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U.S. Hospitals See Lower Clinician Turnover Rates

A recent report by Aon plc reveals a significant shift in the workforce dynamics of U.S. hospitals, showcasing a notable decrease in clinician turnover rates. This insight comes from Aon’s 19th annual Benefits Survey of Hospitals, emphasizing the crucial role of enhanced pay and benefits in retaining healthcare talent.

In 2024, the data indicates that only 7% of hospitals noted an increase in nurse turnover, a stark contrast to the staggering 62% recorded just a year prior. Furthermore, for non-physician clinical roles, the turnover rate increased in just 5% of hospitals, down from 41% in 2023. Physician turnover also dropped to 9% from 22% the previous year. This decline is particularly promising for the healthcare sector, which has battled with workforce shortages and high turnover rates in recent years.

The findings indicate that many hospitals continue to face turnover primarily among medical professionals who have worked for one to three years. Despite the positive trends, a daunting 84% of hospitals still report shortages in nursing personnel, with nearly half experiencing shortfalls in clinical technicians.

Sheena Singh, a senior vice president at Aon’s national healthcare industry practice, suggests that to mitigate these challenges, health systems must maintain significant investment in total rewards and support mechanisms that enhance workforce resiliency and mental health.

To combat recruitment and retention issues, 70% of the surveyed hospitals raised their new hire salaries over the past year. Additionally, 69% instituted or improved sign-on bonuses, while 61% increased minimum wage scales. Other measures included offering above-market wages to 46% of employees and enhancing overall total rewards for 44% of the workforce.

Moreover, hospitals are actively adapting their benefits packages to cater to the evolving needs of their staff. Highlights from the survey include:

• - 70% of hospitals enhanced voluntary benefits, with an additional 13% considering expansions.
• - 67% improved tuition reimbursement, with 12% also contemplating this option.
• - 65% provided increased financial wellness resources, and 14% are looking at more options.
• - 40% offered home delivery for prescriptions, and 8% are considering it.
• - 36% expanded student loan repayment programs, with 31% in consideration.
• - 35% of institutions added or improved gender-affirming care.
• - 32% valued mental health resources and support systems, with 28% considering more comprehensive mental health programs.
• - Other benefits include nutritional counseling, subsidies for adoption and childcare, as well as enhancements in fertility coverage.

Despite these positive strides in total rewards and benefits enhancements, many health systems remain concerned about their workforce looking into 2025. The leading concerns reported by HR leaders include:

• - 90% highlighted the need for better access to mental health services.
• - 85% expressed worries about rising healthcare costs for their systems.
• - 85% pointed to the importance of providing competitive compensation to attract and retain talent.
• - Additional worries included improving overall health outcomes and managing chronic health conditions within staff populations.

The Aon survey, conducted between April and June of 2024, analyzed the benefits plans of over 1,500 hospitals representing more than 3.3 million health system employees across the United States. These findings provide valuable insights into the strategies hospitals are adopting to stabilize their workforce in a challenging healthcare landscape. As Aon continues to research and analyze these trends, the overarching goal remains clear: to foster a healthier, more sustainable work environment for healthcare professionals, ultimately benefiting the broader community.

Aon plc has reflected on its commitment to shaping decisions that positively impact lives worldwide through well-informed risk management and human capital strategies. More information about Aon’s efforts and updates can be found on their official website.