The U.S. is currently suffering from a severe shortage of healthcare workers, including physicians, nurses, and allied health roles. For the second year in a row, hospital CEOs cited workforce challenges as their top concern on the American College of Healthcare Executives annual survey. And the situation is only predicted to get worse. For example, the Bureau of Labor Statistics estimates that, by 2030, the U.S. will face a shortage of 275,000 nurses.
Certain contributing factors to this crisis lie outside of the control of healthcare organizations, such as the expanding health needs of retiring Baby Boomers and an aging healthcare workforce. It is possible, however, for the medical sector to mitigate other factors, notably the notoriously high costs of education and training in the healthcare space. These costs are stopping countless people from pursuing careers as clinicians, including those who already work in the healthcare field in ancillary services.
One viable way for healthcare organizations to break down this barrier to entry is debt-free education programs – whereby health systems pay upfront for their employees’ education – which can help create more clinical staff members for high-demand roles and protect the future of patient care. By continuously supporting the advancement of their current workforces, organizations can also avoid the financial burden of recruiting outside hires for these essential positions. According to a recent report from Whiteboard Advisors, recruiting outside hires can cost a company up to six times more than the cost of upskilling existing employees. Notably, healthcare has seen a 258% increase in contract labor expenses in recent years.
Healthcare’s Skills Gap
The severity of the healthcare staffing shortage highlights that the traditional approach of waiting for experienced healthcare providers to seek open positions is no longer effective – there simply are not enough workers in key roles and it is too costly to rely upon a “buy” only talent strategy. Fortunately, many healthcare organizations employ individuals in ancillary roles who have the potential to transition into clinical staff members, fueling their ability to “build” their pipeline. The primary issue is that these workers lack the necessary skills and educational requirements to qualify for in-demand, patient-facing positions.
Debt-free education programs can help these healthcare workers further their education and meet the requirements for the roles that the industry urgently needs to fill. Rather than focusing on hiring external healthcare providers, organizations can concentrate on upskilling their current workforce, filling in-demand roles at a lower cost.
In addition to lowering agency spend and costs associated with vacancies, health systems that invest in debt-free education programs also incur cost savings through increased retention and decreased turnover. As one InStride healthcare partner recently said, “retention is the new recruitment.” By investing in the education and training of their current employees, healthcare organizations can establish a more cost-effective talent strategy.
Developing an upskilling program
The success of an upskilling program depends on the specificity of its goals. During the development phase, organizations can determine exactly which internal positions they need to fill, both now and in the near future. Along with patient-facing roles like nurses, nursing assistants, and surgical technologists, in-demand positions may also include information technology, data science, cybersecurity, medical coding, and artificial intelligence. Once organizations have identified these positions, they can delve deeper to understand which degrees, certifications, and specific skills each position requires.
Given that a central objective of a debt-free education program is employee retention, organizations should conduct thorough assessments of their current workforce’s skill sets. This can help determine which positions different employees may be inclined to pursue. Many employees might already possess some of the basic skills required for several in-demand roles.
Evaluating employees’ skill sets and their relevance to in-demand positions can provide organizations with insight into the types of certifications and degree tracks they might want to sponsor. Employees are more likely to participate in a debt-free education program when they see a clear connection between in-demand, higher-earning positions and their current responsibilities.
To further incentivize participation, organizations can provide guidance about the academic pathways leading to specific positions. It’s unrealistic to expect employees to already know which courses to take or which skills their desired positions require. Connecting the dots between specific courses and the requirements for certain positions makes these roles more attainable while effectively communicating that the organization is committed to helping employees advance their careers.
This is where debt-free education becomes crucial. Organizations must distinguish between debt-free programs and tuition reimbursement. With debt-free education, employers pay upfront for an employee’s education. This contrasts with tuition reimbursement, which requires the employee to front the tuition fees and then apply for reimbursement from their employer, often only after completing a term or course. Debt-free education significantly reduces or eliminates the need for employees to pay out of pocket, making it a much more attractive option for frontline employees who are often precluded from traditional tuition reimbursement given the financial barrier.
Final thoughts
The healthcare system’s shortage of essential workers could have a devastating effect on patient care in the coming years, especially given the complex health needs of an aging population. It’s up to healthcare organizations to help create a stable workforce by upskilling their current employees and establishing debt-free education programs to remove financial barriers to becoming healthcare providers.
Upskilling programs can foster a widespread pursuit of essential healthcare roles and reinvigorate interest in the healthcare field overall, demonstrating that financial constraints don’t have to stand in the way of professional goals. By investing in their employees’ education, healthcare organizations can build a more robust and dedicated workforce capable of meeting future challenges.
About Molly Ellenberg Friedland
Molly Ellenberg Friedland has focused her career on expanding access to excellent and equitable education. She started her career as a 9th grade social studies teacher through Teach For America, where she then went on to hold a variety of fundraising and partnership leadership positions with the organization, culminating in her role as Vice President of National Corporate Partnerships. During her tenure, she played a pivotal role in building innovative, impactful partnerships that drove outcomes for Teach For America and its partners alike.
As Group Vice President of Corporate Partnerships at InStride, she leads InStride’s healthcare and financial services practices. Building upon her work at Teach For America – which impacted learners in the PK-12 space – she is grateful for the opportunity to work with forward-leaning organizations on employer-led education programs that provide life-changing postsecondary educational opportunities for employees while also driving business outcomes. Since joining InStride in 2021, Molly has significantly contributed to the company’s growth through the addition of new corporate partners and thus its ability to help more learners advance their careers and avoid student debt.