This is not your mother's healthcare system. Patient satisfaction is increasingly prized over volume, and hospitals have become hotbeds for fierce marketplace competition. From nursing shortages (expected to continue through 2030) to sudden increases in patient demand, there are too many variables to have a traditional staffing structure. In today's evolving landscape, successful staffing requires creative solutions.
But, satisfying both patient demands and budgetary requirements isn't as simple as hiring more employees - you need the perfect blend of permanent and contingent staff. And what's more, that blend needs to be responsive to change.
To keep your nursing, clinical, and allied staff right-sized and high quality, you want a partner who knows both the unique need of medical facilities and the ins and out of the current staffing market. That's where a strong Managed Service Provider comes in.
An MSP is an outside organization that collaborates with you to optimize your staffing strategy. Tap an MSP when you need a collaborator to:
A dedicated Managed Service Provider is your teammate in making the best staffing decisions to improve your outcomes. You work together, not just to fill open positions, but to develop a staffing strategy that puts out immediate fires and prevents future ones.
An MSP works with you, from the first job posting to the last onboarding session, to ensure your contingent staff is high quality and best-fit. They take over many of the most time-consuming aspects of the staffing process so you can focus on what matters most: leading your staff and taking care of patients.
Creating the right job description is crucial to finding the right healthcare staff. It takes time to get it just right and to fully define what you need in a temp med-surg nurse or a skilled clinician.
An accurate, thorough job description can protect you against myriad problems:
Healthcare vacancies are tough to fill these days. On average, it takes 85 days to fill an open healthcare position. That's nearly three months of suboptimal staffing levels, which could cost you in overtime, employee burnout, and turnover costs (see below). Each vacancy also results in scheduling headaches and other inefficiencies.
Speeding the staffing process
By contracting out much of the arduous and time-consuming hiring work to a skilled MSP, you can speed up this staffing cycle. An MSP will already have a pipeline of talented, vetted potential staff.
Elevating your organization's employment brand
In healthcare and staffing, traditionally, the doctor and the employer have been kings. But, both industries are moving towards a customer service model. The seat of power is moving from the employer to the candidate, from the doctor to the patient. To thrive in this competitive marketplace, you must provide value and increase both patient and candidate engagement.
The healthcare hiring process is at the nexus of these changes. An MSP is more than just a dedicated staffing agency. They help you improve your employment brand:
In a recent study, 43% of healthcare leaders said the most difficult part of the recruiting process is finding qualified candidates.
Quality is as crucial in your temporary staff as it is in permanent staff. An MSP's indepth, collaborative hiring process improves the caliber of your contingent workforce. A strong MSP knows that each organization defines quality by their own rigorous standards. An MSP works with you to find exactly the contingent workforce you need.
Across all industries, businesses are turning to independent workers to increase flexibility and agility. The healthcare industry is influenced by everything from large-scale political systems and global health changes to area wellness trends and local layoffs. So, it's particularly susceptible to unpredictable fluctuations in demand.
Along with anticipating what changes may be around the bend, the key is to remain flexible and responsive to changing staffing needs.
An MSP allows you to do just that:
Turnover can make your employees unhappy and drive up your staffing costs. This, in turn, can lead to more turnover. MSPs can absorb the cost of lost contingent employees, help you reduce turnover rates, and respond quickly when turnover does occur.
Absorbing the cost of lost employees
The average turnover rate across all healthcare positions is 17.2%. For CNAs, it's as high as 23%. The costs inherent in lost employees are staggering:
The average cost of a single lost bedside RN is $57,000.
When you work with an MSP, they foot the bill for lost contingent employees. The MSP replaces them promptly, ensuring you avoid further costs.
Right-sizing staff to improve existing employee satisfaction
Beyond saving you money, immediately accommodating unexpected vacancies helps prevent turnovers from snowballing.
Staffing issues are consistently ranked as one of the top reasons for turnover. When you partner with an MSP, you always have a dedicated expert with a pipeline of qualified employees to help you accommodate natural staffing fluctuations. This, in turn, keeps both agency and permanent staff happier, reducing.
Staffing shortages don't only impact patients. They are correlated with reduced job satisfaction and increased burnout in nurses. Contingent staff come in when you need them most - when your hospital is short-staffed or when your organization is overwhelmed with an unexpected influx of patients.
No matter what directional changes occur, an MSP helps increase staff satisfaction and productivity:
Beyond substantial time savings, partnering with a dedicated MSP also saves your organization hiring and employment costs.
Saving you in hiring costs.
Increased staffing costs are affecting hospital operators around the country. For example, Hospital Corporation of America (HCA), the largest hospital operator by revenue, recently attributed a year-over-year drop in net income in part to increased labor costs. By speeding the staffing cycle and streamlining the number of vendors you use for staffing, you can reduce these expenditures.
The average new permanent employee costs up to 150% of their annual salary. MSPs reduce labor costs because they allow you to test out many employees before committing to hiring them permanently. This provides a low-cost, low-risk method of ensuring new permanent employees are high quality and well-suited to your organization.
Saving you in employment costs.
Temporary staff helps hospitals avoid paying the high fixed costs of employee benefits and unneeded hours of work. Even if you pay temporary workers higher wages, you still come out in the black. Many skilled workers, such as travel nurses, enjoy the higher wages, freedom, and flexibility that contingent work allows. It's a win-win.
An MSP absorbs many other costs associated with hiring permanent employees. By working with an established firm, you also can save further costs:
You probably already work with many different staffing and billing vendors. Along with bringing your staffing strategies into alignment with your larger goals, an MSP will help you:
Finally, you can lower your staffing costs by accurately analyzing your available data.
For example, one of Florida's most comprehensive private, not-for-profit healthcare networks sought to reduce labor costs. They analyzed their annual timecard data to suss out room for improvement and savings. The result: an estimated savings between $700,000 and $1.8 million that grew sharply to $3.16 million once they included more extensive data.
By simply looking at the numbers with an informed eye, this healthcare employer was able to save millions.
A dedicated MSP keeps workforce data for you and works with you to analyze what solutions best fit your needs:
Contact us today to find out how Staffency can help you streamline your staffing process!