New Grad Orientation Contracts

Nurses Job Hunt

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I've seen older posts on this site about New Grad Orientation Contracts that require new nurses to stay on their unit for a set amount of time (up to 2 years) or else be forced to pay back orientation costs to the facility. Most of those posts told new grads to run as fast as they could away from the facility.

However, a lot of the places I've applied to all have those contracts. Is this becoming more common?

What happened to sign on bonuses in order to retain nurses?

To clarify, they require you to sign a "new grad residency" contract, which is 8-12 weeks of orientation. If you pass their orientation period you are required to work on that unit for 2 years (and in some cases required to stay at the facility for an additional year). Failure to do so, as stated in the contract, requires the nurse to pay back orientation costs of 10,000 dollars, which is pro-rated down slightly the longer you stay.

I understand that nurse retention is important, but this seems threatening and morale crushing. I completely understand having to sign a contract to pay back a sign-on bonus if you leave early, but having to "pay" for my orientation seems a little ridiculous. It makes me wonder what's wrong with the facility that would make nurses want to leave so badly that HR thought this contract was the only way to keep nurses working there.

Should I follow the older posts advice of running from these facilities or do I bite the bullet and just accept that this is what I have to do in order to get experience?

Specializes in Critical Care; Cardiac; Professional Development.
Maybe that's common in your area. What state are you in?

Texas, DFW

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Texas, DFW

Have they always been used or is that a new thing in TX? I honestly never heard of an employment contract for new grads outside of sign-on bonuses, tuition/loan reimbursement, and specialty programs like LTACH or something similar. But then again I've been a nurse for a while.

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Take a gander at this. I'm pretty sure stunts like this NG wants to pull are the reasons for contracts.

https://allnurses.com/nursing-advice-column/quitting-small-residency-1166454.html

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My advise to you is that if you do decide to go with a residency and a contract - take the contract to a lawyer. Not all of them are actually legal or enforceable. If yours ends up being one that isnt then it becomes much easier to break. "Talk to my lawyer" tends to work wonders if you decide you want out of the contract for some reason.

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Specializes in Ambulatory Care-Family Medicine.

I'm in TX and none of the hospitals in my area are currently having NG contracts. A couple of years ago we had a small nursing shortage due to some issues at the local nursing school so the hospitals had sign on bonuses for any new nurse (new or experienced) that came with a contract. The new grads had a $2000 sign on bonus paid out over a two year period and the contract stated they had to be employed on the payment date so essentially to get the full $2000 you had to work for the two years. If you left before the two year mark you just didn't get the full $2000 but didn't have to pay back any of what you had already received. I think it was paid out quarterly.

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Take a gander at this. I'm pretty sure stunts like this NG wants to pull are the reasons for contracts.

https://allnurses.com/nursing-advice-column/quitting-small-residency-1166454.html

I saw that. In the end she would only be hurting herself.

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Bottom line... Hospitals are sick of getting burned by new grads that take any job they can get, and then after the hospital has paid thousands of dollars to train them they just leave for what they perceive is their "dream job" now that they have six months to a year of experience!

Hospitals can't afford to keep getting burned, and new grads leaving after 6 months to a year is a known fact. This is just something you will have to deal with, look at the bright side you will only have to deal with it once!

I worked in an ER and this happened with almost every new grad! (of course the ER was VERY poorly run, but still...)

Annie

No, they weren't "burned", they were a poor employer and people didn't want to stay.

In all industries, people tend to be more loyal and want to stay with good employers, and they want to leave bad employers.

These new grad contracts are the lazy way of keeping employees. Not to mention, most of them aren't enforceable.

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Specializes in Emergency Medicine.

We have this at my hospital. You have to work for 2 years or pay back $2500. We still have nurses leave before their contract is up though.

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Specializes in Critical Care.
If I were an employer, I would have those contracts. It has nothing to do with being so desperate for new grads.

It just amazes me the entitled attitude of some new nurses, whether a new grad or new to a field, that the employer should embrace the opportunity to teach/give them job skills while being paid. Of course an employee has to be paid but it's the attitude of being owed this education without bringing it to the job. And feeling completely justified in leaving for a better offer following orientation.

In fairness to the existing nurses who are greatly impacted by the high turnover only to start over with yet another new grad, exhausting and frustrating while they carry the burden, it benefits them as well.

I find this just more of an overbearing coercive work environment where rather than promote retention by safe staffing ratios, adequate workers and support staff, and even a bonus, now use threats to keep new grads hostage. Wow what a positive work environment, Not! Also frankly an 8 week residency is pretty skimpy! Honestly I wouldn't sign such an agreement unless my back was literally against the wall!

Honestly I wonder if this contract would even be enforceable since the worker really gets nothing out of the arrangement, no bonus only a penalty if they dare leave early. Employers have to orient their workers, it is a given. If they don't want to spend the time and money they can use travelers, agency or experienced nurses to cut any training costs. It is their choice to hire new grads because they can pay them at the bottom of the pay scale!

As to leaving after orientation, may I remind you Fl and most of the country is an at will state where you can leave at any time and you can be fired for almost any reason or no reason so give me a break!

What's next a non-compete clause where you can't work anywhere else in an hour drive radius!

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Specializes in Critical Care.
Take a gander at this. I'm pretty sure stunts like this NG wants to pull are the reasons for contracts.

https://allnurses.com/nursing-advice-column/quitting-small-residency-1166454.html

Who really cares? What about the new grads that let go by their employer during probation. What is the difference. To me it works both ways!

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Who really cares? What about the new grads that let go by their employer during probation. What is the difference. To me it works both ways!

Who really cares? Maybe all of those nurses tasked with orienting are tired of putting in the extra work to properly train these new employees, with NO remuneration, only to have them bail at the end of their orientation for something they see as bigger and better. Rinse and repeat. Maybe if students graduated from nursing school with some ability to function in the real world of nursing it might be different but that isn't the case. As for the new grads being let go during probation...did it ever occur to you that the employer is doing them a favor? Being released during probation is a whole lot better than being fired for cause or having their psyche in shambles because they are not accepted by their co-workers.

And the thread I linked? The new grad had no beef with her employer. In fact she described the environment as supportive and positive. She took a residency spot which implies a certain amount of give and take. Now she wants to move into another residency but she thinks it's okay to expect her current employer to continue to pay and train her until the new one starts?! How exactly is that right? This is the kind of behavior that leads to contracts.

So tell me, do you think all contracts are just a means for "the man" to keep the people down? Because they're everywhere, not just in nursing.

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I am stunned by the pervasiveness of the "suck it up, you're not valuable" attitude on this board.

The reality is that employee retention is a huge issue and a massive item on corporate budget lines across almost every industry. However, nursing seems to be part of the minority that are combating this with negative incentives (pay $$ if you don't do what we want) vs. positive ones. I think we need to ask ourselves why this is. My theory is that nurses are entrenched in a "serve others" at the expense of ourselves attitude. I do this for my patients, but I try to draw a clear line where my duty to my patient ends, and my business arraignment with the hospital begins. You're trying to convince me that it is my moral duty to stick around a crappy job because I owe something to a BILLION dollar corporation that sank a few grand into training me?

Many of my friends in management positions in other industries have told me they have specific goals for when they expect their new grad new hires to be profitable. It's usually about one year post-hire. Training new people is not an expense that is unique to nursing. They try to keep their new grads around with incentives like stock options, bonuses, promotions and significant raises every year.

Obviously employee retention in nursing is an issue. What is the alternative to leaving? Working the same job every other weekend and holiday for 20 years, in return for a 30 cent raise every once in a while, with no bonuses, no prospect of promotion and no retirement package?

I think we should try and change the attitude of the conversation around this issue. Sure, some people are guilty of taking a job just to dump it as soon as the next best thing comes along, but most nurses are smart, well educated and good-hearted people (even new grads). I don't have a solution, but I don't think we should accept things like new hire contracts without serious reflection on who they are serving. Hint: it's the profit lines of massive companies, not the patients we dedicate our lives to.

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