New SullivanCotter Report: Nursing Compensation Data Reveals Targeted Pay Increases and Early Signs of Labor Market Stabilization

CHICAGO--(BUSINESS WIRE)--SullivanCotter, the nation’s leading independent consulting firm in the assessment and development of total rewards programs, workforce solutions, and data products for health care and not-for-profits, has released new data and insights from the 2025 Registered Nursing Compensation Survey.

The results highlight how hospitals and health systems are navigating evolving labor market dynamics by making targeted investments in base pay, taking geographic pay differences into account, and focusing on strategies and programs to stabilize their nursing workforce.

Targeted Investments Drive RN Base Pay Changes

In the first half of 2025, the greatest growth in median base pay was among medium-sized organizations – defined as health systems with between $250M and $750M in annual net revenue – at 3.2%. Organizations with revenues between $751M and $1.5B reported a 2.9% increase, reflecting continued emphasis on retaining experienced nursing talent.

From January through July 1, RN leaders (3.0%) and managers (2.7%) received the largest median base pay increases, signaling that organizations are prioritizing compensation for roles with broad supervisory and clinical oversight. And while supervisors (1.9%), charge nurses (2.4%), and staff RNs (1.7%) experienced lower median base pay increases, organizations were more selective in awarding higher pay adjustments at these levels between 5.7% and 8.2% at the 90^th percentile.

Pay movement varied by specialty as well. Critical Care RNs recorded the highest six-month median increase at 3.2%, followed closely by those in Anesthesiology, Oncology, and the Emergency Department. Among non-acute care roles, RN Case Managers (3.0%) and RN Patient Navigators (2.3%) experienced the strongest median growth, while Licensed Practical Nurses had the lowest growth at 1.1%.

“Organizations are making targeted, strategic investments in nursing pay, prioritizing leaders, critical specialties, and hard-to-fill roles as they work to remain competitive in a market that is always evolving,” said Steve Meyers, Principal, SullivanCotter. “It’s important to elevate pay where pressures are greatest and prepare for continued evaluation in the months ahead.”

Nearly 70% of participating organizations plan to review external nursing market data in the second half of 2025, signaling that many anticipate further adjustments to pay strategies this year.

Geographic Differences Remain a Significant Driver of RN Pay

Regional variability continues to strongly influence nursing compensation. The West reported the highest median hourly rates for Clinical Nurse Specialists ($96), Staff RNs ($61), and LPNs ($36) – positioning this region well above the others. The Northeast followed at $69, $50, and $34, respectively, with slightly lower rates across the North Central, South Central, and Southeast regions.

Specialty pay differences were also notable, particularly in the West, which showed the widest intra-region variation, from $74 per hour for Wound Care RNs to $57 for Oncology RNs. Even at the low end, specialty pay in the West remains higher than comparable roles in every other region.

RN Turnover and Vacancy Rates Show Signs of Stabilization

Managing nursing turnover remains a significant challenge for health care organizations, given its impact on staffing, cost, and continuity of care. Compared to 2024, RN turnover rates have decreased while LPN turnover rates have increased. In the first half of 2025, 62% of organizations reported RN turnover between 11% and 20%. For LPNs, more than one-third of organizations reported turnover above 20%.

For RNs, 5.7% fewer organizations have days-to-fill over 90 days, and 10% fewer organizations have vacancy rates over 11%. Year-over-year declines in vacancy rates and time-to-fill metrics indicate that organizations are making progress in addressing staffing gaps and strengthening recruitment pipelines.

“Taken together, these shifts signal that the nursing labor market may be entering a period of greater stability. Organizations are not only seeing fewer extended vacancies, they’re also experiencing more predictable hiring activity, an important step toward rebuilding workforce sustainability,” said Meyers.

For more information on SullivanCotter’s surveys, please visit our website at http://www.sullivancotter.com or contact us via email or by phone at 888.739.7039.

Note to media: Additional data and interviews are available on request.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improves outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights, expertise, and data products to help organizations align business strategy and performance objectives–enabling our clients to deliver on their mission, vision, and values.