5 Ways CHROs Can Solve Staffing Issues in Healthcare
Today's hospital CHROs are in a precarious position, balancing the need to provide exceptional, round-the-clock patient care while struggling with staffing challenges under intense financial pressures. The stakes have never been higher, as the ability to recruit and retain nurses directly impacts patient outcomes and hospital sustainability.
The CHRO balancing act requires strategic foresight and innovative chronic staffing shortage solutions to ensure hospitals can meet the evolving demands of healthcare. Many hospitals relied on travel nurses during the pandemic to ease staffing gaps. By early 2022, the national average pay for a travel nurse was $150 per hour, highlighting the urgent need for more sustainable staffing strategies.
Moreover, the 2024 Cost of Caring Report by the American Hospital Association reveals that hospital labor costs surged over $42.5 billion between 2021 and 2023, totaling $839 billion—nearly 60% of the average hospital's expenses. Hospitals increasingly turned to expensive contract labor to address staffing shortages and maintain care continuity, spending approximately $51.1 billion on contracted staff in 2023.
What can CHROs do to help solve healthcare staffing challenges?
CHROs can significantly improve staffing stability, cut labor costs, and support the continuous delivery of high-quality patient care. Here are five strategies worth considering:
1. Apply Workforce Management Technology
Integrate scalable workforce technology that leverages data analytics to assess staffing needs, predict demand fluctuations, and make informed decisions about nurse allocation and deployment. Also, the technology can be used to build a database of qualified, pre-vetted nurses who can fill shifts as needed.
2. Embrace Flexible Staffing Models
Adopt on-demand workforce solutions that allow quick access to per diem W-2 nurses to fill gaps during peak times or unexpected shortages. Offer flexible scheduling arrangements to accommodate staff needs and improve work-life balance.
3. Develop Nurse Retention Strategies
Create strategies focused on nurse engagement, recognition, and career development to reduce turnover and enhance job satisfaction. For example, establish mentorship initiatives where experienced nurses can support and guide newer staff, fostering a sense of belonging and professional growth.
4. Standardize Nurse Onboarding
Develop a comprehensive and standardized onboarding process that outlines clear steps, expectations, and timelines for new hires, ensuring consistency across the organization. Also, consider workforce management software that automates administrative tasks, such as document collection, scheduling, and training tracking, to save time and reduce manual errors.
5. Promote Workplace Safety
Enhance nurse safety by providing silent duress alarms that easily clip onto scrubs. These geo-fenced alarms enable nurses to call for help discreetly anytime and anywhere within the facility.
A nationwide survey conducted by National Nurses United in 2023, the nation's largest union and professional association of registered nurses, found that 8 in 10 nurses (81.6%) have experienced at least one type of workplace violence in the past year.
Temporary Nurse Staffing vs. On-Demand Nurse Staffing
Although some CHROs may view agency nurses and on-demand nurses as the same, they are, in fact, quite different. By understanding the differences, hospitals can make informed decisions about staffing solutions that best meet their needs.
Temp Agency | ShiftMed On Demand | |
|---|---|---|
Selection | Limited control over the selection and availability of nurses, as the agency provides the staff. | Greater control over nurse selection, as the facility chooses from a pool of pre-vetted nurses. |
Integration | Less familiarity with facility protocols, culture, and systems hinders integration. | More familiarity with facility protocols, culture, and systems enables seamless integration. |
Cost-Effectiveness | Higher overhead costs and long-term contracts make agency nurses less cost-effective. Facilities pay a buyout fee to hire nurses. | Lower overhead costs and no contracts make on-demand nurses more cost-effective. Facilities don't pay a buyout fee to hire nurses. |
Shift Fulfillment | Indirect access to nurses makes it hard to fill open nursing shifts fast. | Direct access to nurses makes it easy to fill open nursing shifts fast. |
Navigating Healthcare Staffing Challenges: Q & A with CHRO Michelle Miller
During a recent Pulse Check webinar, Larry Adams, Chief Nurse Executive at ShiftMed, and Michelle Miller, Chief HR Officer at Carson Tahoe Health, discussed the vital role CHROs play in driving solutions to balance high-quality patient care with workforce well-being.
Larry: What do you consider the most significant healthcare staffing challenges HR teams face today?
Michelle: When I started in healthcare 15 years ago, HR was very textbook—black and white. But as our workforce has evolved, it has pushed us to think more creatively. While policies may be straightforward, the world is not. Each employee has unique needs, encouraging us to find more personalized and innovative solutions across all departments.
Larry: How do you work with different departments to tackle chronic nurse staffing shortages?
Michelle: It's essential to prioritize taking care of each other. I've learned the importance of not being afraid to raise my hand and address issues. To succeed in HR today, you need more than just HR knowledge—you must understand the operations of the entire system and how departments collaborate. Being on the floor, listening, and understanding the challenges firsthand are crucial. Many CHROs inherit long-standing practices, but flexibility is vital to adapting to future needs.
Larry: How does Carson Tahoe successfully address healthcare staffing challenges?
Michelle: One of my first initiatives at Carson Tahoe was reintroducing employee engagement surveys. Many organizations struggle with surveys—they collect data but don't act on it. We took a proactive approach, gathering feedback and aggregating results within two weeks of the survey closing. Leaders shared action plans with their teams, encouraging departments to help address concerns, making staff feel heard.
Additionally, our HR team actively monitors feedback on the units, recognizing that turnover stories may differ between staff and leaders. Understanding our data—whether through surveys, stay interviews, or direct feedback—was crucial in identifying needs. For example, during COVID, we realized employees lacked tools to manage stress, so we provided free subscriptions to the Calm app, which over 60% of staff use. We also strengthened our EAP and offered telehealth mental health services to reduce the stigma of seeking support, allowing staff to access care privately.
Larry: How do you feel about using stay interviews as a nurse retention strategy?
Michelle: Without stay interviews, issues can surface in places like Facebook nurse groups, where frustrated employees voice concerns they feel are unresolved. Implementing stay interviews helps us get ahead of potential problems, whether related to compensation or leadership.
However, leaders must be ready to receive feedback and act on it. To support this, we developed psychological safety training, starting with senior leadership and extending to all managers. Employees often leave because of their bosses rather than pay, so it's crucial for nurses to share feedback openly and for leaders to respond effectively.
Michelle Miller's insights shared during the Pulse Check webinar emphasize the importance of understanding employee needs, fostering collaboration, and being open to new approaches. As healthcare systems adapt to an evolving landscape, CHROs who prioritize proactive engagement, safety, and flexibility will be better equipped to create a sustainable and resilient workforce.
Conclusion
As the healthcare industry continues to face mounting staffing challenges, the role of CHROs has never been more critical. Adopting strategic, flexible, and innovative approaches can address chronic nurse shortages while ensuring high-quality patient care. From leveraging workforce management technology to implementing nurse retention strategies, CHROs have multiple tools to stabilize staffing, cut costs, and enhance the work environment for nurses.
