Beyond Travel Nurses: Is a “Gig” Workforce the Cure for Hospital Staffing Woes?

In my previous article, I explored why hospitals are hemorrhaging talent and how to stop the bleeding. We discussed the staggering 22.7% average turnover rate, the hidden costs of constantly replacing staff, and the fierce competition for skilled professionals in today’s healthcare market. The takeaway? Flexibility is no longer a perk; it’s a necessity. Hospitals need to embrace remote work, flexible schedules, and a more dynamic approach to talent management if they want to survive the talent war.

Advertisement

What’s Old is New Again

But the evolution of flexible work doesn’t stop there. To truly thrive in the new healthcare landscape, hospitals must embrace the next frontier: the gig workforce. Let’s be clear: a flexible, project-based workforce isn’t a new concept. Businesses have been leveraging this model for decades – it’s how many of us, myself included, cut our teeth in consulting 30 years ago. Back then, it was just called “contract work”. What’s changed is the mindset, particularly within hospital administration, management, and IT roles. There’s been a lingering perception of this practice, now often called “the gig economy” or “gig work,” as being less stable or less desirable than traditional employment. But the truth is, the principles are as old as business itself. Let’s call it “Gig Economy” to keep up with the times, but savvy hospital leaders will recognize it as a powerful tool they should have used all along. Pro-tip for hospital leadership: adapt your mindset or risk being left behind in a rapidly changing talent landscape.

The Gig Economy: It’s Not Just Talk

You’ve probably heard the term “gig economy” applied to ride-sharing or food delivery. However, this short-term, project-based work model is rapidly transforming industries across the board, and healthcare is no exception. The global gig workforce is projected to exceed 1.6 billion people by 2025. This is not just a niche trend. The freelance platform market alone is estimated to reach a staggering $7.65 billion in 2025 and a whopping $16.54 billion by 2030. Think beyond the traditional travel nurse model. We’re talking about a diverse pool of highly skilled professionals – from IT specialists and data analysts to telehealth providers and revenue cycle experts – who choose to work on a contract or freelance basis.

Why is this happening? Several factors are at play. First, the recent economic downturn and deep staffing cuts in many hospitals have created a surplus of experienced healthcare professionals seeking new opportunities. Many were in talent acquisition and had to find new ways to use their skills. Their expertise is now available on a project basis, a win-win for them and for hospitals needing their skills. This influx of available talent, driven by recent economic shifts and strategic downsizing in many hospitals, has significantly fueled the gig economy. Simultaneously, technological advancements have made connecting with, managing, and collaborating with remote workers easier than ever, further enabling this trend. Make no mistake: this “white-collar recession” is real, and it’s reshaping the healthcare workforce.

Why Your Hospital Needs to Step Up

Hospitals clinging to traditional staffing models are missing out on a golden opportunity to:

  • Fill Critical Skill Gaps: The gig economy allows you to tap into specialized expertise that might be lacking in your current staff or too costly to hire full-time. Need a cybersecurity expert for a six-month project? A data analyst to optimize your revenue cycle? A telehealth specialist to expand your virtual care offerings? There’s a gig worker for that. Many hospitals have projects on hold for years, lacking the staff with the time to complete them.
  • Boost Innovation: Long-tenured employees are invaluable for their institutional knowledge. However, a fresh perspective can be equally crucial for driving innovation. Gig workers often bring diverse experiences and cutting-edge skills, injecting new ideas and challenging the status quo.
  • Control Costs: Gig workers can be a cost-effective solution for short-term needs or specialized projects, allowing you to avoid the overhead associated with full-time employees (benefits, etc.).
  • Increase Agility: A hybrid workforce model that blends full-time, part-time, and gig workers gives you the flexibility to scale your staffing up or down quickly in response to fluctuating patient volumes or changing market demands.

Building Your Hybrid Workforce: A Blueprint for Success

Integrating gig workers into your team requires a strategic approach. Here’s how to get started:

  • Embrace the Tech: Invest in technology platforms that streamline the process of sourcing, onboarding, managing, and paying gig workers. Vendor Management Systems (VMS) can help you centralize these functions. Here are a few top healthcare-focused VMS providers to consider:
  • Shiftwise: Widely used in the healthcare industry, Shiftwise specializes in healthcare staffing and streamlining the process of managing travel nurses, per diem staff, and other contingent workers. They offer features specific to healthcare, such as credential management and compliance tracking.
  • Cross Country Marketplace (CCMS): A major player in the healthcare VMS space, CCMS provides a range of workforce solutions tailored to healthcare organizations, including tools for managing various types of contingent labor, both clinical and non-clinical.
  • AMN Passport: From one of the largest healthcare staffing agencies, AMN Passport offers a robust platform for managing contingent labor, with a strong focus on compliance, credentialing, and visibility.
  • When selecting a VMS, consider factors like integration capabilities, compliance management, analytics and reporting, mobile accessibility, supplier onboarding, cost, customer support, and implementation timeline. Explore freelancer marketplaces like Upwork, or consider building your own internal talent pool for pre-vetted gig workers. Pro Tip: Partner with a highly skilled executive recruiter; they can leverage their expertise to vet and place the talent you need quickly and will have the relationships to do this in record time.
  • Onboard Like a Pro: Develop efficient onboarding processes specifically for gig workers. Focus on essential training, provide clear expectations, and ensure they have the tools and access they need to hit the ground running. Top Tip: Develop a relationship with a third-party vendor so you can subcontract your talent. This will speed up the typically lengthy hospital onboarding process.
  • Don’t Forget Engagement: Even though they’re not permanent employees, gig workers need to feel valued and connected. Foster open communication, solicit their feedback, and create opportunities for them to collaborate with your full-time team. Again, an experienced executive recruiter who has spent years in corporate recruiting can excel in this area.
  • Navigate the Legal Landscape: Properly classifying workers (employee vs. independent contractor) is crucial to avoid legal and tax headaches. Consult with legal counsel to ensure you’re complying with all applicable regulations. This includes background checks, compliance training, and other steps in your full-time hiring process. A strong relationship with a third-party vendor can also be a workaround here; find one you can trust, have them legally vetted, and work with them to follow your hospital’s employment policies.

Boosting Your Full-Time Crew: Success for All

It’s natural for full-time employees to feel uncertain about the introduction of gig workers. Address these concerns head-on by emphasizing the benefits for everyone:

  • New Leadership Opportunities: Full-time staff can take on project management roles, overseeing teams that include gig workers and gaining valuable leadership experience.
  • Skill Enhancement: Gig workers can bring in specialized knowledge, creating opportunities for full-time staff to learn new skills and expand their expertise. This cross-pollination of skills is vital in a rapidly evolving industry.
  • Reduced Workload: By delegating certain tasks to gig workers, you can free up your full-time employees to focus on their core responsibilities, reducing burnout and improving job satisfaction.

The Future’s All About Flexibility: Embrace the Gig Life

The rise of the gig workforce in healthcare is not a fleeting trend; it’s a fundamental shift in how hospitals will operate in the years to come. By embracing a hybrid model that strategically integrates gig workers alongside traditional employees, your hospital can unlock a new level of flexibility, innovation, and cost-effectiveness.

Ready to take the next step? In my next article, we’ll dive deeper into the specific technology tools beyond VMS that can help you build and manage your gig workforce, transforming your hospital into a talent magnet. Are you ready to embrace the future of healthcare staffing? If you dig what I’m laying down here, let me know. Drop me an email.

Advertisement

Next Up in Strategy

Advertisement

Comments are closed.