Healthcare Human Resources & Compensation Planning

The healthcare sector is comprised of a variety of organizations, including nonprofit and for-profit companies. These organizations often step in to provide a variety of much-needed services in addition to healthcare, such as social services, education, and services for the impoverished, beyond typical hospitals, physician practices, and rehabilitation facilities.

As the healthcare sector continues to face workforce shortages, the competition for talent continues to be an issue. These shortages can result in higher compensation levels as a way to attract and retain qualified employees.

Understanding the competitive marketplace, as well as your talent pool and budget, is crucial to retaining talent and developing an effective compensation strategy.

While an aging American population is driving significant demand, the healthcare sector faces other challenges, including chronic understaffing/labor shortages and challenges to funding. Many nonprofit and for-profit healthcare providers rely on government funding and private donations, which have been put under pressure.

Healthcare employment has increased significantly and continues to be a driving force in the labor market (from the Bureau of Labor Statistics). However, many healthcare organizations may suffer from retention issues as demand outpaces labor supply.