The retention problem in healthcare: why staff walk away and what to do about it

A system under sustained workforce pressure

Workforce shortages are no longer the biggest risk facing healthcare providers. Retention is.

Demand for services continues to rise across primary care, hospitals and aged care, while workforce supply struggles to keep pace. The result is not just recruitment difficulty, but ongoing attrition that compounds operational pressure over time.

For healthcare businesses, this pressure is no longer theoretical. It is being felt daily across teams, rosters and patient care delivery.

This translates into real consequences. Turnover increases recruitment costs, disrupts continuity of care and places additional strain on remaining staff. It also erodes productivity, increases reliance on temporary staffing and accelerates burnout among remaining team members. Over time, this creates a cycle where pressure drives exits, and exits increase pressure. 

Retention is no longer a background workforce issue. It is a core driver of organisational stability and performance.

Why healthcare workers are leaving

Workforce shortages are widely acknowledged, but the reasons individuals leave are often more specific and, importantly, more preventable.

Burnout remains one of the most significant drivers. Sustained workload pressure, emotional fatigue and limited recovery time continue to erode workforce stability across multiple professions.

Structural factors within organisations are equally influential. Lack of recognition, limited career progression and misalignment between organisational values and day-to-day experience are frequently cited as reasons employees disengage and ultimately leave.

Drawing on national workforce research, the Australian Health Practitioner Regulation Agency reinforces the connection between workplace conditions and retention, stating:

This research has enabled Ahpra to identify specific groups that would benefit from targeted retention strategies and interventions by employers. Addressing underlying personal, professional and workplace factors such as mental burnout, lack of recognition, and working conditions may improve retention of Australian health practitioners.

Government workforce planning also acknowledges the structural nature of the issue. While The Department of Health and Aged Care notes in its allied health workforce strategy that “Retention of allied health workers is of particular concern… workforce shortages contribute to increased workloads for health practitioners”, similar pressures are being felt across general practice, hospital settings and aged care.

Retention, in this context, is not driven by a single factor. It reflects the cumulative experience of working within a system that either supports or depletes its workforce.

The warning signs leaders often miss

In many cases, resignation is not a sudden decision. It is the final step in a longer process of disengagement.

The early signals are often visible, but easily overlooked in busy clinical environments.

Common warning signs include:

• Reduced discretionary effort or a shift to doing only what is required 
• Increased absenteeism or more frequent sick leave 
• Withdrawal from team discussions or reduced communication 
• Declining interest in professional development or new initiatives 
• Subtle changes in tone, attitude or engagement with colleagues and patients 

Workforce strain is particularly visible in high-demand areas such as mental health. The Department of Health’s mental health workforce strategy notes that “There are significant shortages of all professions in the mental health workforce”, highlighting the intensity of pressure in high-demand specialties.

Retention is a leadership issue, not just an HR issue

There is a growing recognition across the sector that retention cannot be solved through recruitment pipelines alone.

Workforce strategies increasingly emphasise the need to address the underlying conditions that influence whether staff stay or leave. This includes workload design, leadership capability, team culture and opportunities for growth.

When retention is treated purely as an HR function, organisations risk missing the broader operational drivers. In practice, retention is shaped by daily leadership decisions, from how workloads are managed to how staff feel recognised and supported.

For healthcare leaders, this represents a shift in accountability. Retention is not reactive. It is built into how organisations operate every day.

What employers can do differently

Improving retention does not require sweeping reform. In many cases, targeted, consistent leadership behaviours can significantly reduce turnover risk.

Key strategies include:

• Create space for early conversations: regular check-ins help surface concerns before they escalate into disengagement or resignation.
• Strengthen career pathways: clear progression opportunities, even in smaller practices, improve long-term engagement and commitment.
• Support scope and autonomy: enabling clinicians to work to their full scope can improve job satisfaction and reduce frustration.
• Recognise contribution consistently: recognition remains one of the most underutilised retention tools. Small, regular acknowledgement can have a measurable impact.
• Align values with reality: where organisational messaging does not match day-to-day experience, trust erodes quickly. Alignment is critical to retention.

These are not new ideas. Yet many organisations still struggle to apply them consistently in practice. 

A defining challenge for healthcare leaders

Workforce retention is now central to the sustainability of healthcare delivery in Australia.

Organisations that invest in understanding why staff leave, and act early to address those drivers, will be better positioned to maintain stability, protect team wellbeing and deliver consistent patient care.

In a system under ongoing pressure, retention is not just about keeping staff. It is about creating environments where people choose to stay.

Sources: 

Australian Health Practitioner Regulation Agency (Ahpra). (2025). Research provides clues to boost health workforce retention. https://www.ahpra.gov.au/News/2025-02-12-WRAP-media-release.aspx 

Department of Health and Aged Care. (2024). Strengthening Medicare and the health workforce. https://www.health.gov.au/resources/publications/budget-2025-26-strengthening-medicare-health-workforce?language=en 

Department of Health. (2022). National mental health workforce strategy 2022–2032. https://www.health.gov.au/our-work/national-mental-health-workforce-strategy-2022-2032