U.S. Hospitals Bolster Pay and Benefits to Combat Turnover, Aon Reports

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Aon plc (NYSE: AON) reports that most U.S. hospitals are bolstering pay and benefits to help attract and retain talent amid increasing employee turnover, according to the firm's 18th annual Benefits Survey of Hospitals. The turnover happens most often among medical professionals with tenures of one to three years. Hospitals are prioritizing investment in total rewards and support for workforce resiliency and mental health. To address talent recruitment and retention, hospitals have implemented or bolstered sign-on bonuses, increased new hire pay, increased minimum wage scales, and added referral bonus programs. Additionally, they are offering premium benefits such as tuition reimbursement programs, flexible work options, personal leave, financial wellness/planning, gender-affirming benefits, enhanced behavioral health benefits, reduced hours for benefits eligibility, paid parental leave, student loan repayment plans, subsidies for adoption, back-up childcare, expanded fertility coverage, on-site daycare, and subsidies for back-up elder care. The report also shows average health plan expenses per hospital beneficiary per year increased 6.7 percent, from $15,142 in 2022 to $16,151 in 2023. Despite increases in total rewards, health systems remain concerned.

Positive

• Most U.S. hospitals are bolstering pay and benefits to help attract and retain talent amid increasing employee turnover
• Hospitals are prioritizing investment in total rewards and support for workforce resiliency and mental health
• Hospitals have implemented or bolstered sign-on bonuses, increased new hire pay, increased minimum wage scales, and added referral bonus programs
• Hospitals are offering premium benefits such as tuition reimbursement programs, flexible work options, personal leave, financial wellness/planning, gender-affirming benefits, enhanced behavioral health benefits, reduced hours for benefits eligibility, paid parental leave, student loan repayment plans, subsidies for adoption, back-up childcare, expanded fertility coverage, on-site daycare, and subsidies for back-up elder care
• The report shows average health plan expenses per hospital beneficiary per year increased 6.7 percent

Negative

• Despite increases in total rewards, health systems remain concerned

CHICAGO, Dec. 13, 2023 /PRNewswire/ -- Aon plc (NYSE: AON) reports that most U.S. hospitals are bolstering pay and benefits to help attract and retain talent amid increasing employee turnover, according to the firm's 18^th annual Benefits Survey of Hospitals.

Hospitals reported that turnover happens most often among medical professionals with tenures of one to three years.

According to Aon's survey, a leading global professional services firm, 62 percent of hospitals reported increased turnover among nurses, 41 percent experienced higher departures among non-physician clinical positions and 22 percent said that physicians are leaving more often than the prior 12 months. Hospitals reported that turnover happens most often among medical professionals with tenures of one to three years.

"The top priority for hospitals is to attract and retain front-line medical professionals in the face of a nation-wide talent shortage and a surge of demand for medical care after the pandemic," said Sheena Singh, senior vice president of Aon's national healthcare industry practice. "This shortage threatens to impact patient care and accelerate burnout among clinical staff. As a result, health systems have prioritized investment in total rewards and support for workforce resiliency and mental health." 

To address talent recruitment and retention, 70 percent of hospitals during the past year have implemented or bolstered sign-on bonuses, 59 percent have increased new hire pay, 54 percent have increased their minimum wage scales and 52 percent increased or added referral bonus programs.

Hospitals in 2023 also provided premium benefits to reward employees, with:

• Ninety-five percent offering tuition reimbursement programs.
• Ninety-three percent offering flexible work options, up from 78 percent in 2022.
• Eighty-four percent offering personal leave, up from 74 percent in 2022.
• Eighty percent offering financial wellness/planning, up from 72 percent in 2022.
• Sixty-four percent offering gender-affirming benefits, up from 45 percent in 2022.
• Fifty-seven percent offering enhanced behavioral health benefits (beyond traditional employee assistance programs or medical plans), up from 40 percent in 2022.
• Fifty-three percent offering reduced hours for benefits eligibility.
• Forty-five percent offering paid parental leave beyond state and city mandates.
• Forty-four percent offering student loan repayment plans, with an additional 37 percent are considering this option next year.
• Forty-three percent offering subsidy for adoption.
• Thirty-four percent offering back-up childcare.
• Thirty percent offering expanded fertility coverage beyond the medical plan.
• Twenty-eight percent offering on-site daycare.
• Twenty-five percent offering subsidies for back-up elder care.

The report also shows average health plan expenses per hospital beneficiary per year increased 6.7 percent, from $15,142 in 2022 to $16,151 in 2023. Eighty-two percent of hospitals aim to pay 76 percent or more of their employees' health care costs and 13 percent offer a no-cost health plan option to some segment of their employee population. Seventy-six percent of health systems also provide a discount to employees to access their own facilities and providers.

Despite increases in total rewards, health systems remain concerned about their workforce going into 2024. Top concerns from human resources leaders include:

• Access to mental health services (89 percent)
• Employee burnout/workforce resiliency (86 percent)
• Offering competitive total rewards to attract and retain talent (85 percent)
• Increasing healthcare costs for the health system (85 percent)
• Improving health outcomes (83 percent)

Aon's 18^th annual Benefits Survey of Hospitals surveyed hospital employers between April and June 2023. The survey compiles results of participating benefit plans for more than 3.3 million health system employees representing more than 1,400 hospitals across the U.S.

About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business. 

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Media Contact
Robert Elfinger
+1 312 381 0071
Robert.Elfinger@aon.com 

 

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SOURCE Aon plc

FAQ

What is the reason behind most U.S. hospitals bolstering pay and benefits?

Most U.S. hospitals are bolstering pay and benefits to help attract and retain talent amid increasing employee turnover.

What are the premium benefits offered by hospitals to reward employees?

Premium benefits offered by hospitals include tuition reimbursement programs, flexible work options, personal leave, financial wellness/planning, gender-affirming benefits, enhanced behavioral health benefits, reduced hours for benefits eligibility, paid parental leave, student loan repayment plans, subsidies for adoption, back-up childcare, expanded fertility coverage, on-site daycare, and subsidies for back-up elder care.

What is the percentage increase in average health plan expenses per hospital beneficiary per year?

The average health plan expenses per hospital beneficiary per year increased 6.7 percent, from $15,142 in 2022 to $16,151 in 2023.

Why are health systems concerned despite increases in total rewards?

Despite increases in total rewards, health systems remain concerned.