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How to Calculate the True Cost of Caregiver Turnover

Caregiver turnover is a common concern that most home care agencies must tackle throughout the year. However, most home care agency owners or leaders do not realize the real cost of a high caregiver turnover rate. If your agency has poor caregiver retention, it can significantly affect your bottom line in more ways than one.

Looking for some motivation to increase your retention efforts or upgrade your employee support program? Here are just a few ways caregiver turnover is costing your agency too much money.

Client Retention

When your agency cannot keep caregivers, the care you provide becomes less consistent. New faces showing up at your clients’ homes can cause feelings of disruption, confusion, and even anxiety for the seniors you serve. Your clients and their families are less likely to trust your agency when they see a parade of new caregivers arriving on a regular basis. Without a consistent caregiver at the helm of their care, seniors (and their family members) are more likely to terminate services or resist increasing service hours.

Less client time means less money for your financial bottom line.

New Client Referrals

Your community reputation can take a quick dip when turnover is high. An ever-changing list of caregivers can lead to disaster in the partnerships you have worked so hard to cultivate. For example, a case manager in your town’s senior services department may be less inclined to recommend your services to a needy family if they can’t be sure your caregiver staff is stable. 

Your home care agency thrives thanks to strong networking within senior services in your community, as well as an excellent reputation. Without these referrals, new clients can become few and far between.

Orientation Effort

Welcoming new caregivers to your agency and getting them started on the right foot takes time – a lot of time. You invest the time of your current staff to plan orientation, to teach new caregivers during orientation, and to follow up to assure the new team members are settling in. A solid orientation program, in fact, can lead to better retention in the first 90 days. 

If you are constantly onboarding new caregivers to keep up with your turnover, you run the risk of hastily throwing together subpar orientations. These orientations do not set up your new team for success and can increase your short-term new hire turnover.

Ongoing Training Time

Speaking of training, consistently training your caregivers will result in better service. Home care agencies with a stable team can build on training topics each month, resulting in a staff that is educated, empowered, and inspired. If your turnover is high, you don’t have the opportunity to create this training model. Instead, you spend time reviewing the same materials which can be boring and uninspiring to your long-term team members.

Call-Offs and Overtime

Finally, your financial reports can suffer due to turnover because you will end up paying for more overtime hours from the caregivers that are still at your agency. However, asking your caregivers to constantly pick up shifts due to your staff shortage can also lead to frustrated caregivers who may feel more inclined to call-off on their scheduled shifts.

Caregiver turnover is difficult, and it happens to the best agency owners. However, if you have a consistent turnover issue, it will affect every part of your agency until you make a concentrated effort to put policies and procedures in place to increase caregiver retention.




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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