Page 3 - FY 2025 NRR Annual Report

Nurse and PA Recruitment and Retention Annual Report FY25 3

KEY CHALLENGES AND GOALS OF FY25

FY25 NURSING AT MICHIGAN:

WORKFORCE GROWTH AND RETENTION SUCCESS

In FY25, Nursing at Michigan responded proactively to the growing demand for nurses through strategic
retention initiatives and targeted efforts to enhance the nursing practice environment. According to the U.S.
Bureau of Labor Statistics, employment for registered nurses is projected to grow by 6% through 2033, while
advanced practice nurses are expected to see an impressive 38% growth—making nursing one of the fastest-
growing professions of the past decade.

Aligning workforce expansion with organizational growth strategies was a central priority throughout the year.
The Nurse & PA Recruitment and Retention Team concentrated on implementing effective retention strategies
and recruiting top-tier talent to sustain low turnover rates and ensure optimal staffing levels. A comprehensive
Nurses’ Week campaign was designed and executed to reinforce these objectives.
Results:

Overall Termination Rate: Nursing’s Job Family 31 maintained a low termination rate of 5.9% in FY25,
consistent with FY24 and significantly below the national benchmark of 13.5%.
First-Year Termination Rate: The rate rose slightly to 10.5% in FY25 compared to FY24’s 9.7% but
remained well beneath the national average of 31.9%.
Vacancy Rate: FY25 vacancy rates averaged just 2.8% over the year, outperforming the national
benchmark of 9.6%, with 794 new hires added to the team.

With healthcare demand escalating due to an aging population and ongoing strategic expansion, the Nurse &
PA Recruitment and Retention Team remains dedicated to sustaining a stable RN workforce.
In 2026, priorities will include supporting growth resulting from the opening of the new D. Dan and Betty Khan
Health Care Pavilion, strategic backfills for relocated units (UH 2.0), and continued regional expansion
initiatives.