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By: Ber Leary on November 19th, 2024

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5 Biggest HR Challenges in Healthcare

Business Management & Strategy | Best Practices

As a healthcare provider, you’re an integral part of people’s lives, from birth to death, when going through illness and working toward wellness. Every day is a chance to change someone’s life. 

That’s why it’s so important that your team is filled with the right people—not only frontline employees and medical professionals but also the vital support staff who deal with important tasks such as billing, administration, and communication. Every single person on your team plays a role in the overall patient experience.  

This is why it’s crucial to have the right Human Resources strategy in place. Getting HR right is an essential part of building and retaining an outstanding team.  

What is the role of human resources in healthcare? 

Human Resources in a healthcare setting involves a blend of traditional HR duties and industry-specific tasks. This includes:  

  • Staffing: HR teams work on building a talent pipeline to ensure that you always have enough people on hand.  
  • Engagement: HR teams are also responsible for making sure that employees are fitting into their current roles. HR professionals can identify and address issues that might lead to staff turnover.  
  • Compliance: Healthcare HR teams need to understand regulations that affect all employers, plus healthcare-specific issues such as licensing and certification. HR might also help deliver mandatory training when required.  
  • Culture: HR monitors organizational culture to ensure it aligns with larger goals, such as business strategy and patient care standards.  
  • Communication: Finally, HR often acts as a conduit between leadership and employees. They can help ensure that everyone understands the strategy and knows how it will affect them.  

Ultimately, HR’s main responsibility is to create a positive employee experience. A good HR team will work hard to keep your team engaged, encouraged, and focused on delivering an exceptional standard of care.  

What are the top healthcare HR challenges? 

However, this job isn’t always easy. There are many HR challenges in the healthcare industry, as evidenced by the high staff turnover rates in some medical roles. Here are some of the biggest challenges facing HR teams right now:  

1. Recruiting new staff 

Staffing shortages are common in healthcare, especially for skilled, patient-facing positions. For example, a recent study by the American College of Nursing predicts a shortage of over 78,000 Registered Nurses in 2025, plus a need for 29,200 additional Advanced Practice RNs by 2032. In the same time period, we might see a shortage of over 130,000 physicians 

Back office staff are also in short supply. Healthcare providers are often competing with other industries for skilled administrators, accountants, managers, and IT staff. Salary pressures in these industries can make it hard to compete for top talent.  

2. Looking out for employee wellbeing

The pandemic had serious effects on everyone, but especially on healthcare professionals. This has led to extreme stress, which has impacted individual well-being. One 2024 study found that almost all healthcare professionals (including support staff) have experienced moderate burnout in the past year, with 25% reporting burnout so severe that it has affected their work.  

It’s a difficult issue for HR as healthcare employees work in such a high-pressure environment. The challenge is to find ways to mitigate employee burnout, manage stress, and help employees achieve a reasonable work-life balance. Ultimately, HR’s goal is to make sure that all team members feel happy, healthy, and valued.  

3. Retaining existing staff 

Turnover in hospitals peaked during the pandemic in 2021, with organizations losing an average of 25.9% of their total staff. While that number has decreased, organizations are still struggling with high turnover rates: 20.7% in 2023, compared to 17.8% in 2019. For comparison, the average turnover rate for all industries is 13.5%. 

HR’s role is to identify potential turnover risks before they leave and act to mitigate where possible The HR team should also monitor overall engagement levels, encourage stress management, and try to identify cultural issues that might drive away the best talent. Increased retention means less recruitment, which makes life easier for everyone.  

4. Dealing with compliance challenges

Most healthcare organizations are familiar with the challenges of meeting compliance requirements such as HIPAA. On a HR level, this can also mean the challenge of monitoring individual certifications and ensuring that all staff members are qualified for their roles. In a large organization, this might require a lot of effort from the HR team.  

Employers also have to face a complex regulatory framework of local, state and federal laws that deal with things like statutory leave, overtime, pay transparency, and minimum wage. The HR team needs to ensure that you’re following all rules and maintaining the appropriate records.  

5. Supporting new technology

The healthcare industry is adopting Artificial Intelligence at a fast rate. At the start of 2024, 29% of organizations said they were using AI, while 43% were investigating possible applications. New technology always presents HR challenges, as it will mean recruiting new IT and cybersecurity staff to help deliver digital projects.  

AI can also mean extensive training and retraining for existing staff. HR will need to find innovative ways to deliver training and professional development programs so that teams can make the most of new tools. This applies to all other forms of new technology, including telemedicine, data analytics, and patient management tools.  

What are some strategies for overcoming HR challenges in the healthcare sector? 

The best approach is to develop a robust HR strategy that tackles all aspects of the employee experience, from onboarding new hires to developing your existing team.  

To achieve this, you’ll need a team of HR leaders and professionals who understand the nuances of employee engagement, employee retention, competitive compensation and benefits packages, and fostering a positive workplace culture.  

Need to speak to a HR expert? Book a call with Helios HR and talk to one of our experienced consultants! 

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