Caregiver turnover costs the average agency $171,600 per year. Here's how to keep your best people.
The True Cost of Turnover
| Cost Category | Per Departure |
|---|---|
| Recruiting and advertising | $500–$1,500 |
| Interviewing and screening | $200–$500 |
| Background checks/onboarding | $150–$400 |
| Training (40–80 hours) | $800–$2,000 |
| Lost revenue (unfilled shifts) | $1,000–$3,000 |
| Client dissatisfaction/churn | $2,000–$5,000 |
| Total | $4,650–$12,400 |
With 65–80% turnover, an agency with 50 caregivers loses $150K–$500K annually.
Why Caregivers Leave
- Low pay (42%)
- Lack of hours/inconsistent scheduling (28%)
- Poor office communication (23%)
- No recognition (21%)
- Better opportunity elsewhere (19%)
The 90-Day Critical Period
50% of turnover happens in the first 90 days. Use this checklist:
- Day 1: Welcome kit, mentor assignment
- Day 3: Check-in call
- Day 7: Supervisor visit during first shift
- Day 14: Meeting with scheduler
- Day 30: Formal review
- Day 60: Skills check-in
- Day 90: Recognition + bonus
Compensation Strategies
Survey your market quarterly. Pay at or above 60th percentile. Benefits caregivers value most: 1. Health insurance 2. PTO (start at 40 hours/year) 3. Mileage reimbursement 4. Paid training 5. Same-day pay apps
Communication and Culture
Weekly scheduling notifications 1 week in advance. Monthly one-on-ones. Recognition programs: Caregiver of the Month, milestone celebrations, birthday recognition.
Scheduling Best Practices
- Consistent schedules — same clients, same days
- Geographic clustering — minimize drive time
- Advance notice — at least 1 week ahead
- Honor preferences — work around personal commitments
- Fair distribution — avoid favoritism
Take Action
Data based on industry benchmarks.