Lisa Buffington
Senior Vice President, Retirement & Wealth Services
Burnout, turnover, and workforce gaps have long challenged healthcare—but now they're reaching unsustainable levels.
According to NSI Nursing Solutions’ 2025 report, RN turnover averaged 20.6% from 2020 to 2024,¹ up from the pre-COVID rate of 14%-15%, as found in the AHA Trustee Services 2020 report.² While turnover has eased since the pandemic peak, each nurse departure still costs hospitals about $61,000 in replacement expenses—adding up to millions every year.¹
This isn’t just an HR issue. Staffing instability can affect patient care, tighten budgets, and may increase risk exposure related to staffing challenges. Our recent Healthcare Risk Report suggests that organizations willing to rethink healthcare recruitment and retention beyond just wages may be better positioned in the future labor market.
Workforce strategies for a sustainable future
Turnover isn’t just a staffing number—it can disrupt care delivery, drive up contract labor costs, lower morale, and potentially raise risk by requiring reliance on less experienced staff. To address these challenges, organizations are encouraged to see workforce strategy as both a retention tool and a competitive edge. Here are four key recruitment and retention strategies that many healthcare organizations use to help build a stronger, more resilient workforce.
1. Benchmark with precision.
Labor markets vary by location, and competition for talent is tough. Successful healthcare organizations compare pay, PTO, and benefits not only to national averages but also to local hospitals, clinics, and even non-healthcare employers competing for the same talent. The best benchmarking looks beyond salary to total rewards like health benefits, retirement matching, paid leave, and professional development.
2. Personalize the employee experience.
Healthcare workers come from many generations, roles, and lifestyles. A one-size-fits-all benefits approach may miss opportunities to engage staff. Tailoring benefits and communications—offering flexible options for parents, financial wellness for early-career employees, or professional development for clinicians—can show employees they're valued as individuals. Voluntary benefits and opt-in choices give staff control over what supports them best.
3. Invest in meaningful retention.
Retention often grows from trust, support, and recognition. Flexible schedules, mental health programs, and well-being initiatives can help address burnout. Referral and retention bonuses are commonly used as cost-effective incentives to stay. Financial wellness tools like coaching or student loan help may ease personal stress that can lead to turnover. Organizations that view retention as an investment often see better engagement and loyalty.
4. Develop internal pipelines.
Healthcare’s future depends on growing talent from within. Many strong organizations create career paths that move entry-level staff into specialized roles through mentorship, onboarding, and upskilling. Partnerships with local schools build external pipelines, while internal mobility helps keep promising employees in-house. These efforts do more than fill jobs—they help build a culture of growth and opportunity.
Together, these recruitment and retention strategies can help organizations move beyond reactive hiring toward long-term workforce strength. But strategy alone isn’t enough—it takes the right tools to make it happen.
From strategy to action
Turning plans into results requires infrastructure: gathering data, connecting insights across health and workforce systems, and communicating clearly with employees. The most successful organizations combine strong strategies with tools that bring them to life. For example, organizations may use:
- Analytics platforms that track pay, benefits, and workforce trends in real time
- Integrated health and absence data to spot early signs of burnout or turnover risk
- Financial wellness and pharmacy management tools that reduce stress and help control benefit costs
- Voluntary benefits and digital platforms that make it easy for employees to access what matters most
Marsh McLennan Agency (MMA) provides advisory services and solutions to support healthcare recruitment and retention efforts. Download our Healthcare Risk Report and contact an MMA specialist to learn about how we can help align your workforce strategy with measurable results.
¹ NSI Nursing Solutions “2025 NSI National Health Care Retention & RN Staffing Report,” March 2025.
² AHA Trustee Services “The key role of trustees in nurse retention,” 2020.
