Open nursing jobs in healthcare facilities create a domino effect of challenges, like increased operational costs and compromised patient care. For administrators, understanding the financial and operational impact of vacancies is important for implementing effective change.
This article dives into the true costs of vacancies, how to improve retention, and the importance of partnering with staffing agencies to help mitigate loss in revenue.
Table of Contents
The Financial Impact of Vacancies
Unfilled nursing positions are more than just an inconvenience–they are a significant financial burden to short-staffed facilities. Here are some of the primary costs.
1. Overtime and Burnout Costs
Staffing shortages usually lead to existing employees working overtime. Almost 60% of nurses have to work overtime consistently. According to a report published by the National Library of Medicine 81% of critical care nurses experienced burnout.
This not only increases payroll expenses but also results in higher turnover rates. Nurse turnover costs an average of $56,300 per nurse.
2. Recruitment and Onboarding
Recruiting new staff involves advertising costs, recruitment agency fees, and time spent reviewing/interviewing candidates. The Society for Human Resources Management estimates that the average cost to hire a new employee is $4,700, with onboarding, training, and bonuses adding thousands more.
3. Revenue Loss
Patient admissions may be limited because of low staffing levels, which directly impacts revenue. Open nursing jobs can also lead to reduced patient satisfaction. Data shows that facilities with higher patient satisfaction scores tend to generate more revenue per bed.
The Operational and Clinical Impact
Open nursing jobs affect more than just the bottom line; they compromise patient care and employee satisfaction. Here’s a quick breakdown:
- Compromised Patient Care:
- Inadequate staffing levels increase patient wait times, reduce the quality of care, and raise the risk of medical errors. A study published in the Journal of Patient Safety estimated that medical errors related to understaffing result in an additional $20 billion in healthcare costs annually in the U.S.
- Decreased Employee Morale:
- Overburdened staff are more likely to experience burnout, leading to a vicious cycle of turnover and vacancies. According to Gallup, workplaces with low employee engagement experience 18% lower productivity and 37% higher absenteeism.
The Cost-Benefit of Staffing Agencies
Partnering with staffing agencies offers a strategic solution to address open nursing jobs. Here’s why:
1. Access to a Talent Pool
Staffing agencies maintain a roster of pre-vetted professionals who are ready to fill gaps quickly. This helps reduce the stress on nurses who have to work overtime. Most agencies allow you to hire their employees, though sometimes at a cost, but it’s still a much lower cost than what is associated with hiring staff on your own.
Using PRN agencies to recruit new staff can be a great way to see if the nurse fits in with the rest of your team before you waste any time or money going through the hiring process.
2. Flexible Staffing Solutions
Agencies can provide PRN (as needed), part-time, or full-time staff to match the specific needs of a facility, optimizing labor costs. A survey by Staffing Industry Analysts revealed that 70% of healthcare facilities that used staffing agencies reported improved scheduling flexibility.
3. Reduced Administrative Burden
Staffing agencies handle the recruitment, credentialing, and payroll process, which frees up internal resources. This allows healthcare administrators to focus on operational priorities rather than time-consuming HR tasks.
4. Improved Patient Outcomes
Filling open nursing jobs quickly ensures that facilities maintain adequate staffing levels, which directly contributes to better patient care and satisfaction.
We already went over how important patient satisfaction is to revenue. Even though PRN agencies usually cost more per hour than hiring a nurse, using them temporarily while you search for your new team member may make you more money in the long run.
Strategies to Improve Retention
While staffing agencies are valuable for filling immediate needs, improving retention rates is essential for long-term success:
1. Competitive Compensation and Benefits
Regularly take a look at salary and benefits packages to make sure you are competing with other facilities. Competitive salaries and benefits reduce turnover by 30%, so don’t overlook this as a possible cause of high turnover.
2. Development Opportunities
Offer continuing education credits, mentorship programs, and clear career advancement pathways. Nurses are more likely to stay with employers who invest in their professional and personal development.
3. Foster a Positive Work Environment
Create a culture of appreciation through recognition programs, wellness initiatives, and open communication.
People love being recognized for a job well done, and organizations that recognize their employees for doing good see less voluntary turnover than organizations that don’t recognize their employees.
4. Flexible Scheduling
Provide employees with flexibility to support a healthy work-life balance. When we interview nurses, the number one reason they say they want to work for a PRN agency is because they want more flexibility in their schedules.
There are a lot of ways facilities have tried to give nurses more flexibility, like self-scheduling, but it’s just as easy to approve time off requests when nurses ask for it. Remember, if an employee taking time off makes you short-staffed, partnering with an agency will keep you fully staffed while giving your team the time to recharge.
5. Regular Feedback and Engagement
Employee surveys and focus groups can help you understand their needs and address concerns proactively. Engaged employees are less likely to leave their organization.
Stop Losing Money
Open nursing jobs in healthcare facilities are costly, but the financial, operational, and clinical impacts can be mitigated through strategic staffing and retention efforts. Staffing agencies offer immediate relief, while long-term retention strategies ensure a stable, satisfied workforce. By addressing both aspects, healthcare facilities can reduce costs, improve patient outcomes, and foster a resilient workforce prepared for future challenges.
