Thought Leadership October 8, 2018

Overcoming recruitment and retention challenges in the healthcare market

Hiring professionals and retaining employees to keep up with growth is getting harder. A total benefits approach focused on making the most of your retirement plan can be a significant factor in helping you address these challenges.

Sponsored by TIAA

By Derek Heaslip

As part of one of the fastest-growing industries in the United States, healthcare organizations face the challenge of maintaining a highly-qualified and fully-staffed workforce.¹ Hiring professionals and retaining employees to keep up with growth is getting harder. A total benefits approach focused on making the most of your retirement plan can be a significant factor in helping you address these challenges.

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Employees are critical to your success

Employees are key to an organization’s success. Their expertise, the quality of care they provide and your investments in modern-day equipment and technology help shape your brand and reputation. And your reputation impacts your ability to acquire new patients, earn referrals and fund future growth.

Healthcare organizations are competing for employees with diverse skill sets and backgrounds, and they are finding it increasingly difficult to meet their staffing needs. The reality is that a perfect storm is hitting the healthcare sector.

Shortfalls in healthcare professionals: Aging demographics and a growing population are driving an unprecedented demand for healthcare professionals. Healthcare employment is expected to grow as a proportion of total U.S. employment.² Yet, medical and nursing school enrollment isn’t keeping pace with demand and shortfalls are expected.

Aging workforce: With 10,000 baby boomers retiring daily, aging demographics are resulting in many healthcare professionals leaving the workforce. Doctors, nurses and staff with decades of experience are leaving behind big voids that are difficult to fill.

Retention: Employee turnover is also a significant concern. With a 33 percent turnover rate in 2017, hospitals and other healthcare practices are continually playing catch up.³ High turnover rates affect patient care and they also have a direct impact on the bottom line. A 2018 study by Nursing Solutions, Inc. estimated the average cost of turnover for a bedside registered nurse is $49,500.⁴

Different approaches to entice new recruits and enhance the work experience of existing employees are needed. Zeroing in on the needs and preferences of different employee groups can help.

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About the author

Derek Heaslip is a Senior Managing Director at TIAA (tiaa.org), a Fortune 100 financial services organization and leading provider of asset management and retirement services for the medical, academic, research, and cultural fields. Derek heads TIAA’s healthcare team, which is focused on highlighting and addressing the specialized needs of its clients.

¹Employment Projections Program, Bureau of Labor Statistics, 2016-26 Employment Projections and Occupational Outlook Handbook, October 24, 2017.

² Ibid

³ Bureau of Labor Statistics, Table 16 Annual total separations rates by industry and region 2013-2017, March 2018.

⁴ NSI Nursing Solutions, Inc., 2018 National Health Care Retention & RN Staffing Report, March 2018

This material is for informational or educational purposes only and does not constitute investment advice under ERISA. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor’s own objectives and circumstances.

Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.

TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products.

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