How Recruitment Costs Are Draining Your Resources—And What to Do About It

As you can probably imagine, the healthcare industry – and especially inpatient rehabilitation – is facing a mounting challenge:  the increasing cost of recruitment. Nearly 80 percent of leaders at medical facilities reported that the amount of time they spend on recruitment and interviewing candidates increased last year.

As rehabilitation and skilled nursing facilities strive to maintain high-quality care and meet increasing patient demands, the expenses associated with hiring and retaining skilled professionals are becoming a significant drain on resources. This issue is compounded by market competition, the complexities of job training, and the unique demands of the rehabilitation sector.

The Hidden Costs of Recruitment

The costs associated with recruitment for healthcare organizations are skyrocketing. This includes the expense of recruiting occupational and physical therapists.

Industry research shows that recruiting for entry-level talent – 0 to 5 years – will cost your healthcare organization approximately $2,100 and usually take 84 days or so to these fill vacant positions. Mid-level revenue cycle talent – 6 to 10 years – typically will cost your facility around $3,500 for recruitment and require 153 days to fill those vacant roles. When it comes to senior-level revenue cycle talent, 10 or more years, it will cost, on average, $5,700 for recruiting and need 207 days to fill vacant roles.

When we think about recruitment costs, we will typically focus on the obvious expenses like advertising job openings or agency fees. However, the actual cost of recruitment at inpatient rehabilitation facilities extends far beyond these primary expenditures.

Direct Costs

The direct costs of recruitment include advertising positions, paying for job board listings, and potentially engaging recruitment agencies. For specialized roles in rehabilitation, these costs can be substantial. According to recent data, healthcare organizations spend an average of $4,129 for every hire.

Indirect Costs

The indirect costs are often overlooked but can be even more significant. These include:

• Time spent by HR and management in the hiring process
• Reduced productivity during the onboarding period
• Training expenses for new hires

In the rehabilitation sector, where specialized skills are crucial, these indirect costs can be even higher. It takes time for new staff to become fully productive at their jobs, especially in a field that requires extensive knowledge of patient care and rehabilitation techniques.

Opportunity Costs

Perhaps the most overlooked aspect of recruitment costs is the opportunity cost—the potential revenue lost due to unfilled positions. In inpatient rehabilitation, where patient care is directly tied to revenue, vacant positions can have a substantial financial impact. A single vacant position can cost a healthcare facility up to $7,000-$9,000 per day in lost revenue.

The Connection Between High Recruitment Costs and Employee Retention

There’s a clear link between high recruitment costs and employee retention rates. The more frequently your facility needs to recruit, the higher your overall recruitment expenses will be. This creates a cycle that can be difficult to break:

1. High turnover leads to increased recruitment needs
2. Increased recruitment drains resources
3. Drained resources can lead to reduced investment in current staff at your healthcare  organization
4. Reduced investment in staff can lead to lower job satisfaction and higher turnover,
   substantially increasing your operational costs

Breaking this cycle is crucial for managing costs and maintaining quality care at inpatient rehabilitation facilities.

Strategies to Reduce Recruitment Costs

Investing in Retention

One of the most effective ways to reduce recruitment costs is focusing on retaining your current employees. This involves creating a work environment where your staff feel valued, supported, and have opportunities for growth. In the rehabilitation sector, this could include:

• Providing ongoing professional development opportunities
• Ensuring adequate staffing levels to prevent burnout
• Offering competitive compensation and benefits packages

Streamlining the Hiring Process

Efficiency in hiring can significantly reduce costs. Some strategies include:

• Leveraging technology for initial screenings
• Developing clear job descriptions to attract the right candidates
• Creating a structured interview process to quickly identify top candidates 

Optimizing Job Descriptions

Create clear, detailed, and engaging job descriptions to effectively communicate the unique aspects of your organization and the specific responsibilities of the role. A well-crafted job description serves as an initial touchpoint, enticing qualified candidates and setting the stage for a successful recruitment process.

Leveraging Employee Referral Programs

Encourage your current employees to actively participate in your recruitment efforts through referral programs. Employee referrals are likely to result in high-quality hires, as current staff members can vouch for the workplace culture and values.

Engaging in Campus Recruiting

Forge partnerships with educational institutions to identify and recruit promising talent. Campus recruiting, internship programs, and participation in educational events create opportunities to connect with future healthcare professionals at the early stages of their careers.

Creating an Attractive Work Environment

A positive workplace culture can be a powerful tool in reducing the need for constant recruitment. For inpatient rehabilitation, this might involve:

• Fostering a culture of teamwork and collaboration
• Providing state-of-the-art equipment and resources
• Ensuring a safe and ergonomic work environment

Why the Barihab Is a Considerable Solution to Reducing Recruitment Costs

When it comes to inpatient rehabilitation, innovative solutions like the Barihab system can play a pivotal role in addressing recruitment and retention challenges.

Barihab’s Role in Employee Retention

The Barihab system, developed by Therapeutic Industries, is designed to enhance the safety and efficiency of rehabilitation processes. By providing a versatile platform that can transition from a treatment table to various functionalities, the Barihab reduces the physical strain on therapists and other rehabilitation professionals.

This reduction in physical strain can lead to:

• Increased job satisfaction
• Lower rates of work-related injuries
• Improved ability to handle a diverse range of patients
• Greater patient satisfaction 
• More efficient and personalized care  

All these factors contribute to higher employee retention rates, which can lead to reduced recruitment costs.

Cost-Efficiency of Barihab

Investing in equipment like the Barihab may seem like an upfront cost, but it can lead to significant savings in recruitment expenses over time. Here’s how:

1. Reduced Turnover: By making the job physically easier and safer, the Barihab can help reduce turnover rates among rehabilitation staff.
2. Increased Productivity: The versatility of the Barihab allows for more efficient treatment sessions, potentially reducing the need for additional staff.
3. Improved Patient Outcomes: Better equipment can lead to improved patient outcomes, which can enhance the facility’s reputation and make it a more attractive workplace for potential employees.
4. Improved Job Satisfaction:  The Barihab pioneering equipment is uniquely crafted to simplify and enhance therapeutic practice. This can lead to greater employee satisfaction through improved patient outcomes. 

Long-Term Savings

The reduction in workplace injuries facilitated by equipment like the Barihab can lead to substantial long-term savings in recruitment costs. By lessening the frequency of injuries at your medical facility, you reduce the chances of having to fill open positions. 

Consider these statistics:

• At a minimum, it requires 15% to 30% of the per anum salary equipment to fill an open position, typically for a physical therapist or other rehab position. What’s more, the cost of turnover is 36% to 46% as a percent of salary for a three-month vacancy.
• Injuries more frequently occur while lifting patients of average weight rather than overweight ones, underscoring the need for solutions like the Barihab.

By reducing the risk of these injuries, the Barihab can help facilities avoid the costs associated with replacing injured staff and the subsequent recruitment processes.

Balancing Recruitment and Retention for Cost Efficiency

Addressing recruitment costs in inpatient rehabilitation requires a balanced approach that focuses on both attracting new talent and retaining current staff. Here are some key takeaways:

1. Understand the full scope of recruitment costs, including hidden and opportunity costs.
2. Invest in retention strategies to reduce the frequency of recruitment needs.
3. Streamline hiring processes to make recruitment more efficient when necessary.
4. Create an attractive work environment that makes your facility a desirable place to work.
5. Consider innovative solutions like the Barihab that can improve employee satisfaction and reduce physical strain.

By implementing these strategies and leveraging innovative solutions, your Rehabilitation Hospital or Skilled Nursing Facility can significantly reduce recruitment costs while improving the quality of care you provide. The goal is not just to fill positions, but to create a stable, satisfied workforce that can deliver the best possible outcomes for your patients.

In the ever-evolving landscape of healthcare, particularly in rehabilitative services, addressing recruitment costs is about more than just saving money—it’s about creating a sustainable, high-quality care environment that benefits your staff, patients, and your facility as a whole.