Managing Director, Principal Financial Group®
Turnover rates among nurses are slowly coming down to pre-pandemic levels.1 Which concurs with our research showing that 74% of nurses are satisfied with their current job and only 18% are actively searching for a new job.2
However, there’s still significant shortages as many nurses left the profession during the pandemic.1 Health care systems are left asking what they can do to retain their current team members while recruiting for those who left because of retirement, high stress, and/or burnout.
Now, don’t get me wrong, competitive compensation tops their list when evaluating a new job (80%). But, if you’ve only been using compensation as a recruiting and retention benchmark—you’re most likely missing an opportunity to focus on other things nurses care about such as a culture where they feel valued (69%), incentive pay (57%) and other financial health benefits (52%).
95% of the nurses surveyed said they find their work meaningful, so while it’s fair to say they love their job, many don’t feel the love back. When asked if their employer cares about their financial well-being, just 22% agreed. And only 1 in 3 nurses feel their employer cares about their mental health. This is 45% less than how other health care workers feel.
What can an employer do to improve this outlook?
Such retirement benefits might look like:
And it doesn't stop at retirement benefits. Nearly 40% of nurses say they’d leave for a similar job at another employer for better employer benefits other than retirement benefits. As mentioned before, 52% want financial health benefits. These could include:
So before using compensation as the main recruiting benchmark, it’s important to analyze your workforce and who you are trying to recruit. It may be possible to use and mold retirement and financial health benefits that can best fit their needs and wants. Meeting nurses where they are in their lives beyond compensation can go a long way in helping retention and recruiting efforts.
2The Principal® Retirement Security Survey. Health care participant results, June 2022
FSA/EA - Defined benefit measurements, if applicable, are for the sole purpose of providing the plan sponsor information with respect to their plan or plans evaluated. Related analysis presented is/will be completed based on the plan’s participant data, provisions, and actuarial assumptions and methods incorporated into the DB plans most recent funding and/or accounting measurements. Analysis using different information and at future measurement dates may differ significantly from the current analysis.
The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment or tax advice. You should consult with appropriate counsel, financial professionals, and other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.
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