The Bottom Line on Caregiver Turnover: How to Protect Your Profits PDF Free Download
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© 2019 | Home Care Pulse, LLC
#HOMECAREWEBINAR
© 2019 | Home Care Pulse, LLC
The Bottom Line
on Caregiver
Turnover:
How to Protect
Your Profits Erik Madsen
CEO | Home Care Pulse
© 2019 | Home Care Pulse, LLC
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Agenda
Calculating the True Cost of Caregiver Turnover
Three-Pronged Approach to Reducing Turnover
Case Studies of Agency Turnover
Q+A
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Historical Caregiver Turnover
39.40%
46.20%
49.80%
52.60% 53.20%
61.60%
59.70%
65.70% 66.70%
30.00%
35.00%
40.00%
45.00%
50.00%
55.00%
60.00%
65.00%
70.00%
2009 2010 2011 2012 2013 2014 2015 2016 2017
???
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Poll Question
Have you had to turn down a client
in the last 90 days because of a lack
of caregivers?
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Direct Costs
•Separation costs
•Overtime for other staff
•Replacement hiring costs
•Training costs
Indirect Costs
•Lost productivity
•Coping with vacancy
•Reduced quality/errors
•Reduced morale
•Lost revenue from loss of
clients or adequate staff to
bring on new ones
•Loss of best practices
Costs of caregiver turnover
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Cost of turnover as a % of annual wages
21.40% 20.70%
16.10%
19.70% 20.40%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
All cases All cases excluding
physicians and executives
Jobs paying $30k or less Jobs paying $50k or less Jobs paying $75k or less
http://bit.ly/2ygnLcm -Center for American Progress
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Average caregiver wage: $10.50
Average weekly hours: 30
Weeks per year: x 52
Forecasted Annual Wages: $16,380
% of annual wage to replace: x 16%
Estimated turnover cost per caregiver: $2,621
Calculating the true cost of
caregiver turnover
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The True Cost of Caregiver Turnover
2013 2017
Average Caregiver Wage $10.50 $10.50
Average Weekly Hours worked per Caregiver 30 30
% of annual wages to replace employee 16% 16%
Estimated Turnover Cost per Caregiver $2,621 $2,621
Average Number of Caregivers 100 100
Average Caregiver Turnover Rate 53% 67%
Estimated Total Annual Caregiver Turnover Cost $138,913 $175,607
$36,394 increase
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Poll Question
How many caregivers do you
currently employ?
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Top Threats Facing Providers in 2018
2018 Home Care Benchmarking Study p. 62
www.benchmarking.homecarepulse.com
24.4%
24.6%
29.9%
30.5%
78.7%
10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
Privately Hired Caregivers
Attracting Enough Referrals
Caregiver Turnover
Fight for $15 Wage Battle
Caregiver Shortages
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Can caregiver turnover be
addressed or is it inevitable
because of competition and
shortages?
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There are more caregivers than ever before
Chart Sources: U.S. Bureau of Labor
Statistics (BLS), Employment
Projections Program. 2017.
Employment Projections: 2016–26,
National Employment Matrix -
Occupation.
https://www.bls.gov/emp/; U.S.
Bureau of Labor Statistics (BLS),
Employment Projections Program.
2017. Employment Projections:
2016–26, Occupational Projections
Data. https://www.bls.gov/emp/;
analysis by PHI (July 19, 2017). Note
that the BLS Occupational
Employment Survey was revised in
2013 to better capture consumer-
directed workers. This
methodological change accounts for
some of the employment growth
reported in 2016 to 2017.
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10.Commute/travel
9. Lack of openness to
ideas/feedback
8. Rude office staff
7. Lack of client compatibility
6. Want client
introductions/updates
The Top Ten Caregiver Complaints
(Voice of the Caregiver)
5. Lack of proper recognition
4. Little or no training
3. Pay/benefits
2. Hours/schedule
1. Poor communication/
coordination
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Three Top Factors of Caregiver Experience
That Are in Your Control
1. Communication
2. Training/Orientation
3. Recognition
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Communication From Your Office Staff
What caregivers are saying they want:
•To never go into a situation feeling unprepared
•Reliable support from the office staff during their shift
•To be kept in the loop immediately if anything changes
•To be treated as a member of the team, even if they rarely see the
rest of the team
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Communication From Your Office Staff
What you need to do:
•Communicate for relationships, not just logistics!
•Never cut corners on client introductions
•Embrace texting (individual and mass texting)
•Be accessible—caregivers should never be able to say that they
can’t get a hold of anyone from your office
•This may mean investing in better after-hours answering services or
making other arrangements
•If you miss a call from a caregiver, call them back ASAP—no exceptions
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What do caregivers want to get
out of their training?
•Caregivers across the board want more training
•Specifically, they want:
•More hands-on training in addition to online (we see this comment
constantly)
•Training that allows them to interact with other caregivers
•Progressing levels of training so that experienced caregivers can keep
growing
•Training for specific certifications
•More orientation when they start work
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Providing Recognition
•Public, formal recognition and private, spontaneous validation are
both needed
•Occasional texts or phone calls
•When a client says something great about them, pass it on!
•Consider occasionally giving out gift cards to reward outstanding
work
•Create a formal plan to ensure consistent, continuing recognition
for their work
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Priceless Product vs. Commodity
35.40%
31.50% 32.50%
65.70% 66.70%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
55.00%
60.00%
65.00%
70.00%
2016 2017 2018
Caregiver Turnover Rate Comparison
Agency A Caregiver Turnover Rate Industry Caregiver Turnover Rate
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Conquering Caregiver Turnover
Caregiver Engagement Score
7.6
7.1
7.7
6.0
5.7
5.9
4
4.5
5
5.5
6
6.5
7
7.5
8
2016 2017 2018
Agency A - Caregiver Engagement Score Industry Caregiver Engagement Score
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The True Cost of Caregiver Turnover
Agency A
2018
Industry
2017
Average Caregiver Wage $10.50 $10.50
Average Weekly Hours worked per Caregiver 30 30
% of annual wages to replace employee 16% 16%
Estimated Turnover Cost per Caregiver $2,621 $2,621
Average Number of Caregivers 123 123
Average Caregiver Turnover Rate 33% 67%
Estimated Total Annual Caregiver Turnover
Cost
$106,386 $215,996
$109,610 savings
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Conquering Caregiver Turnover
57.00%
48.60% 47.60%
36.00%
45.80%
61.60%
59.70%
65.70% 66.70%
30.00%
35.00%
40.00%
45.00%
50.00%
55.00%
60.00%
65.00%
70.00%
2014 2015 2016 2017 2018
Agency B Turnover % Industry Turnover %
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Conquering Caregiver Turnover
Caregiver Engagement Score
7.2
8.2
7.1
7.6
6.6
5.9 5.8 6.0
5.7 5.9
4
4.5
5
5.5
6
6.5
7
7.5
8
8.5
2014 2015 2016 2017 2018
Agency B - Caregiver Engagement Score Industry Caregiver Engagement Score
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The true cost of caregiver turnover
Agency B -
2017
Agency B - 2018 Industry
2017
Average Caregiver Wage $10.50 $10.50 $10.50
Average Weekly Hours worked per Caregiver 30 30 30
% of annual wages to replace employee 16% 16% 16%
Estimated Turnover Cost per Caregiver $2,621 $2,621 $2,621
Average Number of Caregivers 175 175 175
Average Caregiver Turnover Rate 36% 46% 67%
Estimated Total Annual Caregiver Turnover Cost $165,123 $210,991 $307,312
$45,868 $96,321
Savings/Costs
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Caregiver Turnover Cost Calculator
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Key Takeaways:
•Caregiver turnover is continuing to increase
•There are direct and indirect costs of caregiver turnover
•16% of annual wages-$2,600 per caregiver on average
•Three-pronged approach to what you can control (Voice of the
Caregiver)
•Communication
•Training
•Recognition
•Caregiver Turnover Cost Calculator
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Poll Question
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on how Home Care Pulse can give
you agency-specific insights to
reduce caregiver turnover?
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