A surgical technician recently told me, “We’re constantly helping people.” This simple yet powerful sentiment captures the essence of what healthcare workers—from environmental service technicians and nutritional services teams to respiratory therapists, nurses, physicians and corporate staff—focus on every day. However, the healthcare industry is undergoing profound changes that will shape its future over the next decade and beyond. These changes, driven by workforce shortages, AI and technological advancements, and shifting skill demands, have the potential to either enhance or burden healthcare systems. Without new approaches, the ability of healthcare workers to provide effective care will be compromised, with ripple effects on the health of Americans and significant implications for the U.S. economy.
One of the most significant forces driving change is the shortage of healthcare workers, especially in critical areas like nursing. With nearly 800,000 nurses expected to leave the profession by 2027, filling vacancies—particularly in specialized fields like critical care and surgery—has become urgent. This challenge is not unique to healthcare; a Harvard study found 42% of employers across industries report shortages in candidate quantity and 43% express concerns about quality. For healthcare organizations, the impact is acute. The replacement cost for a nurse is estimated to be between $40,000 and $60,000, covering recruitment, temporary staffing and lost productivity. But these numbers don’t account for the consequences of staffing shortages: diminished patient care, declining morale and increasing mental health challenges among overworked staff.
Despite these challenges, healthcare organizations have a remarkable opportunity to develop talent, especially in entry-level and middle-skill roles. Studies have shown that employees are more likely to stay with their company if they are offered pathways to higher-paying roles, skills training and increased responsibilities. Investments in these areas not only improve retention but also build a more engaged workforce. McKinsey notes that AI and other technologies offer healthcare leaders a unique chance to reassess their talent strategies, craft more meaningful job roles and prioritize the human aspect of care. This intersection of technology and workforce development can unlock new potential. Leaders who invest in upskilling for emerging tools will position their organizations as leaders in both efficiency and patient care.
The question for healthcare leaders is whether to invest now or pay later. While not all systems have the capacity for large-scale programs, targeted investments can yield significant returns. Delayed staffing creates bottlenecks, adds pressure to existing staff and escalates costs. Healthcare systems must adopt a new framework for calculating the costs of inaction—factoring in the long-term costs of overburdened employees, increased liability due to medical errors, overtime and patient safety concerns. Moreover, investing in workforce development enhances a healthcare provider’s brand, making it more attractive to current and future employees. It fosters a culture where talent is engaged in growing new and mid-level employees, while failure to invest leads to burnout and lower morale.
Healthcare systems must adopt new strategies centered around three key areas: Innovative Workforce Planning, Robust Development and Enabling Opportunities.
Innovative Workforce Planning involves reimagining and building a sustainable talent pipeline. Traditional approaches, like increasing recruitment quotas or offering sign-on bonuses, focus on short-term fixes. New approaches should involve modeling in-demand roles over time and mapping these needs to existing talent across the organization. This helps identify gaps and reveals where existing employees can transition into new roles. Creative approaches to attract hidden talent—those who seek more hours, new jobs or growth opportunities but don’t see a clear path—are crucial. Partnering with other industries to transition workers into healthcare can help bridge these gaps. Upskilling employees from fields like hospitality, retail and even meat processing into healthcare roles is an innovative way to tap into untapped potential. As healthcare shifts toward preventative care models, workforce planning must adopt the same forward-thinking approach.
Robust Development lowers barriers to education, broadens the talent pool and increases workforce diversity. Stringent academic requirements and teacher shortages limit access to healthcare careers, excluding capable individuals. Breaking down these barriers by creating culturally tailored programs—such as Spanish-language upskilling courses—can reach underserved communities. By identifying in-demand roles and focusing on skill development, healthcare organizations can offer fully funded programs that demonstrate a commitment to employee potential. These programs don’t have to be limited to degrees; certificate programs and other forms of training can provide credentials while managing costs. Additionally, career coaching and mentorship help individuals explore their potential and guide them through transitions.
Enabling Opportunities involves providing clear career pathways and internal mobility support, crucial for retaining talent and developing the workforce of the future. Organizations must communicate these opportunities effectively and ensure access is visible to both current and potential employees. Job descriptions should be rethought, shifting from extensive experience and credentials to focus on the actual tasks at hand. As Harvard points out, rethinking job descriptions in this way opens doors for many candidates otherwise excluded by unnecessary barriers.
Healthcare leaders know data is also a crucial component to ensure effective patient care and operations, and it is equally essential for implementing upskilling strategies. By analyzing data on topics such as workforce tenure, reasons for departure, engagement and career ambitions, healthcare organizations can create a roadmap for success. Gathering and exploring data through conversations with employees helps identify opportunities and challenges, enabling healthcare organizations to craft targeted upskilling plans that meet future workforce needs.
When upskilling efforts are scaled across the industry, they become the standard rather than the exception. Leading organizations like WellStar, which offers fully funded tuition for in-demand roles such as phlebotomy, respiratory therapy and nursing, exemplify how investing in employee development creates a pipeline of future talent. These efforts significantly improve day-to-day employee wellbeing and engagement by explicitly focusing on workforce development, fostering a healthier and more engaged staff that is better equipped to deliver high-quality care. Comprehensive upskilling strategies not only enhance technical skills but also build critical competencies like communication, teamwork and decision-making. These strategies help individuals grow from uncertainty to confidence, fueling a desire for continued growth. Other national systems, such as Cleveland Clinic and AdventHealth, have also embraced similar initiatives.
Ultimately, designing and adopting upskilling strategies will lead to the effective development of talent in healthcare. This requires an integrated plan that connects technology, infrastructure, talent strategy and employee development. By linking patient care, employee growth and operational efficiency, healthcare organizations can create lasting change. Change management, communication and training will ensure employees are not just involved but engaged in shaping the future of healthcare.
Healthcare systems should reflect on the same question their frontline workers ask every day: “What impact can we make in the lives of the people around us?” By investing in the development of their workforce through upskilling and career development, healthcare organizations improve not only the lives of their employees but also the health of the entire system, ensuring better patient care and a more sustainable future. When healthcare systems commit to developing their workforce for the future, powerful things happen.
Image Credit: ID 116204922 | Physicians © Robert Kneschke | Dreamstime.com
Chris Trout
Chris Trout is founder of Donlon Consulting.