As the Head of Healthcare Talent Solutions at LevelUP, I continue to be inspired by the evolution of our industry over the past eight years. Today, I want to share my insights on the current state of healthcare recruitment and offer some practical solutions to the challenges we're facing.
Over the past year, we've seen signs of recovery in the healthcare labor market. Job openings are gradually declining, indicating a shift towards pre-pandemic norms. However, as someone who's been in this field for nearly a decade, I can tell you that we're not in the clear yet.
The gap between open positions and available talent remains significant. This isn't just a temporary blip – it's a reflection of deeper structural issues within our industry. As healthcare leaders, we need to be prepared for the possibility that unfilled positions may become the new normal, potentially leading to:
But I've seen our industry overcome challenges before, and I'm confident we can do it again.
In August 2024, healthcare job growth was driven by ambulatory healthcare services, which encompass both outpatient and home-based care, with an increase of 24,000 jobs. This outpaced the growth in hospitals (+9,600), while residential care facilities saw a decline (-2,600).
This shift reflects a broader change in how care is delivered, with more services moving out of traditional settings and into outpatient and home-based care. It's a response to several factors:
Cost-effective and patient-centered care: Home-based treatments not only lower the need for extended hospital stays but also provide more personalized and affordable care options.
Advances in telehealth and mobile health: These technologies make it easier for patients to receive care outside of traditional settings, increasing accessibility and convenience.
An aging population and rising healthcare costs: As the demand for long-term care grows, in-home care has emerged as a more affordable and flexible solution for many patients.
As demand for healthcare professionals continues to outpace supply, we’re seeing a notable rise in wages. Hospitals are experiencing a yearly growth rate of 6.1%, while nursing and residential care facilities have seen year-to-date earnings increase by approximately 2.2%.
While necessary to attract talent, these wage increases come with a cost—especially for healthcare organizations already operating on narrow margins. Simply raising wages is not a sustainable solution, as it adds pressure to already strained budgets.
I’ve learned that competitive compensation must be paired with a strong workplace culture that supports flexibility, well-being, and career growth. Offering options like flexible schedules, mental health resources, and clear advancement pathways can help organizations stand out without relying solely on wage increases.
In my experience, one of the most effective ways to address talent shortages is to streamline our hiring processes. We need to make them more targeted and efficient to ensure positions are filled promptly. This might involve:
Another crucial strategy is to invest in our existing workforce. By offering opportunities for reskilling and upskilling, we can help our current employees transition into emerging roles. This not only addresses talent shortages but also improves retention by showing our commitment to employee growth.
Think outside the box when it comes to recruitment. Consider partnering with local educational institutions to create pipelines for new graduates. Look into return-to-work programs for healthcare professionals who may have left the field. These alternative talent pools can be a goldmine of skilled, motivated individuals.
In my years in this industry, I've learned that attracting talent is only half the battle – retention is equally important. While competitive wages are necessary (and we've seen significant wage growth in nursing and other areas), they're not enough on their own.
We need to create a workplace culture that emphasizes:
By focusing on these aspects, we can create an environment where healthcare professionals want to stay and grow.
The healthcare labor market in 2024 is complex and rapidly changing. But I've seen our industry adapt and overcome challenges time and time again. By adopting a proactive, strategic approach to talent acquisition and retention – one that focuses on workforce agility, continuous learning, and employee well-being – we can navigate these challenges successfully.
At LevelUP, we're committed to supporting healthcare organizations through these changes. Our award-winning talent solutions are designed to meet the unique needs of the healthcare industry, providing tailored strategies for:
We understand the complexities of healthcare recruitment because we've lived through them. We're here to partner with you, providing the expertise and support you need to attract and retain top healthcare talent.
If you're facing recruitment challenges or want to discuss how to optimize your talent strategy, I'd love to chat. Schedule a consultation with us today, and let's work together to build a stronger, more resilient healthcare workforce.
For more information about our specialized healthcare services, visit our healthcare page.
Remember, the challenges we face in healthcare recruitment are significant, but they're not insurmountable. With the right strategies and partners, we can ensure that our healthcare system has the talented professionals it needs to provide exceptional care for years to come.