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How Much Should You Pay Your Home Care Staff?

Have you ever wondered if you are paying your home care team enough? Most agency owners have had the thought cross their minds at least a few times, especially when they are struggling to find new caregivers who stay through the interview process but decline the offer to come on board.

Home care compensation rates and benefits packages are certainly crucial to your agency’s success. Pay too much and you may have trouble with your bottom line when overtime comes into play. Pay too little and your recruitment and retention rates decrease. Here’s what you need to consider as you do a thorough and thoughtful review of your compensation and benefits.

Understand Your Competition

If you don’t know how much your local competitors are paying caregivers and leaders in their home care agencies, you will never know how your rates stack up. There are a few ways to determine what your competitors are doing:

  • Visit sites like Indeed and GlassDoor to see what the average compensation rates are in your local area for positions like caregivers, marketing professionals, and other team members you have on staff.
  • Ask your home care owner community and peers. There’s nothing wrong with a little sharing! Try starting the conversation at your next networking coffee hour, at a training class, or even on a business owner conference call.
  • Mystery shop your competitors by having one of your current team members apply and inquire about their hourly rates.
  • Look at other industries besides home care. For example, discover how much caregivers make in your local hospitals, senior living communities, and assisted living communities. Determine how much a marketing professional makes not only in a home care agency but also in a hospital or other senior living organization.

Understand Your Team

While you are busy getting to know what your competitors are offering potential team members, get to know what is important to your own staff as well. Far too often, agency owners believe they know what their team wants in terms of compensation and benefits, only to find out they were quite incorrect. 

The best way to discover what is important to your staff is to ask them. Send out an anonymous email survey or have a round table discussion at your next staff meeting. Ask about compensation rates as well as what benefits they love at your agency, along with ideas about benefits that could be even better.

Build Compensation Levels

Empower your team and inspire more leadership behavior by creating compensation levels within your organization. More than just a yearly increase in pay, compensation levels are tied to different responsibilities within the organization.

For example, can you pay caregivers more when they become Mentors and are responsible for on-site training of new team members? Can you pay your front office staff a bonus for every inquiry they convert into an assessment? Can you bonus your caregiver team when you win a local award? Discover new ways to praise outstanding behaviors and inspire your team to be even better.

Benefits Matter

Home care compensation rates are crucial. Without a fair and living wage, your caregivers and other team members can be too stressed out with financial burdens at home to take care of themselves well enough to care for clients. However, a unique benefits package can also set you apart from your competitors.

When developing a comprehensive benefits package, remember to consider:

  • Health, vision, and dental insurance
  • Mental health benefits: counseling or therapy services, online modules, etc.
  • Vacation and other paid time off
  • Realistic sick-day benefits
  • Self-care paid time off days
  • Ongoing education compensation and time off to learn something new
  • Physical health benefits: gym membership or discount, flexible spending account, etc.
  • Childcare benefits, discounts, or partnerships
  • Opportunity to participate in staff events
  • Recognition programs with rewards the team will use (gas cards, lunch cards, etc.)

Get your staff involved by not only asking their opinion on benefits, but also by using their influence in the local community. Perhaps someone knows a family member who can arrange a gym discount, or knows a friend who can discount massages for employees. You never know where to find connections or potential partnerships until you ask!




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 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 new caregivers and efficiently scale your home care team.



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