This week’s graphic highlights data from NSI Nursing Solutions, Inc., and details the current state of hospital turnover and nursing talent retention. Elevated hospital turnover rates have abated at most hospitals. The average hospital’s registered nurse (RN) and all-employee turnover rates have almost returned to 2019 levels, at 18% and 21% respectively. This is quite notable because staffing turnover substantially increased during the pandemic, with many nurses accrediting their departures to dissatisfaction with management, and better pay and more flexible hours elsewhere. This left many hospitals in a labor crisis, with soaring contract labor costs and persistent staffing shortages. Thankfully, these shortages are also improving, with RN vacancy rates nearly returning to pre-pandemic levels. 40% of hospitals had a RN vacancy rate under 7.5% in 2024, a remarkable recovery when more than half of hospitals reported RN vacancy rates greater than 15% in 2023. Health systems have made significant investments in workforce retention in recent years and the fruits of their labor are starting to pay off. Although this meant increasing labor expenses and has led to a “rebasing” of wages, retaining and investing in employees is a more sustainable long-term strategy compared to expensive contract labor and turnover costs.
