HR in Healthcare: 5 Workforce Challenges & Solutions for 2025

Every organization has two key components: the services they are passionate about and the essential operations supporting them. In healthcare, Human Resources (HR) is often outweighed by clinical priorities and is viewed as merely an administrative necessity instead of a strategic asset. 

HR plays a critical role in healthcare, yet many organizations struggle with workforce shortages, employee burnout, and maintaining compliance and retention. As we continue through 2025, HR leaders must tackle these challenges head-on to ensure operational efficiency and quality patient care.

This article explores the top challenges of HR in the healthcare industry and how smart organizations treat HR as a strategic partner to address these challenges. 

Table Of Contents

• What Is The Role Of HR In Healthcare?
• Top 5 HR Challenges In Healthcare For 2025 (And How To Solve Them)
• HR Challenge #1 - Workforce Shortages In Healthcare
• HR Challenge #2 - Reducing Employee Burnout In Healthcare 
• HR Challenge #3 - Financial Constraints And Staff Compensation
• HR Challenge #4 - Collaboration And Trust In Healthcare HR
• HR Challenge $5 - The Role of Digital Transformation in Healthcare HR
• Best HR Tools For Healthcare Providers
• Key Takeaways

What Is The Role Of HR In Healthcare?

HR is the backbone of healthcare organizations, overseeing everything from recruiting skilled medical professionals to maintaining workplace culture and ensuring top-quality patient care. Their role is to shape workplace policies through fair and timely payroll, safety, and work-life balance. 

With proper guidelines in place, they can ensure employees feel supported and engaged. HR also drives training and development to help healthcare workers gain the skills they need to thrive in a rapidly changing industry. 

Lastly, it’s the HR department that fosters trust and communication. So, if you find employees who feel heard and valued, it’s probably thanks to a high-functioning HR team.

Top 5 HR Challenges In Healthcare For 2025 (And How To Solve Them)

There is no denying that the U.S. population is aging, which increases the demand for healthcare services. Adding that to a long-standing healthcare staffing shortage can make matters even worse. Besides burnout and heavy workloads, employees often resign due to safety concerns and workplace hostility.

Let’s take a look at some statistics: 

• Almost 8 out of 10 healthcare workers have faced violence on the job
• 76% say they’re exhausted and burned out
• 66% of nurses have thought about quitting

HR leaders must navigate rising staff and supply costs, directly impacting payroll management and HR compliance strategies in 2025. The Healthcare Finance Trends for 2024 report from CommerceHealthcare® highlights key challenges and opportunities in finance, patient experience, technology, and teamwork.

A critical insight? Poor workplace culture and disengaged staff weaken morale and ultimately affect patient care. Let’s dive into the biggest HR challenges facing healthcare in 2025, and how to overcome them.

HR Challenge #1 - Workforce Shortages In Healthcare

By 2025, the U.S. could face a shortage of up to 64,000 physicians, and hiring qualified workers is already a challenge. Nearly half of HR leaders say attracting and keeping talent is a top priority.

The real issue goes beyond staffing numbers. While hiring more professionals is the most direct solution, other key strategies include improving workforce support, smarter use of technology, redefining workflows, and creating policies that prevent burnout. These approaches help maximize the impact of the staff you already have.

Additionally, offering competitive pay and benefits is crucial for attracting and retaining top talent. The latest employee benefits trends highlight healthcare, flexible work options, and financial wellness programs. These are the elements that can improve job satisfaction and morale.

Healthcare Staffing Checklist

• Assess Staffing Needs: Audit current staff levels and projected demand.
• Review current compensation packages: Ensure current employees are receiving competitive compensation and benefits. Offer market-aligned salaries and benefits.
• Strengthen Workforce Engagement: Implement referral bonuses, recognition programs, and professional development.
• Leverage Technology: This could be anything from workflow automation and implementing healthcare payroll software solutions to using Excelforce’s HR suite for streamlined recruitment and onboarding.
• Flexible Scheduling: Allow employees to provide input regarding their schedules. Ensure employees have the option for seamless shift swaps or part-time options.

HR Challenge #2 - Reducing Employee Burnout In Healthcare 

Workplace conditions, job satisfaction, and engagement also contribute to high staff turnover. For example, the overwhelming number of prior authorization (PA) requests is burning out physicians and cutting into productivity. 

Some processes are overrun by inefficiency, which compromises patient safety. One way to help is automating administrative tasks to ease the workload for HR and healthcare teams.

While not all tasks (like prior authorizations) can be easily automated due to insurance requirements, reducing the overall admin burden allows qualified staff to focus on these critical processes. For instance, consider implementing a "buddy program" where each provider is paired with a member of the administration team who handles insurance-related tasks, such as prior authorizations. This way, providers can focus on what they do best: delivering exceptional patient care.

Checklist for Reducing Employee Burnout in Healthcare

• Early Burnout Detection: Run regular pulse surveys and use reporting tools to spot early signs of fatigue.
• Automate Mundane Tasks: Employ digital tools for paperwork and billing, freeing staff to focus on patient care.
• Wellness Initiatives: Offer mental health support, counseling, and employee assistance programs (EAPs).
• Leadership Training: Train managers in empathetic leadership and effective communication.

HR Challenge #3 - Financial Constraints And Staff Compensation

Rising costs are hitting the healthcare industry, particularly home care providers hard, making it more challenging to keep up with staffing expenses. In 2024 alone, total healthcare system costs jumped 16%, while practice expenses rose 12.8%.

Tackling these financial challenges calls for a strategic approach to budget allocation, which includes developing fair compensation structures that not only encourage employee retention but also ensure financial sustainability. Beyond offering competitive pay, organizations need to assess how they allocate resources to retain and support skilled caregivers and practitioners.

Providing competitive pay along with flexible benefits can significantly impact the retention of skilled professionals, helping them feel valued and supported in a demanding industry.

Checklist for Fair Compensation in Healthcare

• Budget Prioritization: Review budgets and reallocate funds towards staff retention and engagement.
• Fair Compensation Structure: Benchmark salaries annually and adjust for market changes.
• Flexible Benefits: Provide options like telehealth benefits, financial wellness programs, or child care support.
• Integrated Healthcare Payroll Software Solutions: Use Excelforce’s payroll and benefits solutions to minimize errors and delays.

Balancing competitive pay with financial sustainability is tough. Our HR & payroll tools simplify compensation management while ensuring compliance.

HR Challenge #4 - Collaboration And Trust In Healthcare HR

Mistrust between healthcare providers and employees can create serious workforce challenges. This becomes even more apparent in the home care sector, where staff often feel stretched too thin.

A strong HR culture helps with retention because trust-building is undeniably reciprocal. The key is running regular check-ins and implementing structured feedback methods.

For example, home care agencies can collect the staff’s opinions to gauge how busy they are and how satisfied they feel with their workload and compensation. This also means setting up ongoing conversations between leadership and staff so staff feels heard.

Another great strategy is performing stay interviews. A scheduled check-in 90 days after hiring can help home care providers understand any emerging concerns and make adjustments before staff start looking for employment elsewhere. This creates psychological safety, which is a grand workplace rule: “Any well-supported employee is much more likely to stay.”

Teamwork Checklist in Healthcare

• Regular Check-ins: Schedule structured 1:1s and team feedback sessions.
• Surveys for Staff Satisfaction: Gauge staff workload, satisfaction, and compensation fairness.
• Conduct Stay Interviews: Conduct a 90-day post-hire check-in to address concerns early.
• Transparent Communication: Clearly communicate policies, changes, and organizational goals.
• Reciprocal Feedback: Encourage upward feedback to reinforce mutual trust.

HR Challenge #5 - The Role of Digital Transformation in Healthcare HR

Digital adoption is another nagging issue in the healthcare industry, including the home care sector. HR teams aren’t using the right technology to improve the employee experience and their own workflows.

New technologies, such as Generative AI, can make it easier for healthcare systems to connect and share data. Doing so helps providers personalize care and create a smoother patient experience across EMRs, devices, and insurance systems.

A practical example is using HR tools for talent management, predictive scheduling, and recruitment. They can also take over repetitive admin tasks, which frees up healthcare providers' time to focus on patients.

Using AI-powered HR tools for healthcare staff can have a big impact. For instance, HIPAA-compliant AI tools such as Patient Notes help manage patient information as the care progresses. This could save both the physicians and home healthcare providers valuable time.

Workflow Automation and HR Compliance in Healthcare Checklist

• Adopt HR Tech: Implement Excelforce’s digital tools for talent management, scheduling, and benefits administration.
• Leverage AI & Automation: HR compliance in healthcare is a must. Consider HIPAA-compliant AI to handle repetitive tasks (e.g., credential checks, provider notes).
• System Integrations: Connect EHR systems with healthcare payroll software solutions and HR workflow platforms for seamless data flow.
• Ongoing Training: Make sure HR staff and healthcare providers are trained in using new digital solutions. You can create your own training with employer-created courses.
• Monitor & Measure: Use data analytics to evaluate the impact of tech adoption on efficiency and satisfaction.

Best HR Tools For Healthcare Providers

1. Excelforce

Starting strong with the best HR tools for healthcare providers, Excelforce is a must-have. It brings payroll, HR, and benefits solutions together in one streamlined platform, backed by top-tier customer service. From seamless implementation to ongoing support, our team ensures your organization has everything it needs to thrive.

Automate repetitive tasks like time-off requests and compliance checks, then use real-time data to guide decisions on hiring and retention. With Excelforce, you can also stay compliant with pay regulations, ensuring accurate, timely payroll while meeting all necessary standards. It’s simple and practical, so healthcare HR teams can quickly act on challenges like staffing shortages or burnout, without getting bogged down in complex workflows. Excelforce is not just about software—it's your partner every step of the way.

2. Patient Notes

PatientNotes is an altogether HIPAA-compliant clinical note-taking tool. It keeps patient data secure while simplifying documentation. Encrypted storage, strict access controls, and regular compliance updates ensure patient confidentiality at every step. 

Besides, built-in training helps staff stay informed on best security practices. The result? Less admin hassle and more focus on patient care.

3. Advanced Scheduling Tools

Effective scheduling is essential for healthcare providers, and these advanced scheduling tools help ensure proper shift coverage while reducing burnout and agency costs.

• Apploi: Streamlines hiring, onboarding, and scheduling, helping healthcare facilities fill shifts faster while reducing agency costs. The tool also offers one-click shift scheduling for optimal staffing.
• Dropstat: Uses AI-driven automation to optimize staffing, reduce overtime, and prevent scheduling conflicts.
• Schedule Pop: A flexible and easy-to-use scheduling solution that helps healthcare teams manage shifts efficiently while ensuring compliance.

4. Blink

Communication can make or break a healthcare team, and Blink brings everyone together on a single platform that is fully HIPAA-compliant. From quick updates to important announcements, you’ll have a centralized hub that keeps staff connected and engaged.

5. Keeper

Keeper offers same-day pay solutions for healthcare workers, ensuring employees have instant access to earned wages. This improves financial wellness and reduces turnover by providing workers with greater flexibility and security.

6. Megadata

Megadata provides advanced analytics and workforce management tools tailored for healthcare providers. It helps organizations streamline operations, track key performance metrics, and make data-driven staffing decisions.

Key Takeaways

The healthcare industry still grapples with persistent workforce challenges. However, 2025 looks to be a turning point. Many HR leaders believe this shift occurs thanks to AI, automation, and a renewed focus on patient-centered care. 

A combination of tools, strategic training, and retention programs can help keep morale high. This mostly means adopting the right technology and putting people first to deliver a better experience at every level of care.

HR challenges in healthcare aren’t going away, but the right tools can help. Let’s discuss how tailored HR solutions can support your organization.