The healthcare sector experiences four times as much employee turnover as other industries, and its wallets are hit hard because of it.
The average hospital incurs more than $350,000 in expenses every time its turnover rate increases by a percentage point. The cost of losing one registered nurse averages between $44,380 and $63,400.
The reinforcements hospitals rely on when too many nurses quit or hospitals can’t fill their positions quickly come at a high cost. Over the past 10 years, labor costs cut into healthcare organizations’ revenues by 50 percent. However, most providers will pay for premium labor to avoid having to turn away patients or close units due to being understaffed.
The problem worsens as staff members feel increasingly disenfranchised.
A recent study of 3,300 nurses indicates that 75 percent of them believe they don’t have enough authority in their positions. Nearly 90 percent feel like they can’t work effectively because they have apathetic bosses and not enough support staff.
As nurses reach their breaking points and leave their jobs, expenses increase even more. Without an effective way of quickly recruiting and onboarding high-quality replacements, patients ultimately suffer and healthcare providers find themselves in dire circumstances.
As you can see, there are a variety of factors to consider to understand the true cost employee turnover in healthcare.
About the Author
Derek is the Director of Strategic Partnerships at Hueman. What’s Most Important? Family! They have my heart and soul. There are a lot of friends who are also my family…this life is all about connecting with people. In One Word, I Am: Genuine. My career? My 16-year career has spanned several industries including private telecommunications, real estate, sports technology and healthcare. I have found a home in recruitment and have been here for 7+ years.More Content by Derek Carpenter