New graduate nurse residency program: a cost-benefit analysis based on turnover and contract labor usage.

A cost-benefit analysis was conducted to assess the economic outcomes of a new graduate registered nurse (NGRN) residency program utilizing turnover rate and contract labor usage data from a multi-site health care corporation. Secondary data analysis of NGRNs (n=524) was conducted including descriptive and step-wise regression analyses. Findings indicated a new graduate residency program was associated with a decrease in the 12-month turnover rate from 36.08% to 6.41% (p<0.05) and reduction in contract labor usage from $19,099 to $5,490 per average daily census (p<0.05). These cost-benefit analyses suggest net savings between $10 and $50 per patient day when compared to traditional methods of orientation. A NGRN residency program offers a cost-effective innovative approach and should be valued as an investment as opposed to an expense.