Caregiver Turnover Costs: How to Avoid It
Data shows that in 2021, the average caregiver turnover rate was 64%. This rate was similar to 2019 and 2020, when rates were 64% and 65%, respectively. While many see these steady figures as a victory because of the pressures experienced during the pandemic, they are incredibly costly for home care agencies.
Organizations should aim for a 10% employee turnover rate. However, most fall into the range of 12% to 20%. Even at the high end of that range, turnover rates are over 300% lower than those seen among caregivers.
So, what’s the solution?
Here’s what you need to know when aiming to supercharge your retention strategies — plus how to get started.
Caregiver Turnover Costs — Crunching the Numbers
The cost of losing a caregiver is immense, which is why the industry’s rates are so eye-opening. While caregiver turnover costs are significantly lower now compared to 2018, when the rate hit an all-time high of 82%, they are still sky-high.
Each time a caregiver leaves your agency, it creates a ripple effect among the remaining caregivers and your clients. Relations and resulting productivity can suffer, creating strains on your business. However, diving deeper, it’s clear that the costs are more than a drop in morale. The financial costs are steep. Depending on the size of your agency, caregiver turnover costs can be tens of thousands each year.
For example, replacement costs are hefty when factoring in the hiring and training process of new caregivers. Some variables to consider are the time and funding required for job postings, interviews, and training — not to mention the loss of productivity until the new hire is entirely up to speed. These costs can be amplified when the caregiver you lose is invaluable to your clients and agency.
Related: The Challenge of Recruiting Caregivers
Investing in Your Home Care Agency
As discussed, turnover rates in 2018 hit a record high. So, what happened in 2019?
Although 64% is still high across all industries, turnover rates did plummet within the caregiving industry. In a 2019 benchmarking study, it was found that of the 900 participating home care organizations, around 64% said they invested in a professional training program to support the development of their caregivers. Nearly 81% reported providing employee benefits, and overall employee satisfaction improved as these perks became more commonplace.
Wondering how to start investing in your retention strategies? Here’s how.
Develop an Excellent Onboarding and Orientation Program
An informative, focused orientation is crucial to achieving a positive first impression. Your employees need to view your agency as the type of company they want to work for while providing them with the information they need to succeed. The key is to offer content that is engaging and frictionless. For example, when home care agencies partner with showd.me, they see an 85% post-application engagement rate and a 65% application completion rate — which is 200% higher than the industry standard rate.
Tip: Focus on digitizing your current process so that onboarding and orientation steps can be completed on-demand via a user-friendly interface.
A little recognition can go a long way. Although 91% of employees say recognition is meaningful, 25% say their organization doesn’t celebrate accomplishments. Caregivers provide an essential service that deserves appreciation. Remember, a simple “thank you” can go a long way. However, when employees go above and beyond, do your best to provide benefits and tangible incentives. Happy employees are more likely to remain loyal, productive, and engaged.
Tip: One way to make caregivers more aware of their benefits is to offer a centralized hub for benefits and payroll. Whether you regularly add new benefits or vary from month to month, caregivers can easily track what’s available, enroll in programs, and check statuses. Providing increased accessibility is a simple step that shows employees they’re valued.
Invest in Training
The old saying, “it takes money to make money,” holds true regarding training. Data shows that organizations that invest in training achieve higher employee productivity and revenue, and one reason for that is increased employee retention.
Employee development is crucial to keep and attract talent while achieving growth. Some of the top reasons to invest in training include the following:
- Caregivers are more likely to stay at an agency when they feel encouraged and supported
- A better understanding of a caregiver’s role and your agency will lead to better performance
- Training ensures your team remains up-to-date with current industry trends
- Professional training is easy to implement thanks to online training programs, which can get new hires up to speed in as little as two hours
Tip: Outsource critical training programs to remove the administrative burden and cut costs by 80%. This step will drive high adoption, user satisfaction, and completion rates. With showd.me, you can also request customized training solutions and benefit from ongoing white glove multilingual support.
showd.me Can Help Minimize Caregiver Turnover Costs
When considering some of the best practices discussed above, showd.me can help. We provide the right training to the right employee at the right time — and the results are powerful. Our training solutions, course offerings, and learning tools ensure personalized learning experiences through an online, on-demand interface.
Users benefit from self-paced learning, cloud-based and mobile access, an extensive content library, and more. As a home care agency, you’ll benefit from immense cost savings and a hands-off approach that allows you to train caregivers anytime, anywhere.
Want to learn more? Contact our team or request a free demo today!