Navigating Workforce Challenges: Insights from 2024 and Strategies for 2025 in Healthcare Recruiting

Angela and I often talk about the “why” behind what we do, and 2024 reaffirmed it for us: it’s about the people. The clinicians, care workers, and support staff who show up every day to make lives better deserve thoughtful strategies and solutions. We are proud to partner with organizations that share this vision and are committed to advancing their missions.

As we step into 2025, we remain hopeful. Challenges persist, yes, but so do the opportunities to innovate and make a difference. The work ahead excites us, and we’re ready to tackle it with renewed energy and focus.

As we reflect on the challenges and triumphs of 2024, it’s clear that the healthcare industry is at a crossroads. The lessons learned over the past year reveal not only the complexities of recruiting and retaining top talent but also the opportunities for organizations willing to adapt and innovate. With this in mind, we turn to the key challenges that shaped 2024 and the strategies that emerged as essential for success.

Thank you for trusting us to support your teams. Here’s to building stronger, more sustainable healthcare organizations together.

 – Emily & Angela

2024: Key Challenges and Lessons Learned 

A Shift from Volume to Quality

Healthcare recruiting experienced a notable pivot in 2024. While access to non-clinical talent improved, the turnover rate for clinical roles climbed as high as 18% for registered nurses and 19% for behavioral health workers, according to industry reports. This turnover led to a direct loss of revenue, with some studies estimating the cost of replacing a single nurse at $46,100 per vacancy, factoring in lost productivity and recruiting expenses.

To address this with our clients, we leaned into developing robust candidate pipelines drawing from diverse talent sources and proactively engaging these passive candidates.  Commitment to this approach from our skilled recruiters helped to build relationships within various talent networks which were essential in sourcing high-impact professionals ready to contribute to our client care teams.

The Challenge of Limited Wage Opportunities

In hourly residential care roles, healthcare organizations faced fierce competition. The average wage for entry-level residential care roles was $15.20/hour, compared to industries like retail and hospitality offering comparable wages. This trend made non-financial incentives critical:

• 60% of surveyed healthcare professionals cited career development as a key factor in choosing an employer.
• Facilities that implemented mentorship programs reported a 25% higher retention rate within the first year.

To help our clients address this challenge, we tailored our recruiting services to emphasize the non-monetary benefits that set their organizations apart. Our approach included refining employer branding to highlight opportunities for career growth, robust mentorship programs, and supportive work environments. By proactively identifying and engaging mission-driven candidates, we connected our clients with professionals who were drawn to these differentiators. Additionally, we leveraged targeted messaging during candidate outreach to showcase these unique benefits, ensuring our clients remained competitive in a challenging labor market.

Patient Care Impacted by Workforce Shortages

The healthcare staffing crisis led to a significant rise in temporary staffing expenses, which increased by 150% in some organizations. Additionally, 67% of surveyed healthcare administrators reported that workforce shortages resulted in delayed treatments and longer wait times, directly impacting patient outcomes.

To address this, we partnered closely with client executives to identify high-cost areas within their staffing structures. By analyzing data and collaborating on workforce strategies, we pinpointed departments and roles where temporary staffing spend was disproportionately high. Leveraging our recruiting expertise, we backfilled these positions with permanent W2 candidates, significantly reducing dependency on temporary labor and driving long-term cost savings.  This approach not only improved financial performance but also enhanced patient care by stabilizing teams and fostering continuity in service delivery.

The challenges of 2024 underscored the urgent need for innovative, forward-thinking strategies in healthcare recruiting, spanning our work across behavioral health, mental health, home health, and senior living. These diverse sectors taught us invaluable lessons about the complexities of workforce shortages, retention, and the impact talent acquisition has on mission-driven care.

While similar trends will continue in 2025, we continue to see an opportunity to apply these insights, tackle emerging demands, and create sustainable solutions across the continuum of care.

2025: The Road Ahead

As we enter 2025, uncertainty surrounds the transition to the new Trump administration, bringing the potential for policy shifts that could reshape the healthcare landscape. However, many of the workforce challenges and trends we observed in 2024 are expected to persist. The continued demand for skilled talent, the prioritization of retention strategies, and the pressure to reduce costs while improving care remain central to the industry’s needs.

Adding to this complexity, the implementation of the MHPAEA Final Rule—which expands insurance coverage for mental health and substance use disorder services—will further amplify the demand for behavioral health professionals. This rule is projected to increase demand by 15-20%, creating an urgent need to address workforce shortages in already strained areas. The ripple effects of this regulation will challenge healthcare organizations to proactively plan for increased staffing needs, ensure compliance expertise, and maintain quality care amidst growing demand.

One area of opportunity we see for organizations to gain a competitive edge is in preboarding, the critical period between offer acceptance and a new hire’s start date. Research shows that 20% of new hires leave within the first 45 days of employment, often due to a lack of engagement or clarity during the preboarding process. Furthermore, a poor preboarding experience can increase early turnover rates by up to 50%, directly impacting retention and the overall cost of talent acquisition. At Xelerate, we understand the direct correlation between an effective preboarding process and improved new hire engagement and retention. In 2025, we will work closely with our clients to transform their preboarding practices, implementing strategies that foster early connections, reduce friction, and set the stage for long-term success.

Another key focus for 2025 will be employment branding, which is more critical than ever in today’s competitive talent market. Studies show that 75% of candidates consider an employer’s brand before applying.  As traditional job boards like Indeed become increasingly cost-prohibitive and less effective at reaching qualified candidates, organizations must adopt innovative branding strategies to attract passive talent.

Our employment branding services will emphasize creative outreach methodologies and compelling messaging to differentiate our clients in the market. By showcasing their unique value propositions, including career growth opportunities, mission-driven work environments, and non-financial benefits, we will help our clients engage top-tier candidates who align with their organizational values.

Looking Ahead

The challenges ahead in 2025 are significant, but we see them as opportunities to create meaningful change. By adopting proactive, data-informed strategies and prioritizing workforce development, healthcare organizations can meet growing demands while building stronger, more sustainable teams.

We’re ready and excited to help healthcare organizations navigate these challenges. Whether it’s forecasting workforce needs, building recruitment pipelines, or improving retention strategies, Xelerate is here to ensure success.  Through our recruitment strategies, our solutions produce a 30% reduction on workforce related business costs having a direct impact on the bottom line.