Welcome to the 2025 State of HR in Healthcare!
This year’s survey gathered insights from hundreds of healthcare practice owners, offering a look into the unique HR challenges and solutions specific to you. From staffing shortages and retention worries to complex onboarding and classification issues, this report highlights the HR pain points many healthcare practices face today.
As the healthcare industry continues to evolve, HR practices must adapt to address new regulatory requirements, hiring needs, and workforce dynamics. HR for Health is dedicated to supporting healthcare practices with tailored solutions that streamline HR management, mitigate compliance risks, and allow practices to focus on delivering quality care. This report is meant to be a tool for you to gather actionable insights into the HR landscape of healthcare practices, helping owners navigate and overcome common challenges.
In the sections below, we’ll explore specific findings from the survey, key trends, and expert recommendations to help you strengthen your HR practices and enhance compliance efforts.
The findings from this year’s report reveal some clear themes in the HR landscape of healthcare practices. Staffing and retention remain pressing issues, with 34% of healthcare practice owners concerned about ongoing staff shortages and high turnover rates. The healthcare sector relies heavily on skilled professionals who are often difficult to replace, making it essential for practices to focus on creating a supportive workplace and developing strong retention strategies.
Another prominent theme is the need for standardized and compliant HR practices. For instance, 20% of healthcare practices lack a standard interview process, and 33% do not have a formalized onboarding program. These gaps can lead to inconsistency in hiring, challenges in new hire integration, and potential compliance issues. A well-structured approach to recruitment and onboarding not only helps practices attract and retain qualified employees but also ensures that they remain compliant with regulations.
Together, these themes underscore the importance of investing in HR practices that foster stability, consistency, and compliance. HR for Health provides healthcare practices with tailored solutions to address these critical areas, from standardized hiring protocols and onboarding programs to compliance support. By strengthening their HR foundation, healthcare practices can reduce turnover, improve operational efficiency, and build a more dedicated team focused on patient care.
Let’s Dive In
34% of respondents are worried about staffing shortages and employee retention.
Staffing shortages are a top concern in healthcare, with 34% of practice owners worried about retaining talent and managing high turnover rates. The healthcare industry demands skilled professionals who can handle complex patient needs, yet many practices struggle to retain these critical team members. Staff shortages not only impact patient care but also increase workload for remaining employees, leading to burnout and decreased morale.
Effective retention strategies start with understanding employee needs and fostering a positive workplace culture. By offering competitive compensation, career development opportunities, and a supportive work environment, practices can build a team that’s committed to long-term growth.
20% of respondents reported that they do not have a standardized interview process.
In today’s competitive job market, having a structured and efficient hiring process is essential. However, 20% of healthcare practices reported they do not use a standard interview process. Without standardized interview practices, hiring decisions may lack consistency, increasing the risk of hiring mismatches and high turnover. A well-defined interview process ensures that candidates are evaluated fairly and that their qualifications align with the practice’s needs.
Standardized interviews also enable practices to evaluate soft skills, such as communication and teamwork, which are crucial in a healthcare setting. HR for Health offers tools to help healthcare practices design and implement a structured interview process that enhances candidate selection and sets the foundation for successful hires.
Conduct working interviews without paying the interviewee.
A surprising finding from this year’s survey is that 21% of healthcare practices conduct working interviews without compensating the interviewee. Working interviews, where candidates perform tasks to demonstrate skills, are common in healthcare, but practices are legally required to compensate candidates for their time during these trials. Failure to do so can lead to compliance issues and damage the practice’s reputation.
Healthcare practices must understand the legal requirements around working interviews to avoid fines and disputes. HR for Health provides expert guidance on compliant hiring practices, including best practices for compensating candidates during working interviews. By adhering to these guidelines, practices can maintain a professional and legally compliant hiring process.
33% of our surveyed practices reported not having a formalized new hire onboarding and training process.
A structured onboarding process is key to helping new hires integrate successfully, yet 33% of healthcare practices reported they do not have a formalized onboarding and training process. Without proper onboarding, new employees may lack the knowledge and support needed to perform effectively, leading to lower productivity, frustration, and ultimately higher turnover rates.
A comprehensive onboarding program can help new hires feel welcome, supported, and prepared to contribute to the team. HR for Health offers customizable onboarding solutions designed specifically for healthcare practices, ensuring that new employees receive the training and support they need from day one. With an effective onboarding program, practices can boost new hire engagement, improve productivity, and enhance overall retention.
69% of practices reported that they classify associate doctors as independent contractors.
Worker classification is a complex issue in healthcare, particularly with 69% of practices classifying associate doctors as independent contractors. While independent contractor status can save on payroll costs and benefits, misclassification can lead to significant legal and financial repercussions if the associate’s work does not meet the criteria for contractor status. Misclassifying employees can result in back wages, penalties, and other compliance issues, making it essential for practices to accurately determine the status of their workers.
HR for Health provides expertise in worker classification, helping healthcare practices understand the criteria for independent contractors versus employees. Our team can assist with evaluating roles, ensuring compliance with regulations, and reducing the risk of costly misclassification errors. By properly classifying associate doctors, practices can protect themselves from potential legal issues and ensure fair treatment of their team members.
HR for Health understands the unique HR challenges that healthcare practices face, from managing staffing and retention issues to ensuring compliance with complex regulations. Our tailored solutions provide support for every stage of HR management, including standardized hiring processes, onboarding programs, and worker classification. With our expertise, healthcare practices can streamline HR functions, reduce legal risks, and build a more supportive and compliant workplace.
If you’re ready to elevate your HR practices, reduce administrative burdens, and foster a positive work environment, consider partnering with HR for Health. Our solutions are specifically designed for healthcare practices, helping you protect your practice, support your team, and focus on delivering exceptional patient care. Book a consultation with HR for Health today to learn more about how we can help your healthcare practice succeed.
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