Nurse turnover is expensive. When you consider salary and benefits alone, the cost of hiring full-time nurses runs at about $96,000 per year � naturally this will differ by location and specialty. But there are lot of hidden expenses that factor in worth considering.A KPMG study that sampled some 120 hospital professionals including CEOs, chief administrators, COOs, CFOs and HR directors. The study revealed that nurse base wages on average may represent just 57 percent of all-in cost. Let's explore them.
The costs we don't considering when hiring full-time nurses
Because of a national nursing shortage that's depleted availability, facilities are offering generous sign-on bonuses to recruit nurses. It's common to see sign-on bonuses of $10,000 -$20,000 in parts of the country, but that's just the beginning of the hidden costs.Interviewing, drug testing, and physicals for new nurses require expenditures of about $1,750 per candidate, per a thorough breakdown found on nursing.advanceweb.com. Add in overhead payroll taxes, workers comp, unemployment insurance, Medicare, and social security costs and you end up with another $9,675.The benefit package, including healthcare coverage and paid time off which consists of vacation days, sick days, and personal days costs the hospital approximately $20,000 per year for each graduate nurse
Nurse Turnover Costs Add Up
It all adds up. But there's still more. Vacancy, recruitment for new nurses, and marketing or advertisements can cost up to $10,000 per nurse.Plus, consider the cost of training a new nurse to integrate into your facility. The orientation of a new nurse takes about four months. This represents an important cost because the new nurse isn't working at his or her fullest potential during this time. And a nursing preceptor can spend about 25 percent of their time helping with the orientation.Because of the significant time demands on nursing preceptors, inactive working hours for new nurses, including orientation, training can average $42,000 per nurse.When you add everything up � and again, final price can and will vary based on location, facility, and specialty - �hospitals can spend at least $169,049 on each new nurse that they hire.There's no easy fix. Hiring full-time nurses is expensive, but there are alternatives you can use in lieu of hiring full-time nurses. Click here to read the three cost-reductions methods you can use when your facility is short on nurses.If you are ready to hire new nurses and want access to a pipeline of reliable, experienced nurses contact PassportUSA today.