Can nursing orientation costs be managed? Should they be?

Orientation for new-hire RNs in hospitals is costly. In an article in the journal of nursing economics, the average (16 weeks) unit-based orientation cost was estimated at $41, 624 – and this was published back in 2007.

Let’s update this a little using more recent salary related costs; according to KPMG’s 2011 U.S. Hospital Nursing Labor Costs Study, the total cost of a full-time RN averages $98,000 per year (or $1885 per week).  Thus, the average cost for the preceptee’s time would be a little over $30,000 (16 weeks at $1885 per week).  Adding another $30,000 for staffing the vacancy during the orientation the total cost reaches over $60,000.  So far, we haven’t included all of the cost factors yet. 

Factors impacting the costs include but are not limited to: 

  • Hospital policy on staffing the preceptor/preceptee patient load
  • Length and design of the classroom and unit-based orientation 
  • Salary for those involved in nursing orientation including the preceptor(s), preceptee, unit educator, orientation classroom trainer, orientation program manager, etc.
  • Salary for those brought in to cover the patient load for the vacant position while the orientation is underway
  • Payroll related costs such as social security and 401K contributions, unemployment and workers compensation insurance, health care and other benefits 
  • Orientation program support costs such as materials, maintaining the program due to equipment upgrades, regulatory or accreditation changes, and other changes in hospital policies and systems.
  •  The way the hospital allocates other general hospital overhead costs to the program.

 Can this cost be managed? 

Some of these costs could be managed by nursing management. For example, the policy on staffing load assigned to the preceptor(s) and preceptee determines a significant part of the salary costs.  The length and design of both the classroom and unit-based orientation components is also largely under the control of the nursing organization. Other cost factors cannot be managed directly such as the hospital benefits program.

How can cost be managed?

A classic process management approach would be to measure and take actions to improve:

  • Cycle time (length of the preceptorship),
  • Efficiency (cost of the resources used per preceptorship),
  • Effectiveness (outcome of the preceptorship); and some would add
  • Adaptability (variability of the other measures under different loads such having one new hire in orientation on a unit verses having three new hires in orientation).

 Can the high cost of nursing orientation be managed? Yes.  Should it be done? Yes; but only if you are able to lower costs while maintaining or improving effectiveness at the same time.  It can and has been accomplished for many other processes in a wide variety of organizations.  

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What does the evidence say about nursing orientations?

Recently we conducted a review of current published articles (2015-2017) to evaluate evidence and recommendations for Transition into Practice programs including orientation and residency models. The evidence is clear in a number of areas:

 

  • New graduate RN retention in the first year of employment is a challenge for hospitals, ranging from a low of 25% to a high of 64% or greater. Furthermore, the decision to leave nursing is frequently related to dissatisfaction with orientation and begins within the first few months of hire. The most frequently mentioned barriers to a smooth transition included: Lack of consistent preceptor communication, Short staffing, high patient acuity, having to make critical decisions without help, little personnel support, lack of skills and knowledge, high variability in the orientation process in different institutions, and emotional stress of “reality shock”.

 

  • Implementation of residency/ internship models with multiple units and preceptors has been well documented to reduce turnover and increase retention of new graduates, increase nursing and unit satisfaction, provide significant cost savings for the hospital, and increase actual recruitment and desire for employment. The key factors contributing to success of residency programs can be incorporated into less formal orientation structures.

 

  • Investment in preceptor development through training and feedback is critical to their effectiveness. Specific learning needs include development of affirmative coaching, dealing with difficult communication, creating civility in the workplace, specific teaching strategies and learning styles, the role of emotional intelligence in learning and how to effectively manage change.

 

  • Effective preceptor coaching can significantly improve development of clinical reasoning and critical thinking.

 

  • Preceptors need structured support and consistency of feedback based on shared data. They also need time to precept, role clarification, and some formal reward or recognition system for the critical importance of their work to safe practice and patient care.

 

  • A few studies have begun to address the crucial need to support development of wellbeing and resilience skills of newly hired nurses. Transition stress has been documented for many years, and a strong preceptor relationship can help with this stress. There are other strategies that can be easily taught to new nurses and it is important to recognize the impact of supporting wellbeing on learning, competency development, and integration into the culture. Orientees can learn to manage their wellbeing and emotional/ physical stress; preceptors can help with this by tracking and coaching.

 

Research to improve efficiency and outcomes of transition into practice is increasing. While there is a need for ongoing correlational research the body of current evidence demands integration into our transition structures.  One of the most comprehensive sites we have to support evidence based transition is the Vermont Nurses in Partnership (VNIP).  Their website provides numerous resources, literature and concrete suggestions to improve transition process and outcomes.  For more information visit their website or take a look at their Clinical Transition Framework Evidence Base.

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A better nursing orientation: Transition to practice

The National Council of State Boards of Nursing’s study of the transition of new graduate nurses confirmed what many hospitals already knew: There is a disconnect between education and real life experience in a hospital.

The Problem The Impact
New nurses care for sicker patients in increasingly complex health settings. New nurses report more negative safety practices and errors than experienced nurses.
New nurses feel increased stress levels. Stress is a risk factor for patient safety and practice errors.
Approximately 25% of new nurses leave a position within their first year of practice. Increased turnover negatively influences patient safety and health care outcomes.
From the National Council of State Boards of Nursing

The NCSBN concluded that, “There is a need for best practices of training new nurses that can be replicated across the country to ensure consistent quality of care, and drop the alarming turnover rates of new nurses”. They also provided TTP training courses that both new graduate nurses and preceptors can take:

Transition to practice program For new nurses 2

How can a Transition to Practice model be integrated into your nursing orientation training?

As we know, new hire nurses can get overwhelmed by trying to learn everything about their new hospital, caring for patients, and dealing with possible reality shock. Pairing novice nurses with preceptors who can help guide them through their orientation helps combat this, but implementing a system that supports preceptors as well as preceptees can benefit your program immensely.

While nursing boards require certain documentation to be compliant, your preceptorship program should include all of the following to support new hire orientation:

  • Convenient skills tracking. Both preceptees and preceptors should have an easy way to track their training so there are no gaps in competency.
  • Weekly meetings. Preceptees should be meeting with their preceptors regularly, and tracking and recording weekly meetings will give preceptees important feedback, and allows preceptors to clearly communicate goals and expectations.
  • An emphasis on well-being. New nurses are encouraged to keep a journal to that they can reflect on their learning and remain aware of their mental state. Incorporating self-reflection into your orientation process will emphasis this vital element of transitioning to practice.

 

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