How Many Nurses Do We Need to Hire?

Put in the posts, the turnover and the time to fill and get back the empty posts and cover cost to expect. A 42-post unit at 19% turnover carries about two empty posts all year and $253,000 of cover. Filling posts faster matters more than losing fewer nurses, and the tornado says so.

Nursing Intermediate Monte Carlo Pro engine

After you install, this is the model to open.

How Many Nurses Do We Need to Hire?

  1. In your spreadsheet, click the Sortia icon in the strip of icons down the right-hand edge. No strip? Click the arrow at the bottom-right to open it. You can also use Extensions, then Sortia, then Open Sortia.
  2. Click Start from a template and put that name in the search box.
  3. Pick the card with that name and click Load this template. It arrives on a new tab with real numbers already in it.

This one runs on a Pro engine, and every free install includes five full-quality runs on your own numbers, shared across all five Pro engines rather than five for each. After that, Pro is $199/year.

What it does

A 42 FTE unit with 19% turnover loses about eight nurses a year, and each post sits empty for about eleven weeks while it is recruited. That is 88 vacant FTE-weeks, which is 1.69 posts standing empty at any moment, 4% of the establishment, and $221,000 of overtime to cover it. Every one of those numbers is on the sheet and every one of them is a single guess.

Neither turnover nor time-to-fill is a number you know in January. Click Run with turnover between 12% and 32% and time-to-fill between 6 and 22 weeks. The average number of posts standing empty is 1.93, the median 1.85, and the 90th percentile 2.75. The cover cost averages $253,000 with a median of $242,000, a P90 of $361,000 and a P95 of $398,000.

So the plan built on the point estimate is not merely uncertain, it is optimistic: the single-number answer of $221,000 sits below the median of the simulated ones, which is what happens when you multiply three best guesses together. Now the finding worth the whole model. The tornado puts weeks-to-fill first at 0.79 and turnover second at 0.59.

How fast you fill a post matters more than how many people leave. That is the opposite of where the attention goes, because retention is the thing hospitals hold meetings about and recruitment lead time is treated as an administrative fact. Cutting time-to-fill from eleven weeks to seven does more for this unit than cutting turnover from 19% to 15%, and one of those is inside your control in a way the other is not.

Rerun with the time-to-fill range set to 5, 7 and 12 and read the cost drop. Two things it cannot see. It treats every leaver as replaceable by a hire, and a specialist post is not, so a unit losing its two theatre-trained nurses has a bigger problem than this arithmetic shows. And it ignores the productivity ramp: a nurse hired in week 11 is not a full nurse in week 12, which makes the real gap wider than the model draws it.

To make it yours, use your own establishment, your own leaver count from last year, and your own median time-to-fill, which HR will have and which is usually worse than anyone believes.

The model

It arrives on a tab called Template: How Many Nurses Do We Need to Hire:

Hiring plan for a 42 FTE unit
Budgeted RN posts (FTE)42
Annual turnover rate0.19
Weeks to fill a vacancy11
Nurses who leave this year7.98
Vacant FTE-weeks created87.78
Average posts sitting empty (count)1.688
Share of the establishment unfilled0.04019
Hours one FTE post covers in a year2080
Overtime cost an hour to cover it63
Cost of the vacancy gap for the year221,205.6

Once it is in your sheet

  1. The model arrives with real numbers in it and runs as it stands, so you can press the button first and understand it second.
  2. Change the numbers to yours. The sheet marks which cells are inputs and which hold formulas, and most labels carry a note explaining the row.
  3. Press the run button at the bottom of the panel. It is labeled for the tool you are in, and the result lands on its own tab, with a written reading of it beside the figures.

Never used Google Sheets? Start here goes the whole way, in seven steps, and assumes nothing.

Next question

Every model like this one, and the method behind them: Monte Carlo simulation.