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M&As can cause extra stress and worry for healthcare workers and can lead to higher turnover rates. In fact, nearly 50% of employees reconsider their employment after an M&A.8 Earning the trust of your workforce is shown to help, and potentially could attract and retain qualified employees.
2023 Healthcare industry reports show that: All Healthcare workers
1 in 3 healthcare workers leave their employer in their first 2 years, and 60% of those were Millennials or Gen Z.1
The turnover rate among nurses in 2022 was 27%, 8.4% higher than previous year3, and 1 in 2 nurses who left their employer had a tenure of < 5 years.4,2
2. Continuing high rates of mergers and acquisitions
Meanwhile the healthcare industry continues to trend toward high rates of mergers and acquisitions in 2024. Experts expect the rate of mergers and acquisitions to continue to increase.5
The three primary drivers of mergers and acquisitions at healthcare organizations6 are:
Nearly 50% of employees reconsider their employment after an M&A.8
How can your organization best support your workforce during a transition to drive your retention goals?
We asked healthcare employees, and this is what they said.
Recent Fidelity research7 found that feeling aligned with senior leadership directly corresponds to employee job satisfaction and turnover intentions.
It takes time to rebuild trust, but clear, open, honest and accurate communication is the first step to improve the relationship between senior leaders and the workforce.8
2. Clear communication
Given varied work schedules and the 24/7 nature of healthcare organizations, having options for employees to learn about changes, and sharing information through multiple methods will improve overall understanding among the workforce.8
87% of respondents preferred receiving information by email.8
But when it comes to learning about changes, employer-provided communication, benefits portals and virtual workshops resonated most.8
3. Offering resources on benefits changes
Mergers and acquisitions often result in a realignment of benefits offerings between the two organizations that are merging.
Resources on new benefits and support selecting benefits were noted as most wanted by employees during an M&A.8
4. Providing clarity on pay and compensation changes
77% of employees included job security assurance as most important to them during an M&A.8
This is an important issue to address during an organizational transition given the high rate of turnover in healthcare.
While it can take time to determine what changes are needed, clear and honest communication and transparency from leadership about potential changes can help assure the workforce and reduce concern.
Transparency, clear communication, and supportive resources can help build trust with your workforce and slow turnover rates during transitions.
To download this report or for more information, visit the Fidelity website.
1 Based on data from the Fidelity 2023 Healthcare Industry Report
2 Based on data from the Fidelity Nurses’ Financial Wellness and Retirement Readiness Report
3 Based on 2022 NSI National Health Care Retention & RN Staffing Report
4 Based on Fidelity record-kept data for Nurses terminated from their employers in 2022
5 Chief Healthcare Executive, Hospital merger activity is projected to increase in 2024
6 Chief Healthcare Executive. Nonprofit hospitals face ‘another tough year’ in 2024, Fitch Ratings says
7 Based on data from the Fidelity Thriving Workplace research
8 Based on data from Fidelity Mergers & Acquisitions Study, January 2023
For more information, reach out to your Fidelity representative.
For plan sponsor and investment professional use only.
Fidelity® is a registered trademark of FMR LLC.
Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI 02917
© 2024 FMR LLC. All rights reserved.
1138491.1.0
The state of the healthcare workforce
Two themes continue to be strong in healthcare:- Challenges with attracting and retaining qualified healthcare employees
- Continuing high rates of mergers and acquisitions (M&As)
2023 Healthcare industry reports show that: All Healthcare workers
- 86% are Millennials or Gen Z1
- 78% are women1
- 52% are Millennials or Gen Z1
- 86% are women2
1 in 3 healthcare workers leave their employer in their first 2 years, and 60% of those were Millennials or Gen Z.1
The turnover rate among nurses in 2022 was 27%, 8.4% higher than previous year3, and 1 in 2 nurses who left their employer had a tenure of < 5 years.4,2
2. Continuing high rates of mergers and acquisitions
Meanwhile the healthcare industry continues to trend toward high rates of mergers and acquisitions in 2024. Experts expect the rate of mergers and acquisitions to continue to increase.5
The three primary drivers of mergers and acquisitions at healthcare organizations6 are:
- Ongoing staffing challenges
- Higher wages
- Inflation
- Only 48% of heathcare workers trust senior leaders to make the right decision in situations that affect their experience at work compared to 55% in other industries.
- Almost 3 in 10 healthcare workers report that employees and senior leadership are at odds, and are also less likely than workers in other industries to report complete alignment.7
- Potential job loss
- Job cuts
- Stressful work environment
- Lack of emergency savings
- Student debt
- Policy updates
- Benefits changes
- Salary grade adjustments
Nearly 50% of employees reconsider their employment after an M&A.8
How can your organization best support your workforce during a transition to drive your retention goals?
We asked healthcare employees, and this is what they said.
Four ways to earn trust with your healthcare workforce during M&As
1.Transparency from leadershipRecent Fidelity research7 found that feeling aligned with senior leadership directly corresponds to employee job satisfaction and turnover intentions.
It takes time to rebuild trust, but clear, open, honest and accurate communication is the first step to improve the relationship between senior leaders and the workforce.8
2. Clear communication
Given varied work schedules and the 24/7 nature of healthcare organizations, having options for employees to learn about changes, and sharing information through multiple methods will improve overall understanding among the workforce.8
87% of respondents preferred receiving information by email.8
But when it comes to learning about changes, employer-provided communication, benefits portals and virtual workshops resonated most.8
3. Offering resources on benefits changes
Mergers and acquisitions often result in a realignment of benefits offerings between the two organizations that are merging.
Resources on new benefits and support selecting benefits were noted as most wanted by employees during an M&A.8
4. Providing clarity on pay and compensation changes
77% of employees included job security assurance as most important to them during an M&A.8
This is an important issue to address during an organizational transition given the high rate of turnover in healthcare.
While it can take time to determine what changes are needed, clear and honest communication and transparency from leadership about potential changes can help assure the workforce and reduce concern.
Transparency, clear communication, and supportive resources can help build trust with your workforce and slow turnover rates during transitions.
To download this report or for more information, visit the Fidelity website.
1 Based on data from the Fidelity 2023 Healthcare Industry Report
2 Based on data from the Fidelity Nurses’ Financial Wellness and Retirement Readiness Report
3 Based on 2022 NSI National Health Care Retention & RN Staffing Report
4 Based on Fidelity record-kept data for Nurses terminated from their employers in 2022
5 Chief Healthcare Executive, Hospital merger activity is projected to increase in 2024
6 Chief Healthcare Executive. Nonprofit hospitals face ‘another tough year’ in 2024, Fitch Ratings says
7 Based on data from the Fidelity Thriving Workplace research
8 Based on data from Fidelity Mergers & Acquisitions Study, January 2023
For more information, reach out to your Fidelity representative.
For plan sponsor and investment professional use only.
Fidelity® is a registered trademark of FMR LLC.
Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI 02917
© 2024 FMR LLC. All rights reserved.
1138491.1.0