People Over Profit: Why The Future Of Healthcare Belongs To Employee-First Leaders

The healthcare industry has had an ongoing staffing crisis for the past several years, and it’s only getting worse. In just the last few weeks, articles came out about shortages in Illinois, New Mexico, and Texas. Overall, experts predict that the U.S. will be 100,000 healthcare workers short by 2028.

However, hospitals are finding ways to attract and retain workers and begin to turn the shortage around. These kinds of employee-first institutions are a reminder to the industry that putting people over profit isn’t just the right thing to do. It’s the only way forward. By prioritizing fair wages, manageable workloads, and supportive workplace cultures, these hospitals are proving that investing in employees leads to better patient outcomes, lower turnover, and a stronger healthcare system overall.

Why hospitals need a change

Even as hospitals increase incentives for nurses and doctors to sign up, the real problem runs far deeper than recruitment. Very low pay has contributed to high turnover in the industry, with the 2024 NSI National Healthcare Retention & RN Staffing Report showing turnover rates of over 20 percent. The most often-cited reason is an unhealthy work environment. Burnout is also rampant, with long shifts, chronic understaffing, and emotional exhaustion pushing even the most dedicated professionals to their breaking point.

Fixing the crisis isn’t just about hiring more people—it’s about changing the way hospitals operate. The facilities that are turning things around aren’t just offering bigger paychecks; they’re rethinking workplace culture from the ground up.

Change starts here

So, what exactly does it mean to be employee-first? Fair wages are the foundation of an employee-first healthcare system. While many hospitals recognize the need to offer competitive pay, financial constraints, especially for small and rural facilities, make it difficult to keep up. When wages stagnate, skilled professionals leave for higher-paying positions elsewhere, deepening the staffing crisis.

One way hospitals can address this is by leveraging federal and state funding programs designed to support workforce retention. Grants, Medicaid reimbursements, and public-private partnerships can help struggling facilities increase wages without cutting corners on patient care. Additionally, hospitals can advocate for policy changes that increase funding for rural healthcare and improve reimbursement rates from insurance providers.

Another approach is to rethink budget allocations. Some hospitals have successfully shifted resources from administrative overhead to frontline staff salaries, ensuring that those providing direct patient care are properly compensated. Others have introduced retention bonuses and longevity incentives to reward experienced employees and reduce turnover.

As far as preventing burnout and making workloads more manageable, One solution is investing in support staff. When hospitals hire more medical assistants, administrative personnel, and technicians, nurses and doctors can focus on patient care rather than being bogged down with paperwork and non-clinical tasks. This not only improves efficiency but also helps reduce stress for frontline workers.

Technology can also play a role. AI-powered scheduling tools can ensure more balanced shift rotations, while automation in documentation and administrative processes can free up time for patient interactions. Hospitals that implement these strategies often see lower burnout rates and higher job satisfaction.

Lastly, building a supportive environment instead of a hostile work culture requires more than just good intentions; it demands real change at every level of the organization.

One of the biggest changes hospitals can make is prioritizing mental health support. Offering free counseling services, peer support groups, and stress management training can help employees cope with the emotional toll of their work. Some hospitals have even introduced “recovery rooms” where staff can take a moment to decompress during high-stress shifts.

Leadership training is another key piece. When hospital administrators and managers receive training in empathetic leadership, active listening, and conflict resolution, it fosters a culture of respect and collaboration. Transparent communication about hospital policies, workload expectations, and organizational changes also helps employees feel valued and heard.

The path forward for people-first healthcare

Fixing the healthcare staffing crisis isn’t about one-off incentives or quick fixes. It requires a systemic shift. By prioritizing fair wages, manageable workloads, and a truly supportive culture, hospitals can create an environment where employees feel valued, patients receive better care, and the entire system becomes more sustainable. The facilities leading the way have proven one thing: when you take care of healthcare workers, they stay—and when they stay, everyone benefits.