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Managing Tight Labor Conditions in the Health Care Industry

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Louise Tremblay | American Express Business Class Freelance Contributor
Summary

Health care companies face an ongoing talent shortage — but organizations have opportunities to safeguard their talent. 

      This article contains general information and is not intended to provide information that is specific to American Express, or its products and services.  Similar products and services offered by different companies will have different features, and you should always read about product details before acquiring any financial product.

      In the past several years, some health care organizations have seen several significant shifts: increased patient demand for personalized service, digital transformation that has spurred organizations to offer remote care, and, of course, the unique stressors of a global pandemic.

      These stressors can affect many aspects of health care, including talent management. Put simply, health care organizations may be struggling to retain their talent – particularly frontline staff, like nurses, who may have left the sector in search of less stressful work. 

      Staff Shortages in Health Care May Undermine Performance and Hinder Growth

      Left unchecked, a health care talent shortage can have several financial ramifications for organizations, in both the short- and long-term.

      A health care labor shortage may limit productivity within health systems, which can cause organizations to miss revenue opportunities from treating more patients. A labor shortage may also drive burnout among existing staff, which may increase the risk of errors that could contribute to expenses. And, faced with a shortage of full-time staff, organizations may look toward health care workforce shortage solutions like travel nurses – and, consequently, may need to pay a premium to secure temporary talent on demand. 

      Lingering labor shortages may also undermine the employee experience, creating a “brain drain” that can impact health care organizations over the long term. As more stressed health care providers leave the workforce – or switch employers to improve their work-life balance — their institutional expertise can leave with them. This means existing talent may have fewer opportunities to learn from seasoned mentors, which could impact employee engagement and motivation at work. 

      Addressing the Health Care Labor Crisis 

      These five strategies may help your health care organization attract and retain top talent.

      1. Discover the organization’s key challenges.

      No two workplaces are alike, and each organization may want to consider devising a talent management strategy that meets the unique needs of its workforce. Organizations can delve deep into the factors impacting recruitment and retention.

      You may consider letting your employees share feedback anonymously and talk to managers about the key challenges facing their teams. This can help leaders identify the top factors impacting the employee experience across the organization.

      2. Look for opportunities to address burnout.

      For health care organizations, burnout can rank among the top factors impacting the employee experience – and employers can address it by taking steps to help employees manage their work-life balance.

      Consider, for example, optimizing staffing schedules to allow for adequate rest between shifts, and allowing employees to set their own work schedules when possible. This added flexibility could help employees manage their responsibilities outside of work, creating stronger boundaries between their professional and personal lives. 

      As more stressed health care providers leave the workforce – or switch employers to improve their work-life balance — their institutional expertise can leave with them.

      Employers may also consider allowing staff to complete some tasks – such as attending meetings or completing administrative work – from home if they prefer.

      3. Embrace automation to relieve the administrative burden on staff.

      Administrative tasks may be unavoidable in health care, but employers have an opportunity to leverage technology to help lighten the load. Consider investing in automation to complete tedious tasks, so staff can spend less time on administrative work and more time interacting with patients.

      This investment could take the form of patient-facing software, such as booking software to manage appointments and send personalized reminders, and communication software to follow up with patients and share educational resources. On the back end, technology could help automate data entry, organize billing, and even support clinical decision-making. 

      4. Foster a caring, empathic workplace culture.

      In addition to tactical strategies that can help enhance employees’ well-being, employers should consider rolling out a strategy to communicate the organization's culture. 

      Consider crafting communications that focus on employee wellness. For example, you can highlight the early signs of burnout and the supports in place to help. Try to communicate the importance of employee wellness throughout the recruitment process – in job listings, interviews, and welcome packages – to help attract talent. 

      Consider pairing these efforts with career development programs that keep talent engaged in their work. Establishing or expanding mentorship programs and enabling access to empathic leadership training may also help your team manage their workforce effectively. 

      5. Evolve your strategy over time.

      Health care changes rapidly, and your health care workforce management strategy can evolve along with your needs. You may consider providing ways for employees to share feedback on current initiatives and suggestions to address key issues in the future. You can also consider investing in technology to help measure key talent metrics across the organization, which can help continually refine and optimize your strategy. 

      The Takeaway

      Taking steps to facilitate an improved employee experience at your health care organization could help keep top talent loyal and engaged at work. Deploying a multifaceted talent management strategy – one that may involve a renewed focus on employee wellness, along with investments in automation – could help your health care organization address the key barriers to attraction and retention, safeguarding your workforce for the future. 

      Photo: Getty Images

      The material made available for you on this website is for informational purposes only and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.

      Published: July 30, 2025

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