Employee turnover remains a persistent and costly challenge for non-profit hospitals. With clinical staffing shortages intensifying and budgets under strain, CFOs are playing an increasingly pivotal role in shaping workforce retention strategies. While Human Resources departments may lead program design and implementation, finance leaders are uniquely positioned to assess the return on investment and long-term sustainability of these efforts.
Below are six retention-focused initiatives gaining momentum in 2025—each aligning with workforce needs, fiscal responsibility, and broader organizational missions. One area of growing focus is support for student loan forgiveness and financial wellness as a tool to drive employee stability.
1. Aligning Financial Wellness with Workforce Stability
Healthcare workers across all roles report high levels of financial stress, with student debt ranking among their top concerns. According to the AAMC, over 70% of healthcare professionals under 40 carry student loans, often delaying life milestones and contributing to job dissatisfaction.
Forward-thinking organizations are broadening their definition of employee wellness to include targeted financial benefits, such as student debt support or loan repayment guidance. These offerings address root causes of stress and demonstrate a commitment to employees’ long-term financial health—often translating into increased loyalty and reduced turnover.
2. Leveraging Public Service Loan Forgiveness (PSLF) Effectively
PSLF was created to alleviate debt burdens for professionals serving in public-sector roles, including non-profit healthcare. However, the complexity of the program has led to widespread confusion and underutilization. Many eligible employees make errors in the process or never apply at all.
Hospitals that invest in clear PSLF education, streamlined enrollment processes, and compliance tracking are seeing measurable gains in program participation and workforce satisfaction. Simplifying access to PSLF doesn’t just help individual employees—it reinforces the hospital’s role as a supportive, mission-aligned employer.
3. Treating Retention as a Financial Priority
The financial impact of turnover is significant. Replacing a single nurse can cost as much as $70,000, and for large health systems, annual turnover expenses can reach tens of millions.
Retention strategies should be evaluated not just as HR initiatives, but as financial risk mitigation tools. CFOs are increasingly incorporating retention-related metrics into financial planning, treating them with the same rigor as capital investments. This shift enables clearer communication with boards and justifies continued investment in programs that reduce churn.
4. Using Data to Target At-Risk Employee Segments
Not all staff are equally likely to leave. Research shows that early-career professionals, employees from underrepresented backgrounds, and those carrying significant debt are at greater risk of attrition.
Hospitals are beginning to leverage internal data—such as tenure, job classification, and benefits utilization—to identify high-risk populations and tailor support accordingly. Tools that integrate with HRIS systems can aid in automating this process and provide real-time insights into which initiatives are driving retention.
5. Reducing Administrative Burden to Support HR Capacity
Even the most promising retention initiative will falter if it overwhelms internal teams. Many HR departments already juggle onboarding, compliance, and benefits management—making ease of implementation a critical factor.
Hospitals are prioritizing solutions that are scalable, automated, and require minimal internal lift. Platforms that offer support services such as employee education, form tracking, and analytics reporting are helping HR teams deliver impact without added complexity.
6. Advancing Equity Goals Through Benefit Design
Student debt disproportionately impacts first-generation graduates and professionals from underrepresented communities. Offering debt support as part of the benefits package not only enhances retention, but also helps fulfill DEI objectives by removing barriers to financial stability and career progression.
Organizations are beginning to track who accesses these benefits and using that data to assess both the financial and equity outcomes. In doing so, they’re embedding inclusion into their retention framework—reinforcing their values in a meaningful way.
Rethinking the CFO’s Role in Retention
Workforce stability is no longer just an operational concern—it’s a strategic and financial imperative. In 2025, the CFO’s role includes evaluating the cost-effectiveness of retention initiatives, ensuring alignment with institutional goals, and advocating for investments that safeguard both people and performance.
By focusing on data-driven, scalable, and equity-informed approaches, finance leaders can support a more resilient healthcare workforce and ensure long-term organizational sustainability.
Take the Next Step
If you're looking for a solution that drives results without overburdening your budget or HR team, let's talk.
📥 Download our executive guide: “The Financial ROI of Public Service Loan Forgiveness: A Strategic Retention Tool for Nonprofit Healthcare Systems”
%20Human%20Coaching%20or%20Automated%20Tools_%20Why%20Our%20Loan%20Advisors%20Still%20Pick%20Up%20the%20Phone.png)
%20Financial%20Wellness%20Is%20a%20Patient%20Care%20Strategy%20(Yes%2C%20Really).png)
