Managing staffing costs in nursing facilities is a critical aspect of maintaining both high-quality patient care and a stable budget. As the healthcare industry continues to face staffing shortages, many nursing facilities are faced with the question of whether hiring permanent employees or working with staffing agencies is the more cost-effective option.
With both approaches offering distinct advantages and challenges, understanding the financial and operational impacts is essential for making an informed decision. Here’s what you should know.
Hiring Permanent Employees
Hiring permanent employees brings several benefits to nursing facilities, such as building a cohesive team that understands the specific needs of the facility and its residents. Permanent staff can create a more stable environment and often develop long-term relationships with patients, which can improve the quality of care.
In terms of cost, permanent hires usually come with fixed salaries, benefits, and long-term retention incentives, which may initially seem expensive but offer predictability over time. However, hiring permanent staff also comes with hidden costs, such as recruitment, training, and the risk of turnover. When factoring in benefits like healthcare, paid time off, and retirement plans, the true cost of maintaining a full-time staff may be higher than anticipated.
Using Staffing Agencies
Staffing agencies offer nursing facilities a flexible solution to immediate staffing needs, especially during periods of high patient volume or when facing unexpected vacancies. One of the primary advantages of using staffing agencies is the ability to access qualified healthcare professionals without the long-term commitment of permanent hiring. Facilities can adjust their workforce according to demand, minimizing the financial burden during slower periods.
While the hourly rates for temporary staff may be higher than those of permanent employees, facilities can save on costs related to benefits, training, and long-term commitments. Plus, staffing agencies handle the recruitment and vetting process, reducing administrative burden and ensuring that only skilled professionals are placed in the facility.
Long-Term Cost Considerations
When comparing the long-term costs, nursing facilities need to weigh the financial predictability of hiring permanent staff against the flexibility of using staffing agencies. Permanent employees offer stability but come with ongoing costs related to benefits, recruitment, and retention efforts. On the other hand, staffing agencies allow facilities to scale their workforce as needed, which can lead to savings during slower periods or when experiencing high turnover. The best approach often depends on the specific needs and size of the facility.
In addition to cost, efficiency plays a crucial role in deciding between permanent hires and staffing agencies. Permanent employees require onboarding, ongoing training, and professional development, which can be time-consuming and resource-intensive. On the other hand, staffing agencies offer ready-to-work professionals who can quickly integrate into the facility’s operations. This allows nursing facilities to maintain productivity even during staff shortages or sudden demand increases.
If your nursing facility is considering staffing options, Totality Staffing can help you find the right balance between cost and care. Our expertise in healthcare staffing ensures you have access to qualified professionals when you need them most. Contact us today to discuss your staffing needs and explore how we can provide flexible, cost-effective solutions for your facility.