High turnover a problem for nursing workforce

Media Release
25 June 2007

High turnover a problem for nursing workforce

Four out of ten staff nurses in New Zealand hospital general wards move jobs each year, costing hospitals on average nearly $25,000 to replace each one.

A study at The University of Auckland looked at turnover of nurses at public hospitals around the country. The research found nearly 40% of staff nurses leave their jobs each year and 73% are replaced by new graduates or overseas-trained nurses. The study also found that hospital wards employ two nurses less, on average, than budgeted.

Turnover rates were slightly higher in regional hospitals than urban areas (39.6% vs 38.8%) and in surgical wards than medical wards (41% vs 36.7%).

Each hospital spends around $20,000 per leaving nurse on temporary cover costs and overtime and up to $5300 per replacement nurse in advertising and training costs.

“Nursing has an extremely high turnover of personnel and this is viewed as normal by most people in the healthcare field,” says Associate Professor Nicola North, primary investigator of the study at the Faculty of Medical and Health Sciences. “Most leavers are replaced by new graduates or overseas nurses, and these are the most costly in terms of on-job training. Healthcare organisations need to recognise the issues around turnover and look at ways to manage and retain nurses in the workforce. This is especially important as there are shortages of nurses world-wide including in New Zealand.”

The study was jointly funded by the Ministry of Health and the Health Research Council.

Turnover of nurses by geographical area

Average (%)
Upper North Island (including Auckland) 39.9
Auckland 41.3
Central North Island 34.6
Lower North Island 49.5
South Island 27.7
National average 39.2

ENDS

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