“An increasing number of U.S. hospitals are reporting stable or decreasing turnover rates after salary increases,” Aon said. … (+)
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A new report says the labor problems that have plagued hospitals and health systems across the United States may be coming to an end.
Aon, a human resources and consulting firm, says, “More U.S. hospitals report stable or declining turnover rates after enhancing pay and benefits to attract and retain top talent.'' ”
The report examines the workforce and staffing challenges that have hit hospitals and healthcare companies primarily due to the COVID-19 pandemic and the so-called “Great Retirements” that have hit healthcare providers across the country hard since 2020. This is in marked contrast to the problem of .
As the pandemic rages on, health care workers, especially doctors and nurses, have complained of burnout, leading to a mass exodus of these workers in the early days of the pandemic. President Biden lifted the U.S. public health emergency last May.
But this year, hospitals and health systems have seen a sharp drop in turnover among medical professionals. Aon said only 7% of hospitals reported an increase in nurse turnover, compared to 62% last year. On the other hand, 5% of hospitals (41% in 2023) had a “high turnover rate for non-physician clinical staff,” and 9% reported that the turnover rate for physicians was 22% in 2023 compared to the past 12 months. .
Aon's annual hospital benefits survey of hospital employers conducted from April to June of this year included results from benefit plans representing more than 1,500 hospitals across the United States. And this is the latest study to show that health care workers are recovering from the pandemic.
A Fitch Ratings report earlier this year said the “worst labor downturn” may be nearing an end for U.S. nonprofit hospitals. As an example, Fitch's report notes that “average hourly wage growth for hospital employees has (steadily) declined, averaging 3% in 2024; “There was,” he said. 2023. ”
But hospitals shouldn't expect to improve their workforce without tweaking their hiring strategies, industry analysts say. According to Aon's analysis, 70% of hospitals increased pay for new hires last year, and 69% “introduced or enhanced sign-on bonuses.”
“To continue to address the recruitment and retention of nurses and technicians, health systems must continue to focus on investing in total compensation and supporting workforce resiliency and mental health,” Aon National Healthcare Industry Practice said Sheena Singh, senior vice president.
