Hospital
Better pay and benefits have stabilized employee turnover at U.S. hospitals, the latest Benefits Survey of Hospitals from Aon found.
The decreases in turnover since 2023 are significant. Reports of increased turnover among nurses declined from 62% to 7%; among non-physician clinical positions from 41% to 5%; and among physicians from 22% to 9%. Nevertheless, 84% of hospitals still report shortages in nurse staff and almost half report shortages in clinical technicians.
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To address talent recruitment and retention, 70% of hospitals during the past year have increased new-hire pay; 69% have implemented or bolstered sign-on bonuses; 61% have increased minimum-wage scales; 46% offered higher-than-market wages; and 44% have modified their total rewards offering for all employees. Hospitals in 2024 modified or enhanced benefits to further support employees' needs, with:
- 70% enhancing voluntary benefits and an additional 13% considering it.
- 67% enhancing tuition reimbursement and 12% considering it
- 65% offering more financial wellness and planning resources and 14% considering it
- 40% adding prescription home delivery and 8% considering it
- 36% offering more student loan repayment or restructuring programs and 31% considering it
- 35% adding or enhancing gender-affirming care and 15% considering it
- 32% enhancing employee assistance programs and mental health provider networks and 28% considering it
- 32% adding nutritional counseling and 9% considering it
- 31% offering more subsidies for adoption and 16% considering it
- 28% adding subsidies for backup childcare and 18% considering it
- 26% expanding fertility coverage and 27% considering it
- 24% adding subsidies for backup eldercare and 16% considering it
- 24% adding onsite daycare and 14% considering it
Average health plan expenses per hospital beneficiary per year increased 8.5%, from $16,151 in 2023 to $17,520 in 2024. Sixty-five percent of hospitals plan to pay 80% or more of their employees' health care costs, and 13% offer a no-cost health plan option to some segment of their employee population. Eighty-eight percent of health systems also provide a discount to employees to access their own facilities and providers.
Despite increases in total rewards, health systems remain concerned about their workforce going into 2025. Top concerns from human resources leaders include:
- Access to mental health services/providers, (90%);
- Increasing health care costs for health system (85%);
- Competitive total rewards to attract and retain talent (85%);
- Improving health outcomes (84%);
- Increasing health care costs for employees (83%);
- Preventing and managing chronic health conditions (81%);
- Managing fiduciary obligations and risks as a plan sponsor (80%);
- Burnout/workforce resiliency (80%); and
- Employees understanding the value of their benefits (80%).
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Alan Goforth
Alan Goforth is a freelance writer in suburban Kansas City. In addition to freelancing for several publications, he has written a dozen books about sports and other topics.
