it comes to generational disparities, it’s key to remember that benefits are not a one-size-fits-all approach. If you want to better attract and retain employees across all generations, it’s critical that you personalize benefits education and vary your benefits offering to appeal to employees of all ages.

For example, while baby boomers may be thinking more about their retirement fund, millennials may be thinking about saving for a home, and gen-z might be worried about paying off student loans. Taking a personalized approach to benefits education can help your employees understand your benefits offering and which best apply to their unique situation.

If employees are leaving to work for travel nursing agencies because of better compensation, it’s important to show employees that the benefits your company offers can drive cost savings for themselves and their families. Once again, taking a personalized approach to benefits education can help employees choose the plans that best suit their financial needs and goals, and can teach them how they can better save with pre-tax accounts like HSAs, FSAs, and more.

## Conclusion

When workforces are burnt out, understaffed, and uninspired, patient outcomes can be affected. In fact, according to research from [ConnectRN](https://www.connectrn.com/industry-insights-2022/), 9 in 10 nurses believe that the quality of patient care often suffers due to nursing shortages, and 56% of nurses have noticed that their patients have suffered because they have too much on their plate as nurses.

HR teams need to analyze the challenges facing their facility when it comes to retirement, burnout, and other factors. Based on that, human resources professionals can develop a tailored approach to talent retention. Benefits can be the key to creating more satisfied employees across all generations.



Learn how HR teams at hospitals and health systems can better attract and retain their nurses.

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 The Nursing Industry Shift: What HR Needs to Know

Nurse turnover has been plaguing the healthcare industry for decades, and the problem shows no signs of improving any time soon. Driven by the pandemic and a rise in travel nursing, the nursing shortage looms large and is projected to intensify in the next few years. 

According to a recent [Clinician of the Future report](https://www.elsevier.com/__data/assets/pdf_file/0004/1242490/Clinician-of-the-future-report-online.pdf), 47% of nurses plan to leave the profession within the next three years. This study is the latest in a stream of surveys showing patients' plight amid a catastrophic nursing shortage. In another [graduate nurses survey](https://www.myamericannurse.com/tripping-over-the-welcome-mat-why-new-nurses-dont-stay-and-what-the-evidence-says-we-can-do-about-it/), 30% of the respondents said they will leave during their first year, increasing to 57% within the second year of practice. 

And with the average cost of turnover per nurse between $37,000 and $57,000, HR teams are looking for ways to improve the situation. This article will explore strategies that HR teams can employ to improve nursing retention. But first, why are nurses leaving the profession?

## Causes of High Nurse Turnover

There are many reasons why nurses are increasingly leaving the profession. Some of the most common reasons for the low nurse retention rates include:

**1. Rise of Travel Nurses**
Nearly every hospital in the country is experiencing nursing shortages as a result of their staff nurses switching to travel nurses. Travel nursing pays handsomely, and on top of this, travel nursing agencies often offer flexible working hours and competitive pay — a travel nurse can net over $10,000 a week. Considering the average pay staff nurses make, not to forget the rising cases of burnout among staff nurses nationwide, it makes sense why travel nursing is on the rise. This, however, contributes to nursing shortages in hospitals. 

**2. Toxic Workplace Culture**
From long working hours and low pay, to bullying and harassment, toxic behaviors exist in many healthcare facilities. On top of that, nurses face threats of anger and violence from patients and their families. For the sake of their emotional, financial, and physical health, few nurses are willing to put up with such predicaments for long. On average, 57 nurses are assaulted every day in the U.S. That's two nurses attacked every hour, according to a [Press Ganey analysis](https://www.medpagetoday.com/special-reports/features/100679#:~:text=%E2%80%94%20Over%203%20months%20in%202022,assaulted%20every%20hour%2C%20on%20average&text=On%20average%2C%2057%20nurses%20are,analysis%20using%20data%20from%202022) using data from 2022.

**3. Nurse Burnout**
A combination of long working hours, heavy caseloads, and on-the-job stressors can affect nurse retention. In fact, [35% of nurses](https://www.berxi.com/resources/articles/nurse-burnout-statistics/) responding to the 2021 Medscape Nurse Career Satisfaction survey reported they felt burned out. They also found that nurses who work for shifts longer than 12 hours are more likely to quit due to burnout. 

**4. Unclear Opportunities for Career Growth and Advancement**
Nurses may not know about the opportunities that their employer provides for career growth. Many hospitals and healthcare facilities provide solutions for career advancement and/or tuition reimbursement for further schooling, but their faculty and staff don’t know that these options are available to them.

Many nurses aspire to grow professionally and gain leadership positions. For some, this means becoming a lead nurse or even a lead practitioner. Others want to move to specialties, such as pediatric care or specific disease care. If they feel they aren't moving up the career ladder, they may quit and look for job elsewhere. Bringing attention to these career or education advancement benefits is key for hospitals and health systems.

## How HR Teams in Healthcare are Combating Nursing Shortages

To combat the rising nursing shortages in hospitals, HR professionals are employing many strategies to boost retention. We'll look at these strategies in this section. 

**1. Improving the Onboarding Process**

It all starts with onboarding. A streamlined onboarding process can contribute to higher retention. Some healthcare facilities across the country have introduced pilot programs that have seen better nurse retention as their onboarding processes are streamlined and standardized. 

With a streamlined onboarding program, nurses can have all their questions answered and their expectations clearly defined. The onboarding process gives them insights into what to expect in the facility. A good onboarding program can foster fruitful relationships, leading to improved job retention. 

**2. Rewarding Longevity and Excellence**

To foster retention, many healthcare facilities are providing retention bonuses and other incentives to show appreciation to nurses who have been with the facility for a long time. 

Long-term nurses deserve recognition, it's important to show them you value them in special ways. HR teams are implementing strategies to highlight milestones with special gifts. From retention bonuses to award banquets and achievement benefits, these simple gestures of appreciation can go a long way toward decreasing nursing turnover.

**3. Providing Emotional Wellness and Mental Health Support**
During a crisis, the adverse mental health impact on nurses can increase the risk of high staff turnover. Nurses' anxiety and stress can result from job security fears, toxic work culture, stress from strenuous work, and more. 

To offer emotional wellness, healthcare facilities must develop interventions that support their nurses' emotional wellness and mental health. 

Today, many medical facilities have mental health programs where nurses meet mentors outside the system. Others offer free or discounted counseling sessions and a directory of therapy professionals where their staff can seek help. 

**4. Actively Supporting Career Development**
One of the top reasons why nurses leave is the lack of growth opportunities. 
With this in mind, HR professionals are increasingly extending learning and growth opportunities to their nurses. Some are providing coaches that mentor, provide career pathing, and guide nurses toward growth opportunities in their organizations.

Others are providing appropriate training to help nurses advance their skills and move into different specialties. For example, moving from general care to the operating room is difficult for nurses without prior training. Organizations are offering training programs to help nurses acquire new skills within their profession and advance to new roles. 

Many hospitals and health systems already have benefits in place that support further education and career development, so it becomes about bringing light to these programs that are already in place. A decision support tool, [like Nayya](https://www.nayya.com/), can bring awareness to the benefits that you're organization is offering, and help nurses understand which benefits are the best for their unique situation and goals.

**5. Creating a Positive Work Environment**
A toxic work culture leads to mental health issues and burnout among nurses. To reduce the likelihood of burnout and improve employee retention, many healthcare facilities have worked on their policies to create a positive work environment. A good organizational culture is key to nurses' production and retention. HR professionals can improve retention by developing a culture that makes the nurses feel supported and able to perform their duties to the best of their abilities. 

## Wrapping Up

Healthcare facilities can combat retention challenges by improving onboarding, rewarding longevity, providing mental health support, actively supporting career development, and creating a positive work environment. 

Learn how HR teams at hospitals and health systems nationwide are combatting nursing shortages.

How HR Teams in Healthcare are Combating Nursing Shortages

## Hidden Generosity: The Benefits Issue Across Healthcare Organizations 

It’s no secret that healthcare workers were hit the hardest of everyone during the pandemic. Long hours, high-stress environments, and intense safety protocols were just the tip of the Covid iceberg for anyone working in hospitals, healthcare, or health systems. Because of this, many employees are quickly becoming burnt out, resulting in high-turnover at many healthcare organizations.

To combat this, hospitals and healthcare organizations across the country are introducing new, unique, and in many cases, extremely generous benefits packages to better attract and retain talent at their healthcare facilities. 

## Unique and generous benefits

Healthcare organizations nationwide are offering benefits like:

- Domestic networks that offer free care (think, free mammograms, etc)
- Tuition reimbursement
- Childcare reimbursement
- And others

Problem is, a lot of healthcare organizations have brought in these new benefits, but they're still experiencing retention issues. Why? HR teams are starting to realize that while they offer these generous benefits, many employees _don’t even know about them_. You can offer the best benefits package out there, but it won't be beneficial if your employees don't know their options. 

## Why are employees missing out?

So, the question becomes, why don’t employees know that these options exist? Unfortunately, educating healthcare workers around benefits can feel like an impossible task. 

Employees work around the clock, meaning calling everyone in for a benefits ‘lunch and learn’ is essentially impossible. Also, hospitals and healthcare facilities offer a wide range of roles. Employees range from surgeons, to nurses, to X-ray technicians, administrative staff, custodial workers, cafeteria staff, and more. These workers can range from ages 18 to mid 60s, and can come from a range of family backgrounds, education levels, and more. This makes educating each unique employee about the benefits that are right for them, incredibly difficult. 

Benefits education can’t be a “one size fits all” approach.

## Hidden generosity

Another reason why employees are missing out on these benefits? They’re buried beneath pages of information. We’ve seen many healthcare organizations who have 20+ page benefits packets, and these extremely generous, unique benefits aren’t even mentioned until deep within the packet. 

Let’s be honest, employees probably aren’t going to read all 20+ pages, so if you offer something amazing like tuition reimbursement, but you don’t mention it until deep within page 16, no one’s going to know it exists.

## So…what do we do?

The first step to getting your employees to use their benefits is proper education. We know that educating healthcare employees about their benefits is a tricky, nuanced task – that’s where we come in. Nayya’s benefits decision support tool helps each employee uncover the benefits that are best for their unique situation, and educates them on all of their options along the way.

An employee has children? Nayya might recommend the childcare reimbursement plan your company offers that they might not have even known about prior. Or, someone has a preexisting condition that requires them to get frequent, pricey scans? They might not realize that leveraging your domestic network of care would offset the cost of these scans or remove the cost entirely.

What it truly comes down to is the ability to educate your employees on all the incredible things that your organization offers. Retaining the best healthcare talent means taking care of those employees, and you’ve already taken a step in the right direction by bringing in these generous programs. Now, you can take the final step and make sure these programs are being properly communicated to your employees so they can take full advantage of your generosity. 

Learn more about Nayya and how benefits decision support can help your healthcare organization better educate your employees, save on costs, retain and attract the best talent, and more—[get demo](https://www.nayya.com/healthcare).

Many healthcare organizations are offering generous, unique benefits, but do your employees know about them? Learn how to overcome "hidden generosity."

Attract and Retain Talent by Investing in Your Employees’ Health and Financial Wellness

Why HR leaders need to invest in solutions that create better health care and financial outcomes for their employees.

Suggested Content

The Nursing Industry Shift: What HR Needs to Know

How HR Teams in Healthcare are Combating Nursing Shortages

Hidden Generosity: The Benefits Issue Facing Healthcare Organizations

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