10 Strategies for Improving Employee Retention in Healthcare

By Yasmine Mustafa

Employee turnover rates are on the rise in the healthcare industry. Between excessive workloads, long hours, and issues with management, the most common causes cited by healthcare employees quitting their jobs reveal some fundamental issues with the industry.

With the average cost of turnover ranging from $28,000 to over $50,000 for an RN, it’s crucial to implement effective employee retention strategies to boost employee morale to reduce employee turnover rates.

Prioritize financial incentives

There is a strong connection between offering competitive pay and employee retention. The median wage for healthcare workers is around $75,000, which is only $6,000 above the national median salary across all occupations.

Offering raises based on performance can be an excellent way to engage and motivate employees, but employers should also consider quarterly raises designed to keep up with inflation.

Some employers attract talents with sign-on bonuses while others offer competitive overtime rates to encourage healthcare workers to pick up additional shifts.

Build a competitive benefits package

Updating the benefits package you offer current employees can result in higher job satisfaction. For 88% of job seekers, quality health, dental, and vision insurance is a key factor that influences their decisions when applying for a new job.

Other benefits to consider include paid time off, a 401(k) match, or paid family leave. Offering a flexible benefits package where employees can enroll in the benefits that make the most sense for them can be a plus.

It’s also crucial to inform employees about the benefits available to them so they take advantage of these perks.

Be more flexible with scheduling

Many employers are responding to the Great Resignation by rethinking their work schedules. Some businesses now let employees choose their work hours or offer more flexibility.

A career in healthcare is often synonymous with long work hours, and it’s a common practice to have nurses and other healthcare professionals work 12-hour shifts.

It might be time to rethink this practice. Shorter shifts mean scheduling more personnel, but eight-hour shifts would result in a better work-life balance for many healthcare workers. Involving employees in the scheduling process and allowing them to choose their shifts is another perk to consider.

Take a new approach to leadership

Dissatisfaction with management is a widespread issue in healthcare. If you want to increase employee satisfaction and retention rates, it’s time to rethink your approach to leadership.

Common leadership issues include managers failing to communicate clearly about job duties, leaders setting unrealistic expectations, primarily negative employee feedback, or supervisors who make workers feel unappreciated.

Promoting new leaders who possess compassion, active listening skills, and problem-solving abilities can go a long way in promoting a positive company culture. Change must also happen at the C-level where innovative leaders can help a healthcare organization adopt new values.

Offer training and continuing education opportunities

Many healthcare professions have strict licensing and continuing education requirements to meet. Keeping up with these requirements can be expensive and time-consuming.

As an employer, you can make a difference by offering support to experienced and new employees alike. Covering the cost of continuing education classes for career advancement and adopting flexible scheduling practices can make things easier for your staff.

You can go further and offer internal training opportunities that go beyond compliance requirements. Creating a customized training program adapted to the career development goals of each employee can contribute to job satisfaction and boost your employees’ confidence in their ability to perform their job duties.

Promote leaders internally

When a position becomes available, your hiring strategy should prioritize internal candidates. This practice allows you to build a leadership team that reflects the positive value your organization wants to adopt. It can also be a powerful source of motivation for employees.

Promoting leaders internally can result in higher levels of satisfaction with management, and it also creates a clear career path that will encourage employees to make long-term plans. If you can combine internal hiring with offering training opportunities to your staff, job satisfaction will likely increase.

Address workplace safety

Did you know that only 47% of nurses feel safe at work? Workplace violence is on the rise and dealing with difficult or even dangerous patients has unfortunately become a reality for many healthcare workers, and negatively impacting their mental health and well-being.

Employers need to acknowledge this issue. Taking steps to create a safer environment can improve employee retention.

Solutions include hiring security guards and developing best practices for identifying and managing aggressive patients. A simple device like a duress button that healthcare workers carry can also make a difference.

Rethink recruiting and onboarding

Increasing employee retention calls for adopting a better recruiting and onboarding strategy. Identifying the candidates who are likely to stay with the organization can help reduce costs linked to high turnover rates, and providing a positive onboarding experience can also prevent retention issues.

During the hiring process, focusing on long-term goals and assessing whether a candidate is a good cultural fit for the organization can result in better employee retention.

The onboarding process should make new hires feel confident about their ability to perform their new job through training opportunities, mentorship programs, and constant communication.

Reduce the workload

Unfortunately, staffing issues can lead to increased workloads for healthcare workers, especially during a pandemic. As a result, these employees are more likely to make mistakes and experience burnout.

Focusing on hiring more staff and adopting more flexible scheduling practices can help, but you should also consider outsourcing or new technologies to reduce existing workloads.

For instance, many healthcare organizations outsource processes like appointment scheduling or medical billing to better focus on patient care. Software can also automate some processes.

Develop a culture of communication

These employee retention strategies will make a difference, but it’s crucial to understand the unique issues that are affecting your organization.

If you want to increase employee satisfaction and retention, you need to develop a culture that values open communication. Staff should feel comfortable about sharing their concerns and suggestions.

A management that rewards new ideas, discourages judgment, and actively listens is crucial for creating the kind of work environment where team members feel safe about speaking up.

Conclusion

Employee retention is a widespread issue in the healthcare industry. Employers need to take a strategic approach and look for ways to create a better workspace, whether through better pay and benefits, reduced workloads, or better management.

Yasmine Mustafa is the CEO & Co-Founder of ROAR, a mission-driven safety technology company dedicated to protecting at-risk workers and empowering organizations to enhance staff security. Recognized for her vision to help create safer workplaces, Mustafa leads ROAR with a commitment to addressing the unique safety challenges faced by employees across various industries, including behavioral health and hospitality.