The healthcare industry was already turned upside down during the COVID-19 pandemic, and now continues to face persistent talent challenges which are projected to increase in severity in the coming years. In this post, we’ll address the most critical staffing challenges currently impacting healthcare organizations and discuss how talent leaders can shift their strategy to overcome these hurdles.
1. Significant (and Growing) Labor Shortages
There are current and projected-to-grow labor shortages across multiple functions in healthcare, resulting in many organizations struggling with staffing concerns— especially as healthcare is faced with an increasingly aging population and heightened healthcare needs. The nursing shortage is particularly dire. The Health Workforce Analysis— published by the Health Resources and services Administration (HRSA)— projected that there would be a shortage of 78,610 full-time registered nurses (RNs) by 2025 in the United States and a shortage of 63,720 full-time RNs in 2030. It’s expected that 42 out of 50 states will struggle with nursing shortages by 2030, and as of 2023, there were already 293 hospitals at risk for closure due to staffing issues. In addition to the urgent nursing shortage, Association of American Medical Colleges estimates that the United States will have a physician shortage of up to 86,000 physicians by the year 2036. This shortage includes primary care and specialty care physicians. Patient-facing providers aren’t the only impacted professions, with shortages of nearly 20-25,000 medical laboratory scientists. There’s also a worldwide shortage of pathologists, despite increasing demand. All of these shortages mean patients could receive delayed or rushed care. It takes longer for a doctor to see a patient, longer for tests to be run and processed, and busier nurses who don’t have the bandwidth to provide the level of attention that’s ideal. Mortality rates increase alongside shortages, creating significant problems for healthcare organizations and their patients.
2. High Turnover
While hospitals and other healthcare organizations are already struggling with existing and growing labor shortages, rising turnover rates (21% national average in 2024) are making it harder for organizations to retain the talent they have. Retirement is another significant contributor. According to the 2022 National Sample Survey of Registered Nurses, 23% of RNs either had retired or planned to retire between 2022 and 2027. Increasing job dissatisfaction, which has risen dramatically since the COVID-19 pandemic, has further compounded the issue. A 2023 study found that more than one in four nurses planned to leave the profession due to burnout and understaffing. These feelings of burnout may be highest amongst acute care nurses, of which 60% reported feeling burnt out and 75% said they were stressed, frustrated, or exhausted. While registered nurses have among the highest turnover rates, they aren’t the only medical professionals impacted by this challenge. Around 117,000 physicians and 53,000 nurse practitioners left the profession between the first quarter of 2020 and the fourth quarter of 2021. It’s a vicious cycle with labor shortages leading to staffing challenges, which in turn cause overwork, burnout, and reduced job satisfaction among many healthcare professionals.
3. Fewer Skilled Workers Are Entering the Workforce
While demand for healthcare is increasing alongside an aging population, fewer skilled medical professionals are entering the workforce. Lack of potential schooling— not a lack of interested or qualified applicants— is a critical cause. One study found that over 65,000 qualified applications for bachelor’s and graduate nursing programs were rejected in 2023 only due to an insufficient number of classroom space, faculty, clinical sites, clinical preceptors, and/or budget. Medical laboratory professionals have also seen decreased numbers of training programs in recent years, despite needing many more workers to keep up with demand.
4. Lack of Upskilling Opportunities
Research shows that today’s workforce is highly motivated to develop new skills but lacks the guidance and support to navigate or access those options. EdAssist’s 2024 Education Index found that 74% of workers and 99% of Gen-Z employees are interested in developing new skills or pursuing additional education. A certified nurse assistant (CNA), for example, may want the opportunity to become a registered nurse (RN) or even a nurse practitioner (NP). Perhaps, an entry-level lab worker may jump at the chance for advanced schooling to learn how to provide more specialized and advanced support. Those opportunities, however, might not be feasible to healthcare professionals without employer-sponsored assistance. There is a significant disconnect in employee upskilling: employers need more skilled workers, while employees want to upskill but lack the necessary support to do so. Keep the following data in mind from EdAssist’s 2024 Education Index: 58% want guidance on how to take the next step towards learning new skills relevant to their career 54% would pursue additional education if they knew they wouldn’t incur student loan debt 74% of workers – and 99% of Gen-Z employees – are interested in developing new skills or continuing their education The reality is that today’s workforce wants to upskill, but their only option to do so is with the support of employer-sponsored education programs to provide the career guidance and financial support needed to make ongoing education and training a possibility.
The healthcare industry is facing significant talent and employment challenges, and these challenges, as highlighted, are projected to become moreextreme. Given the lack of skilled workers is the most significant challenge, creating opportunities to attract new workers and help them upskill through education assistance programming will be a critical first step in addressing these concerns. Employer-sponsored education assistance and directional support through career pathways, can have a significant and positive impact in both recruiting and retaining specialized workers. Given that younger workers want to upskill, these programs are a sound investment for healthcare organizations looking to: Retain top talent. Over 4 in 5 employees would be more loyal to a company that invested in their education (84%) and would also choose a job at such a company over an employer that did not offer education benefits (82%). Address skill gaps. EdAssist’s research also showed that 57% of workers said they wish their employer provided more guidance on career paths and goals. Establishing defined career pathways and professional guidance offers employees the clarity they seek to pursue education, training, and skills development to advance their careers while addressing potential skill gaps within an organization. Facilitate professional development of existing medical professionals. Employer-sponsored education assistance programs can help keep workers in the medical profession who otherwise would have left if there weren’t advancement opportunities. Some nurses, for example, may feel burnout from patient work but are interested in getting a graduate degree to become nurse educators. Continued education can keep these individuals in the medical field and combat the healthcare professional shortages. Employer-sponsored education solutions may include tuition assistance, individualized education coaching, and career pathways development to help employees reach specific professional goals and fill skill gaps. While education assistance solutions can’t address every talent challenge facing the industry, forward-thinking healthcare systems who leverage these programs in a strategic, targeted way are maintaining a competitive edge and attracting, retaining, and developing talent that enable them to deliver top-tier patient care. Want to learn more about offering education assistance programming to your workforce? Discover how EdAssist can support your organization in attracting, retaining, and developing critical healthcare talent. Final thoughts