Nurse retention has become a workplace priority in hospitals and public health institutions. Recent studies have shown that the cost of replacing one nurse can equate to the yearly salary of that nurse, with the required training and loss in productivity that the disruption of services creates. However, it is becoming clear that the one-size-fits-all recruitment and retention programs offered by health institutions do not address the priorities and expectations of newer generations of nurses. According to the Journal of Nursing Scholarship, new graduates have shown that personal attention from the manager and input into hospital decisions appeal to the needs and desires of the generation X and Y worker.

The current nurse workforce continues to be challenged by shortages, competency issues, safety concerns and image problems. The continuing instability of the economy and erratic nurse re-entry into hospital practice for financial reasons have further contributed to the difficulties of recruitment, retention and effective management of nursing services.

The International Journal of Nursing Studies recently released an article that highlighted that the current international nursing shortage and the emphasis on developing quality practice environments has led forward thinking public and private health organisations to implement new workforce policies to address the growing shortages and need to improve services. One of the main strategies to achieving these goals is through the productive use of agency staff to fill available nursing jobs.

Agency nursing refers to the nursing services provided by agency nurses employed on a casual contract basis. The continuing shortage of nurses combined with an increased demand for their services have contributed to a greater reliance on agency nurses. As a result, nursing recruitment agencies are retaining and evolving their importance as staffing resources for those public and private health institutions that are suffering from shortages of nursing staff. The benefits of utilising a reputable recruitment agency to secure agency nursing jobs is well documented, with the most repeated advantage being control over their work scheduling.

Furthermore, the potential employee pool of professional nurses has traditionally been new graduates and foreign nurses. The foreign nurse pool is drying up because of global depletions of nurse supplies. According to a research report issued by Tulgan, the most reliable potential nurse pool continues to be the emerging workforce. Those that are in the process of training, are recent nursing graduates or those who are furthering their education with postgraduate studies, are becoming an increasingly important source of new nurses. Both local and international nursing students do not have the required time to dedicate to a full time nursing positions, and as a result, utilise professional nursing agencies to locate and secure appropriate agency nursing jobs.

As the model of nursing employment evolves, it is apparent that the importance of agency nursing positions will play an increasingly important role in providing quality and educated staff to fill the nursing shortages and enable public and private healthcare institutions to meet their organisational health goals.