Why You’re Struggling to Staff Your Nonprofit or Healthcare Office (And How to Fix It)

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Staffing is no longer just an HR issue—it’s a strategic imperative. And for nonprofits and healthcare providers alike, the pressure is building. Vacancies go unfilled. Revenue slows. Compliance risks mount. In many ways, the post-pandemic world has deepened existing cracks in workforce systems that were already stretched thin.

Whether you’re leading a regional nonprofit serving children with autism, overseeing a health clinic dependent on accurate billing cycles, or managing HR for a group home network, you’ve likely found yourself asking: Why is it so hard to find and keep the right people?

Here, we unpack the core reasons staffing remains an uphill battle—and what real, actionable solutions look like.

1. The Labor Market Has Shifted Permanently

The great reshuffle of the past few years hasn’t just changed where people work—it’s changed why they work. Purpose still matters, but so does flexibility, recognition, and mental health support. Unfortunately, many nonprofits and healthcare organizations are still trying to recruit with outdated assumptions about what motivates today’s workforce.

• Action Step: Reevaluate your employer value proposition. Are you offering flexible scheduling, mental health resources, or clear professional development pathways? If not, you’re likely losing candidates to organizations that do.
• Pro Tip: Partnering with a staffing agency like Phaxis can help you reposition your open roles in a way that speaks to modern workers’ values—especially when hiring contract professionals who prioritize autonomy and work-life balance.

2. High Turnover Is the Symptom, Not the Disease

It’s tempting to blame turnover on generational differences or lack of loyalty. But the truth is, most staff leave because they feel unsupported. In nonprofit and healthcare settings, this often stems from being overworked due to persistent vacancies.

• Action Step: Focus on prevention, not just replacement. Investing in a steady pipeline of temporary staff helps reduce the load on full-time employees, which in turn improves retention.
• Insight: One of our nonprofit clients reduced annual turnover by 35% simply by ensuring administrative coverage during high-demand seasons. The stability gave their full-time team breathing room—and the confidence to stay.

3. Revenue Cycle Management isn’t Optional

Especially for healthcare organizations and larger nonprofits, accurate and efficient billing isn’t just a back-office function—it’s the lifeblood of your operation. But qualified RCM professionals are hard to find, and harder to retain.

• Action Step: Treat RCM staffing as a critical operational investment, not a discretionary spend. Hiring experienced contract professionals through Phaxis can prevent revenue leakage, shorten reimbursement cycles, and minimize audit risk.
• Case in Point: A midsize behavioral health nonprofit we worked with was struggling with cash flow. Within six weeks of onboarding a Phaxis RCM contractor, their average claim processing time dropped by 22%, significantly improving liquidity.

Let’s Build a Smarter Staffing Strategy

Ready to stop scrambling and start planning? Whether you need contract RCM talent, admin support, or travel nurses, Phaxis can help. Talk to our team today.

4. Contract Staffing Is a Strategic Lever

Many nonprofit leaders and healthcare administrators hesitate to use contract staff because of perceived costs or concerns about continuity. But with the right partner, contract staffing can actually reduce long-term expenses and improve service quality.

• Action Step: Map out the total cost of unfilled roles—including overtime, service disruptions, and burnout-related turnover. You’ll likely find that strategic contract staffing is far more cost-effective than reactive hiring.
• Why It Works: Phaxis takes on the heavy lifting—from credentialing to onboarding to back-office payroll. That means you get skilled professionals, ready to work, without burdening your internal HR team.

5. Compliance Is Getting Harder

Between evolving healthcare regulations, nonprofit grant compliance, and labor laws for contract workers, managing risk has never been more complex. Failing to properly vet and credential staff can lead to audits, fines, or even loss of funding.

• Action Step: Ensure every hire, including short-term contractors, is fully credentialed and compliant from day one. Phaxis handles this seamlessly, protecting you from legal and financial exposure.
• Expert Insight: When credentialing lapses led to a state audit at a rural clinic, Phaxis stepped in with an emergency staffing plan—including RCM and front-office contractors fully vetted and ready within 72 hours.

6. Operational Bottlenecks Are Quietly Draining Your Resources

In many nonprofits and clinics, administrative tasks fall on already-stretched service staff. When there’s no one to answer phones, coordinate appointments, or manage documentation, it directly affects service delivery.

• Action Step: Reassess where your team is spending their time. If clinicians or program managers are handling admin work, it’s time to bring in office support staff.
• Real-World Example: A nonprofit supporting adults with developmental disabilities used Phaxis to bring on two admin contractors. The result? Direct service hours increased by 18%, and staff reported higher job satisfaction.

7. You’re Recruiting From a Limited Pool

Job boards and internal referrals only go so far. To truly compete for talent, you need access to a broader, more diverse pipeline—especially for specialized roles in human services, healthcare, and RCM.

• Action Step: Tap into niche talent networks. Phaxis maintains a robust database of contract professionals with experience in everything from group home support to Medicaid billing.
• Talent Advantage: Our candidates aren’t just job seekers—they’re mission-aligned professionals looking for their next impact-driven role. That alignment matters, especially in high-touch, high-stakes environments.

It’s Time to Rethink Staffing as Strategy

Staffing challenges aren’t going away. But by shifting your mindset from reactive hiring to proactive workforce planning, you can build a stronger, more resilient organization. That starts with choosing the right partners.

At Phaxis Healthcare & Social Services, we’re more than a vendor. We’re a strategic ally invested in your success—whether you’re balancing a complex grant budget, managing a high-turnover department, or expanding a high-need program.

Our mission is to help you fulfill yours. Let’s talk about how contract staffing can become your organization’s next big advantage.

Want to learn more about how Phaxis can support your staffing needs in RCM, healthcare, or human services? Visit phaxis.com or contact our Healthcare & Social Services team today.

About Phaxis Education Services

Phaxis Education Services is set to revolutionize the way academic schools and institutions connect with exceptional talent. Officially launched in May 2024, this division is dedicated to supporting the education sector by bridging the gap between special education services and top-tier professionals. We aim to make a significant impact by filling critical roles within school systems and institutions, ensuring that each placement contributes positively to the educational environment and, ultimately, the lives of the children served. See new open positions in education on our Careers page and let us help you find the right role for you.