Nurse Recruitment Strategies to Address the Nursing Shortage

The healthcare industry is facing a severe shortage of nurses and other frontline clinical staff, creating unprecedented challenges for medical facilities across the nation. This crisis, exacerbated by an aging population and the lingering effects of the COVID-19 pandemic, threatens the quality, accessibility and continuity of patient care. Whether healthcare organizations require the recruitment of registered nurses (RNs), nurse practitioners (NPs), or certified nursing assistants (CNAs), the need for innovative nurse recruitment strategies has never been more critical.  

The shortage spans all levels of nursing, from entry-level positions to advanced practice roles. Hospitals, clinics, long-term care facilities and home health agencies are all feeling the pinch as they struggle to maintain adequate staffing levels. This scarcity of nursing professionals not only strains existing staff but also impacts patient outcomes, increases wait times, and can lead to the reduction or elimination of certain services. 

This article explores the depth of the nursing shortage, its root causes, recruiting strategies for nurses for today’s competitive landscape. 

The Nursing Shortage: A Growing Crisis 

The current state of the nursing workforce paints a concerning picture for the future of healthcare. The Bureau of Labor Statistics (BLS) projects that the United States will face a shortage of 195,400 nurses by 2031. There are not enough nurses joining the field, which is not for lack of interested and qualified applicants. As many as 80,000 qualified applicants get turned away from nursing colleges because there are not enough nursing faculty, clinical sites, and resources to support larger class sizes. 

Driven by the strain of the pandemic and a shrinking workforce, many healthcare workers are choosing to the leave the field due to burnout. According to the American Association of Colleges of Nursing, the rates of RN turnover in the United States have ticked up over recent years, growing from 17% in 2017 to 26% by 2021. More than a quarter of RNs report they plan to retire or leave nursing over the next five years. 

With nationwide labor shortages and inflation, healthcare organizations face rising costs for salaries, benefits and contract staffing which strains budgets. Hospitals and health systems are paying an additional $24 billion per year for clinical labor than they were before the pandemic. In general, modern employees require more competitive compensation, benefits and perks to be enticed. This is even more crucial in rural settings where healthcare staff often must be convinced to relocate. 

In order to keep patient care standards high amidst staffing shortages, the U.S. healthcare system relies heavily on costly contract and travel nurses which further drives up labor costs for hospitals. According to  the American Hospital Association, the portion of nurse labor expenses going to contract travel nurses has grown from 4.7% in 2019 to 38.6% in January 2022.  

While travel nurses accounted for 23% of total nurse hours in January 2022, they represented nearly 40% of all nursing labor costs for hospitals. Plus, relying on traveling nurses can be bad for morale as staff nurses realize how much more money travel nurses are making—thus exacerbating retention challenges. 

nurse recruitment strategies

7 Best Practices in Nurse Recruitment 

Traditional approaches to nursing recruiting are no longer sufficient in this high-demand environment. Healthcare providers must reimagine their recruitment processes, workplace cultures and career development opportunities to attract and retain top nursing talent across all specialties and experience levels. To address the shortage, healthcare organizations should consider these best practices in nurse recruitment. 

1. Modernize Recruitment Technology 

Often healthcare organizations are struggling with legacy recruitment technology that is no longer fit for purpose when it comes to modern healthcare recruitment. Investing in your recruitment tech stack helps you gain agility, streamline your processes and access a world-class candidate experience that today’s nurses have come to expect.  

AI-powered sourcing tools can help identify the most promising healthcare talent in a matter of minutes.  Plus, advanced analytics arm you with the data you need to hone your recruitment strategy.  

2. Expand Nurse Recruitment Channels 

Expanding recruitment channels is essential in today’s competitive market. Partnering with nursing schools for early careers recruitment opportunities can help secure a pipeline of emerging talent. Utilizing social media platforms effectively can reach nursing candidates where they spend much of their time. Attendance at both virtual and in-person job fairs for healthcare recruitment can also yield positive results. 

3. Offer Competitive Compensation and Benefits 

Offering competitive compensation and benefits is more important than ever for clinical recruitment. Regular salary benchmarking ensures that pay rates remain attractive in a rapidly changing market. Comprehensive benefits packages, including perks like student loan repayment benefits and robust mental health support, can set an organization apart. For hard-to-fill positions, sign-on bonuses may be necessary to secure top talent over your competition. 

4. Create Clear Career Advancement Pathways 

Creating clear career advancement pathways is crucial for both recruitment and retention—but don’t just promote it to existing employees. Before joining, nurses want to know that there’s an established path to promotion to assure them there’s room to grow their skills and earning potential.  

Use your CRM to share content with nursing candidates throughout the recruitment journey that showcases mentorship programs for new nurses or leadership tracks for more experienced nurses. No matter where they are in their careers, nursing candidates want to know their employer will offer support and guidance throughout their careers.  

5. Emphasize Work-Life Balance 

In today’s workforce, emphasizing work-life balance is non-negotiable, regardless of industry. But with burnout among nurses higher than ever, it’s important to show nursing candidates upfront that you’re committed to work-life balance.  

Offering roles with flexible schedules, including part-time and job-sharing opportunities, can attract a wider pool of candidates. Ensure your job descriptions address paid time off and promotes your well-being perks and benefits.  

6. Diversify Your Nursing Workforce 

Diversity in nursing is not only an ethical imperative but also a practical necessity in serving increasingly diverse patient populations and supporting multilingual patient care. Developing targeted recruitment strategies for nurses from underrepresented groups can broaden the talent pool.

👉 Check out our DE&I Resource Center for information to help guide you on your diversity, equity and inclusion journey. 

7. Engage a Healthcare RPO Partner 

To overcome recruiting roadblocks, healthcare organizations can partner with a recruitment process outsourcing (RPO) partner to supplement internal recruiting teams and create sustainable talent acquisition strategies. When implemented correctly, a healthcare RPO program enhances recruiting effectiveness, attracts top talent and reduces cost, providing healthcare organizations with a competitive advantage. 

The RPO Advantage for Nurse Recruitment 

The nursing shortage is a complex challenge that requires a multifaceted approach. A growing number of forward-thinking healthcare talent acquisition and HR leaders have partnered with an RPO partner to stay ahead of the competition. An RPO program can help your organization implement these nurse recruitment best practices and position you as an employer of choice for nurses. 

Discover how RPO can revolutionize your healthcare organization’s talent acquisition strategy with our ebook, Revolutionizing Healthcare Staffing: The RPO Advantage.   

Allied Health Recruiting & Retention Best Practices 

With an aging population pushing demand for healthcare ever higher, allied healthcare professionals—physical and occupational therapists, medical laboratory scientists, dietitians and nutritionists, dental hygienists, optometrists, phlebotomists and many more—play crucial roles in the care, diagnosis and treatment of patients. However, healthcare organizations worldwide face significant challenges in recruiting and retaining these vital providers, potentially compromising patient care outcomes. To maintain high standards of care, it’s crucial for healthcare organizations to master the art of allied health recruiting and retention. 

This article will explore common challenges as well as offer best practices for attracting top talent and creating an environment where allied health professionals can thrive. 

Challenges in Allied Health Recruiting 

Allied health recruiting faces several significant hurdles in today’s challenging environment as competition for allied health professionals continues to grow: 

  • Staffing shortages: Demand for allied health staffing often outpaces the supply of qualified candidates and there’s a lack of graduates in many allied health fields. With many organizations vying for the same pool of candidates, standing out can be difficult.  
  • High turnover rates: Turnover rates in healthcare are at an all-time high due to poor work-life balance, lack of career growth, and burnout, especially post-pandemic. Plus, a competitive job market makes it easy to job hop.  
  • Rising labor costs driven by reliance on allied health staffing agencies: In order to counteract staffing shortages and turnover and maintain a high standard of care, healthcare organizations are relying on costly allied health staffing companies to supply contract healthcare workers, driving up overall labor costs.   
  • Budget constraints: Offering competitive salaries and benefits to combat turnover while staying within budget can be a balancing act. Many allied roles are perceived as underpaid relative to the education required to perform them, encouraging allied workers to pursue higher paid clinical roles or opportunities outside healthcare. 
  • Pressure to diversify the allied workforce: In order to provide the best patient care, healthcare systems are increasingly under pressure to match patient demographics which are increasingly multicultural and multilingual.  
  • Evolving skill requirements: As healthcare technology and practices evolve, so do the skills required of allied health professionals. The increasing complexity of patient care requires more specialized knowledge.   
  • Geographic limitations: Some healthcare facilities, particularly those in rural or underserved areas, may struggle to attract candidates due to their location. Rural areas struggle to attract and retain allied health professionals. Urban areas often have higher living costs, making it difficult for these lower-paid roles.  
  • Compliance demands: Extra care must be taken around credentialing and licensing checks for the allied workforce.  
  • Legacy recruitment technology: Healthcare organizations may struggle with old, legacy recruitment technology that is no longer fit for purpose—or not have a recruitment tech stack at all.  

Best Practices for Allied Health Recruiting & Retention 

Let’s dive into some game-changing allied healthcare recruiting solutions to help you overcome these challenges: 

Showcase Your Unique Culture 

Don’t just tell potential candidates about your workplace—show them! Instead of simply describing your environment, use social media and your website to provide a behind-the-scenes look at your team in action. Consider creating video testimonials from current employees or virtual facility tours to help potential candidates envision themselves as part of your organization.  

Another area to showcase is learning and development and recognition. Ongoing education opportunities, conference attendance and skill development programs are all great topics for recruitment content. Additionally, showcase outstanding performers on your social media channels, from an employee-of-the-month or someone who’s gotten special kudos from a patient. This will show potential employees that you’re invested in your team’s growth and job satisfaction. 

Offer Competitive Compensation Packages 

It’s not just about the salary. Consider offering unique perks that set you apart, such as student loan repayment assistance, schedule flexibility, wellness programs or even sabbaticals for long-term employees. These benefits can make a significant difference in attracting and retaining top talent. Remember, you’re not just filling a position; you’re investing in a long-term relationship. 

Streamline Your Recruitment Process 

In the fast-paced world of healthcare, time is of the essence. Make your application process quick, mobile-friendly and frictionless. The easier it is to apply, the more top-notch candidates you’ll attract. Consider implementing a one-click apply option or allowing candidates to apply with their LinkedIn profiles. Remember to keep candidates informed throughout the process with automated updates and clear timelines. 

Leverage Technology 

Healthcare talent acquisition teams often struggle with legacy recruitment technology that hasn’t kept up with modern candidate expectations. Consider implementing AI-powered tools to screen résumés, chatbots to answer candidate questions and video interviews to connect with applicants from anywhere. These tools can help keep top candidates engaged and ensure no promising applicants fall through the cracks. 

Create a Robust Onboarding Program 

First impressions matter. Creating a robust onboarding program is essential for setting new allied health professionals up for success. Onboarding should extend to include check-ins at 30, 60 and 90 days, ensuring new hires feel supported as they integrate into your organization. Complement this with a mentorship program that pairs new hires with experienced team members. This approach not only helps newcomers learn the ropes but also builds relationships and fosters a sense of belonging. 

Beyond the onboarding phase, regular communication is key to retaining allied health professionals. Instead of relying solely on annual reviews, implement a system of frequent check-ins. Whether it’s quarterly performance discussions or more informal conversations, ongoing dialogue allows you to catch and resolve issues early, keeping your team engaged and satisfied. By addressing potential concerns promptly, you can prevent minor issues from escalating into turnover, ultimately creating a more cohesive and stable team environment. 

Showcase Clear Career Paths 

Show potential allied health professionals where they can go within your organization. Clear career paths demonstrate that you’re invested in their long-term success. This could include leadership tracks, specialization opportunities or even paths to different roles within the organization. Make sure to discuss these opportunities during the recruitment process and showcase them in your attraction materials. 

Consider RPO for Allied Health Recruiting 

Another option to improve your allied health recruiting outcomes is to engage a recruitment process outsourcing (RPO) partner. RPO recruiting for allied health can help you implement strategies to combat challenges and improve your ability to attract, recruit and retain top allied health professionals. This collaborative approach allows internal HR teams to focus on strategic workforce initiatives while the RPO partner handles the day-to-day allied health recruitment challenges. 

Healthcare recruiting is dynamic and ever evolving. With persistence, creativity and the support of an RPO partner, you can build a strong, engaged allied health recruiting program that drives excellence in patient care.  

PeopleScout Named Talent Solutions Provider of the Year by TIARA Talent Solutions Awards U.S.  

The global talent solutions leader was also the winner of the Client Service and Best Talent Attraction Strategy awards 

CHICAGO – JUNE 27, 2024 – PeopleScout, a TrueBlue (NYSE: TBI) company and global talent solutions leader, was named Talent Solutions Provider of the Year, the top honor, at the 2024 TIARA Talent Solutions Awards – U.S. PeopleScout also received the Client Service and Best Talent Attraction Strategy awards for their work supporting their clients. This recognition comes after the company’s UK division received the same distinction, along with the Employer Brand and Best Talent Solutions Firm to Work For awards at the TIARA Talent Solutions Awards – Europe in October 2023.  

“We are incredibly honored to not only be recognized for our exceptional service and effective talent strategies, but to also receive the distinction of Talent Solutions Provider of the Year,” said Rick Betori, President of PeopleScout. “These awards are a true testament to the tremendous work our people do every day to elevate our clients’ connection to top talent, and the trust our clients put in us to deliver custom solutions to achieve their short- and long-term talent goals.” 

Judges praised PeopleScout’s exceptional service, thorough understanding of their clients’ business, effective strategies and sustainable results. The panel also shared the following award-specific feedback: 

  • Talent Solutions Provider of the Year One judge said, “PeopleScout delivered the type of service that every RPO and MSP provider should aspire to.”  
  • Best Talent Attraction Strategy – Judges applauded PeopleScout’s talent strategy, which “diversified the candidate pool in a male-dominated industry and lowered the cost-per-hire”.    
  • Client Service – Judges noted that PeopleScout “took the time to understand the business and its challenges by investing time in visiting sites, incorporating customer feedback and leveraging technology to deliver sustainable results.”  

Ethan Taylor, Senior Talent Strategist for multinational tire manufacturer and PeopleScout client Goodyear, echoed praise for PeopleScout, saying, “PeopleScout exemplifies what it means to be a true partner. They deeply understand our business, and act as a true extension of our team to provide innovative solutions to our unique talent challenges. Their commitment to our success is evident as they continue to evolve our talent strategies to drive meaningful business impact today and into the future.” 

The TIARA awards recognize companies across the RPO, MSP and Talent Solutions market and are open to independent providers and business units of recruitment solutions providers. The TIARAs set a standard of excellence and recognize exemplary growth, innovation and leadership.  

A three-stage judging process ensures credibility and enhances prestige for all award winners. TALiNT Partners’ senior team conducts an initial review to shortlist finalists from all entries. Finalist entries then go to a second round of judging by a panel of distinguished industry professionals. Judges then attend a judging day event to determine winners in each category.  

See the full list of 2024 TIARA Talent Solutions Awards US here.  
 

About PeopleScout   
PeopleScout, a TrueBlue (NYSE: TBI) company, is a global talent solutions leader that provides unmatched scalability to meet the hiring needs of organizations of all sizes. It connects clients with top talent through Recruitment Process Outsourcing (RPO), Managed Service Provider (MSP), Total Workforce Solutions, and talent and technology advisory services. PeopleScout is helping talent leaders harness the power of data, drive decisions and exceed expectations through tech-charged solutions founded on machine learning and AI. PeopleScout’s legacy of service and partnership has led to consistent recognition as a leader by industry analysts. For more information, visit www.peoplescout.com.     

Press Contact  
Taylor Winchell  
Senior Manager, External Communications  
pr@trueblue.com  
1-253-680-8291 

Healthcare RPO: What to Expect from Your Prospective Partner

For most healthcare organizations, staffing is a major operational challenge. During the COVID-19 pandemic, over 100,000 registered nurses left the field, and even several years laters, almost 800,000 nurses intend to leave the workforce by 2027 because of stress, burnout or retirement. These healthcare talent shortages and increased competition necessitate a more robust talent acquisition strategy. To overcome recruiting roadblocks, healthcare organizations can partner with a recruitment process outsourcing (RPO) partner to supplement internal recruiting teams and create sustainable talent acquisition strategies. When implemented correctly, a healthcare RPO program enhances recruiting effectiveness, attracts top talent and reduces cost, providing healthcare organizations with a competitive advantage.

In this post, we highlight six things healthcare organizations should expect from an RPO partnership.

What to Expect From Your Healthcare RPO Partnership

When you enter into an RPO partnership, you will find that a successful relationship is based on collaboration between your RPO provider and internal team, who need to work together to make the engagement a success.

Dig Deeper

How RPO Can Solve The Top Challenges In Healthcare Talent Acquisition

Expect Seamless Integration Between Your Healthcare RPO & Internal Recruiting Teams

An ideal RPO partner should have a well-developed practice for integrating into a client’s organization and working with a client’s recruiters, hiring managers and leadership teams. During the implementation process, your healthcare RPO partner should conduct a needs assessment to understand your healthcare recruiting requirements. They will then develop a custom solution that meets the needs of your organization and business model.

Engaging an RPO partner is an opportunity to create change in the way you recruit talent across your organization. Changes in the recruiting process can include training hiring managers to be better interviewers, implementing new recruiting technology tools and establishing a unified message and employer brand.

This is the time to take the recruiting process seriously and bring attention to it internally. Your RPO partner will work with you to be an agent of change in your organization in order to successfully implement new tools and processes.

Expect Value-Added Recruiting Functions

As talent acquisition becomes more sophisticated, organizations are looking for additional services from an RPO partner such as employer branding capabilities, advanced analytics and new technology. When considering healthcare RPO partners, look for capabilities that will add value while improving your recruiting processes.

For instance, if your organization is anticipating a merger and requires a solution to swiftly ramp up your current healthcare workforce, talent acquisition services such as social media sourcing, video interviewing and recruitment marketing provide additional value by improving the candidate experience and your position in the talent market.

To determine which value-added services would most benefit you, audit your current recruiting processes and performance to identify where your in-house teams excel and where outside expertise can make a positive impact.

Expect In-Depth Program Analysis and Reporting

You should expect that your RPO partner will provide you with a complete analysis of your healthcare recruitment processes’ strengths, weaknesses and challenges.

This assessment should include:

  • Detailed process mapping before, during, and after implementation
  • Understanding gaps and opportunities within your program
  • Visibility into real-time workforce data and analytics

From this deep-dive, your RPO partner should develop customized solutions for your immediate and long-term talent needs and consult with stakeholders on ways to improve your program.

Recruiting metrics and analytics are powerful tools. When an RPO partner dives into the data, they can provide guidance on big and small recruitment changes that will lead to improved hiring metrics.

Expect Accountability and Transparency

Accountability and transparency are key factors in a successful RPO partnership. As the client, you should be able to ask your RPO partner any question you can conceive of, and in turn, your RPO partner should be able to provide you with satisfactory answers.

To ensure accountability, your RPO provider should work with you to establish mutually agreed upon Service Level Agreements (SLAs). SLAs should be established during the partner selection process, and their governance should be clearly outlined during contract negotiations.

SLAs establish how you and your RPO provider will work together and can cover items like terms, liability, billing and payment, confidentiality, solicitation, insurance, warranties and employment relationships.

Before you draft SLAs, you need to assess your recruitment performance prior to working with your RPO partner. This can prove challenging, especially if your internal recruitment processes do not track and benchmark data. If you do not have benchmarks, your healthcare RPO provider should be able to provide benchmarking data based on their work with other clients in the healthcare space.

When setting up SLAs, make sure they are realistic, achievable and meet your organization’s recruiting needs. RPO SLAs often include the following metrics:

  • Time-to-fill: Time-to-fill measures how long it takes recruiters to fill an open role.
  • Hiring manager satisfaction: You can measure hiring manager satisfaction through a survey, for example.
  • Candidate experience and satisfaction: You can conduct surveys with every candidate, not just ones who are hired, to better understand the impact of your candidate experience.
  • Interview-to-offer ratio: This metric is the ratio of the number of interviews to the number of candidates that are given an offer and can help determine the quality of candidates.
  • Diversity of candidate: This is the percentage of candidates considered or self-identified as “diverse,” and can be used to track different groups of candidates like women or veterans.

The right mix of service-level controls can help ensure a successful partnership.

Expect to Be Supplied with References

You would not hire a doctor or nurse without checking their references, and the same applies when partnering with an RPO provider. An RPO partner can always tell you about their solutions, skills and expertise. However, to get a real sense of an RPO partner’s true capabilities, you need to speak to their clients and hear success stories directly.

You should receive references from organizations that the RPO partner has worked with, ideally in the healthcare space, that have dealt with similar challenges as you, so you can really understand how the RPO has delivered effective solutions in the past. For example, if your organization is having a difficult time sourcing healthcare talent in a rural community, your RPO partner should provide you with a reference that illustrates their ability to source candidates in lean talent markets.

Expect Effective Recruiting Technology

Your RPO partner should be deploying the most current and best-in-class recruiting technologies to access and leverage data, attract and source candidates, automate recruiting processes, and screen and shortlist candidates. For instance, an RPO partner equipped with an experienced team of recruiters trained in using advanced tools and resources can use AI and predictive analytics to quickly find candidates with the skills and qualifications you’re looking for.

The right talent acquisition technology tool can also help provide a superior candidate experience, including:

  • AI-enabled sourcing tools help recruiters find the best candidates faster.
  • A streamlined application process can allow candidates apply with just one click.
  • Personalized recruitment marketing tools like chatbots, SMS messages, email campaigns and individualized landing pages provide candidates with the consumer-like experience they have come to expect online.

Healthcare RPO partners should also be able to help you quickly implement the best recruiting technologies into your talent acquisition program that can save both time and money.

Healthcare RPO from PeopleScout

Selecting the right RPO partner is a big decision for any healthcare organization and outsourcing recruitment processes can have a tremendous business impact. Your healthcare RPO partner should possess the ability to understand the capabilities and reach of the latest emerging talent tools can provide both significant costs savings and a competitive advantage and provide you access to talent, quality of hires, process efficiencies and workforce management support.

Learn more about PeopleScout’s healthcare RPO serivces by connecting with one of experts.

Talent Insights Inform Search for Executive Leader for Healthcare System

Talent Insights Inform Search for Executive Leader for Healthcare System

Healthcare Recruiting

Talent Insights Inform Search for Executive Leader for Healthcare System

A non-profit healthcare system engaged their RPO partner, PeopleScout, for talent insights to boost their search for a highly competitive new Chief Analytics Officer.

Situation 

A non-profit healthcare network was seeking a Chief Analytics Officer based in a large city in the United States where they’re headquartered. Other requirements for the role included experience in AI and data management platforms.  

They had engaged an executive search firm but weren’t seeing results. As their long-term healthcare RPO partner, PeopleScout’s dedicated talent advisory practice stepped in to provide the healthcare provider with an in-depth analysis of the talent market to support a more targeted search. 

Solution 

The PeopleScout Talent Advisory team worked with the client to define the most pertinent job characteristics and review job skills and compensation. This ensured that the role was aligned with the capabilities in AI and data management that the client required.  

Our analysis focused on the talent market in their required location to show the size of the talent pool that possessed their required skills. We were able to determine that there were less than 10 potential candidates based in that city that had all the skills they were looking for. The report we produced showed how adjusting their requirements would affect the size of the available talent pool.  

Here’s what we found: 

  • We identified candidates living in other cities that were currently commuting large distances during the week for work. This helped the client see if they relaxed their location requirement or were open to a flexible work arrangement (i.e., two-weeks working in the city, two-weeks working at home), they could grow their talent pool significantly. 
  • We uncovered a pattern that most people in similar roles had a tenure of approximately two to three years before switching jobs, usually after delivering a data transformation project. We advised the client that people who were only a year to 18 months into their current role may be less interested in switching. The optimum level of two to three years of tenure would make candidates more open to moving. 
  • We noticed a pattern that many people with the relevant skills were working as independent consultants. This revealed an additional pool of candidates who might be interested in going back to full-time work which the client hadn’t considered.  
  • We also found that many of the qualified candidates worked in financial services and might be receiving salaries on the high end of the spectrum. This helped the client reset expectations around the compensation range in order to secure the right person for the role.  

Results 

The talent insights we shared showed the client that flexing their requirements for the position could expand the talent pool in different ways. This data helped the healthcare company to make more informed decisions about the sourcing strategy for their new Chief Analytics Officer. 

At a Glance

  • COMPANY: Healthcare Network
  • INDUSTRY: Healthcare
  • PEOPLESCOUT SOLUTIONS: Talent Advisory
  • ABOUT THE CLIENT: The client is an American non-profit healthcare company and integrated delivery network.

Securing Software Engineers for a Healthcare Tech Pioneer

Securing Software Engineers for a Healthcare Tech Pioneer

Tech Recruiting in Healthcare

Securing Software Engineers for a Healthcare Tech Pioneer

A global healthcare technology company turned to PeopleScout to find much-needed tech talent to grow their healthcare data and analytics services.

97 % Offer Acceptance Rate
Implemented SMS Text Screening
Implemented SMS Text Screening
20 % Exceeded Submittal-to-Interview Ratio Goal by 20%

Situation 

A healthcare technology company approached PeopleScout to help with their hard-to-fill software engineering and niche technology positions. With demand for tech and digital skills on the rise across all industries, the client was struggling to fuel their business growth.  

Solution 

PeopleScout implemented a partial-cycle recruitment process outsourcing (RPO) program for the client. Our dedicated delivery team consisted of tenured recruiters who had at least five years of software engineering recruitment experience. We established a multi-channel sourcing process, screening, scheduling interviews and completing the hiring process for the client.  

The PeopleScout RPO team partnered closely with hiring managers to brainstorm creative solutions to particularly hard-to-fill roles and to provide talent intelligence and detailed compensation information that they could take back to their leadership. 

We also implemented new technology that allowed us to screen candidates via two-way SMS texting to speed up screening time, improve candidate engagement and reduce fallout. Hiring manager surveys were also rolled out to gain more feedback, and reporting and analytics were set up to measure SLAs. 

Results 

PeopleScout effectively hired candidates for the organization’s niche technology roles, while exceeding time to fill expectations. Our recruiters thoroughly sourced against the role requirements, assuring candidates met the client’s standards. As a result, 77% of hires made were externally sourced candidates, and we increased the submittal to interview ratio to 54%, exceeding our target by over 20%. The offer-acceptance rate grew to 97%, well above the industry average of 70%.  

Following this success, the RPO program expanded from roles within the U.S. to also cover recruiting tech roles in the UK and Ireland. 

At a Glance

  • COMPANY: Healthcare technology company
  • INDUSTRY: Technology
  • PEOPLESCOUT SOLUTIONS: Recruitment Process Outsourcing, Affinix
  • ANNUAL HIRES: 250
  • LOCATIONS: U.S., expanding to UK and Ireland
  • ABOUT THE CLIENT: This healthcare technology company provides data, analytics and software for healthcare and government social services. The organization works with healthcare providers, health plans, governments and life sciences companies to get more from their health data, using artificial intelligence, data analytics, cloud computing and other advanced information technology.

Healthcare Talent Shortage: Changing Demographics, Growing Demand & Shifting Skills

As the world of work transforms, the healthcare industry is at the epicenter of change. The industry is growing rapidly and facing a healthcare talent shortage and skills gaps. At the same time, the accelerating pace of medical and technological advancements means medical professionals must constantly adapt to new breakthroughs and changing expectations. Talent acquisition and HR professionals need to be ready to meet the growing challenge. To do so, they must understand the full picture of the healthcare talent landscape.

Is a Generational Change Creating a Healthcare Talent Shortage?

The industry is facing challenges in both supply and demand. Hospitals and Health Networks magazine calls the generational change “the most powerful force operating in our health system right now.”

On the supply side, the baby boomer generation is reaching retirement age, and according to Becker’s Hospital Review, one-third of practicing physicians are more than 55-years old and nearing retirement. Replacing doctors and surgeons who have decades of experience is challenging, as those earlier in their careers lack the years of training, education and on-the-job hours. The next generation in the workforce, Generation X, is relatively small. While the millennial generation is the largest generation in the workforce, the oldest millennials are nearly 40 years old, and some of Gen Z are too young even to start medical school. As baby boomers retire, these generations will have to fill that gap.

Dig Deeper

How RPO Can Solve The Top Challenges In Healthcare Talent Acquisition

On the other side of this equation, the overall population is aging, with 10,000 Americans turn 65-years-old every day. Caring for an aging population will require even more healthcare professionals.

As baby boomers age, the demand for healthcare is increasing, including home health services, long-term and aged care. Chronic conditions like heart disease, diabetes, cancer are becoming more common with nearly half of the American population suffering from a chronic illness. According to a study JAMA Internal Medicine, , baby boomers have a longer lifespan but higher rates of hypertension, high cholesterol, diabetes and obesity. This means the largest generation to reach retirement age will likely also need more healthcare than any previous generation

The Healthcare Talent Shortage

The aging baby boomer generation is fueling industry growth. The healthcare industry is predicted to be the largest driver of growth in the U.S. economy through most of the next decade. Yet, most healthcare organizations continue to experience strains as the healthcare talent shortage increases. This is a multi-pronged issue driven by increased demand, retirement, burnout and a lack of new healthcare professional entering the field complicating healthcare recruitment.

And experts predict the healthcare talent shortage will only get worse. The Bureau of Labor Statistics (BLS) projects that the country will face a shortage of 195,400 nurses by the year 2031. While doctors and nurses are the most visible employees in the healthcare industry, growth in the industry will impact positions throughout the sector. An increase in patients, hospital visits and appointments will call for more support staff, like clinic support, medical technicians, billing and coding professionals and even non-clinical hospital staff like janitorial and food service.

Laboratory technicians are facing many of the same labor challenges as physicians and nurses. Many are reaching retirement age, and retirements are expected to accelerate. Replacing them will tough, as the number of students graduating from laboratory technician programs is declining.

Plus, due to a shift towards home-based care, home health aide shortages are projected to grow significantly. The BLS predicts that the number of openings for home health and personal health roles will increase 37% by 2028.

Healthcare Talent Shortage

Less visible roles are also impacted by healthcare talent shortages. The medical coding profession has been plagued for years by a shortage of coders. Job growth for the position accelerated after the implementation of the Affordable Care Act, and experts expect that growth to continue along with the rest of the industry.

A Transforming Workplace

In addition to the healthcare staffing challenges, the healthcare industry is not immune to the changes impacting organizations across the country—like the digitization of services and the growing gig economy. The healthcare industry is always experiencing change due to technological advancement, medical research and new regulations. However, to adapt to these trends, organizations will need to seek out talent in different ways and find people with new skill sets.

Use of telemedicine and virtual care expanded during COVID-19 and are continuing to rise as a way to improve access. Jobs in these types of workplaces require different technology and communication skills than more traditional hospital and clinic jobs.

While many think of the gig economy as a place for creatives or rideshare drivers, the contingent workforce is taking on a greater role in healthcare. SIA reports that hospitals are turning to contract physicians and traveling nurses to deal with the talent shortage. Some practitioners are turning to this freelance work to boost their earning potential, and the system helps increase staffing at rural healthcare facilities that struggle with healthcare recruiting.

Large hospitals are also bringing in a greater share of doctors due to consolidation within the industry. Since 2019, over 100,000 private practice doctors have transitioned into employees of larger corporate healthcare organizations. Nearly three-quarters of physicians are part of larger healthcare systems in the U.S., a record high.

A Necessary Response

To remain competitive in this challenging talent landscape, healthcare organizations must take a proactive approach to planning their workforces, sourcing and recruiting talent, retaining workers and appealing to millennials and Generation Z workers who will fill the roles of retiring baby boomers.

Areas across the United States are already feeling the impact of the healthcare talent shortage, and experts say the pressure will only grow. Organizations need to respond now to prepare. Here are some steps companies in the healthcare industry should take to manage skills shortages and how technology can help.

Skills Shortage in Healthcare: Tackling the Lack of Healthcare Professionals

Healthcare organizations face a number of unique recruitment challenges compared to other industries. Finding and attracting candidates with the specific clinical, medical, and administrative skills required is an ongoing battle, especially for critical roles like nurses, physicians and specialist practitioners. With a large portion of the healthcare workforce reaching retirement age, an older population demanding more healthcare services, and new technology shifting the skills needed in the healthcare workforce, a skills shortage in healthcare is growing rapidly.

Healthcare organizations must plan now for the future by undertaking comprehensive workforce planning, establishing a robust talent pipeline, focusing on retaining their current workers and appealing to the younger generations to step into those roles.

The Healthcare Talent Landscape

The healthcare industry faces an uphill battle when it comes to recruitment and staffing. A perfect storm of factors, including an aging population, workforce shortages across multiple disciplines, and a global pandemic that has stretched resources to the breaking point, has created immense challenges. Healthcare organizations must navigate a highly competitive recruitment landscape to attract and retain top talent. Additionally, new healthcare roles are emerging that require specialized skill sets, further complicating hiring efforts. In this constantly evolving climate, understanding the current healthcare recruitment landscape is crucial for organizations looking to build a strong, sustainable workforce.

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How RPO Can Solve The Top Challenges In Healthcare Talent Acquisition

Demographic Shifts Are Increasing Demand

People are living longer, and as Baby Boomers age, the demand for health services, including home health services, long-term and aged care, is increasing. Chronic conditions like heart disease, diabetes, cancer are becoming more common with nearly half of the American population suffering from a chronic illness.

An older and sicker population is putting pressure on healthcare workers, especially those in clinical roles like nurses, physicians, health aides and therapists. Plus, demand is high for cardiovascular technologists, clinical lab technicians and other allied healthcare professionals who operate specialized equipment to diagnose and treat chronic conditions. Attracting and retaining top healthcare talent has never been more competitive, with demand increasing in both acute care and community settings, including large health systems, public health organizations, tech companies moving into healthcare, travel nursing firms, long-term care facilities, the military, healthcare research, mental health agencies, insurance and managed care companies, and even other industries.

Talent Supply Can’t Keep Up with Demand

The increase in demand seems to coincide with a healthcare talent shortage. The Bureau of Labor Statistics (BLS) projects that the country will face a shortage of 195,400 nurses by the 2031. Plus, a shift towards home-based care means the shortage of home health aides is projected to grow significantly. The BLS predicts that the number of openings for home health and personal health roles will increase 37% by 2028.

With home-based and long-term care growing, the U.S. healthcare system is also experiencing shortages for occupations like physical therapists and occupational therapists. Plus, these facilities find recruiting and retaining nursing assistants, care aides and direct care workers increasingly difficult due to low wages, demanding work and limited career advancement opportunities.

Retirement and Burnout Create Retention Issues

The challenges surrounding the skills shortage in healthcare are exacerbated by healthcare professionals exiting the workforce in droves. Experienced nurses, doctors and other clinicians are retiring and leaving patient care roles, resulting in the loss of crucial knowledge and experience for healthcare systems.

According to the American Association of Colleges of Nursing the median age of a Registered Nurse (RN) is 46 years old. Plus, more than a quarter of RNs report they plan to retire or leave nursing over the next five years. The rates of RN turnover in the United States have ticked up over recent years, growing from 17% in 2017 to 26% by 2021.

Driven by the strain of the pandemic and a shrinking workforce, many healthcare workers are experiencing burnout. According to the Medscape National Physician Burnout and Suicide Report, the average burnout rates for nurses and physicians in the US is 40%.

Burnout also has an impact on patient care. According to Nursing Times, about half of midwives say they’re afraid of making a mistake because they’re exhausted.

Innovation is Shifting the Skills Shortage in Healthcare

As care delivery models have shifted, there is a growing need for nurses and staff with specialized skills and experience. Use of telemedicine and virtual care expanded during COVID-19 and is continuing to rise as a way to improve access to healthcare. Digital disruptor Amazon recently completed an acquisition of One Medical and is now offering a new model of digital “concierge” or “membership” healthcare.

In addition, new innovations in digital health (think personal health tracking apps or wearables), med-tech, genomics, precision medicine, AI and more are transforming healthcare and shifting the necessary skills in the healthcare workforce.

Rising Labor Costs are Adding to the Strain on Healthcare Organizations

With nationwide labor shortages and inflation, healthcare organizations face rising costs for salaries, benefits and contract staffing. In all industries, workers are requiring more competitive compensation, benefits and perks to be enticed. This puts a particular strain on healthcare organizations where staffing is literally a matter of life and death.

High turnover among certified nursing assistants drives up costs for long-term care facilities and impacts quality of care. In order to keep high patient care standards and staff shortages, the U.S. healthcare system relies heavily on costly contract and travel nurses and other providers which further drives up labor costs for hospitals. In fact, contract labor expenses have risen more than 250% over the past three years.

Addressing the Skills Shortage in Healthcare

Addressing the skills shortage in healthcare requires a multi-pronged approach—improving workforce planning, enhancing recruitment and retention efforts, and elevating the perception of healthcare careers for the next generation.

Workforce Planning

To effectively respond to the changing healthcare talent landscape, organizations must take proactive steps to plan for their future needs. The future will look different for every organization. Healthcare organizations in Florida and the Southwest, where there are large numbers of retirees, will have different staffing needs than organizations in trendy urban areas in the Pacific Northwest or East Coast where the population tends to be younger and healthier. Region also makes a difference in attracting candidates, as rural health systems are already struggling to fill positions. Healthcare organizations should know what their needs will be in the coming years and what challenges they’ll face attracting workers.

Data analytics is a valuable tool for workforce planning. The American Hospital Association recommends that organizations analyze data including current workforce demographics, potential future workforce requirements, and factors impacting the data, like the increasing popularity of walk-in clinics, telehealth services and digital healthcare models. Predictive and prescriptive analytics tools can help healthcare organizations plan for future needs and evaluate how different decisions will impact those hiring needs. According to SHRM, this type of workforce planning can save money by eliminating issues with understaffing and overstaffing. Predictions can provide organizations with a clearer view of how and when different talent gaps will impact them. Armed with that information, healthcare organizations can make informed decisions when it comes to forming partnerships, increasing retention and reaching out to younger workers.

Building Talent Pipelines

A key strategy for combating the the skills shortage in healthcare will be convincing more people to enter the healthcare industry. Too often, HR leaders at organizations only think of potential candidates through a narrow lens. They focus on the people who already work in the industry and who already have the education and skills to be a nurse, medical technician or phlebotomist. There aren’t enough people already in those pipelines to fill the talent gap. Healthcare organizations need to think broad and start focusing on the young people who are considering a career in healthcare. They need to start marketing to these candidates earlier than ever before.

The American Hospital Association recommends that healthcare organizations establish community pipelines by partnering with high schools, colleges and other academic institutions. Through these partnerships, healthcare organizations can start engaging with future candidates earlier than ever and help drive young people to the healthcare industry. Partnerships can also create more candidates in a geographical region with a specific set of skills. According to the American Association of Colleges of Nursing, a partnership in Minnesota between the University of Minnesota and the VA Healthcare system helped expand enrollment in the university’s nursing program and increased the program’s focus on veteran care. The program ensures more graduates in Minnesota with the skills necessary to care for veterans. Healthcare organizations should form these partnerships strategically, using their workforce planning predictions to understand which types of positions will have the greatest demand and where these partnerships can have the biggest impact.

skills shortage in healthcare

Focusing on Retention

HR leaders at healthcare organizations are grappling with the stresses the skills shortage in healthcare is creating for their current employees . Understaffing creates larger workloads and longer hours. According to CareerBuilder, 70% of nurses say they feel burnt out in their current job and more than half rate their stress level as “high.” According to Medscape, only 56% of nurses would choose their career if they had a chance to start over again. If current health care workers are stressed, burned out and regretting their career choice, that could harm the talent pipeline. Healthcare organizations cannot afford to lose younger nurses due to stress or burnout.

Healthcare organizations will have to face the challenges of burnout head on to retain their workers. Healthcare Dive offers tips for ways HR professionals can help, including making your staff aware of the signs of burnout and teaching self-care strategies. Wellness among the healthcare workforce must be a priority. Some healthcare organizations have created quiet rooms stocked with yoga mats and massage chairs where nurses can go during their shifts to take a break. CareerBuilder recommends offering a flexible work environment, encouraging exercise, establishing an open-door policy, offering mental health tools and focusing on continued education.

While an expensive option, contract healthcare providers can also help ease the burden on understaff facilities. PRN, or “pro re nata,” positions are growing in popularity throughout the entire healthcare industry. The positions are typically part-time, as needed, and many healthcare workers are turning to these roles for the flexibility, rather than taking full-time positions. Healthcare organizations can use PRN workers to cover understaffed shifts, which can lift some of the burden on permanent employees.

Appealing to Younger Workers

Healthcare organizations are competing for the best of the limited talent pool. To succeed in attracting candidates, healthcare organizations must build a strong employer brand and meet the needs of millennial and Generation Z workers.

What do millennials want? Countless writers have tried to answer that question, but Harvard Business Review reports millennials aren’t necessarily all that different from older generations. They want good managers, interesting work and the opportunity to learn and grow. Like many other generations, they want to make a positive impact and help solve social and environmental challenges. By its nature, a career in healthcare can provide that. One thing that does set millennials apart from earlier generations is an increased debt burden due to higher education costs. Some financial experts recommend that organizations consider new benefits packages that offer student debt repayment to lure millennial workers.

As for Generation Z, the oldest members are just starting to enter the workforce, but experts say to be prepared for a cohort of workers well versed in technology. According to Forbes, in addition to being technologically savvy, members of Gen Z are also entrepreneurial and serious-minded after watching the impact of the Great Recession, so organizations should expect creativity and offer continuing educational opportunities. Harvard Business Review recommends reaching Gen Z candidates where they are—on mobile devices. Authenticity and personalization are also important to this segment of the workforce, as they’ve grown up bombarded with personalized advertisements online.

Engaging an Expert to Tackle the Skills Shortage in Healthcare

As they work to manage the growing skills shortage in healthcare, healthcare organizations are turning to experts in healthcare RPO, MSP and Total Workforce Solutions for healthcare staffing support. As you plan for the future, a talent partner can help provide a view of the whole talent spectrum, finding the right mix of both full-time and contingent workers. As the gig economy grows in popularity and more healthcare workers turn to contingent work, a talent acquisition partner can also ensure compliance on legal issues. Healthcare organizations should seek out partners with the right experience to tackle the specific needs of the industry.

A partner with a depth of data analytics experience can help develop a unique plan that addresses the needs, region and demographics of your individual healthcare organization. Data expertise can also help organizations determine why current employees leave and predict which changes could make the biggest differences in employee retention.

Healthcare organizations should also look for a partner with strong experience in building candidate-centered application processes and employer branding. As healthcare organizations compete for talent, a candidate-centered process and strong employer brand will help bring in the millennial and Gen Z workers.

Conquering Top Challenges in Healthcare Talent Acquisition

Conquering Top Challenges in Healthcare Talent Acquisition

In the past 5 years, the average hospital turnover has been 105% of its workforce yet the total median HR funding for healthcare organizations is around 1% of operating costs. There are serious consequences of inadequate staffing and declining investment in talent acquisition such as degradation of patient care, potential “failure to rescue,” as well as internal job stress and higher attrition rates that could be detrimental to the organization’s brand and bottom line.

In this ebook, we explore the top challenges in healthcare recruiting, including:

  • Talent shortages
  • Advancements in talent technology
  • Evolving candidate expectations

Plus, you will learn how an RPO partner can help your organization overcome recruiting challenges in healthcare by applying expertise, experience, technology and innovative solutions to your talent acquisition program.

Healthcare RPO

PeopleScout RPO Solutions for Healthcare

Hiring the right talent is critical for any healthcare employer looking to stay ahead of the challenges facing today’s healthcare industry.

Download this fact sheet to learn how a recruitment process outsourcing (RPO) from PeopleScout can help your healthcare organization stay ahead of talent scarcity challenges.

Learn more about PeopleScout’s healthcare talent solutions.

Answering Your FAQs on RPO 

The terminology and processes involved in the world of RPO may seem unfamiliar. To gain a better understanding of how RPO can help improve your healthcare recruiting program, we answer some of the most frequently asked questions in healthcare RPO. 

Q: What Does RPO Stand For? 

A: Recruitment Process Outsourcing (RPO) is a type of business process outsourcing (BPO) where an external organization (RPO provider) supports an employer’s talent acquisition function by assuming responsibility for portions or all facets of talent acquisition for some or all of an employer’s hiring needs. 

Q: What are RPO Companies? 

A: Recruitment process outsourcing companies provide outsourced talent acquisition services for professional and non-professional positions to solve compliance, scalability, cost, quality, or other recruiting challenges. By assuming all or some portions of an organization’s recruitment functions, RPO companies improve recruiting effectiveness, reduce turnover and enable strategic growth. 

Q: What is an RPO Provider’s Role During an Engagement? 

A: During an RPO engagement, an RPO provider’s team works closely with their client’s talent acquisition and HR department to learn the organization’s long-term talent acquisition strategy, hiring challenges and objectives. The RPO provider then designs a customized recruiting program to support the client’s specific needs. 

Q: RPO vs Staffing Agency, What’s the Difference?  

A: RPO providers manage a client’s end-to-end recruitment cycle, operating as a trusted partner and advisor. An RPO provider’s primary goal is to deploy a recruitment strategy that attracts, sources and hires high-quality permanent employees. Staffing agencies operate on a more reactive recruitment model, often hiring temporary or temp-to-perm talent on a requisition-to-requisition basis.  

Q: What is the Difference Between MSP and RPO? 

A: An RPO solution traditionally supports all responsibilities associated with permanent hiring within an organization, such as candidate sourcing, screening, candidate assessments, interviewing, and building talent pipelines. A Managed Service Provider’s (MSP) services are focused on contingent workforce management practices such as payroll management, staffing vendor management, procurement, and contingent workforce compliance expertise. 

Q: What Are the Benefits of the RPO Recruitment Model?  

A: 

  • Scalable Recruiting Resources: RPO solutions provide greater recruitment flexibility through an RPO provider’s ability to scale recruitment resources to match a client’s workforce objectives.  Scalable recruiting resources are ideal for organizations experiencing fluctuations in hiring volume, rapid growth, or who may need additional support to meet hiring demand. 
  • A More Consistent and Standardized Recruitment Process: RPO providers can help an organization better organize and execute its recruitment program leading to a more seamless recruit-to-hire process and consistent and predictable results for job seekers and hiring managers.   
  • Improved Candidate Quality: RPO providers have experience sourcing and hiring talent across all industries and skill types. An RPO provider will home in on more than a candidate’s experience and education to find candidates who best match the client’s company culture and business objectives. 

Q: What is Full-Cycle Recruiting and Why is it Best Managed Through An RPO? 

A: Full-cycle recruiting or “end-to-end recruitment” is a holistic approach to talent acquisition where an RPO provider is involved in each step of the hiring process. From talent pipelining and delivering talent assessments to interviewing, sourcing, screening, and candidate selection, an RPO provider can support a client’s strategic talent acquisition goals through the entire recruitment lifecycle.  

Q: What is Project-Based RPO? 

A: Project-based RPO is a type of RPO solution where a client outsources its recruitment needs on a project-by-project basis. Project-based RPO is ideal for organizations looking to meet short-term talent acquisition needs without committing to long-term engagements. Project-based RPO can also help support one-off hiring projects where niche expertise is needed. 

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