Executive summary of the 2025 healthcare workforce management report
The 2025 healthcare workforce management report examines the critical staffing, compliance, and operational challenges facing healthcare providers across facility, home, and community-based settings. At its core, the research emphasizes a central truth: the future of healthcare depends on how well organizations take care of the people who power it.
The report is based on surveys and interviews with nearly 650 healthcare professionals, including both administrators and care staff. Findings reveal persistent workforce shortages, payroll and compliance challenges, and a disconnect between leadership and frontline staff. Yet it also highlights practical steps providers can take to rebuild trust, strengthen retention, and create a more sustainable care delivery model.
Seven macro trends reshaping healthcare
The report identifies seven major forces redefining the industry:
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Worsening workforce shortages, driven by shrinking pipelines and high turnover.
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Growing demand for care at home, fueled by consumer preference and payer support.
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Technology fragmentation, with too many disconnected systems creating inefficiencies.
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Rising consumer-driven expectations for transparency, flexibility, and quality of care.
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The dominance of Medicare Advantage, reshaping reimbursement and care delivery.
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Ongoing mergers and acquisitions, consolidating providers into larger networks.
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Shrinking margins, as costs rise while reimbursement models tighten.
Five underlying workforce management issues
Behind these macro trends lie five core workforce management challenges:
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Complex payroll and wage structures – Errors are frequent and erode staff trust.
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Workforce shortages and high turnover – Burnout and pay dissatisfaction fuel attrition.
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Regulatory complexity and compliance risks – Constant changes create “compliance fatigue.”
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Disconnected and manual processes – Outdated systems waste time and increase risk.
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Rising reliance on contract and agency labor – Costly stopgaps undermine long-term stability.
The retention gap
Retention is threatened by a disconnect between administrators and staff. For care staff, higher pay is the top motivator, but many administrators underestimate its impact. Payroll errors further erode trust, with nearly one in four employees doubting their pay is correct. Burnout, inefficient workflows, and lack of autonomy compound dissatisfaction.
Administrators also struggle with recruitment, scheduling, and employee concerns, which deepens the staffing crisis. Without intervention, these retention gaps will continue to destabilize care delivery.
The operational gap
Compliance and payroll challenges remain significant. While many administrators feel confident in their compliance efforts, most rely on manual processes that cannot keep pace with regulatory changes. Healthcare organizations face more than 600 distinct requirements, costing nearly $39 billion annually. Non-compliance fines have tripled in recent years, underscoring the urgent need for better technology and processes.
A path forward
The report outlines four key steps organizations can take to rebuild workforce stability:
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Invest in career growth – Support staff with flexible scheduling, development opportunities, and transparent communication.
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Make pay meaningful – Balance wages with career advancement incentives to improve retention.
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Prioritize payroll confidence – Eliminate errors and increase transparency to restore trust.
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Foster a culture of compliance – Equip teams with training, tools, and partnerships to stay ahead of regulations.
Looking ahead to 2025 and beyond
The report concludes that while the healthcare industry faces unprecedented pressures, solutions lie within. By prioritizing people-first strategies – including fair pay, accurate payroll, supportive scheduling, and compliance confidence – organizations can rebuild trust and create resilient care teams. This shift will help leaders stabilize operations while enabling staff to deliver the high-quality care patients deserve.
