Aim:The purpose of this article was to demonstrate that health care organisations stand to benefit financially by accommodating the needs of nursing staff.Background: Nurse turnover results in major financial losses in health care, and inadequate staffing resulting from turnover negatively affects patient outcomes, which further drives up health care costs. Strategies to limit nurse turnover are available and crucial in the quest for health care sustainability.Evaluation: Economic theory was presented to underpin evidence from business, education, and health disciplines literature, and from case studies of industry best practices in employee retention. This multidisciplinary analysis was applied to the retention of nurses in health care organisations.Conclusion: Significant reductions in nurse turnover lead to considerable financial benefit to employers. Reductions can be achieved when employers accommodate the needs of their staff. Further investigation of specific incentive models, and the transferability of those models, is needed.
Implications for Nursing Management:Nursing leaders have the opportunity to discover the unique need of their workforces and invest in incentive programmes to fulfil those needs. Incentive programmes may be matched to specific nurse needs to decrease turnover.
K E Y W O R D Scompensation, Human Capital Theory, nursing turnover, supply/demand, wellness, work-life balance attrition of new RN graduates (Silvestre, Ulrich, Johnson, Spector, & Blegen, 2017). The exodus of experienced RN's could be assumed to make this price tag even more astounding.While replacing nurses is costly, operating with inadequate staffing also burdens health care institutions. Shortages of RNs results in high rates of postoperative complications, as well as hospital acquired infections such as pneumonia, urinary tract infections and Clostridium difficile, which are expensive to treat and result in longer hospital stays (Snavely, 2016). In addition, poor RN staffing results in more hospital readmissions, which further drive up hospital operating costs (Snavely, 2016). As the population ages, health care costs are poised to increase dramatically (Juraschek, Zhang, Ranganathan, & Lin, 2012). Health authorities can ill-afford complacency in the face of high nurse attrition rates, nor can they afford to ignore the issues behind attrition, or pretend these issues are only for individual employees to deal with. It is important for employers to acknowledge that employee well-being is strongly intertwined with organisational success.