3 Eye Opening Facts About Home Care Daily Pay

home care daily pay

When it comes to staffing, happy caregivers are fairly compensated caregivers. While there are multiple factors that go into creating a successful caregiver retention plan, home care daily pay is emerging as a trend that agencies are using to increase morale and make daily life a bit easier for caregivers. If you aren’t sure if home care daily pay will work for you or your agency, you aren’t alone. Agencies are not quite certain if daily pay is the future of home care staffing models, but the trend is popular enough that owners need to at least know about it in order to determine if it is worth it to try.

Here’s what you need to know about a daily pay option for your team.

Many Caregivers Live Below the Poverty Line

At least one in every four caregivers live below the poverty line, a topic most home care agency owners do not fully recognize or actively address. When caregivers are strapped for cash or living paycheck to paycheck, they are more likely to work multiple jobs or leave a lower-paying job for a higher paying job with minimal notice. 

Further, living paycheck to paycheck is downright stressful. This added stress can lead to a caregiver getting ill more often, calling off more often, or providing less than exceptional care to clients because the caregiver is sidetracked by financial concerns. In all scenarios, caregivers can end up performing poorly or leaving a home care agency for another job.

Daily pay options can create a sense of security for caregivers, allowing them to have money readily available as they earn it instead of waiting two weeks before the next paycheck clears.

Home Care Daily Pay May Reduce Turnover

Home care agencies that use a daily pay option often see high percentages of enrollment for the benefit. In fact, some reports show that 30-50% of home care staff members choose to opt into daily pay at their agency. Once the daily pay feature is up and running, agencies have reported up to a 50% decrease in turnover. This is astounding, certainly.

Why does daily pay create higher retention in some cases? Caregivers are able to receive pay for time worked when they need it. Depending on the program your agency chooses to use for daily pay benefits, the caregiver can bank their pay and choose when they pull it out to put in their direct deposit account. This gives them a sense of financial security and autonomy over their financial situation.

While decreases in caregiver turnover are associated with daily pay options, the general jury is still out on whether the daily pay option is a magic bullet for caregiver turnover. It is important for owners to realize that simply offering a daily pay option will not cure their turnover problem; instead, it should be one piece of a carefully thought out retention strategy that addresses caregiver preferences, needs, and talents.

Daily Pay Won’t Create More HR Work

It can sound intimidating if you think that daily pay options require your Human Resources staff to run payroll every day. Fortunately, most home care agencies use platforms or services that take care of the ins and outs of daily pay, eliminating the need for constant payroll work for your HR department. When you are choosing a system to support your home care daily pay needs, ensure it is affordable in the short and long-term so that you can offer this benefit consistently in the next years of your business.

Daily pay can be a crucial component of your caregiver recruitment plan, as long as you are able to pair it with other benefits that are important to your team.


Article written by Haley Burress.

Hi, my name is Wendell Scott and I help Home Care Agencies who are experiencing high caregiver turnover rates, have trouble coordinating client care and feel frustrated with their team to easily increase efficiency and scale their Home Care business.

I’d like to share with you my free Caregiver Recruitment Engine framework. In it, are the tools to help you develop a system to easily attract & hire caregivers (aka a repeatable system for recruiting quality staff), so you can organize your process, reliably recruit staff and efficiently scale your home care team.

The end result: 

Hire caregivers.

Faster than ever. 



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