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The ROI of Upskilling: Why Healthcare Employers Can’t Afford to Ignore Workforce Development

Article by Christina DeBusk
A stethoscope lying on a table next to an open laptop

Key Insights

  • Healthcare workforce upskilling ROI (return on investment) is the financial return employers can measure to determine training's impact on turnover, vacancy length, productivity, and internal mobility.
  • Turnover is a measurable cost center. For instance, the cost to replace one medical assistant is between $14,200 and $40,000, depending on training burden, vacancy length, and more.1
  • Upskilling can support employee retention in healthcare. Gallup data shows that employees who strongly agree that they are encouraged to learn new skills from their employer are 47% less likely to search or watch for another job.2

Healthcare employers are used to making difficult staffing decisions under pressure. When a clinical role opens, the immediate question is how quickly the organization can recruit, hire, onboard, and support coverage. The question leaders should consider asking is, what would it cost to develop more talent from within?

That is the business case behind healthcare workforce upskilling ROI. For employers, an upskilling strategy can help increase efficiency, improve retention, boost recruitment, reduce costs, and lower noncompliance and error-related risks.3

Nasium Training provides healthcare workforce training solutions designed to help employers upskill, reskill, and cross-train employees. We do this through tailored programs tied to practical goals: train people for needed roles, develop existing team members, and retain high performers.

What Does Healthcare Workforce Upskilling ROI Mean?

Healthcare workforce upskilling ROI is the return an employer sees when training produces measurable business value. This could be in the form of lower turnover costs, fewer vacancies, faster time-to-productivity, stronger retention among employees who see a career path, and other direct or indirect effects.

ROI is not limited to whether one training program costs less than one new hire. Instead, consider this broader comparison: what does the organization spend when a role turns over, and what could it save by keeping and developing more of the people it already has?

"In the time that we've been partnering with Nasium, we've sent about 110-115 individuals through the [medical assistant] program. ... We look at the numbers, and we realize that there's about a $1.3 million net savings that we actually brought to the organization."

Wayne Wright, Vice President of Talent Management, SSM Health, at the Spark 2026 Panel Discussion – Upskilling Your Team

That distinction matters because turnover can affect both the balance sheet and the care environment. Health eCareers notes that employee education and upskilling can help:3

  • Improve patient experience
  • Reduce costs
  • Support retention
  • Reduce risk tied to medical errors or noncompliance

Why Turnover Makes Upskilling a Financial Issue

Turnover can create obvious costs, such as recruiting, credential review, onboarding, and manager time. It can also create less visible costs: overtime, temporary staffing, productivity dips, slower workflows, knowledge loss, burnout among remaining staff, and patient experience risk.

Small medical practices typically see 25%-35% turnover in medical assistants per year, spending between $14,200 and $40,000 to replace each one.1 This can lead to major spending annually if you lose several of these staff each year, with this number compounding over time.

Hiring Externally vs. Upskilling Internally

External recruitment will always be necessary. But when healthcare employers rely solely on external hiring, they may repeatedly incur the same replacement costs.

Upskilling internally changes the equation. Employers can identify employees who already understand the organization, patient population, workflows, culture, and expectations.

A strong workforce strategy usually includes both. Employers still recruit externally when needed, but they also build structured pathways for current employees.

Cost Category Hiring Externally Upskilling Internally
Recruiting and sourcing Job ads, recruiter time, screening, and interviews Candidate identification, manager input, and internal communication
Onboarding Full orientation to organization, systems, policies, and expectations Role-specific transition support for someone who already knows the organization
Productivity ramp New employee must learn both the role and the workplace Employee can focus more directly on new skills and responsibilities
Retention risk New hire may leave if role fit or culture fit is weak Employee may be more likely to stay when career growth is visible
Workforce planning value Fills an immediate opening Builds an internal pipeline for future needs

A Simple ROI Model for Healthcare Workforce Upskilling

A practical ROI model does not need to be complicated. Start with the financial cost of the metric assessed, then compare it with the investment required to train employees for the needed roles.

ROI Input What to Measure
Turnover cost per role Recruiting, overtime, temporary coverage, onboarding, and lost productivity
Expected turnover reduction Number of employees likely to stay because they have a clearer growth path
Training cost Tuition, materials, learner support, paid training time, manager time, and technology
Productivity gain Faster ramp-up, better coverage, fewer workflow delays, and improved skill alignment
Internal mobility value Number of roles filled through internal advancement instead of external hiring
Net ROI (Avoided turnover costs + productivity gains - training costs) / training costs

If healthcare employers can prevent even a few costly departures with structured training pathways, the savings can help offset a meaningful portion of the training investment. The key is to tie training to specific roles, turnover patterns, and operational pain points.

How Upskilling Can Support Retention and Productivity

Employee retention in healthcare is not only about compensation. Employees may also want evidence that their employer sees a future for them. Training can provide that signal.

Gallup data shows that employees who strongly agree that they are encouraged to learn new skills from their employer are 47% less likely to search or watch for another job.2 This points to a retention opportunity: when employers make skill development visible and accessible, they may strengthen both recruitment and retention.

Upskilling can also support productivity. Employees who receive targeted training are given the opportunity to develop their skill sets, which can help them be efficient and effective with their job duties. Their new skills may also enable them to adapt as workflows change and take on other responsibilities. For instance, staff who have completed Licensed Health Agent training can help patients understand their insurance options during the open enrollment period.

The Association for Talent Development notes that many employers see skills gaps ahead, with only 30% believing frontline workers have the skills needed to meet business demands over the next five years.4

How Short-Term (1 Year or Less) Training Makes an Impact

The faster an employee can apply what they've learned on the job, the sooner they can help close your organization's skill gaps, fill open positions, and contribute to workforce efficiency. Using a non-credited, certification-focused training strategy can help support healthcare workforce demands.

Training that occurs over months versus years doesn't mean learners are rushed or that they don't gain the education needed to be successful. Instead, it focuses on specific job skills and workforce readiness that can help prepare learners for industry-recognized certification exams and help employers respond to workforce needs with more confidence.

Nasium Training's healthcare workforce development solutions include programs for roles including Medical Assistant, Pharmacy Technician, Sterile Processing, and Limited Scope Radiography.

These pathways can help employers connect workforce development to actual staffing needs.

3 Steps to Building the Business Case for Upskilling

If you're wondering how to approach your organization's leaders to make a case for upskilling team members, these three steps can help:

#1: Focus on numbers they care about. To make the case for reskilling healthcare employees, start with the numbers leaders already prioritize: vacancy duration, overtime costs, agency usage, first-year turnover, and manager time spent on hiring.

#2: Map internal talent. Which employees are interested in growth? Which roles could be filled through training, cross-training, or advancement?

#3: Select training that ties the two together. Choose training tied to the business outcomes your leaders care most about, then measure retention, internal promotions, time-to-productivity, vacancy rates, and hiring cost changes.

Learn More About Healthcare Workforce Training Programs

Healthcare leaders don't have control over the job market. However, they do have a say in whether workforce development is treated as a strategic investment.

When turnover is expensive and employees value training, upskilling becomes a practical way to support the workforce investment an organization has already made.

For organizations ready to compare upskilling against turnover costs, Nasium Training offers healthcare workforce training programs designed around employer needs. Contact us to discuss a workforce development plan.

Training program availability varies by state. Learners must meet eligibility requirements for applicable certifications, state registrations, or licensure.

1 DocVA. Medical Assistant Turnover Rate, 2026 Data, Key Findings. https://docva.com/medical-assistant-turnover-rate/

2 Gallup. Employee Upskilling Is Vital in Rapidly Evolving Job Market. https://www.gallup.com/workplace/653402/employee-upskilling-vital-rapidly-evolving-job-market.aspx

3 Ashman, M. The Case for Investing in Healthcare Employee Education and Upskilling. Health eCareers, para. 2. https://www.healthecareers.com/employer-resources/continuing-education/the-case-for-investing-in-healthcare-employee-education-and-upskilling

4 Association for Talent Development. The ROI of Upskilling. https://www.td.org/content/td-magazine/the-roi-of-upskilling

Frequently Asked Questions about The ROI of Upskilling

What is healthcare workforce upskilling ROI?

Healthcare workforce upskilling ROI is the financial return an employer can measure to understand whether training helps reduce turnover, improve retention, shorten vacancies, increase productivity, or fill roles internally.

Why is employee retention in healthcare part of the ROI conversation?

Retention can affect staffing costs, patient experience, team morale, and operational stability. If training helps employees see a future with the organization, it may support retention and reduce replacement costs.

How should employers compare external hiring and internal upskilling?

Employers can compare the full cost of recruiting, onboarding, vacancies, overtime, and productivity loss against the cost of training current employees for needed roles.

What makes short-term (1 year or less) training valuable for healthcare employers?

Training that can be completed in one year or less can help employees build role-relevant skills in months versus years, which may help shorten the time between workforce need and workforce readiness.
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