Hospitals are raising pay to combat the health care worker shortage

The study found that 59% of hospitals have increased new hire pay and 54% of hospitals have increased their minimum wage scales over the past year.

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Hospitals are raising pay and enhancing benefits in order to combat a shortage of health care workers across the country, particularly among nurses, a new study by Aon found. 

Over the past year, 61% of hospitals reported increased turnover rates among nurses and 41% experienced higher departures among non-physician clinical positions. The study also found that 22% of hospitals reported physicians were leaving positions more often than last year. 

Hospitals reported that the highest rates of turnover were among medical professionals with tenures of 1 to 3 years. 

Hospitals are now taking substantial measures to address these workforce shortage concerns. In the past year, 70% of hospitals throughout the U.S. have implemented or raised sign-on bonuses, according to Aon. Fifty-two percent of hospitals have also added referral bonus programs to encourage recruitment opportunities. 

Additionally, hospitals are addressing health care workers’ earnings. The study found that 59% of hospitals have increased new hire pay and 54% of hospitals have increased their minimum wage scales over the past year. 

Hospitals have also increased premium benefits for employees such as more flexible work options, greater personal leave and financial wellness and planning – all up nearly 10% from 2022. 

Sheena Singh, senior vice president of Aon’s national health care industry practice said the shortage of health care workers “threatens to impact patient care and accelerate burnout among clinical staff. As a result, health systems have prioritized investment in total rewards and support for workforce resilience and mental health.”

Read more: Essential health care workers deserve better financial benefits

Despite significant increases to health care workers’ benefits and pay, the study found that health systems still remain concerned about their workforce going into 2024. 

Over 80% of human resources leaders say they are most concerned about employee access to mental health services, employee burnout, offering competitive rewards to attract and retain talent, increasing costs for the health system and improving health outcomes.