A hospital corridor

The staffing needs of the U.S. health care system are on a collision course with demographic trends. The number of Americans aged 65 or older is expected to surge by nearly 50% by 2050, creating unprecedented demand for health care services as fewer younger workers will be available to provide that care.

"As the U.S. population ages, hospitals and health systems face an increasingly critical question: how can they hire, train, retain and support enough employees to meet the rising demand for care, while still maintaining cost efficiency and long-term financial health?" said Colin Pierce, health care national practice leader for TIAA.

New approaches and innovations are critically needed as the sector continues to face staffing shortages despite adding 2.6 million jobs since the pandemic. Nearly half of hospitals report registered nurse vacancy rates above 10%, with rural areas and certain states facing particularly acute shortages, according to the Bureau of Labor Statistics.

These staffing challenges create a troubling cycle within health care organizations. A 2024 TIAA Institute Healthcare Workforce Survey found that 40% of health care employees cite staffing shortages and a lack of resources as major problems, while 30% point to stress and burnout. Among employees at high turnover risk, these concerns rise to 63% and 56%, respectively.

"Tackling this challenge means we need to think differently,” Pierce said. “We should be exploring untapped talent pools, borrowing smart ideas from other sectors and embracing technologies like AI. When we streamline workflows and cut administrative burdens, we free up health care providers to do what they do best -- care for people."

A new report from the TIAA Institute, a thinktank within TIAA, proposes a fresh approach to how health systems hire, train and retain employees, and improve productivity. The report recommends what it calls a "three lens" approach to address workforce headwinds:

  • The cross-sector collaboration lens learns from and works with partners outside the health care sector, such as higher education, which have important parallels, including a shifting demographic.
  • The work and workforce lens taps into new and overlooked talent pools to create the right mix of roles, skills and teams, while enhancing the workplace and the work experience itself by adopting technology.
  • The longevity and aging lens positions for the growth of the intergenerational workforce and people changing careers.

Worker benefits and compensation also are part of the solution. Providing more financial security through lifetime income solutions has become an increasingly important value proposition for attracting and retaining talent. Guaranteed lifetime income options can help employees build financial confidence and retirement readiness, addressing a key concern in an industry where only 52% feel fairly compensated.

"As health care faces unprecedented workforce challenges, employers who invest in comprehensive financial wellness programs that include lifetime income solutions will have a significant advantage in recruitment and retention," said Surya P. Kolluri, head of the TIAA Institute. "These offerings provide the income security that today's health care workforce increasingly demands."

NOT FOR REPRINT

© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.