Nurse Turnover In New Zealand Case Study

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A Review on Nurse turnover in New Zealand: costs and relationships with staffing practices and patient outcome. Introduction The article intends to present an analysis of the New Zealand turnover of nurses which was preceded by the existence of nursing need that has been going on for years following an increase of demand for nurses with limited supply. Two studies were done separately on 2001 and 2002 with regards to nursing turnover expenses and it was concluded that the actual cost is not often available. In 2004-2006 a national study was done to identify direct and indirect cost of nurse turnover and how it is related to staffing operation and its effect for nurses and patients. Not long ago, the aforementioned study was given a second…show more content…
Turnover cost were determined by two variables. Criteria for expense were as follows, advertising/recruitment and hiring process per new employee direct cost is at NZ$735, indirect cost which consist of preceptor costs, decreased initial productivity of new employee, orientation and training is at NZ$3 142 summing up to NZ$3 878. Moreover temporary cover cost per leaver variable is NZ$19 922. Indirect cost is twice as expensive as direct cost and per leaver variable expense is seven times higher than per new employee expenditure. The sum of the two variables is at NZ$23 800. The data also presents that nurses who fill up vacant position are from outside the organization which consist of international trained nurses, fresh graduates and applicants from other places in New Zealand makes up 83% of the pool of new recruits. From this, statistics shows the total expenditure for a new employee to reach 100% productivity in relation to their professional status prior to hiring. The most costly is hiring a new graduate nurse with expense amounting to NZ$4 804, followed by overseas trained nurses at NZ$4 467. While less expense are spent on nurses returning to ward at NZ$941 and internal transfer at NZ$ 1711, the 2 latter figure evaded cost related to medical screening, uniform allowance, relocation expense and orientation into the organization. The big chunk of financial charge in the turnover practice is on temporary cover. This charge is not only seen in nurses who resigned but also encompasses present shortages and sick absences. The money spent in this variable covers the payment given to a substitute staff, overtime, making arrangement for temporary replacement and productivity loss by a regular staff helping out the interim staff. Another significant data in this study collects the average annual turnover rate which is at 44.3% (North, N. et al,

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