The COVID-19 pandemic has left an indelible mark on nearly every industry, but few have experienced the intensity of staffing challenges like the behavioral health sector. As the crisis of the pandemic began to recede, staffing pressures that were once at crisis levels in behavioral health have slowly begun to ease. However, the post-pandemic landscape has introduced a new normal—one that is defined by heightened challenges, financial constraints, and an even greater need for a strong company culture.
While the acute phase of the pandemic exacerbated competition for behavioral health workers, it also led to unsustainable wage increases, massive sign-on bonuses, and overall unsustainable hiring practices. As the industry shifts out of the crisis mode, new realities and pressures have emerged. In this new phase, mental health providers are recognizing the importance of addressing not only compensation but also company culture to ensure long-term success and retention.
The Pandemic Crisis: A Staffing Arms Race
During the height of the COVID-19 pandemic, behavioral health providers faced unprecedented challenges in securing and retaining staff. As the pandemic put additional stress on mental health systems, many providers had to compete for a limited pool of talent, and the competition was fierce. Staffing shortages were exacerbated by increased demand for services, burnout among existing staff, and increased turnover.
Providers, particularly in the psychiatric and addiction treatment sectors, were forced to offer eye-popping compensation packages to attract staff. Sign-on bonuses were no longer a rarity but an essential part of recruitment strategies, and wages for behavioral health professionals reached all-time highs. Unfortunately, this approach led to disastrous outcomes for some organizations. Staffing agencies, which were relied upon more heavily during the pandemic, jacked up their rates in response to the heightened demand. At the same time, organizations were often left scrambling to fill shifts, resulting in unsustainable compensation rates and a sense of instability.
Kim Brady, Chief Human Resources Officer at Summit BHC, a behavioral health provider based in Franklin, Tennessee, reflected on this tumultuous period. Summit BHC operates 37 freestanding facilities across the country that focus on psychiatric and addiction treatment. Brady shared that during the pandemic, the company faced fierce competition for staff from hospitals, with staffing agencies charging significantly higher rates.
“We are very driven by staff ratios for our services,” said Brady during a webinar at the inaugural BHB Staffing Summit. “We need to make sure that we have the proper number of staff on a unit on any given day.” This need for strict staff-to-patient ratios made it even more critical for Summit BHC to secure workers. However, the financial pressures were real, and staffing costs ballooned.
Fortunately, the acute staffing crisis has begun to stabilize. Agency spend, while still a consideration, has decreased significantly over the last 12 to 18 months, and competition for talent has eased somewhat. Brady noted, “It’s a little easier for us to find our nurses now, and our agency spend has decreased over the last 12 to 18 months. More importantly, in the markets where we do have agency spend, we’re seeing those rates come down significantly from what we were paying during the pandemic. So, I do feel like we’re seeing some stabilization.”
The New Normal: Heightened Challenges and Financial Constraints
Although the acute crisis phase is over, the behavioral health sector is far from returning to pre-pandemic conditions. The industry is experiencing a “new normal,” one characterized by lingering challenges that continue to affect staffing and financial strategies.
Gaurav Bhattacharyya, CEO of Geode Health, an outpatient mental health provider based in Oak Brook, Illinois, observed that the staffing landscape post-pandemic feels less “transactional.” He noted that the focus has shifted from simply filling timecards to providing opportunities for staff to build relationships, grow within their roles, and contribute to a company culture. “What we’re seeing a little bit more is providers, not necessarily looking for their forever home, but certainly somewhere where they want to get some roots and build camaraderie and be part of a culture versus just filling an hourly timecard,” Bhattacharyya said.
This shift indicates that many behavioral health providers are beginning to prioritize retention strategies and invest in fostering a work culture that can improve employee engagement and satisfaction. At the same time, the industry is grappling with ongoing financial constraints. Increased wages, sign-on bonuses, and ongoing pressure to compete for staff mean that many organizations are trying to balance providing competitive compensation packages with maintaining long-term sustainability.
As Brady from Summit BHC noted, while agency staffing costs have gone down in the last year, they are unlikely to return to pre-pandemic levels. The competition for talent and the demand for high-quality care remain, but providers must adapt to the financial pressures and evolving expectations of employees. This includes being more strategic about compensation, while also focusing on building a culture that enhances retention.
The Power of Company Culture in Retention
In the new staffing landscape, organizations have started to understand that the key to long-term staffing success lies not just in competitive compensation but in company culture. Providers are recognizing that employees are looking for more than just a paycheck—they want to work in an environment where they feel valued, supported, and connected to the organization’s mission.
At the core of the retention strategies discussed by Brady and Bhattacharyya is consistent, clear communication of organizational standards, performance expectations, and opportunities for growth. Both leaders emphasized the importance of ensuring that staff understand the broader mission of the organization and how their work contributes to that mission.
For Brady, building a retention culture begins with making connections between the organization’s mission and the expectations of daily life in the workplace. “Many clinicians want to make a difference in people’s lives already,” Brady explained. “Laying out a plan to do that from the start, and then delivering on the plan, is key to building a retention culture.” By being transparent about the mission, vision, and day-to-day reality of the job, Summit BHC ensures that new hires know what to expect and feel supported from the outset. This sets up new employees for success and lays the foundation for long-term retention.
Bhattacharyya added that retaining staff also requires providing opportunities for personal and professional growth. This can be achieved through training, mentorship, and celebrating employees’ accomplishments. “You reward people with compensation and bonuses,” Bhattacharyya explained. “And you honor people when they keep to core values.” This recognition not only boosts morale but also reinforces the values that the organization holds dear, which can contribute to a more engaged and motivated workforce.
The Role of Training and Clear Standards
One of the most important elements in fostering a positive company culture is providing staff with the tools and resources they need to succeed. Both Brady and Bhattacharyya highlighted the importance of training and the need for clear, actionable performance standards. Setting these standards and helping staff achieve them builds a sense of accomplishment and pride in their work.
At Summit BHC, for example, Brady emphasized the importance of establishing clear expectations during the hiring process. This transparency helps candidates understand the role they’re applying for and what they can expect from the company. It also ensures that both the employer and employee are on the same page, which can lead to greater satisfaction and retention.
Bhattacharyya echoed this sentiment, noting that creating a culture of continuous improvement and celebration of achievements is critical. By celebrating small victories and providing regular feedback, providers can foster a sense of purpose and satisfaction among their staff, making it more likely they will stay with the organization long term.
Conclusion: A New Era for Behavioral Health Staffing
While the COVID-19 pandemic created severe staffing challenges for the behavioral health sector, the industry is slowly emerging from crisis mode. Staffing pressures have eased, and costs associated with agency staffing have decreased, but the new normal is still marked by heightened challenges.
Behavioral health providers are recognizing the critical importance of fostering a strong company culture—one that goes beyond compensation and addresses the deeper needs of employees. Clear communication, setting expectations, providing training and growth opportunities, and celebrating employees’ contributions are all key strategies for improving retention.
Ultimately, the future of staffing in the behavioral health sector will be shaped by a combination of financial sustainability and cultural investments. While there are still hurdles to overcome, the shift toward creating supportive, mission-driven environments will help ensure that providers not only attract top talent but also retain them for the long haul. As the behavioral health industry adjusts to this new reality, it will need to continue balancing staffing needs with creating workplaces that inspire long-term commitment and engagement.
