Reducing Overtime Costs and Burnout with Per Diem Staffing: A Strategic Approach for Hospital Administration

In today’s healthcare environment, hospitals face mounting pressure to maintain high-quality patient care while managing operational costs effectively. One of the most significant challenges is controlling labor costs, particularly overtime expenses, which can quickly escalate when full-time staff are overextended. This excessive workload often leads to burnout, reduced morale and ultimately, higher turnover rates. One effective solution for hospital administrators is to partner with a staffing company to implement a per diem staffing strategy.

Overtime and Burnout Causing Significant Cost

While overtime may seem like a quick fix to cover staffing shortages, it can be a costly and unsustainable approach. Paying time-and-a-half wages significantly increases payroll expenses, and overworked staff are more prone to errors, absenteeism, and job dissatisfaction. Nurse and physician burnout has been widely documented as a leading factor in high turnover rates, which further compounds staffing challenges and increases recruitment costs.

How Per Diem Staffing Can Help

Per diem staffing offers hospitals a flexible and cost-effective alternative to overtime. By leveraging temporary healthcare professionals through a staffing agency, administrators can maintain adequate staffing levels without overburdening their core team. Here’s how working with a staffing company for per diem staffing can benefit hospitals:

• Cost Savings – Utilizing per diem staff prevents the need for costly overtime pay, helping hospitals manage labor costs more efficiently.
• Reduced Burnout – Supplementing staff with per diem workers alleviates stress and workload for full-time employees, improving job satisfaction and retention rates.
• Improved Patient Care – Well-rested and engaged staff deliver higher-quality care, leading to better patient outcomes and increased satisfaction scores.
• Operational Flexibility – A staffing company provides hospitals with access to a pool of qualified professionals available on short notice, ensuring continuity of care even during peak demand periods.
• Lower Turnover Rates – Addressing workload concerns proactively helps retain existing staff, reducing the need for expensive recruitment and training.

Why Work with a Staffing Company

To maximize the benefits of per diem staffing, hospital administrators should seek out reputable staffing companies with a strong track record in healthcare staffing. Key considerations when selecting a staffing partner include:

• Credentialing and Compliance – Ensure the agency rigorously screens and verifies the credentials of their healthcare professionals to meet regulatory standards.
• Technology Integration – Look for agencies that utilize scheduling and workforce management technology to streamline the staffing process.
• Customizable Solutions – Choose a staffing provider that offers flexible staffing models tailored to the hospital’s unique needs.

In an industry where every decision impacts both financial sustainability and patient care quality, leveraging per diem professionals provides a strategic and effective workforce solution. Interested in learning more? Cross Country MSN provides has a pipeline of nursing, allied and non-clinical professionals interested in per diem work. Contact us here for more information.