Save Your Health Center Hundreds of Thousands of Dollars by Improving Your Retention Rate

I can save you $500,000 annually by improving your workforce retention rate.

Workforce shortages are hitting healthcare organizations below the belt, but do you know the real financial impact of high turnover rates?

Let's do some math (some of these calculations are based on the turnover rate affecting a portion of the workforce).

On average, it costs:

✔️$1,500 for each hourly employee replaced

✔️100% to 150% of the annual salary to replace technical positions

✔️Up to 213% of the annual salary for C-Level positions

So, if you have 100 hourly employees and your turnover rate is 30%, it costs you $45,000/year to replace those 100 employees

100 x 30% turnover rate = 30 x $1500 = $45,000/year

If you have a technical position (nurse or hygienist) making $75,000 per year and it costs 150% to replace that person, that costs the health center $112,500

$75k/year x 150% = $112,500

If you have a COO making $150,000 per year and it costs 210% to replace that person, the cost is $315,000 for the health center.

Add that up, and it's nearly $500,000 in direct costs in one year. That doesn't include indirect costs for the new hire, such as low productivity, downtime, errors, higher risk, etc.

The number one strategy for increasing your retention rate is to improve the work culture at your health center. Employees are now looking for employers that:

👉Provide professional development opportunities

👉Are Mission-Driven

👉Align with their personal values

👉Foster a fun work environment (think friendly competitions and team building)

👉Provide them with goals to work towards

👉Give employees flexibility

👉Value work-life balance

👉Have a good compensation and benefits package

Consider reducing your turnover rate if you're looking for ways to reduce costs. Implementing some of the priority items above will retain your employees and attract more high-quality employees.

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