Calculating the Cost of Turnover

 

The average cost of turnover for a home care organization with 50 caregivers is $86,710/year. Holy smokes Batman. For a small business, that is a LOT of money.

The above number is based on a couple of different numbers. The American Center for Progress estimates that for employees making less than $30,000/year, the cost of replacement is 16% of their annual income (see it in the formula below). The average percentage of turnover, according to the 2018 Homecare Benchmark Report, is 66.7%. So, depending on the rate of turnover for a company, that big number could get much smaller…. Or also much worse.

Here's how to calculate your yearly loss due to turnover:

Average yearly caregiver earnings x .16 x Your total number of caregivers x Your percentage of annual turnover = Annual cost of caregiver turnover

(*notice this formula does NOT include potential lost clients or hours related to lost caregivers)

The great news is that home care organizations don’t have to just accept this financial hit. Studies show caregiver turnover can be REDUCED by at least 20% with improved training programs. One specific training program feature, the ability to continue to access training content on demand, was linked to a 74% reduction in caregiver turnover. 74%!!!!

Of course, turnover isn’t only about training. There is turnover in every industry, and people will need to leave jobs from time to time no matter what. However, the availability and quality of training is one factor that businesses CAN control for, and research shows that this controllable factor can have a substantial positive impact on an organizations bottom line.

If you did the math and your turnover cost is higher than you'd like, let's set up a meeting. 15-20 minutes of your time to understand if my unique training program is a good fit to reduce your caregiver turnover by 30-75%.

In the meantime, I hope you, your family, your caregivers, and your clients are well.

Learn more at https://www.higherstandardscaregivertraining.com/pages/employee-transfer-training-solutions

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