Nurses are overworked and feeling burnt out, and that plus high cost of living pressures is a recipe for increased turnover rates.
As cost of living continues to rise, nurses, like many other professionals, are feeling the strain. Financial insecurity has a significant impact on every aspect of a person's life, and inadequate compensation can be a major driving factor in employee turnover at an organization.
According to Bankrate's 2024 Financial Freedom Survey, Americans report needing to make a six-figure salary of $186,000 on average to live comfortably, which is more than double the $79,000 that the average full-time employee makes annually. Additionally, about 75% of Americans report that they are not completely financially secure.
When thinking about the nursing workforce shortage and why it's happening, it's critical that CNOs take a look at compensation. To get a full picture of nurse compensation in 2025, let's take a look at some facts and figures.
The current state of compensation
As of June 4, 2025, the average RN salary is $43.97 an hour, according to a report by Vivian. If a nurse works the standard 52 weeks at 40 hours per week, this number comes out to be $91,457 annually. According to the Bureau of Labor Statistics (BLS), the median annual wage for RNs was $93,600 in 2024, which translates to $45 an hour.
In 2025, the highest paying state for RNs is California, with an average hourly salary of $73, and a max hourly salary of $91, according to the Vivian report. The next highest paying states are Oregon ($69 average), New York ($62 average), Minnesota ($61 average,) and North Carolina ($56 average). Vivian also reports that the average travel nurse salary is $2,147 per week, and the highest paying state is California, with an average weekly salary of $2,570 and a maximum of $4,491 per week for traveling nurses.
When comparing the average and max hourly rates in each state, it becomes clear that many nurse salaries are hovering below the six-figure salary threshold needed to live comfortably without worry. According to the 2024 National Nursing Workforce Study conducted by the National Council of State Boards of Nursing (NCSBN), one of the top five reasons nurses are leaving the workforce is inadequate salary.
While many health systems are operating on thin margins, it's important to keep in mind that nurse turnover also comes with a price tag. The average cost of turnover for a bedside RN is $61,110, according to the 2025 NSI National Health Care Retention & RN Staffing Report.
Nurses are overworked and feeling burnt out, and that plus high cost of living pressures is a recipe for increased turnover rates. CNOs must do what they can to advocate for their nurses and define the value of their work to build more sustainable workforces that benefit the nurse, the patient, and the organization.
G Hatfield is the CNO editor for HealthLeaders.
KEY TAKEAWAYS
According to a 2025 report, the average RN salary is $43.97 an hour, which comes out to be $91,457 annually.
In 2025, the highest paying state for RNs is California, with an average hourly salary of $73, and a max hourly salary of $91.
One of the top five reasons nurses are leaving the workforce is inadequate compensation, and the average cost of turnover for a bedside RN is $61,110.