Recent strategic analytics and market intelligence suggests that the demand for nurses will soon reach a 20 year high. By 2020, health systems expect to create another 3.45 million nursing jobs, approximately 26% more in a decade than the two decades prior. Much of this is attributed to Baby Boomers beginning to retire. As these skilled workers begin to retire, health systems are faced with back filling for critical care roles.
Yet in a climate where health systems struggle to obtain enough skilled nursing candidates, health systems are challenged with adopting new strategies. If these strategies aren’t based on sound strategic analytics, they could be less successful. How does a health system implement new strategies to hire more nurses based on strategic analytics?
Using Strategic Analytics to Guide Nursing Hiring Decisions
As nursing demand rises, health systems will need to adopt sound hiring strategies that balance budgetary limitations with staffing requirements. To do so, they will need to rely upon strategic analytics, integrating market intelligence with system strategies. Consider the following ways in which health systems can use strategic analytics to guide nurse hiring decisions:
• Staffing forecasting. One of the strongest uses of strategic analytics is the ability to forecast the need for additional nurses. Prior to strategic analytics, health systems often hired large numbers of healthcare contingent workers under the premise that they’d need them for the busy season. At times, health systems discovered they had hired too many nursing contingent workers. And sometimes they hired too few, causing hiring managers to hire more nursing contingent workers at the last minute. This meant health systems were often paying exorbitant crisis rates because of a lack of available candidates in brief time frames.
In the past year, based on analysis conducted by RightSourcing’s Strategy, Analytics and Metrics Team, health systems have increased their use of healthcare contingent workers by 41% with no indication this trend will slow.
Using these strategic analytics, health systems are better able to respond to hiring needs in advance, planning for periods when nursing candidates may not be available. Being able to obtain these contingent workers in advance means health systems are better able to obtain the talent they need and less likely to pay crisis rates for qualified nursing contingent workers.
• Market intelligence. Strategic analytics that can give health systems a clearer view of the market is invaluable to nursing hiring decisions.
While nursing job growth is soaring, RightSourcing’s strategic analytics show double-digit wage growth quarter-over-quarter. An analysis of these strategic analytics shows travel nurses are choosing more desirable locations, higher wages, and appealing assignment durations.
This kind of market intelligence enhances a health system’s ability to attract more nurses to their location and provides them the edge over peers in hiring more nurses. Strategic analytics can also be used to determine budget requirements.
• Rate intelligence. As the demand for nurses grows, many health systems have increased their usage of healthcare contingent workers to staff these positions. However, contingent labor programs are often managed by hiring managers who are unaware that the rates they’re paying could be well over market rate.
RightSourcing’s strategic analytics show that market rates have increased by 35%-75% over the course of 2015, reflected in elevated standard billing rates by region.
Using strategic analytics such as these, health systems can gain an accurate picture of the range in wages for a healthcare contingent worker by region. Health systems can use this information to determine whether they can obtain contingent workers at competitive rates. This can directly impact a health system’s budget, saving money on exorbitant bill rates.
As the demand for nurses grows, it will be critical to address this demand based on sound healthcare workforce solutions such as market rate intelligence. Contact RightSourcing today for a free workforce analysis to find out how strategic analytics can guide you through an increase in nurse hiring.