Four Healthcare Hiring Trends To Watch

Over the past few years, healthcare organizations have overcome significant hiring challenges, including the shift to remote work in 2022, increased wages in 2023, and automation in 2024. 

What is in store for 2025? Here are the four trends to expect next year. 

New laws will impact recruiting

Recent labor laws mandating a minimum hourly rate will have a profound impact on how organizations hire and manage their workforce. California, for example, recently increased the minimum wage for healthcare workers to $21/hour. This significant increase will have ripple effects throughout the healthcare industry and beyond.

Organizations already struggling financially will face additional pressure to balance their budgets. The increased labor costs will strain their resources, forcing them to make difficult decisions. Many healthcare organizations may resort to laying off non-essential workers, a measure that could lead to job losses and economic hardship for affected individuals. According to Beckers Hospital Review, as of October 2024 there have been 60+ hospitals that have cut jobs that trend is expected to continue into 2025. 

Employers look to offshoring 

Certain healthcare departments might look at offshoring operations to countries with lower labor costs that may become more attractive options for organizations. By shifting their operations overseas, companies can avoid paying higher wages to domestic workers. However, this could lead to job losses in the local economy which will have a severe impact on unemployment. 

Overall, the recent labor laws mandating a minimum hourly rate will have far-reaching consequences for organizations. They must adapt their hiring practices, budgeting processes, and operational strategies to cope with the increased labor costs. 

While these laws aim to protect workers’ rights and improve their living standards, they also present challenges for healthcare systems, particularly those operating in competitive markets with thin profit margins. As a result, we’ll see a continued trend of outsourcing to a stateside third party or offshoring overseas. These options are popular among financial leaders within larger entities because of the immediate cost savings to the bottom line. When companies outsource or offshore, it’s typically a short-term solution to regain ground financially. Companies will then want to bring their Revenue Cycle Management (RCM) functions back in house to have complete control.

AI is transforming healthcare hiring

As referenced in the Addison Group 2025 Workforce Planning Guide (page. 20) the increase in wages and cost of half-full administration buildings have financial leadership looking at their profit and loss (PNL) and for ways to save on costs, even if that means a slight risk in quality. 

A third trend we’re seeing in healthcare is the use of Artificial Intelligence (AI) and Analytics. Artificial Intelligence (AI) has become a buzzword in recent years, with its potential applications spanning various industries, including healthcare. While AI can assist in automating back-office functions to improve efficiency, certain aspects, such as patient care, decision-making, and even administrative functions still require a human touch point. Talent gaps, legacy technology, and the complexity of managing highly sensitive healthcare data with privacy regulations make full application challenging in this space. The most prominent area we can see AI take over in healthcare is in using AI for hiring talent. 64% of human resources professionals say talent acquisition is the top way they are using AI. 

Both clinical and nonclinical teams continue to beef up their analytics department as this area grows rapidly, reshaping clinical care, operational efficiency, and patient engagement. The goal is to have better care that is more cost effective. 

Changing work environments

In remote/hybrid work in healthcare, there’s a clear divide between those with that option and those who do not. Patients are required (for the most part) to be on-site for care, which requires on-site admin, clinical, and operational staff to be on-site as well. We will continue to see patient-facing positions on-site; however, we’re noticing that companies that have moved their non-patient-facing positions to hybrid or remote are getting the best talent available. 

Companies who carefully monitor these trends and prepare by understanding the implications of these trends, will have an advantage in hiring the best available talent in the coming months.