Sentara Healthcare to invest $125 million to attract, retain workers

Sentara Healthcare on Thursday said it would spend $110 million on raises and $15 million more on benefits for workers this year.

The Norfolk, Virginia-based health system will give eligible employees a 5% wage increase starting March 17 and will offer merit raises in May, the company said in a news release. The combined raises will affect more than 96% of the 29,000-person workforce.

The provider also started adding to its benefits program Jan. 1, offering reimbursement for adoptions, infertility care and surrogacy and gestational care. Sentara plans to add more benefits throughout the year for part-time and full-time workers, including paid time off, paid parental leave, short-term disability after a week, more access to sick time, support for family caregivers and greater tuition reimbursement, the health system said.

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"We continually evaluate our compensation and benefits programs to ensure they reflect team members' needs, contributions and changes in our markets. Investing in salaries and innovative benefits is essential in attracting and retaining the best talent and providing the care our patients and health plan members deserve," Sentara Executive Vice President and Chief People Officer Becky Sawyer said in a news release.

In May 2021, the company raised its minimum wage to $15 per hour eight months before it had originally planned. At the time, Sawyer said the move was to help attract and retain workers. Sentara invested $185 million in raises for employees in 2021 through raises, benefits and appreciation gifts, the company said.

Sentara is one of many health systems across the country turning to higher wages, expanded benefits and other incentives to attract and retain workers during the COVID-19 pandemic, which has exacerbated existing healthcare staffing shortages. Advocate Aurora in Illinois, for example, just awarded bonuses of up to $1,500 to 60,000 employees.

The healthcare sector added about 18,000 jobs in January, according to the Bureau of Labor Statistics.