7 Costly Retention Mistakes Hospital CFOs Are Still Making (And How to Fix Them Fast)

Hospitals nationwide are facing a growing challenge: recruiting new talent is getting harder, and keeping top-performing staff is becoming even more difficult. Amid this retention crisis, CFOs at nonprofit hospital systems—especially those managing large workforces—have a critical role to play. Unfortunately, some of the most common mistakes that drive turnover are going unaddressed.

Here are seven pitfalls that could be undermining your organization’s retention efforts—and how forward-thinking leaders are addressing them.

1. Overlooking Financial Stress as a Key Driver of Turnover

Many hospitals have made important strides in offering mental health and wellness programs. Yet, staff departures persist. One major factor often goes unaddressed: the impact of financial stress, particularly student loan debt.

Surveys show that more than 60% of hospital employees say their debt burdens affect their job satisfaction. When left unchecked, this financial strain can lead to burnout and resignations—especially among clinical staff.

What you can do: Consider adding financial wellness benefits that address the root causes of stress, such as student loan guidance and access to federal forgiveness programs like PSLF.

2. Assuming Retention Benefits Are Too Costly

Tight budgets can lead to hesitation about launching new benefits programs. But inaction carries its own price tag. The cost of replacing just one nurse is estimated at $40,000–$65,000 when factoring in recruitment, onboarding, and lost productivity.

What you can do: Evaluate retention initiatives not just as expenses, but as investments with measurable ROI. Look for scalable programs that deliver targeted results without overburdening your existing budget.

3. Treating Retention Solely as an HR Responsibility

Retention strategies are often delegated to HR, but high turnover impacts more than just staffing—it affects operational costs, morale, and ultimately patient outcomes. Finance leaders are well-positioned to influence these outcomes through proactive planning and analysis.

What you can do: Collaborate cross-functionally to integrate retention data into broader financial strategy. When finance and HR work together, it’s easier to demonstrate the economic value of keeping top talent.

4. Underutilizing Public Service Loan Forgiveness (PSLF)

PSLF is one of the most powerful federal tools available to nonprofit hospitals, yet many employees either don’t know about it or don’t understand how to apply. The complexity of the process often leads to missed opportunities for both staff and the institution.

What you can do: Increase internal awareness and remove administrative hurdles by providing staff with trusted guidance and application support for PSLF.

5. Relying on General Wellness Programs That Miss the Mark

While gym stipends and meditation apps may boost well-being, they often don’t address the financial realities your workforce faces. For many staff members, the weight of student loan debt overshadows other wellness resources.

What you can do: Tailor wellness benefits to include debt management tools and financial education. Addressing money-related stress can have a direct impact on retention and engagement.

6. Failing to Connect Benefits with Measurable Outcomes

Stakeholders expect data to support continued investment in employee programs. Without metrics on impact, even effective benefits may lose traction.

What you can do: Use workforce data to assess financial stress indicators, estimate cost savings from improved retention, and align outcomes with broader institutional goals.

7. Sticking with Manual, Outdated Systems

In a digital-first healthcare environment, relying on paperwork and legacy systems can discourage staff participation in benefits programs. Friction in the process can reduce adoption—no matter how helpful the benefit may be.

What you can do: Evaluate vendors and programs that offer tech-enabled solutions, automation, and user-friendly interfaces. Streamlining employee engagement improves usage and outcomes.

Building a More Resilient Workforce

Retention isn’t just an HR metric—it’s a financial imperative. As a CFO, addressing these missteps and aligning benefits with real employee needs can strengthen both your balance sheet and your organizational culture.

If your team is exploring financial wellness and student debt support as part of a retention strategy, now is the time to act. Even modest investments can yield long-term savings and improved staff stability.

📥 For deeper insights, consider downloading our industry white paper: “The Financial ROI of Public Service Loan Forgiveness: A Strategic Retention Tool for Nonprofit Healthcare Systems”
🌐 Visit www.peoplejoy.com to learn more about hospital-focused financial wellness strategies.