Pharmacists and Temporary Staffing - The Real Cost

THE FORECAST

According to a report released by the American Health Care Association in July 2008, more than 19,400 RN vacancies exist in long-term care settings. These vacancies, coupled with an additional 116,000 open positions in hospitals reported by the American Hospital Association in July 2007, bring the total RN vacancies in the U.S. to more than 135,000. This translates into a national RN vacancy rate of 8.1%.

The True Cost of Temporary Staffing

Google the phrase “temp staff costs” and you will find results dominated by staffing firms intent on convincing you that, among other things, temporary staffing is a good ROI. But no Phoenix University MBA is required to figure out that $70 to $100 per hour (twice the actual cost of permanent employees) is a particularly bad investment. In fact, dozens of case studies have demonstrated that the average mid-size hospital could save between $1 and $6 million annually, simply by eliminating locums.¹    So why does it persist as a major plank in the staffing strategy in nearly every facility in America?

The reason is obvious: Hospitals struggle to attract and retain enough permanent staff.  And the costs are more than dollars and cents. Here are just a few of the costs of chronic use of locums:

• Impact of casual labor on continuity of car
• Reduced ability to implement key initiatives due to turnover
• Increased risk exposure and concerns about patient safety²
• Poor employee morale and workplace satisfaction among nurses and physicians
• Poor employee performance
• Low patient satisfaction

First Solutions:

1. Determine the true cost of temporary staffing in your facility
2. Initially outsource recruitment to specialists to immediately eliminate temp staffing and to consult on recruiting cycle improvements³
3. Develop a long term recruitment and retention strategy that views everyone as part of the recruitment and retention team

 

NOTES:

¹ Visit this page to read the stories of dozens of facilities that saved up to $6 million annually by eliminating temp staffing.

² Check out this shocking expose by the LA Times of temp staffing quality issues in the State of California

³ Simple improvements such as a 24 hour interview/offer cycle and changing the role of Nurse Managers in the recruitment process can result in dramatic increases in recruiting success