How to Reduce Agency Nursing Costs

Are rising wages, employee and staffing costs putting a strain on your budget? You're not alone. Many healthcare companies and medical practices face this challenge, but the good news is there are practical steps you can take to reduce these expenses without compromising the quality of patient care.

In this guide, we'll explore smart strategies to manage staffing efficiently, optimize resources, and cut down on nurse staffing agency costs all while maintaining a safe and supportive environment for your team and patients.

Let's dive in!

Optimize Scheduling and Staffing Practices

Having sound scheduling and instilling proper staffing practices is necessary if you want to reduce your organization's reliance on agency nurses.

Should You Use Temporary Nurse Staffing Agencies?

Effective scheduling starts with analyzing staffing patterns to identify gaps and peak short-staffing times. Using this data, engage a temporary nurse staffing agency promptly to prevent burnout and maintain stability.

While it may seem counterintuitive, filling gaps quickly reduces strain on your team and minimizes long-term agency reliance. Delayed action risks creating a cycle of burnout and turnover. By addressing immediate needs with a staffing agency, you gain time to implement lasting solutions that motivate your employees to take on shifts willingly.

Burnout is a major contributor to nurse turnover and common among nursing staff— especially in demanding environments like Greater Cleveland. Overwhelming workloads and chronic stress from providing health care can quickly lead to fatigue and frustration.

To Prevent Burnout:

Ensure nurses have manageable patient loads.
Enforce adequate break times to allow for rest and recovery.
Offer access to mental health resources or wellness programs.
Encouraging self-care not only benefits your nurses but also improves the quality of care they provide.

Fair scheduling

Your organization should have a fair shift schedule, nurses should have a say in their schedules by creating their schedules themselves or bidding to take shifts. The more control nurses have over their own schedules, the happier they will be and more likely to volunteer for additional shifts when needed.

Cross-training

Cross-training your nursing staff is another effective strategy to improve their skill level. Train your nurses to handle multiple roles and responsibilities. This allows you to easily shuffle your existing staff to cover different areas, ensuring that they are competent enough to handle the given task.

Ensure there are regular audits of staffing needs placed against current schedules this can also help you optimize coverage and reduce unnecessary agency hires.

By focusing on increasing retention through staff involvement and schedule optimization, you can decrease your dependence on external nurses. All of the methods listed above are sure to save you money and build a more stable and loyal nursing staff.

Provide Continuous Training and Professional Development

Providing your nurses with consistent training and professional development is a great way to retain your nursing staff and keep them skilled and motivated. When you make training readily available, nurses feel more confident and competent. Confidence reduces turnover and agency nurse reliance. Here's how to create an effective learning environment that encourages growth and long-term commitment:

Offer diverse learning opportunities: Provide options such as workshops, online courses, and conferences to accommodate different learning preferences and career goals.
Encourage advanced certifications and specializations: Supporting nurses in pursuing specialized certifications and continuing education helps build expertise and strengthens their commitment to the profession.
Implement mentorship programs: Pairing new nurses with experienced mentors fosters a supportive environment, promotes knowledge sharing, and helps new staff navigate challenges effectively.
Offer financial support for advanced education: Providing tuition reimbursement, grants, or scholarships incentivizes nurses to pursue higher education, improving retention rates.

For instance, a study by the National Library of Medicine found that nurses who received educational scholarships had 6-month and 12-month retention rates. These rates were around 92% and 84%, respectively.

Additionally, organizations like Edcor offering education benefits observed a 4.1% decrease in nurse attrition rates from 2022 to 2023, highlighting the effectiveness of such programs in stabilizing the workforce.

By offering ongoing training, mentorship, and financial assistance, you create a more skilled and loyal workforce, ultimately reducing turnover and agency nurse reliance.

How to Improve Nurse Retention with Employee Engagement

Reducing agency costs for nurse staffing starts with investing in your current nursing staff. When nurses feel valued, supported, and engaged, they’re far more likely to stay — reducing your reliance on costly agency nurses.

Here’s how you can boost nurse retention through thoughtful employee engagement strategies:

1. Prioritize Open Communication

Effective communication is key to building trust and fostering engagement. Regularly check in with your nursing staff not just to assign tasks, but to genuinely listen to their concerns, ideas, and feedback.

Go beyond surface-level conversations. Ask meaningful questions like:

What’s been challenging for you lately?
Is there anything I can do to support you better?
Actively addressing their concerns shows that you value their input and are committed to improving their work environment.

2. Foster a Positive Work Environment

A positive and supportive workplace significantly impacts job satisfaction. Creating flexible schedules that accommodate your nurses’ personal lives can reduce stress and improve work-life balance.

Offer self-scheduling options.
Allow for shift swaps with minimal red tape.
Ensure fair distribution of night and weekend shifts.

When nurses feel they have control over their schedules, they're more likely to stay committed to your organization.

3. Recognize and Reward Hard Work

Appreciation goes a long way in building loyalty. Recognizing your nurses’ dedication boosts morale and reinforces their value to your organization.
Ways to Show Appreciation include:

Verbal praise during team meetings.
Employee of the Month awards.
Small bonuses or gift cards for outstanding performance.
Even a heartfelt “thank you” can make a significant impact. Consistent recognition motivates staff to stay engaged and committed.

4. Build Strong Team Connections

A sense of community can transform your workplace culture. Organizing team-building activities, social events, or wellness retreats encourages camaraderie and strengthens relationships among your nursing staff.

Team-Building Ideas for Nurses:

Monthly lunch outings.
Game nights or trivia contests.
Volunteer opportunities for staff to bond outside of work.

When your nurses feel connected to their colleagues, they’re more likely to feel fulfilled — and far less likely to seek work elsewhere.

5. Use Technological Solutions for Staffing Efficiency

Technology can assist your organization in optimizing staffing efficiently. Don't know how to use technology to improve your staffing efficiency? Integrating advanced scheduling software is an excellent start. Scheduling software allows efficient shift management with no room for human error, providing your organization with optimal coverage.

Real-time dashboards can also help managers detect staffing gaps and fill them with available staff in a timely fashion. Automatic systems also enable notifications and reminders for open shifts, allowing for quicker responses from your regular staff.

Telehealth devices can help nurses massively. Through their use, staff can monitor patients and have virtual sessions. This positions health care providers better to address the needs of patients and reduces the workload from on-site staff.

Another useful technology is electronic health record (EHR) systems. These systems streamline documentation and reduce administrative tasks for nurses. With less paperwork, your staff can spend more time caring for patients.

Using these technological tools will assist you in managing staffing effectively and have your key nursing staff fully utilized, making agency nurses unnecessary.

Key Takeaways: How Can You Reduce Agency Nursing Costs?

Prevent burnout by managing staffing levels properly–identify gaps in the schedule that lead to being short-staffed and engage a temporary staffing agency quickly.
Prioritize nurse retention by engaging your staff through open communication, flexible scheduling, and recognition programs to improve job satisfaction and reduce turnover.
Optimize scheduling practices with self-scheduling, shift bidding, and regular staffing audits to ensure balanced coverage and minimize the need for agency nurses.
Cross-train staff to handle multiple roles, improving flexibility in staffing and reducing the need for external support.
Invest in professional development by offering workshops, online courses, mentorship programs, and financial assistance for advanced education to boost nurse confidence, skills, and loyalty.
Leverage technology for efficiency with scheduling software, real-time dashboards, telehealth tools, and electronic health records (EHR) to improve staffing management and reduce administrative burden.

If you need a reliable temporary nurse staffing agency in the Greater Cleveland area, BrightStar Care^® is the perfect solution for you. Our brand offers full-service, custom medical staffing services to meet your needs.

Are you looking for skilled nurses to help? Visit our website or call (440) 613-1500.