Understanding Employee Turnover in the Healthcare Industry
Section I: The True Cost of Healthcare Turnover
Section II: Ways to Solve Employee Turnover
Section III: How an On-Demand Pay Benefit Can Fight Turnover
Turnover can have a huge impact on a company’s bottom line. The turnover rate in the healthcare industry has risen nearly 5% in the last five years. During the past year alone, the hospital turnover rate increased by 1.7% and stands at 19.5%. Every employee that a company loses results in substantial costs to the employer. Typically, an employer can expect to spend six to nine months of an employee’s salary to find, train and replace an employee.
There are also indirect ways that turnover affects revenue. High turnover rates often cause low employee morale. Unhappy employees are less productive and companies with unhappy employees are 21% less profitable than those with happy employees. These unhappy and disengaged employees cost employers in the U.S. up to $300 billion dollars a year.
While turnover is a huge financial struggle in the healthcare industry, it is something that can be reduced to improve employee engagement, patient care and a company’s bottom line.