Emory Hospital Invested $150M in Staff Raises - Here's How It Has Paid Off

Image: Emory University, CC BY 2.5, via Wikimedia Commons

In July 2023, Emory Healthcare in Atlanta made a bold move to address longstanding workforce challenges by investing $150 million to increase salaries for 20,000 of its 25,000 employees, according to Becker’s Hospital Review. 

The initiative, announced shortly after Dr. Joon Lee assumed the role of CEO, aimed to reduce the organization’s reliance on contract labor and improve staff retention—two critical pain points amplified by the pandemic.

This massive pay increase directly impacted 20,000 staff members within Emory Healthcare, which includes nurses, support staff, and other essential healthcare workers. Under the leadership of Dr. Joon Lee, the healthcare system aimed to build a more sustainable and engaged workforce.

The $150 million investment was paired with strategic organizational changes. Dr. Lee restructured leadership roles to create a more agile and cohesive management team. This holistic approach was designed to foster a supportive environment for permanent staff, improving both morale and efficiency.

Results of Emory’s Staff Raises

The impact of these changes became measurable within months, with significant outcomes reported by the end of the year. The results of the pay increases have been encouraging:

• Reduction in Contract Labor: Emory Healthcare reported a dramatic decline in the use of contract nurses, from 1,370 in March 2023 to fewer than 300 by year-end. This brought contract labor utilization to below pre-pandemic levels.
• Improved Retention Rates: Staff turnover rates dropped significantly, falling below levels seen in 2019. This indicates a more stable and satisfied workforce, an essential factor in delivering consistent, high-quality patient care.
• Operational Resilience: The organization successfully navigated challenges, including supply chain shortages and a data breach, without significant disruptions to patient care. Leadership attributed this resilience in part to the improved morale and engagement of permanent staff.

Emory Healthcare’s $150 million investment in employee raises appears to have achieved its intended goals. By reducing reliance on temporary labor and improving retention, the health system is now better positioned to provide consistent care and adapt to industry challenges. Dr. Lee’s leadership and the system’s willingness to invest in its workforce have set a compelling example for other healthcare organizations facing similar issues.

For more information, visit the original report by Becker’s Hospital Review: Emory Healthcare Staff Raises.