Would appreciate any and all input. As a new grad, I signed a contract a few months ago to work as an RN in a local hospital for two years in exchange for them training me. Since signing the contract, all employees have taken a pay cut and there is a freeze on salary increases. (my salary is not addressed in the contract)
In the meantime, a wonderful opportunity has come along, in a field I think I would enjoy more, making more money. My question, do you think I can get out of my contract, and not have to pay the penalty $3000? I don't think I can afford that penalty, but I feel I shouldn't have to since I took a pay cut. I'm afraid if I go talk to HR, word will get out to my boss that I'm interested in leaving, and things would get uncomfortable working there.
.... OMG! Call me naive, but I had no idea it was that much, are we factoring in costs not including the RN's salary??
I did a lit search a while back, when this same question came up on another thread, and what little literature there is "out there" reports costs ranging from $40k to $100k for the first year of employing and orienting a new grad. There's a lot more to it than just the individual's salary -- first of all, that's just one part of any full-time employee's compensation package; there's also the cost of all the benefits provided. There's the cost of providing the new employee orientation program, and the compensation packages of the persons who implement that program. There's also the cost of decreased productivity by assigned preceptors, etc., and the cost of paying the new grad a standard salary while getting quite a bit less productivity than the facility would from an experienced RN for quite a while, even after the formal orientation is over. And I'm sure there are many other costs involved that I'm not thinking of at the moment. Facilities are making a big investment in new grads -- and, for a number of years now, many of them have been feeling more and more that it's turning out to be a raw deal for them and they're tired of getting "burned."
Granted, it costs money to orient a new-employee experienced RN, also, but not nearly as much as it does a new grad, and hospitals feel like they have a better idea of those individuals' "track records" from checking their references and employment histories -- it's comparatively easy to weed out the "job-hoppers."
.... OMG! Call me naive, but I had no idea it was that much, are we factoring in costs not including the RN's salary??
Estimates vary, but yes, most people agree that the average cost of each new grad turnover is approximately 1 year's salary -- or a little more if he/she works in a specialized unit (such as ICU, OR, or ED) with an externded orientation. It's not only the salary of the new grad, it's the benefits, any differentials paid to the precptor, the costs of the people teaching classes, the costs of the secretaries who do all the paperwork involved in hiring and education, the costs of the pre-employment health screening, the costs of Worker's Compensation Insurance, the cost of employer-paid Social Security taxes, and a whole host of other things you may never have thought of.
That's one reason employers have "soured" on the thought of hiring new grads lately. They'd much prefer to hire experienced nurses who are less expensive to train and who also know what they are getting into and are believed (rightly or wrongly) to be less likely to leave within the first year of employment.
Thanks everyone. Some really harsh comments but that's okay. The reason I am so torn about what to do is because I feel so grateful for the training. Somebody questioned why I was looking for another job if I had already signed a contract. Because I recently took a pay cut, always hear about the serious financial problems of the hospital, and that if there are layoffs, I'll be one of the first to go because it's all based on seniority. Had I known all that before signing the contract, I might not have accepted the position. Not sure. Should I ignore all that and hope for the best because I signed a contract. Don't want to find myself unemployed when I have little mouths to feed. It's not an easy decision. I do appreciate your input.
it is rather unfair on us new grads when employers withhold certain info dt may alter our decision to remain in a hospital like vacation time u can get, raises, scheduling, nurse-patient-CNA ratio etc. basically they give you the half truth when asked but when u start working, you come to understand the whole truth. Coupled with that, employers do not care about their employees, treat them with disrespect and you are made to know that you are "nothing". with alot of negativity from your coworkers patiently waiting for you to make a mistake. Nursing doesnt accomodate new grads very well.
Specializes in M/S, MICU, CVICU, SICU, ER, Trauma, NICU.
Thanks everyone. Some really harsh comments but that's okay. The reason I am so torn about what to do is because I feel so grateful for the training. Somebody questioned why I was looking for another job if I had already signed a contract. Because I recently took a pay cut, always hear about the serious financial problems of the hospital, and that if there are layoffs, I'll be one of the first to go because it's all based on seniority. Had I known all that before signing the contract, I might not have accepted the position. Not sure. Should I ignore all that and hope for the best because I signed a contract. Don't want to find myself unemployed when I have little mouths to feed. It's not an easy decision. I do appreciate your input.
Nobody wants to find themselves unemployed with mouths to feed. That doesn't absolve you from paying the $3K. Don't burn a bridge--nursing is a very, very small world...having done this for 18 years this month, I can tell you how much your reputation can precede you from places you wouldn't even think.
Remember that your actions have repercussions and being a responsibile employee versus an irresponsible one will come back later. It always does.
BTW, why didn't you do some research before accepting the contract? That woud be a very common sense thing to do--a hospital's reputation and financial standing is not hard to configure if you go to the right resources. That's not a good enough excuse in my eyes. Moreover your initial post has me thinking that you are just trying to justify your actions by coming up with excuses as to why you should be able to "bail out" of your contract....trying to find justification means you know deep down it's not the right thing to do. If this isn't clear to you, it's very clear to me.
Take the new job as it is in an area that appeals to you more in addition to more money. Do not discuss the contract before being offered and accepting the new job. Not smart. Give notice and make plans to pay the money back. Your contract should have details on how this is done. You should have to pay it back as you signed it and it's only fair the hospital gets something back for the time and experience they put into you. You pay them back and also move on to a situation that makes you happier.
it is rather unfair on us new grads when employers withhold certain info dt may alter our decision to remain in a hospital like vacation time u can get, raises, scheduling, nurse-patient-CNA ratio etc. basically they give you the half truth when asked but when u start working, you come to understand the whole truth. Coupled with that, employers do not care about their employees, treat them with disrespect and you are made to know that you are "nothing". with alot of negativity from your coworkers patiently waiting for you to make a mistake. Nursing doesnt accomodate new grads very well.
There is a section in the interview process for you to ask these questions yourself...take responsibility to know the job you will be accepting.
I signed a 2 year contract and they nullfied them all and DID NOT TELL US. One person in my intern group told me she did not have to sign a contract so I emailed HR asking about it and they said they were no longer valid. Nothing like telling us but what did I expect?
it is rather unfair on us new grads when employers withhold certain info dt may alter our decision to remain in a hospital like vacation time u can get, raises, scheduling, nurse-patient-CNA ratio etc. basically they give you the half truth when asked but when u start working, you come to understand the whole truth. Coupled with that, employers do not care about their employees, treat them with disrespect and you are made to know that you are "nothing". with alot of negativity from your coworkers patiently waiting for you to make a mistake. Nursing doesnt accomodate new grads very well.
These are virtually all things that a RESPONSIBLE person researches BEFORE signing a binding contract.
It is also quite unfair to the experienced nurses to repeatedly have to repeatedly orient and precept new nurses, just to have them bolt. It is unfair to the pts to always being a "learning experience" to a new grad, as they work through their initial IVs andfoleys. It is unfair to MDs to repeatedly have to explain things over and over and over to new staff when staff bolts this way and that. It is unfair to secretaries to repeatedly show new staff over and over how to do things.
These things are really unfair to insurance companies and those paying increased fees due to high costs of orienting new nurses repeatedly.
And it is pretty darn unfair to the many new grads that need and want a job, ANY job and that could have had that one and stayed in it, whereas another one took it and then bolted - they could have employed for several and made many more thousands of dollars greater then than the 3000 penalty, and become a major asset, rather than a money loss to the facility.
And it is really unfair to the new grads that the facility will be hesitant to hire, because they are tired of being burned.
Yes, reality shock of working in many hospitals is hard, but some of us paid the dues. And others do not and it hurts many down the line.
I think the real question here is why are these places failing to retain nurses despite these incentives? Is it because the pay is not as competitive, the workload is harder and more stressful than other areas, or that new grads are not being supported during orientation? Any suggestions out there for improvement?
I think the real question here is why are these places failing to retain nurses despite these incentives? Is it because the pay is not as competitive, the workload is harder and more stressful than other areas, or that new grads are not being supported during orientation? Any suggestions out there for improvement?
That is quite legitimate, but then you still should before signing the contract.
I recently responded to a thread regarding new grads signing contracts for a certain WPB hospital. Several us referred the poster to threads discussing the poor work environment there.
.... OMG! Call me naive, but I had no idea it was that much, are we factoring in costs not including the RN's salary??
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elkpark
14,633 Posts
I did a lit search a while back, when this same question came up on another thread, and what little literature there is "out there" reports costs ranging from $40k to $100k for the first year of employing and orienting a new grad. There's a lot more to it than just the individual's salary -- first of all, that's just one part of any full-time employee's compensation package; there's also the cost of all the benefits provided. There's the cost of providing the new employee orientation program, and the compensation packages of the persons who implement that program. There's also the cost of decreased productivity by assigned preceptors, etc., and the cost of paying the new grad a standard salary while getting quite a bit less productivity than the facility would from an experienced RN for quite a while, even after the formal orientation is over. And I'm sure there are many other costs involved that I'm not thinking of at the moment. Facilities are making a big investment in new grads -- and, for a number of years now, many of them have been feeling more and more that it's turning out to be a raw deal for them and they're tired of getting "burned."
Granted, it costs money to orient a new-employee experienced RN, also, but not nearly as much as it does a new grad, and hospitals feel like they have a better idea of those individuals' "track records" from checking their references and employment histories -- it's comparatively easy to weed out the "job-hoppers."