The U.S. healthcare system is facing critical challenges, including nursing shortages exacerbated by demographic changes, rising patient demand, and nurse retirements. To address these pressures, healthcare organizations are focusing on long-term workforce strategies and labor demand models.
These efforts aim to gain better insights into future staffing needs, nurse enrollment trends, and workforce supply, with the goal of building a more resilient healthcare system prepared for the evolving demands of the future.
According to the U.S. Chamber of Commerce, there will be an annual need for 193,100 new registered nurses through 2032. Yet only 177,400 nurses are expected to enter the workforce over the next decade. This shortfall means there won’t even be enough nurses to fill a year’s worth of openings.
Let that sink in.
Also, an aging population and ongoing health reforms are driving millions of new patients into the system, increasing demand for services and further straining healthcare resources.
To tackle these challenges effectively, it’s critical to develop a robust and stable workforce plan. Such a plan will not only help you better allocate resources but also manage staffing needs and adapt to the increasing patient load.
But what exactly is a workforce plan? Why is it so crucial to have one right now? And how can you create an effective and stable one for your healthcare organization? Let’s take a look.
What is a healthcare workforce plan?
A workforce plan is a strategic document that outlines how healthcare organizations plan to manage their employees to meet current and future needs. It acts as a roadmap for ensuring that the right professionals with the right skills are hired and placed in the appropriate roles to meet the organization’s goals.
Key elements of a workforce plan should include:
- Current workforce analysis: What are your current staffing needs?
- Future workforce needs: How will your needs change in response to evolving demand and how have you thought about additions and expansions that will require changes in staffing numbers or skills?
- Recruitment and staffing strategies: How will you attract and hire the right talent?
- Retention and development strategies: How will you retain and develop your employees?
- Workforce optimization: How do you ensure the right staff are in the right positions and balance workloads to prevent burnout?
- Measuring success: How will you assess the success of your plan, and what key performance indicators (KPIs) will you track?
- Continuous evaluation and adaptation: How will you ensure your workforce plan stays aligned with your goals and adapts to changing circumstances?
- Understanding agency usage: How to balance reducing reliance on agency staff with managing increased overtime and incentive use to prevent burnout.
We explore each of these components later when discussing how to build a robust workforce plan for your healthcare organization, but first, let’s look at why having a workforce plan is a good idea.
Why is having a workforce plan so important?
Without a plan, healthcare organizations risk over- or under-staffing, poor patient care, high turnover, and inefficient resource allocation. A workforce plan is not just a necessity in the current healthcare environment; it’s a strategic advantage. Here are eight reasons why creating a workforce plan gives you a strategic advantage.
Optimal staffing levels
A well-crafted workforce plan should come from a data-driven approach. Healthcare leaders should consider factors like future demand for RNs, upcoming changes in hospital capacity, and the impact of new regulations. This analysis allows hospitals to tailor their strategies to their specific needs rather than adopting a one-size-fits-all approach. It’s also important to note that, as you analyze your internal data, it’s also crucial to consider broader local, regional, and national economic trends that could affect your workforce.
Enhanced patient care
When staffing levels are optimized to meet patient demand, your hospital can focus on delivering higher-quality patient care. Adequate staffing reduces staff error, shortens patient wait times, and gives nurses more time with patients.
The result? Improved patient satisfaction and better hospital reputation.
Reduced turnover and improved retention
Employee turnover is costly. According to John Zorbini of Aurora Health System, who spoke to the American Hospital Association, losing a single nurse costs them $85,000. At a turnover rate of 10%, the organization loses $850,000.
A strong workforce plan can improve retention by detailing strategies for keeping employees engaged. These strategies involve addressing workload balance, fostering a positive workplace culture, and providing opportunities for career development.
Efficient resource allocation
Workforce planning helps hospitals allocate resources strategically. By understanding department needs, you can deploy staff effectively to meet demand. However, when nurses are trained for specialty areas, it's important to have a plan to fill gaps left in other vital units. Balanced staffing across all departments is key to maintaining patient care and operational efficiency.
Streamlined recruitment and onboarding
A workforce plan streamlines recruitment and onboarding by clearly defining staffing needs, roles, and timelines. This clarity helps you create precise job descriptions and target your recruitment efforts so that you can attract and retain suitable candidates.
For instance, Linda Kruso, Director of Workforce Planning at Beaumont Health System, who also spoke to the American Hospital Association, mentioned that they looked at why new hire turnover can be an issue, and that they completely revamped their onboarding program by using comprehensive data with their Chief Nursing Officer.
Improved ability to adapt to change
A flexible workforce plan allows you to remain agile in response to the healthcare industry, which is constantly evolving due to regulatory changes, technological advancements, and demographic shifts.
By incorporating dynamic staffing models, continuous skills assessments, and adaptive recruitment strategies, you can maintain compliance, remain competitive, and uphold the highest standards of patient care.
Better compliance and risk management
Staying compliant with healthcare regulations is crucial for avoiding penalties and ensuring patient safety. Workforce planning helps manage compliance by ensuring that staff possess the necessary licenses, certifications, and qualifications and there are enough qualified staff to deliver safe and effective patient care.
Improved organizational performance
Ultimately, a well-planned and executed workforce strategy that helps you achieve all the above benefits improves your overall organizational performance. This results in better patient outcomes and contributes to the hospital’s long-term success, enabling it to grow and continue providing excellent care.
How do you build a workforce plan?
Now that you understand the critical role of a workforce plan, here are six key steps for developing one:
Step 1: Assess your current workforce
Assess your workforce demographics, including retiring staff and new graduates. Monitor internal transitions, especially nurses moving to specialties. This can create skill gaps in critical areas like medical-surgical units. Identify these trends to ensure adequate staffing and support across all departments.
Step 2: Forecast your future workforce needs
To forecast workforce needs effectively, you need to align your workforce planning with your hospital’s strategic objectives and patient care goals. These objectives will help guide your forecasting efforts. For example, suppose your hospital aims to excel in trauma care. In that case, this goal will help anticipate the need for specialized trauma nurses and specific medical equipment you may need. Think about adding additional beds to the hospital or specific departments would be another example.
Next, use demand forecasting to estimate future staffing needs by analyzing patient volume trends, technological advancements, and changes in industry standards. For instance, if your hospital expects more trauma cases due to a growing patient population, effective forecasting will help you determine the appropriate number of trauma nurses needed.
Additionally, determine what skills and competencies your staff will need to meet evolving healthcare demands. For example, if new trauma care technologies are being introduced, you’ll need to train staff to use these technologies effectively.
Step 3: Develop recruitment and staffing strategies
With your current and future workforce needs determined, it’s time to attract qualified candidates. Here are several ways to do this:
- Improve your employer brand: Position your healthcare organization as the best place to work. Clearly define your values and provide a supportive workplace culture that prioritizes growth, recognition, and inclusivity.
- Use international direct hiring (IDH): IDH involves recruiting qualified professionals from other countries for permanent work that increases the overall workforce of the hospital. When there is a gap between supply and demand of professional nurses, this strategy can help hospitals tap into a pool of qualified nurses international to build a more diverse and stronger workforce.
- Create targeted recruitment campaigns: Focus on advertising specific skills and roles through LinkedIn ads, personalized emails, and niche job boards.
- Diversify your clinical pipeline: Go beyond just hiring new grads to address the ongoing nursing shortage. Look into partnering with a trusted ethical recruiter like PRS Global to help improve your long-term workforce strategy. This can also be done by partnering with schools as Duke University of School of Medicine has done.
After detailing how you plan to attract candidates, outline your selection processes, including structured interviews and assessments. Finally, develop an effective onboarding strategy that integrates new hires into your organization. This may include a mentorship program, comprehensive training, and regular feedback meetings.
Step 4: Create strategies for retention
Given the high cost of turnover, which is about 50% before year 2, as you saw with Aurora Health System, investing in a retention program is critical. Here are a few ways to keep employee turnover low:
- Improve job satisfaction by implementing recognition programs, promoting work-life balance, offering competitive compensation, and providing flexible work arrangements.
- Establish programs for ongoing learning and professional development, including training workshops and certifications.
- Help employees advance in their careers and prepare them for important positions by listing the steps they must complete to get there and providing mentorship along the way. This can be done by deploying a preceptorship program to increase retention among staff.
Step 5: Maximize workforce efficiency
To optimize workforce efficiency, focus on effectively deploying staff, implementing flexible scheduling solutions, and using resources better. Let’s delve into these aspects a little more:
- Effective staff deployment: Strategically assign clinical and support staff to various departments and shifts based on patient needs and demand. Use historical data, staff feedback, and workforce management software to guide your decisions.
- Flexible scheduling: Use scheduling tools that allow staff to select their preferred shifts or adjust their schedules based on availability. This approach improves work-life balance and helps manage peak periods by aligning staff availability with demand.
- Efficient resource management: Beyond staff deployment and scheduling, it’s crucial to optimize all hospital resources, such as medical equipment. Make sure equipment is properly maintained and used to avoid any downtime.
- Innovative programs: Look into or create programs that will invest in the nurses development and create clear pathways for career advancement.
Step 6: Determine how you will measure success
Establish key performance indicators (KPIs) to measure the effectiveness of your workforce plan. Track key performance indicators (KPIs) such as desired staffing levels to prevent over or under-staffing, patient satisfaction levels to gauge how well patient needs are being met, and turnover rates to determine the effectiveness of your retention strategies.
Don’t forget to set benchmarks for each KPI to evaluate actual performance. For example, a benchmark for patient satisfaction might be achieving a satisfaction score of 90% or higher.
Step 7: Regularly review and adjust
Implementing a workforce plan is not a one-time activity but an ongoing process. Your workforce plan is a dynamic document that needs regular review and adjustment to ensure it remains aligned with your goals and adapts to changing circumstances.
To make informed adjustments that ensure your workforce plan remains effective and relevant, it’s important that your strategic planning process involves a multidisciplinary team, including finance, HR, and frontline staff and leaders, ensuring a comprehensive approach to workforce planning.
The bottom line on building a workforce plan
Your workforce plan is more than a strategic advantage; it’s a necessity in today’s ever-evolving healthcare environment.
By carefully assessing your current workforce needs, forecasting future needs, continuously refining your recruitment and retention strategies, maximizing workforce efficiency, and tracking
KPIs against benchmarks to measure success, you’ll be more than equipped to deal with current and future healthcare challenges.
Just remember that your workforce plan is dynamic, meaning you need to constantly review and adjust it so that it remains relevant. Do that, and your healthcare facility will be well on its way to sustained success.
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