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A competitive labor market, increased labor costs and sta ing shortages are some of the contributing factors that present major challenges for healthcare employers. As turnover, hiring and wage value costs continue to rise, employers should consider how they can improve retention.
A Look at Rising Labor Costs in Healthcare
- The average hospital lost $5.2-9 million in bedside RN turnover costs in 2021, according to the 2022 NSI National Healthcare Retention & RN Sta ing Report.
- The average cost of filling a senior-level healthcare role is $5,699 in recruitment costs and 207 days in time to fill.
- Overall, hospitals and health systems across the U.S. are paying $24 billion more per year for qualified clinical labor than pre-pandemic costs, according to PINC AI data analysis.
Focus on an Employee Retention Strategy to Curb Rising Labor Costs
The best approach for healthcare employers to reduce labor costs is to improve their employee retention strategy.
By focusing on their employee retention strategy, employers can reduce the need to constantly hire and refill open roles. Through increased financial wellness benefits such as on-demand pay, employers can reduce turnover rates and keep valuable employees longer.
According to a 2021 Mercator Report sponsored by DailyPay, DailyPay has helped to improve employee retention among those who use DailyPay by 73% in nursing home staff and 27% in caregivers.
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 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.
