The impact of a nursing transitions programme on retention and cost savings

AIM: To identify the benefits and essential elements of a new graduate residency programme. BACKGROUND: Retention of nurses is a global nursing concern. New graduate nurses have the lowest retention rates and, therefore, the present study focused on the unique needs of this group. EVALUATION: Valid and reliable tools were utilized to evaluate work satisfaction, clinical decision making, organizational commitment and skill development during and after each residency. We also compared resident retention and associated cost savings. KEY ISSUES: The adoption and implementation of the residency programme represented a change in culture. Hiring and education practices for new nurses changed dramatically. CONCLUSIONS: Before the development of a new graduate transition programme, our 1-year retention rate was as low as 50%. Five years after programme adoption, retention increased to 72.5%, resulting in major cost savings to the organization. IMPLICATIONS FOR NURSING MANAGEMENT: Nursing Management must be creative and transformational in their thinking in order to address nursing retention. Implications for nurse managers who are considering residency programmes include the potential for significant cost savings for the hospital, increased resident, nursing and unit satisfaction and a demand for nurses who desire to work at their hospitals.