Labor market survey reveals recruitment, turnover challenges in healthcare

The healthcare industry is facing a tight labor market forcing organizations to increase wages. However, filling vacancies is also taking longer, according to a recent report on the healthcare labor environment.

The report is based on responses from more than 200 U.S. healthcare professionals who participated in HireRight’s 15th Annual Benchmark Survey. HireRight provides background screening services and workforce solutions. The report queried respondents about their attitude toward remote working and predictions for its uptake by the start of 2023, as well as information recruitment and background screening activity over the past year.

Recruitment has been a top challenge for healthcare professionals, with 28% of respondents reporting their workforce decreased in 2021. More than half (53%) reported higher than expected resignation rates. Plus, vacancies took longer to fill, with 42% saying job vacancies took three to six months to fill. Another 39% reported higher than normal turnover among new hires. Plus, the labor market was impacted by the departure of millions of Americans during the height of the COVID-19 pandemic in 2020.

“Many industries took a hard hit at the start of the COVID-19 pandemic, but with a drop of around two million employees in early 2020, the U.S. healthcare industry was especially impacted,” Mary O’Loughlin, executive vice president of growth verticals at HireRight, said in a statement

The findings underscore the challenging labor market impacting healthcare organizations. In addition to a tight labor market, hospitals and health systems are facing higher costs and continued impacts from the COVID-19 pandemic influencing overall revenue. As a result, hospitals are in bad financial shape, facing negative margins through 2022, according to recent reports from Kaufman Hall.

To improve recruitment and retention rates, healthcare professionals increased incentives in 2021, including sign-on bonuses, higher salaries and better benefits. According to the report, 60% increased salaries and 52% offered other incentives. 

“While HireRight’s 2022 survey data shows that most U.S. healthcare organizations projected headcount growth this year, they will need to use the right mix of tactics, channels, and incentives …  to ensure they get the right talent into their businesses to support their future growth strategies,” O’Loughlin said. 

However, there was a discrepancy between respondents who expected their workforce to grow in 2021 (63%)  compared to workforces sizes that did increase (40%). Respondents were also optimistic for 2022, with 63% who said they expect their workforce will increase in 2022 and over half of those expecting it to grow between 10% and 25%. 

Healthcare professionals are also expanding their recruitment tactics, with 67% planning to use Facebook for recruitment and 43% allocating budget for Facebook recruitment campaigns. 

Amy Baxter

Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."

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