SUPPLY FACTOR: Significant Shortages of Highly Qualified Registered and Executive Nurses
SUPPLY FACTOR: Significant Shortages of Highly Qualified Registered and Executive Nurses
As the largest health care occupation in the United States, registered nurses held about 2.5 million jobs in 2006. Registered nurses also make up the largest projected shortage area in healthcare. The United States Department of Health and Human Services predicts that more than 800,0000 new and replacement nurses will be needed by 2016. Employment of registered nurses is expected to grow 23 percent from 2006 to 2016. Registered nurses are projected to generate 587,000 new jobs, among the largest number of new jobs for any occupation. The shortage is projected to intensify over the next two decades with 44 states, plus the District of Columbia, expected to have registered nurse shortages by the year 2020. Today, fully 75% of all hospital vacancies are for nurses. These shortages are costing long-term care facilities an estimated $4 billion a year in recruitment and training expenses.
By 2020, the demand for nurses will be 29% higher than the supply. In the same time, turnover and cost-per-hire escalate. It costs $6,029 to hire or replace a registered nurse and almost two months to fill the position. Turnover rate remains high at 10.3%, as well as the vacancy rate at 9.6%. The expenses related to hiring and retaining registered nurses in the United States represent $6.5 million for temporary staffing only – which is more than 50% of all staffing expenses in the healthcare staffing industry.
The reasons for this shortage have been identified as follows:
Low enrollment in nursing schools. The Health Resources and Services Administration projects that nursing schools must increase the number of graduates by 90 percent in order to adequately address the nursing shortage. With an 18.0% increase in graduations from baccalaureate nursing programs since 2006, schools are falling far short of meeting this target. In 2007, more than 40,000 nurses were turned down, despite being qualified for admission, due to shortages in educational facilities and faculty.
Because the number of recently graduated registered nurses has decreased so dramatically over the past two decades, enrollment in nursing programs would have to increase by at least 90% annually to replace those expected to leave the workforce.
This will not be possible because of the following reasons:
The average age in the existing nursing pool is close to retirement. More than 40% of the current nursing workforce is over 50 years old, according to a study in the Journal of the American Medical Association.
Alternative career options have opened doors for those who traditionally pursued nursing as a career. Previously male-dominated professions (i.e., physicians, attorneys, computer science, etc.) are now attracting more female candidates, resulting in a much lower supply of applicants for nursing.
Job burnout and dissatisfaction are driving nurses to leave the profession. In a recent survey, the statistics show that an overwhelming majority of the hospital human resource managers believe that work-related stress is a major factor in the overall nursing shortage, which has resulted in nurses leaving hospital duty, or even the entire profession. The survey showed that work stress and burnout accounts for 85% of the shortage, 76% of the nurses leaving hospital settings and 77% of the nurses leaving the profession.
Technology advancements will demand an extended curriculum in nursing schools and continuing education programs. This will create an additional gap between the active nursing workforce and the nurses who are attending qualification and improvement courses.
Fewer nursing professionals are remaining in patient care. The significant turnover is due to an oppressive nurse to patient ratio, stressful work environment, unsatisfactory wages and better/more attractive opportunities in other professions.
As the largest health care occupation in the United States, registered nurses held about 2.5 million jobs in 2006. Registered nurses also make up the largest projected shortage area in healthcare. The United States Department of Health and Human Services predicts that more than 800,0000 new and replacement nurses will be needed by 2016. Employment of registered nurses is expected to grow 23 percent from 2006 to 2016. Registered nurses are projected to generate 587,000 new jobs, among the largest number of new jobs for any occupation. The shortage is projected to intensify over the next two decades with 44 states, plus the District of Columbia, expected to have registered nurse shortages by the year 2020. Today, fully 75% of all hospital vacancies are for nurses. These shortages are costing long-term care facilities an estimated $4 billion a year in recruitment and training expenses.
By 2020, the demand for nurses will be 29% higher than the supply. In the same time, turnover and cost-per-hire escalate. It costs $6,029 to hire or replace a registered nurse and almost two months to fill the position. Turnover rate remains high at 10.3%, as well as the vacancy rate at 9.6%. The expenses related to hiring and retaining registered nurses in the United States represent $6.5 million for temporary staffing only – which is more than 50% of all staffing expenses in the healthcare staffing industry.
The reasons for this shortage have been identified as follows:
Low enrollment in nursing schools. The Health Resources and Services Administration projects that nursing schools must increase the number of graduates by 90 percent in order to adequately address the nursing shortage. With an 18.0% increase in graduations from baccalaureate nursing programs since 2006, schools are falling far short of meeting this target. In 2007, more than 40,000 nurses were turned down, despite being qualified for admission, due to shortages in educational facilities and faculty.
Because the number of recently graduated registered nurses has decreased so dramatically over the past two decades, enrollment in nursing programs would have to increase by at least 90% annually to replace those expected to leave the workforce.
This will not be possible because of the following reasons:
The average age in the existing nursing pool is close to retirement. More than 40% of the current nursing workforce is over 50 years old, according to a study in the Journal of the American Medical Association.
Alternative career options have opened doors for those who traditionally pursued nursing as a career. Previously male-dominated professions (i.e., physicians, attorneys, computer science, etc.) are now attracting more female candidates, resulting in a much lower supply of applicants for nursing.
Job burnout and dissatisfaction are driving nurses to leave the profession. In a recent survey, the statistics show that an overwhelming majority of the hospital human resource managers believe that work-related stress is a major factor in the overall nursing shortage, which has resulted in nurses leaving hospital duty, or even the entire profession. The survey showed that work stress and burnout accounts for 85% of the shortage, 76% of the nurses leaving hospital settings and 77% of the nurses leaving the profession.
Technology advancements will demand an extended curriculum in nursing schools and continuing education programs. This will create an additional gap between the active nursing workforce and the nurses who are attending qualification and improvement courses.
Fewer nursing professionals are remaining in patient care. The significant turnover is due to an oppressive nurse to patient ratio, stressful work environment, unsatisfactory wages and better/more attractive opportunities in other professions.