Increase Employee Retention to Offset Rising Labor Costs
The combination of a competitive labor market, staffing shortages and increased labor costs are some of the contributing factors that present major challenges for healthcare employers in the last few years.
Healthcare employers need to maintain adequate staffing levels in order to meet patient expectations and needs. Since being well-staffed remains a challenge in the industry, employers should focus on how they can enrich the employee experience, leading to higher retention rates.
High turnover rates can significantly increase costs for healthcare employers. The average hospital lost $5.2–9 million in bedside RN turnover costs in 2021, according to a survey of 3,000 hospitals memorialized in the 2022 NSI National Healthcare Retention & RN Staffing Report.1
In addition to the financial implications, filling vacant roles also can be a significant time strain for employers. The average cost of filling a senior-level healthcare role is $5,699 in recruitment costs and takes an average of 207 days to fill, according to survey data collected by AKASA, a healthcare AI-tech company.2
Invest in an Employee Retention Strategy
Healthcare employers can reduce labor costs by improving their employee retention strategy. With a strong employee retention strategy, employers can reduce the need to constantly hire and refill open roles.
Through offering financial wellness benefits such as on-demand pay, employers can reduce their turnover rates by helping employees feel supported and valued, encouraging them to stay longer.
An increased focus on employee benefits can have a positive impact on healthcare employers in a number of ways. The annualized improvement in the turnover rate of those healthcare employers using DailyPay vs. those not using DailyPay is 73% in nursing homes and 27% in caregivers, according to a 2021 Mercator Report sponsored by DailyPay.3
Increased retention can lead to highly engaged employees that are empowered to deliver great patient care. A highly engaged workforce can boost the patient experience,4 potentially leading to a better overall experience for employers, employees and patients.
Learn more about how an on-demand pay benefit can help healthcare employers weather challenges and become stronger by supporting their existing staff and attracting new applicants.
Learn how DailyPay can help.
All information herein is for educational purposes only and should not be relied upon for any other use. The information herein does not constitute the rendering of financial, business, accounting, securities, tax or legal advice, or other professional advice by DailyPay. No fiduciary obligation or duty exists or is created, between you and DailyPay. DailyPay does not warrant the completeness or accuracy of any information provided to you.
3 https://www.dailypay.com/mercator-report-2021/:DailyPay, 2020
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