Costs of turnover extend beyond advertising the open position, screening, interviewing, and hiring.
According to the Home Care Benchmarking Study over the years, the median rate of caregiver turnover has been on the rise from 39.4% in 2009 to an alarming 65.7% in 2017. The odds are that two-thirds of your caregivers will leave your home care business in the next year. Most home care business owners feel they work hard to retain their employees. Despite these efforts, the escalating issue of caregiver turnover has become the top threat to home care agencies.
This month Erik Madsen, our COO, will be presenting on this subject during our CORE Webinar. We’ll also share articles and posts throughout March looking deeper into this issue and provide solutions many home care agencies have found in reducing turnover.
Far-Reaching Costs to Your Business
Costs of turnover extend beyond advertising the open position, screening, interviewing, and hiring, although these costs can be formidable. Consider costs associated with the following factors:
- Recruiting and Training Costs. Figures from the Center for American Progress show us the average cost of replacing an employee is 16% of their annual pay. Click here to access a calculator tool we built using home care industry data to see how these costs add up for your agency.
- Loss of Work Quality. More time spent finding caregivers means less time available for training existing caregivers. Also, experienced caregivers more are likely to leave and more difficult to replace when turnover is high. High turnover reduces your ability to perform the most important function of your business: caring for your clients.
- Lowered productivity. New employees tend to work slower and require more help from experienced employees and managers. Onboarding and training are necessary for any line of work but spending too much time on it may pull your best and most experienced employees away from their regular work.
- Damaged Morale. When too many employees leave, other employees start to ask why. The resulting drop in morale impacts work culture and even affects the level of care that your clients receive.
- Future Staffing Challenges. According to the most recent Home Care Benchmark Study, the top method of recruiting caregivers is word-of-mouth referrals through other caregivers. Fewer caregivers staying in your business translates to fewer referrals, affecting both the size and quality of your candidate pool.