Learn About Employee Retention in Healthcare

Skill at every level

The healthcare industry requires a large staff of highly skilled employees. A nurse requires at least a two year associate degree in order to become registered, and doctors require eight years of post-secondary education and three to seven years of interning and residency. Front desk staff have specialized knowledge about legal regulations for patient privacy and insurance requirements. In short, almost every person working in healthcare has unique skills that are not easily replaced.

 

In healthcare, things need to move smoothly. While turnover at a restaurant could result in a meal not meeting standards or patrons having to wait longer for their dinner, in healthcare the results can be more significant. Reducing the amount of turnover by increasing employee retention in healthcare is important for everyone that needs care.

A large problem

The healthcare industry experiences a high rate of turnover. For emergency medical technicians and paramedics, average turnover is around 25 percent. That means that there is, on average, a completely new group of EMTs and paramedics at any given facility every four years.

 

The numbers are lower for registered nursing staff, but are still significant. Every year, approximately one in five registered nurses will leave a given place of work. For emergency medicine physicians, the relocation or turnover rate is over one in eight. 

Why turnover hurts

Every organization is unique, and every healthcare facility will have different layouts, procedures, and practices. In addition to the formal training that a healthcare worker receives outside of the workplace, there is a certain amount of institutional knowledge that will help make them more effective in their work. When a healthcare worker leaves their place of work, that on-the-job expertise goes with them.

 

Concretely, this amounts to many negative outcomes. For a healthcare provider, turnover is expensive. The interview process to replace a physician can cost a hospital over $30,000, which is more than one fifth of the average salary for a hospital physician. 

 

For patients, healthcare facilities with higher rates of turnover generate more negative outcomes. Misadministration of medicine, lower levels of cleanliness, and higher rates of falls while at the hospital are just a few of the increased dangers for patients at high turnover facilities.

Retaining valuable medical professionals

Given the costs associated with employee turnover in the healthcare industry, finding ways to reduce or stop the loss of valuable professionals is a huge priority. Human resources departments have a number of tools at their disposal. Pay raises and promotions may seem like the most obvious options, but there are caveats.

 

Increasing the take-home pay an employee receives may not be as effective as other options available. Four out of five employees surveyed in a 2015 study reported having a preference for increased benefits. Whether that be increased vacation time, longer parental leave, or employer provided child care, the majority of people would prefer quality of life improvements over a larger paycheck.

Partnering with employees on their futures

One powerful option for healthcare organizations is for an employer to help an employee gain additional training in their field. An employee tuition assistance program can be structured so that an employer provides financial assistance for employees in exchange for an agreement that the employee will remain with the organization for a fixed period of time. 

 

For the healthcare provider, an employer educational assistance program helps reduce turnover by contractually requiring a valued employee to remain with the organization. However, if the employer would like to increase the chances their newly trained worker remains with the company, they should follow the training with a promotion. An employee with more credentials should be promoted after they finish their contractual obligations in order to improve the chances of retaining them.

 

Another benefit that shows an employer cares about their workforce is a workplace financial wellness program. This may include debt counseling, student loan repayments, or financial education. When an employee knows that their employer is a partner for their own financial future, they show higher levels of job satisfaction.

FAQs about employee turnover and retention in healthcare

Burnout or exhaustion may cause a healthcare employee to leave their organization or the medical field altogether. Without proper work-life balance, working caregivers can feel as if they’re working two jobs simultaneously and leave to focus solely on their personal responsibilities.

Employee turnover in healthcare is often driven by burnout, staffing shortages, heavy workloads, irregular schedules, compensation pressure, limited career growth, poor manager support, and caregiving responsibilities outside of work. The reasons vary by role and care setting, but many healthcare employees leave when the demands of the job become unsustainable.

Yes. Due to an aging population and mass retirements, there is a significant shortfall in the number of qualified healthcare employees compared to the number of healthcare positions available, which gives healthcare employees a significant advantage when negotiating higher pay or benefits. 

Competition for top healthcare talent is as fierce as it has ever been, allowing many medical professionals the opportunity to leave their organization after finding higher pay or a more comprehensive benefits package at another institution. It makes retention even more difficult for employers in the healthcare industry. 

Healthcare organizations can reduce employee turnover by addressing burnout, improving scheduling practices, strengthening manager support, creating career pathways, offering competitive compensation and benefits, supporting caregiving responsibilities, and using workforce data to identify retention risks earlier.

Care benefits help retain healthcare employees by reducing the conflict between demanding work schedules and family caregiving responsibilities. Child care, back-up care, senior care, and family support can help employees manage disruptions, return to work after life transitions, and stay engaged in their roles.

Education benefits make professional development more accessible to employees in an industry where technology, regulations, and care practices are constantly evolving. This support enables healthcare employees to advance their careers, build new skills, and see a future within the organization, strengthening both workforce development and retention.

Benefits that can support healthcare workforce retention include competitive health coverage, paid leave, mental health resources, education assistance, student loan support, retirement benefits, child care support, back-up care, senior care resources, and flexible scheduling support where possible.

Healthcare employers must comply with federal laws, which require companies with 50 or more employees to provide up to 12 weeks of unpaid leave. However, some healthcare organizations go beyond this requirement by offering paid parental leave or additional benefits to support employees returning from leave, helping to improve retention. 

Similarly, some employers use retention agreements, such as tuition reimbursement or bonuses, to encourage long-term commitment. By offering competitive benefits and clear career growth opportunities, healthcare organizations can reduce turnover and enhance workforce stability.

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Bright Horizons is a United States–based child-care provider and is the largest provider of employer-sponsored child care. Employees looking to become a child care teacher are offered the opportunity to earn an early education degree for free as part of their corporate benefits. Search by zip to find a child care center near you. Bright Horizons Global Headquarters are in Newton, Massachusetts, USA.