Healthcare’s Labour dilemma: balancing cost and care in a tight market
March 17th 2025
As demand for healthcare services continues to rise, workforce challenges have become one of the most pressing issues for providers and for CFOs in particular.
The Forward-Thinking CFO report by Compass Carter Osborne reveals just how central labour dynamics have become to financial strategy and operational success.
Rising Costs, Shrinking Supply
Staffing represents the single largest cost for most healthcare organisations. With inflationary pressures and proposed wage increases, such as the TUC’s call for £15 per hour for social care staff CFOs are under pressure to manage these growing costs without compromising care quality.
Add to this the increased use of agency staff and persistent clinician shortages, and the financial strain deepens. Some providers are combatting this by optimising workforce structures and reducing agency reliance through targeted pay banding by region and investment in staff retention.
Recruitment and Retention Pressures
Post-Brexit immigration rules and the slow pace of overseas accreditation are hindering recruitment efforts. As a result, some providers are turning to international partnerships and in-house training programs. But as one CFO noted, onboarding and developing these new hires requires time, upfront investment, and patience from stakeholders.
Flexibility is also key to retention. With more healthcare professionals, especially women seeking work-life balance, flexible working and better organisational culture are becoming powerful recruitment tools. One panellist emphasised the importance of soft HR benefits and structured career progression in reducing early-stage attrition.
The Strategic Workforce CFO
Today’s healthcare CFOs aren’t just managing payroll, they’re helping to design resilient workforce strategies. From forecasting staffing needs to navigating employment law changes, their role in workforce planning is central to both financial stability and quality care.
As the healthcare sector evolves, getting the labour equation right will be essential, not just for profitability, but for long-term service delivery.
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