3 Reasons Why Your Facility Is Losing Money

Is your healthcare facility losing money? Then it’s not alone. Forbes reports that in 2016, several renowned hospitals — including the Cleveland Clinic — saw not only considerable declines but also net losses to their operating margins.

Of course, if this applies to your facility, it’s only logical that you’re looking for a solution that will help control costs. However, it’s important to understand the reasons why your costs are so high in the first place. And some of those reasons might have to do with your hiring practices — especially if you rely on your in-house HR team to recruit new employees. Consider the following points:

1. The cost per hire is relatively high.

According to statistics from the Society for Human Resource Management, in 2016, the average cost per hire was $4,425. That was a significant increase over the year before, which indicates a trend of rising costs. Costs can be high due to several factors including advertising expenses, background checks and aptitude tests, and the costs associated with maintaining a team that focuses on talent acquisition. In contrast, when you work with a staffing agency, you benefit from their vast talent pool that’s often pre-screened, as well as its streamlined processes, recruitment technology and the fact that you don’t have to retain its services full time.

2. Training new hires eats into resources.

New hires may be inexperienced and lack the skills needed to work independently. As a result, your employees have to train and monitor them until they’re ready to work without supervision. When you work with a staffing agency, it makes sure that all new hires possess the skills and experience required to enable them to work independently from day one on the job.

3. The turnover rate in healthcare is high.

In 2018, the average turnover rate was 18.2 percent, and 23.8 percent of new hires moved on within 12 months. There are various reasons for this, but an important one is a lack of cultural fit. When employees don’t feel at home in the organization, they become disengaged, and they lose their motivation. Oftentimes, they wind up looking for employment elsewhere. A good staffing agency is aware of the value of new hires being a good fit for the organizational culture. Because of this, it will study the facility’s culture and assess any candidates to determine whether or not they’re a good match. This helps ensure that new hires are happy in their jobs.

Your healthcare facility relies on its employees to deliver the outstanding care your patients deserve. That’s why it’s critical to ensure you find an affordable way to acquire top-quality hires who can get to work immediately and stay with you for the long term. And the best way to do this is by working with a staffing agency that specializes in healthcare. For more information, please contact us today.


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