The 4 Biggest Challenges for HR in Modern Healthcare

Because their work is crucial to the health and well-being of so many people, healthcare professionals are exposed to enormous stress that is rarely encountered in other professions. And current developments suggest that this pressure will continue to increase.

So what role does the human resources department play?

From small rural doctor’s offices to large urban hospitals, HR departments in healthcare will also feel the pressure. They face challenges such as staff shortages, burnout, and much more. To overcome these hurdles, HR must better understand the causes and connections. Keep reading to learn more about the four biggest challenges HR managers face today and – even more importantly – what we can do about them.

1. Staff Shortages

One of the most pressing personnel issues in healthcare is the recruitment of nurses.

The U.S. Department of Labor (Bureau of Labor Statistics) predicts that by 2026, an additional 203,700 new nurses will be needed each year to fill newly created positions and replace departing nurses. Furthermore, it is estimated that by 2022 there will be a total of 1.2 million job openings in the nursing sector.

Employers who want to hire the next generation of healthcare professionals need to make changes now to appeal to young applicants.

Several factors contribute to this problem. First, the increasing aging of the baby boomer generation is leading to a significant workload for healthcare professionals. This also has internal effects, as many nurses from this generation are retiring and leaving the profession.

In addition, the capacities of nursing education programs are limited. The supply is simply not sufficient to meet the growing demand. This shortage forces employers to differentiate themselves from the competition and attract potential employees.

The problem is further exacerbated by the shift towards a millennial workforce, whose priorities differ significantly from those of their predecessors. Unlike the baby boomers and Generation X, who were mainly concerned with competitive pay, millennials place much greater value on benefits and career advancement opportunities. This means that employers looking to hire the next generation of healthcare professionals must act now to attract young applicants.

Some organizations are already doing this by offering training, continuing education, career advancement opportunities, and attractive compensation packages, including covering tuition fees. In addition, savvy healthcare HR professionals work closely with their marketing teams and use lead generation strategies to capture the attention of qualified candidates.

2. Employee Turnover

In addition to the shortage of skilled workers, hospitals and clinics also face difficulties in retaining their qualified staff. Given the many open positions for medical professionals, it is all too easy for dissatisfied or unhappy employees to resign.

In recent years, the average staff turnover in hospitals has steadily increased. In 2018, hospitals recorded the highest turnover in over a decade, and since 2014, a hospital has, on average, replaced 87.8% of its workforce. And the numbers suggest that the situation could continue to worsen.

This high staff turnover costs hospitals millions. The cost of replacing a nursing position amounts to around $52,100, causing an average hospital to lose between $4.4 and $6.9 million annually.

There are several reasons for this. As mentioned, Millennials expect more than just a salary when starting their careers. If they don’t get what they want from their job—whether it’s further training, opportunities for advancement, or attractive benefits—they are highly likely to quit.

However, the biggest problem could be the supervisors themselves. Maureen Swick, CEO of the American Organization of Nurse Executives (AONE), puts it this way: 'In my experience, employees don’t leave their organizations, they leave their bosses. That’s why leadership in nursing is so important and has a significant impact on employee retention and recruitment. Effective nursing management ensures that their staff feel supported and encouraged.'

The human resources department in hospitals and clinics can help retain nursing staff by responding to the changing demands of the labor market, making organizations more attractive to existing employees, and fostering a good relationship between supervisors and staff.

3. Burnout among Employees

The problem of burnout among employees is closely linked to staff shortages and high turnover.

Burnout is partly caused by staff shortages and increases employee turnover. In addition, burnout affects patient care and safety, as emotional, mental, and physical exhaustion reduces the performance of healthcare providers (doctors and nursing staff).

Recent studies show that the burnout rate among nursing staff is up to 70 percent, while it can even reach up to 50 percent among doctors and specialized nursing staff. These figures reflect an epidemic, the consequences of which include, among other things, a deterioration in patients' health. There is a significant correlation between these burnout rates and an increase in infection rates among patients. Patients also feel the effects of burnout: they report lower satisfaction in facilities with higher burnout rates.

The decreased satisfaction levels could be due to an emotional distance on the part of the caregivers. Burnout often leads to a sense of alienation between caregivers and patients, with caregivers developing unfriendly, cynical, and less empathetic attitudes. This alienation results in them showing less understanding for the patients' needs, leaving all parties dissatisfied with the treatment.

There are additional factors that contribute to burnout, such as feelings of lacking appreciation, being under-challenged, and lacking decision-making authority. Nurses often feel capable of doing more but are prevented from doing so. Workload also plays a major role in burnout rates. Inadequate staffing levels have caused widespread concern, and a survey found that 90 percent of registered nurses reported not having enough time to properly care for and comfort patients and their families due to the high number of patients.

It is a complex problem with serious consequences.

HR managers must be aware of the impact of overworked and insufficiently supported staff on patient care. Currently, there are nationwide efforts for a safe staffing law that would require hospitals to maintain nurse-to-patient ratios within safe limits.

Until then, however, the HR department in healthcare can counteract burnout through reward and recognition strategies as well as training programs to increase employee job satisfaction.

4. Training and Development

As already mentioned, employees in the medical field today are eager to learn new skills and advance their careers.

Promoting employee engagement is therefore a central task of the human resources department in healthcare.

Many nurses seek career advancement, for example as specialized nurses, doctors, or nursing service managers, and increasingly expect support from their employers along the way.

HR managers in healthcare need to work with medical professionals to improve employee engagement, job satisfaction, and thus the quality of patient care.

Providing employees with the career development opportunities they desire can be costly, but the cost of hiring and training replacements is much higher. Employee training is an investment that pays off in the long term – both through employee retention and through increased employee competence.

As electronic, internet-enabled devices are increasingly used in the workplace, hospitals and clinics have begun to switch to digital systems. These are used for patient management, workflow control, patient information and care, as well as communication between professionals and patients.

These are all good pieces of news, but the challenge is that every system requires a certain amount of familiarization and training to be used effectively let alone achieving a return on investment. Such systems therefore need significant support from management to promote acceptance among the employees who will actually use them.

HR managers should be aware that such systems are being used increasingly in the industry. It is also important to note that the implementation of new training programs within one's own organization may fall under the responsibilities of the HR department in healthcare.

Conclusion

The medical field can be demanding and stressful. Healthcare managers who are responsible for leading and supporting doctors and nurses must therefore work closely with the professionals to increase employee retention and satisfaction, thereby improving the quality of patient care. With the right tools, they can help employees become more effective and satisfied in their work.

The high-stress, high-turnover environment of the healthcare industry presents critical challenges—from massive staff shortages and costly burnout to the urgent need for competitive training and career development. HR's role is not just to react, but to proactively partner with medical professionals to boost retention and job satisfaction, directly improving patient care quality. To overcome these hurdles, especially the high cost of replacement ($52,100 per nurse), organizations require strategic, integrated HR tooling. IceHrm provides the vital structure for this. Its modules for Training and Development (addressing skills gaps and career paths), Performance Management (implementing reward and recognition strategies to combat burnout), and Recruitment (streamlining competitive hiring processes) allow HR managers to transition from purely administrative roles to strategic partners, supporting doctors and nurses to be more effective and satisfied in their demanding work.