3 Key Incentives Hospitals Are Using to Recruit and Retain Nurses

As healthcare systems continue to navigate staffing shortages, financial incentives have become a central strategy to attract and retain nurses, Becker's Hospital Review reports. 

Health systems and academic institutions nationwide are expanding programs like tuition reimbursement, student loan repayment, and sign-on bonuses. Some of these programs gained momentum during the COVID-19 pandemic, then slowed slightly, but hospitals are starting to bring them back in hopes of recruiting and retaining more nurses. 

“To us, financial incentives are investments in the caregivers who pour their energy and heart into our patients every day,” Candace Mori, PhD, RN, senior vice president and chief nursing officer at MetroHealth, told the outlet.

Here are some of the popular financial incentives nurses might see (and utilize!) from hospitals. 

1. Student Loan Repayment Programs

For new nurses, student loan repayment has emerged as one of the most appealing incentives.

Why it works

Nurses often enter the workforce with significant debt, so this incentive is especially attractive to new and graduate nurses. It's a win-win: nurses get help with loans and hospitals get longer-term employment, as many systems also pair loan repayment with mentorship and career pathway programs to improve retention.

Hospitals that offer it

• Women & Infants Hospital in Rhode Island offers up to $45,000 in loan repayment over three years for new nurses.
• Ballard Health, with locations in Tennessee and Virginia, offers an initial $5,000 loan payment after a new grad RN completes one year of full-time employment and another $5,000 every year after that (until the maximum program benefit is met). 

What leaders are seeing

Healthcare executives report that loan repayment is often more attractive than sign-on bonuses for early-career nurses because it supports long-term financial stability.

“In my opinion, loan repayment programs are significantly more appealing to new graduates than traditional sign-on bonuses,” Kim Francis, PhD, RN, senior vice president of patient care services and chief nursing officer at Women & Infants Hospital, told Becker's. “New nurses are often managing substantial educational debt, so structured loan support combined with a clear employment pathway provides both financial relief and professional security. I think programs tied to commitment and mentorship resonate more strongly than one-time financial incentives.”

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2. Sign-On Bonuses and Benefits

Good ol' sign-on bonuses are (thankfully) making a comeback in some areas. These don't always apply to just new nurses, either, as nurses making a career change can nab some extra bonuses too. Strong benefit packages, with retirement, health and dental insurance, and other benefits, are also a draw. 

Why it works 

Older nurses, nurses looking for a change in their careers, or even experienced nurses who simply want to try a different speciality or hospital or find more financial stability, appreciate the opportunity to build up some savings, get better insurance, or maybe even take a vacation. (Imagine that!)

Hospitals that offer it

• Palomar Health previously offered retention bonuses up to $100,000 and now provides hiring bonuses up to $45,000, depending on speciality and role.
• Michigan hospitals that have been hit by strike conditions are currently offering $10 - $15,00 hiring and sign-on bonuses. 

What leaders are seeing

"... Midcareer nurses often prioritise long-term financial security and work-life balance over educational assistance programs,” Mel Russell, MSN, RN, chief nurse executive and COO at Palomar Health, noted.

3. Non-Financial Incentives

Cold, hard cash isn't the only thing motivating nurses these days. Career opportunities, work-life balance resources, and support are also tactics hospitals are using to help recruit and retain nurses. 

Why it works

Programs that combine financial support with mentorship and career development are especially appealing, helping new nurses feel supported beyond their first paycheck.

Key priorities for this group include:

• Flexible scheduling
• Work-life balance
• Leadership and advancement opportunities
• Opportunities to build speciality expertise
• Career development pathways
• Educational support
  
  

In short, while financial incentives matter, they are just one piece of a broader decision-making process.

Hospitals that offer it

• Cleveland Clinic is considered a leader in offering non-financial incentives, such as a mix of part-time and full-time shifts, 8 or 12-hour shifts, and even a "parent shift" that helps nurses get to school events and drop-off and pick-ups. 
• Nurse-driven scheduling is also becoming more common, with hospitals allowing nurses to have primary input on their own schedules. 

What leaders are seeing

“Traditional staffing and workforce models may not meet the needs of our changing workforce,” Dusty Burke, MSN, RN, C-EFM, Director of Nursing Operations at Cleveland Clinic and co-leader of the Nursing Workforce Flexibility Taskforce, said. 

The Bottom Line for Nurses

Nursing staff shortages could mean nurses have more choices than in previous generations. If you're a new grad or a nurse looking for a change, look around for what hospitals are offering, call the hospital's HR to inquire about potential incentives, and don't be afraid to ask for what you want too.

Just like nurses advocate for their patients, you can advocate for yourself, too.