12 Facts & Statistics That Will Impact The Future of Hiring in The Healthcare Industry
While we here at kununu help companies across all industries with their employer branding, candidate experience, and talent attraction needs, we’re especially interested in understanding, exploring, and learning from high-growth industries like the healthcare industry. Why? Well, as you’ll see more about below, healthcare is far and away the biggest and fastest growing labor market in the whole country and will continue to be for the next 10 years(!) Whether you’re in the healthcare industry, or are just curious about what will impact future hiring in the healthcare industry (so that you can use that knowledge to your benefit), here are 12 facts and statistics to know about the healthcare industry today:
- Healthcare is now the largest employer in the U.S.
- Health care industries and their associated occupations are expected to account for a large share of new jobs projected through 2026, as the aging population continues to drive demand for health care services. For the next 10 years, healthcare jobs are projected to grow 3x faster than jobs in the rest of the US economy.
- Factors such as the aging baby-boom population, longer life expectancies, and growing rates of chronic conditions will drive continued demand for healthcare services.
- Rural areas are being impacted the hardest with health care worker shortages, where it’s historically been harder to recruit doctors and nurses. Lack of proximity to medical schools and healthcare education facilities are likely a contributing factor for this.
- There will be an increase in hiring of foreign-born, non-citizen medical professionals in order to fill the unmet demand for healthcare workers in the U.S.
- Last year, hospitals experienced the highest turnover rate in over a decade ago. Since 2014, the average hospital turned over 87.8% of its workforce.
- Healthcare’s turnover is second worst only to hospitality.
- Age may play a role in turnover rates, especially for primary care physicians in rural areas. Research shows that the turnover rate among younger physicians (i.e., those ages 45 and younger) is roughly double the rate of older physicians; 9 percent compared to 17 percent, respectively.
- The average cost of turnover for a bedside RN is estimated at $52,100 and ranges from $40,300 to $64,000 depending on hospital and location. And some reports estimate that replacing a physician is at least $200,000 but it actually costs more like $800,000 to $1.3 million in recruitment, training and productivity costs, depending on the specialty.
- Doctors are leaving their profession in droves due to professional burnout.
- Even though the turnover rates in the healthcare industry are notoriously high, only 21.6% of hospitals have retention strategies in place for retaining older workers.
- Today’s hospital HR departments are more focused on retaining new hires, as 58.6% of hospitals have implemented new hire retention strategies.