To compete for many of the same workers that corporations seek, health care organizations have implemented plan design changes to lift plan metrics such as participation and deferral rates. (Photo: Shutterstock)

It's a noble calling to work in the health care industry, and it takes a special person to dedicate his or her career to helping others. However, as most HR professionals of health care organizations know all too well, the demand to attract and retain qualified candidates is tough. In addition to an unemployment rate at a near 50-year low in the U.S., the health care sector also faces a shortage of qualified doctors and nurses. According to industry forecasts, the U.S. will see a shortage of up to nearly 122,000 physicians by 2032, and the demand for registered nurses is expected to increase by more than 438,000 positions (or 15%) in 2026 to fill newly created positions and to replace retiring nurses.

Given this backdrop, taking care of those professionals who dedicate their lives to serving others has never been more important. And a good place to start, especially for those health care organizations looking to differentiate themselves in the "fight for talent," is with their retirement programs.

To help health care providers benchmark their retirement plans, Voya Financial recently collaborated with the American Society for Healthcare Human Resources Administration (ASHHRA) of the American Hospital Association (AHA) to conduct its first survey of retirement plans in the health care sector. The survey included insights from hospital administrators and chief financial officers from across the U.S.

Below are three key trends for health care organizations to keep in mind as they evaluate whether they have the right prescription for the health of their retirement program in an increasingly dynamic and complex industry.

1.    Financial wellness is the new frontier.

The topic of financial wellness has become a popular subject in the retirement industry. The rise of a new generation in the workforce, burdened with student debt and with a different attitude toward work and career, has only further spurred interest in financial wellness programs. For example, Millennials and Generation Z often find it harder to contribute to their retirement plans early in their careers as they grapple with paying off expensive student loans.

While industry research points out that managing student debt is also a stressor for Gen Xers and Baby Boomers (especially as some try to help their children pay for college), the attitude of younger generations toward concepts of careers, retirement and a lifetime at work differs markedly from that of prior generations. Millennials and Gen Zers want financial security now and through their lives, not just in retirement. They aspire to a lifetime of sound financial health as part of a holistic view, not with a singular focus on retirement.

Given this shift in mindset, it's not surprising that 81% of surveyed health care organizations said helping their employees with financial wellness is a very important or important priority for them over the next two years. Interestingly, 54% of health care organizations surveyed wish their retirement plan service provider would do more to help their employees with retirement readiness and financial wellness.

To compete in today's environment, hospitals, medical centers and other health care systems need to consider offering holistic financial wellness programs that support the overall financial health of individual employees.

For example, consider including topics that go beyond budgeting and debt management, like retirement income planning and health savings accounts (HSAs). Also, don't be afraid to ask your retirement service provider for help — most have the expertise and are eager to support.

Remember, any good financial wellness program should help employees understand what is required to reach their financial goals. Your retirement plan provider can assist with establishing a cadence of communication with your employees using a variety of delivery mechanisms, including online, one-on-one education, group meetings and periodic reviews.

And finally, as health care organizations increasingly consider the financial wellness needs of all their employees, developing an inclusive culture should also be a top priority. Specifically, this includes offering benefits for employees with disabilities and special needs, including their caregivers.

While only 6% of health care organizations currently offer a caregiving financial planning service, according to Voya's health care survey, 25% plan to provide this service in the next 12 months. When you consider that industry research estimates that caregiving-related expenses cost employers almost $38 billion each year (e.g. absenteeism, lost productivity, and recruiting and training new staff), thinking more holistically about your organization's benefits offering is not only the right thing to do — it also makes good business sense.

2. Health care plan metrics now closely align with those of corporate plans.

Health care as an industry is no longer an outlier in the retirement world. Gone are the days where a 30% participation rate or a 2% average deferral rate is considered the norm. According to Voya's health care survey, on average, 67% of health care employees participate in their retirement plan and contribute an average 8% of their pay.

Why this improvement? Nurses, orderlies, administrators and other health care workers have similar financial wellness needs as workers in any other segment of the workforce. Therefore, expectations for growth and performance in their retirement plans should be no different.

Pressed to compete for many of the same trained and tech-savvy workers that corporations seek, health care organizations have implemented plan design changes to lift plan metrics such as participation rates and deferral rates, employer contributions, and automatic enrollment and deferral increases.

3. Health care organizations rely on plan advisors and consultants.

We've all heard the expression: "Know what you don't know." According to Voya's research, the majority of health care organizations are taking this to heart. Approximately 88% of health care organizations retain the services of a retirement plan advisor or consultant. More than three-quarters rely on the plan advisor or consultant to make plan design recommendations, explain the fees providers charge and to assist with fiduciary responsibilities.

For those health care organizations that do not have a trained retirement plan specialist on staff, retaining outside help can be even more beneficial. Plan advisors and consultants have deep technical knowledge and expertise that can help ensure your retirement plan is handled with the appropriate care and diligence — in addition to tracking key plan metrics to evaluate the overall health of your plan.

Creating a healthy retirement plan

While every health care organization has its own unique challenges and parameters for how it defines success, taking the time to benchmark the health of your retirement program is a worthwhile exercise. A thorough investigation can bring about a breakthrough for your organization — measured not only in plan outcomes but also in business metrics such as employee retention, cost of care, quality of care and organizational growth.

And the good news is that you don't have to go at it alone. Knowledgeable plan advisors or consultants can help you evaluate areas of opportunity — which, ultimately, will help your health care organization identify the right prescription to help your employees prepare for a secure financial future.

Brodie Wood is Senior Vice President, National Practice Leader | Healthcare | Education | NFP Markets at Voya Financial.