Healthcare leaders are constantly balancing immediate staffing needs with long-term workforce health. Travel contracts, per diem shifts, and internal float pools provide flexibility, but they don’t always create stability. When the workforce feels unstable, leaders face higher costs, disengaged teams, and unpredictable patient experiences.
Direct placement—hiring permanent staff through a recruiting partner—offers a different kind of stability. It doesn’t replace other staffing strategies. Instead, it strengthens them by adding permanent employees who are invested in your mission, culture, and patients.
How do you know when direct placement makes sense for your organization? Here are five signs that suggest it is time to take a closer look.
Sign 1: Your workforce costs are outpacing reimbursement gains
What it looks like
Budgets show a growing share of spending going to overtime and premium labor. Even when census is steady, staffing costs feel unpredictable and hard to control. Sometimes this shows up as sudden spikes in agency invoices. Other times it looks like overtime creeping higher month after month.
But the pattern is the same: labor costs are no longer aligned with patient volume. When costs rise even as demand holds steady, it’s a signal that the staffing model itself is under strain.
Why it matters
When workforce costs outpace reimbursement gains, every leader feels the strain.
- For CEOs: Margin pressure limits growth opportunities, delaying investment in new services or technology.
- For CNOs: Resources that should fund patient care initiatives or staff development get absorbed into premium labor.
- For HR leaders: The mandate becomes hiring faster and cheaper, which can erode quality and long-term retention.
What it could mean
Not every rise in labor costs points to the same root cause. For example:
- If the increase is driven primarily by short-term spikes in patient volume, a stronger contingent staffing strategy may be the solution.
- If the increase is steady and persistent—even when volume is flat—that suggests over-reliance on premium labor, and direct placement may be required.
- In many cases, the answer is not “either-or” but a hybrid strategy: maintaining flexibility for surges while adding permanent staff to stabilize baseline needs.
How direct placement helps
Direct placement addresses the underlying instability by adding permanent staff who reduce dependence on premium labor. This creates a more predictable cost structure, which makes planning and long-term investment possible. Over time, it allows leaders to redirect funds from short-term coverage into strategic initiatives that strengthen both patient care and workforce resilience.
Sign 2: You’re seeing the hidden costs of disengagement
What it looks like
Turnover is higher than expected. Exit interviews reveal burnout. Teams feel less connected, and patients notice when caregivers change too often. Leaders spend more time onboarding than developing their staff.
Why it matters
Disengagement erodes organizational health in ways that are hard to measure but easy to feel.
- CEOs face reputational risks when employee dissatisfaction spills into the community.
- CNOs and Nursing Directors see inconsistent care delivery as teams never fully gel.
- HR leaders deal with rising attrition, more employee relations issues, and ongoing vacancies.
What it could mean
Disengagement is not always caused by staffing gaps alone.
- If turnover is concentrated in certain units, leadership or culture issues may be the driver.
- If turnover is broad and consistent, workforce instability is likely at the root.
- Often, the right approach blends leadership development with direct placement to build stable teams.
How direct placement helps
Permanent staff are more likely to stay, build strong peer relationships, and carry institutional knowledge forward. With direct placement, leaders can spend less time filling the same roles repeatedly and more time building an engaged, resilient workforce.
Talk through workforce costs
If premium labor spend feels unpredictable, let’s review how direct placement could stabilize it.
Sign 3: Short-Term fixes are undermining long-term strategy
What it looks like
Staffing conversations are dominated by short-term coverage. Schedules are filled week by week, with little space to plan for the next year or the next strategic initiative. Leaders feel trapped in constant problem-solving mode.
Why it matters
Short-term fixes can solve immediate problems but undermine the bigger picture.
- CEOs see energy diverted away from growth initiatives.
- CNOs find it harder to introduce new care models or quality improvements.
- HR leaders operate in a reactive cycle, always focused on the next vacancy instead of workforce planning.
What it could mean
A reliance on short-term fixes can stem from different pressures.
- If it happens during volume surges, the issue may be forecasting.
- If it happens continuously, the issue is likely structural under-staffing.
- Often, the right solution is a mix: direct placement to stabilize the base, with contingent staffing as a safety valve.
How direct placement helps
Direct placement allows leaders to cover immediate needs while building long-term stability. This creates the space to shift from crisis management to strategy, ensuring short-term solutions do not come at the expense of future goals.
Sign 4: Recruiting demands are overwhelming your teams
What it looks like
Vacancies stay open longer than expected. Recruiting teams are stretched thin, spending most of their time screening resumes and scheduling interviews. Hiring managers are frustrated with the time it takes to see qualified candidates.
Why it matters
When internal teams are overwhelmed, recruiting quality suffers and time-to-fill grows.
- CEOs see delayed projects and underperforming service lines.
- CNOs and Directors of Nursing deal with chronic understaffing in their units.
- HR leaders have little time left for retention and engagement work.
What it could mean
Recruiting pressure can come from multiple factors.
- If your pipelines are thin, it may mean your reach is too limited.
- If candidates accept offers elsewhere, it may mean your process is too slow or your brand is weak in the market.
- In many cases, the right answer is to pair internal HR strengths with an external direct placement partner who can expand reach and improve efficiency.
How direct placement helps
A direct placement partner takes on sourcing, screening, and matching candidates, bringing forward those who are most qualified and aligned to your culture. This reduces strain on internal teams and helps fill roles more quickly without sacrificing quality.
Sign 5: You’re ready to build stability, not just coverage
What it looks like
Leaders begin asking bigger questions. Instead of focusing only on how to fill shifts next week, they ask how to create a workforce that lasts. They talk about building culture, investing in development, and reducing the cycle of churn.
Why it matters
Coverage keeps operations running. Stability unlocks long-term success.
- CEOs gain confidence in growth, capital planning, and technology adoption.
- CNOs and Nursing Directors build consistent teams that deliver higher-quality care.
- HR leaders move from reactive recruiting to proactive talent strategy.
What it could mean
Not every organization is at the same place in their workforce journey.
- If leadership is aligned but budgets are tight, a phased approach may be required.
- If there is still reliance on short-term fixes, the first step may be balancing coverage with stability.
- In most cases, the solution is not to choose one over the other but to create a blended model.
How direct placement helps
Direct placement provides the anchor. By adding permanent staff, organizations create a foundation of stability while retaining flexibility through contingent staffing. This dual approach strengthens culture, improves care, and makes the workforce more resilient.
What's next?
Direct placement is not a replacement for flexibility. Healthcare will always require adaptable staffing models. But when you see the signs—rising costs, disengagement, reliance on short-term fixes, overwhelmed recruiters, and the desire for stability—it is time to add direct placement into the mix.
By combining permanent staff with flexible staffing models, leaders can create a workforce strategy that is both stable and adaptable. At its core, direct placement is about connecting people and work in meaningful ways. It gives organizations the ability to thrive, not just survive, and helps patients, staff, and communities benefit from a stronger, more sustainable system of care.
Relieve recruiting strain with Prolink
If open roles are overwhelming your team, we can help expand reach and efficiency. Our Permanent Solutions team offers a tailored approach to strengthening your recruiting strategy and, in turn, your workforce. Click below to explore our solutions and results.
