The U.S. Bureau of Labor Statistics reports that an estimated 778,000 personal caregivers and 431,000 home caregivers will need to enter the workforce by 2026 to meet the demand. But in today’s environment, organizations have nearly as many people leaving as they are hiring. This vicious cycle prevents organizational growth, hurts your company culture, and puts your profitability and success at risk.
Certainly, there are specific, direct financial costs that turnover causes, as you have most likely experienced them at your own agency. But there are additional indirect costs that you may not have considered that can exponentially increase the impact that turnover is having on your organization, and ultimately your finances. These include:
- Reduced quality of care
- Client turnover, along with lost revenue and reimbursements
- Negative impacts on employee morale
- Recruiting, hiring, on-boarding and training costs
- Lost productivity
- Lost employee engagement
- Customer service and errors
The Cost to Your Clients
It’s often overlooked, but the cost to your clients is one of the most significant impacts of employee turnover. When relationships aren’t sustained over a long period of time, it can lead to a sense of abandonment. Turnover makes a real impact to the people you support and their families. Measuring and improving client satisfaction, employee satisfaction, and employee retention will improve the quality of care you provide and positively impact the people you serve.
Determining the True Cost of Turnover for Your Agency
Understanding the true cost of turnover for your home care agency is key to sustaining your organization financial viability, which is why it is important measure it. Several studies have been done to determine how to calculate the real financial cost of both the direct and indirect costs of employee turnover in home care agencies. One such study from the Center for American Progress provides a statistical guideline that employers can use when calculating turnover costs. Our team has used the guidelines from that study to develop a simple tool that you can use to estimate how much turnover may be costing your home care agency.
Track this metric quarterly or annually in order to more accurately monitor your progress in reducing turnover.
Using Data to Address Turnover and Improve Employee Retention
To truly get a clear picture of what’s going on with your turnover, you need access to reliable data about your organization. Schedule a call with our team to understand how Sandata software can help capture that valuable quantitative data so you can pair it with the surveys, interviews, and other qualitative data you work with your team to collect. If you are committed to decreasing the costs of employee turnover we want to help.
When it comes to decreasing turnover, your best weapon is knowledge. To help you with that, we suggest you download our e-book, “Home Care Staffing Stability: How Culture and Employee Satisfaction Influences Employee Retention and Attraction.”